A Comprehensive Guide to Spot Trading with MEXC
MEXC is a Seychelles-registered controlled cryptocurrency exchange that was founded in 2018. Its fame has increased since its founding. It is a cryptocurrency exchange with over 10 million users dispersed across more than ten countries, and a strong feature set that meets the needs of a diverse range of traders.
MEXC stands out for having a large selection of over 2,000 cryptocurrencies, 1,500 trading pairs, and affordable trading costs. The exchange provides support for many payment methods, a user-friendly interface, and robust security measures. If someone wants to trade cryptocurrency, MEXC is a dependable choice. MEXC offers a range of trading options, including OTC, futures, margin, ETF, and spot trading.
WHAT IS TRADING IN CRYPTOCURRENCY ?
Buying and selling digital assets with the intention of profiting from the fluctuating value of the underlying asset is known as trading in cryptocurrencies. As an example of a platform you can use for trading, consider cryptocurrencies. The MEXC platform is one such exchange that has distinguished itself over time as one of the most reliable exchanges available. Among other things, MEXC provides multi-currency support, high performance, high liquidity, localized language support, and safety and stability. If you are unfamiliar with MEXC, kindly sign up and explore the platform’s details by visiting this page.
WHAT IS SPOT TRADING?
When it comes to cryptocurrencies, spot trading is the act of purchasing or disposing of them at the going rate for instantaneous exchange. The phrase “spot trading” refers to the settlement, or the “on-the-spot” transfer of assets and money. When you trade spot, you use your own funds to purchase the asset. This implies that the amount you can purchase is limited to what you can afford. It is regarded as somewhat safer than other trading kinds as a result. Generally speaking, the goal of spot trading is to purchase assets at a discount and sell them for a premium.
How can I spot trade cryptocurrency on MEXC?
Over 10 million users from more than 150 countries utilize MEXC, making it a significant user base. More trading pairs are always being added to the nearly 2000 that are now available on MEXC Spot. To properly manage their portfolios, users can make use of a range of orders during trading.
The benefits of spot trading on MEXC are numerous. Because there are currently no spot trade costs and the site is safe and easy to use, trading is completely free. With MEXC, you can trade without completing KYC verification; all you need to do is sign up with your email address to get started. It is important to remember that you must have at least $5 in your spot wallets in order to begin spot trading on MEXC.For iOS and Android users, go to your application store and download the MEXC app. Open the MEXC app after downloading it, then tap the user icon. Next, press [Sign Up].
· To complete the sign-up process, choose your preferred security verification method. You may use your current email address or mobile number.
· Please enter your email address or mobile number before creating your account password, based on your preference. The referral code field is not required. Please be advised that you must establish a password with medium to high strength in order to proceed with the sign-up process.
· You will get a pop-up window after selecting [Sign Up]. The captcha in the pop-up window has to be finished. After completing the captcha, the system will send you a verification number via email or mobile phone, depending on which sign-up option you selected. Once you have submitted the verification code, your account creation is complete.
After logging into the MEXC app on your smartphone, find the trade area by navigating to it. The MEXC spot interface is depicted in the image above.
Let’s discuss a few of the MEXC spot interface’s fundamental characteristics.
THE MEXC SPOT MARKET.
MEXC has a lot of assets for you, the spot market can be assessed by Navigating the bottom to click on markets and select spot.
The majority of the assets on the MEXC spot market are linked to other digital assets, such as BTC, USDT, and USDC, as well as stable currencies. Stable currencies including TUSD, USDT, BUSD, and USDC are available in MEXC.
MEXC accepts cryptocurrencies from a number of networks, including optimism, metaverse, arbitrium, NFT, AI, and proof of work assets.
CRYPTOCURRENCY PAIRS:
The base is the first listed currency in a pair, and the quotation is the second listed currency that serves as the benchmark.
For instance, ETH/USDT. The base asset are ETH, and the quote asset is USDT.
Only when there is enough quote currency and you are selling a base currency can you make a buy.
As an illustration, suppose you have: BTC/USDT
This indicates that you are using USDT assets to purchase Bitcoin. Additionally, it will automatically sell your Bitcoin and provide you the USDT value when you sell this asset.
