Spot Trading Guide By BitKan Crypto Exchange
Learn how to get started on trading cryptocurrency in less than 2 minutes!
What Is Spot Trading?
Spot trading involves directly purchasing or selling cryptocurrencies in a spot market. A spot market is a financial market open to the public where assets trade immediately. A buyer purchases an asset with fiat or another medium of exchange from a seller. Delivery of the asset is often immediate. Spot trading offers a simple way to invest and trade. With crypto investing, your first experience is likely to be a spot transaction in the spot market. An example is buying Bitcoin (BTC) at the market price and hoping it will rise in value. You can sell your assets later on in the spot market for a profit when the price increases.
It is worth noting that you have a variety of options other than simply purchasing Bitcoin with USDT with the trading pair BTC/USDT. An example is the LTC/BTC trading pair, where BTC is the base coin and LTC is the target coin. As a result, buying LTC/BTC is equivalent to buying LTC with BTC, and selling LTC/BTC is equivalent to selling LTC for BTC.
How To Spot Trade?
We will use the LTC/BTC pair as an example to explain the operation of buying and selling coins through Spot Trading.
Step 1. Prepare Spot Trading Wallet With Coins
● Find out how to buy cryptocurrency with fiat currency
● Find out how to deposit coins onto BitKan
Step 1A. Transfer Coins from BitKan General Wallet to Bitkan Spot Trading Wallet
Click on [Wallet] at the bottom right of the APP. Next, click on [Transfer] which is located in the middle. This is the page where you can select which coin you would like to transfer from your BitKan General Wallet to your BitKan Spot Trading Wallet. Moving on, enter the amount you would like to transfer, and click [Transfer] to proceed accordingly.
Step 1B. Head on to Spot Trading section
Click on [Trade] at the bottom right of the APP. Next, click on [Spot] which is located at the top left of the screen. This is the page where you can begin to spot trade.
Step 1C. Search for LTC/BTC Trading Pair
Click on the search function on the top left of the screen beside the current trading pair (E.g. BTC/USDT), and enter the keyword “LTC” in the search box. Next, select your desired trading pair, which is LTC/BTC in this case.
Step 1D. In this section, you can choose to Buy or Sell. If you intend to buy, simply input your limit order, enter the amount you would like to buy and click [Buy LTC]. If you intend to sell, the process is similar. Simply input your limit order, enter the amount you would like to sell and click [Sell LTC].
There are 4 types of parameters you can customise:
● Limit Orders: set a price at which you want to buy/sell, and when the price reaches the preset price, a buy or sell operation is executed.
● Market Orice Orders: quick buy or sell at the current market price.
● Iceberg Order: Iceberg orders are large orders split up into a series of small limit orders. Typically, they are placed in this way to avoid disrupting the market with a single large order. Hence, this parameter automatically split the large single order into multiple orders. Next, it automatically performs small single orders according to the latest buy/sell price and the price strategy set by you.
● Stop Profit and Stop Loss: when the latest market price reaches the trigger price, the system will automatically lower the order price and quantity according to your pre-set order price.
To view the coin’s past transaction information, click on [History] on the bottom right corner of the APP.
Advantages of Spot Trading:
Prices are transparent and rely only on the supply and demand of the spot market. A spot market is different from a futures market, which often contains multiple reference prices. As a result, spot trading is more straightforward and accessible, especially to beginners. It has easy-to-understand rules, rewards, and risks. When you invest on the spot market, you can easily calculate your risk based on your entry and the current price. Furthermore, you can enter and exit a trade whenever you want. Unless you intend to make short-term trades, there is no need to constantly check on your investment.
Congratulations! You have learned more about spot trading and how to complete your first spot trade on BitKan!
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Benefits of BitKan Cryptocurrency Exchange:
- Receive the most recent daily news within the community
- Trade 1200+ coins across 8 exchanges with 1 BitKan account
- Use custom price alert and portfolio tracker at your fingertips
- Start a Spot, Futures, Automated Bot Trade, BitKan Earn & more
- Served 10+ million users in 170 countries with 9 years of experience
- Discover the latest events, coins & enjoy the best prices on Web & APP
- 8 Partner Exchanges Include Binance, OKX, Bitfinex, Gate.io, Huobi, MEXC, Poloniex, and Bit.com.
- Based in Singapore and Japan, BitKan holds the Digital Asset Exchange License from the Financial Services Agency of Japan.
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