If you possess BTC / ETH , it indicates that you are buying Bitcoin using Ethereum and selling Ethereum to Bitcoin assets when you sell. The same is true for the other MEXC trading pairs.
In what way do you earn money?
Assuming, I place an order to acquire $1,000 USDT in Bitcoin at a current market price of $20,000. On the trading platform ,connecting with another trader, who offers to exchange their BTC for USDT at the specified rate.
If my order and that of the trader has been filled , the order will be completed and executed immediately. I will receive 0.05 BTC and the trader will receive 1000 USDT.
First case: If I decide to sell my asset and the price of Bitcoin has increased to $21,000/BTC after a day, I would have made a profit of $50 USDT because my would be valued at roughly 1,050 USDT.
Second scenario: It would be worth roughly 950 USDT if I decided to sell my BTC assets and the price of bitcoin dropped to $19,000 per unit after a day. $50 will be lost .
NOTE: The trading fees (taker and maker fees) are not shown in this example. The order type you choose could have a little impact on the actual results.
Asset Trading zones on MEXC Spot Trading.
Main Zone:
These are the areas with the established assets. These are mostly well-known cryptocurrencies with more elaborated projects, higher market caps, and higher trading activity. Among the tokens that are most commonly found in the Main Zone are BTC, ETH, XRP, SOLANA, and MX. Asset in the main zone are paired with stable asset like USDT and USDC and other asset like BTC AND ETH.
Innovation Zone:
This area is home to new and developing projects. When compared to the Main Zone market, assets traded in the Innovation Zone often exhibit higher risk and more fluctuating values. Prior to trading in the Innovation Zone, it is best to exercise caution and conduct a thorough investigation. In the Innovation Zone cryptocurrencies are paired to stable assets such as USDT, USDC, BUSD AND TUSD. Also there are being paired to assets such as ETH AND BTC.
Assessment zone:
Most of the projects in the Assessment Zone are not first listings, even if they are still in the early phases and have been recommended for listing by the community. A minimum user base criterion must also be met by these projects. It might still be necessary for the Assessment Zone to hold off and conduct market research on a few preliminary concepts. Token values in this zone can be very volatile, thus users are advised to exercise caution and be aware of potential delisting issues when acquiring at a high price. Both Bitcoin and stable assets are present in the assessment zone. Only Bitcoin is coupled with USDT and USDC.
In the event that the project performs well ahead of schedule during the review, MEXC will move it from the Assessment Zone to the Innovation Zone. Your assets and you are taken care of by MEXC.
Funding your spot wallet.
Add your own funds to the MEXC spot account, or purchase USDT, USDC, BTC, ETH, and other currencies. Peer-to-peer and other online payment methods are available for these assets through MEXC, depending on your country.
By providing the relevant wallet address and network, you can deposit money to your MEXC spot account from another decentralized or centralized exchange.
Additionally, money can be moved from your futures wallet to your spot wallet.
Additionally, you can go to your wallet, and decide which specific cryptocurrency you wish to deposit from a different exchange. To prevent asset loss when using this method, you must exercise caution when transferring from and to the wallet address and network.
Your funds will be shown in the your spot wallet once MEXC approves the transaction.
You can deposit BTC, ETH , and so on .
Order book for MEXC spot trading.
An order book can be used to gauge a market’s depth. For the cryptocurrency you have selected, it displays a real-time list of all open buy and sell orders. Two sides make up the order book:
The sell side, indicated by the red portion, shows all open sell orders that are higher than the most recent transacted price. An “ask” is the amount that is being asked to be sold for.
The purchase side, shown by the color green, shows all open buy orders below the most recent price that was transacted. We call offers made by buyers “bids.” You can purchase cheap and sell high thanks to this.
Spot trading orders for MEXC.
The MEXC platform offers three different types of orders for purchasing or selling assets: limit, market, and stop limit orders.
Limit order: A limit order is an instruction to buy or sell something at a specific limit price.
For example, if MX assets are trading at 2.20 USDT and you want to buy 100 MX assets when the price drops to 1.5 USDT, you can put in a limit order.
Select Limit Order and put 1.5 USDT and 100 MX in the price and amount sections, accordingly. Click Buy MX to start your order.
Market order: An order to buy or sell at the best price currently available in the market is referred to as a market order.
You can execute a market order, for example, if MX is now trading at 2.2 USDT and you want to purchase MX for 1,000 USDT immediately.
Guidelines:
Click Buy MX after selecting Market purchase, entering 1000 USDT in the amount box, and completing the transaction. The order will often be filled in a few seconds. Market order: An order to buy or sell at the best price currently available in the market is referred to as a market order. You can execute a market order, for example, if MX is now trading at 2.2 USDT and you want to purchase MX for 1,000 USDT immediately.
Stop limit order: A stop limit order is an instruction to buy or sell at a limit price when the market hits a given trigger price.
For example, if you think the stop price will rise to 4.0 USDT before breaking through, and the market price of MX is currently 2.2 USDT, you can sell when the price reaches 3.5 USDT.
AN ILLUSTRATION TO THE VARIOUS ORDER TYPES ON MEXC SPOT TRADING.
In this article I will be using my MEXC mobile application to illustrate the different trading orders and how to use them.
I will be using $35 in my spot wallet make the illustrations.
The minimum deposit is $5 for MEXC spot trading , which is cheaper compared to other platforms and I will be using MX/USDT asset pair for this activity.
MARKET ORDER:
In market order , this means I want to buy at the current market price. I have $35.8 in my spot wallet and the price of 1 MX asset is 2.8816. That means I will be getting at least 12.4 MX asset , the quantity is dependent on the process fluctuation .
SELL ORDER: If I decide to sell my MX asset , from the spot interface I will click on sell and my order will be filled instantly.
Clicking on the sell button, I have 12.43 MX asset, I have selected my total MX asset and click on sell.
LIMIT ORDER:
This type of order will allow me to buy or sell a particular crypto asset at a specified price.
BUY ORDER: The current price of MX Asset is $2.8784 , I will set a limit order to purchase at $2.8779.
This order will be kept as an open order until price has reached the specified price I imputed for a buy.
SELL ORDER: Once I have purchased my MX asset at a specified price i want , I can also set a price to sell my asset in other to make a profit .
The key to a successful trading is to buy low and sell high.
SPOT LIMIT ORDER :
This type of order combines a stop order and a limit order known as a stop-limit order. This order is to buy or sell a asset at the stop price, or at a higher price, but only if the price hits or exceeds the limit price.
BUY ORDER: If from my analysis the price of MX asset looks bullish and I want to use a stop limit order To achieve this, I will place a buy stop limit order choosing $1.5 as a trigger price and $1.8 as limit price for 19.89$MX tokens worth $35.8. If the price of $MX reaches or goes beyond $1.5, the buy stop limit order will be triggered creating a buy limit order for 19.89$MX tokens at $1.8 per token.
SELL ORDER: This sell order allows me to secure my profit and minimize loses. Placing a sell stop limit order for 12.37 $MX setting the trigger price as $3.6 and the limit as $3.5. If the price of $MX falls to or goes below $3.6, it triggers the sell stop limit order thereby creating a sell limit order for 12.37$MX tokens at $3.5 each. This is helpful in protecting his profits against sudden drops in the market price of $MX.
MEXC celebrated its fifth anniversary and showed its appreciation for all of its customers by waiving all trading fees for all spot trading pairs (apart from ETFs) on April 1st, 2023. This deal applies to all spot trading pairs on MEXC. Become a member of MEXC immediately to take advantage of reduced fees and faster trades with the most secure cryptocurrency trading platform.
You should note that:
- Both maker and taker fees are available in spot trading.
- Orders that match the pending orders in the market and can be executed instantly are known as makers.
- If an order doesn’t have a matching order available in the market, it becomes a taker and must wait to be filled.
In Summary
Spot trading involves dollar-cost averaging and waiting for bull markets. However, patience is key in the volatile crypto market. Risk management and thorough investigation are essential before trading. Considering individual risk profiles and market conditions, traders must be knowledgeable and cautious when choosing assets for spot trading.
