【User Tutorial】Spot Trading

What is spot trading?

In centralized exchanges, spot trading allows you to buy and sell cryptocurrencies using real assets at current market prices. Once both parties agree on the trade, the transaction is immediately completed and settled. This is similar to automated order matching systems in centralized exchanges, ensuring fast and efficient trading.

Advantages

• Easy to understand: Spot trading is straightforward, making it suitable for beginners to grasp quickly.
• Security: Cryptocurrency exchanges provide higher security and privacy protection for spot trading.
• Long-term investment: You can choose to hold cryptocurrencies for the long term and believe in their potential for appreciation.
• No time limit: Unlike derivative trading, spot trading has no time constraints, allowing you to trade freely.
• Market liquidity: Spot trading markets usually have high liquidity, making it easier to execute trades and obtain favorable prices.

Disadvantages

• Market volatility risk: Spot markets are highly volatile, with prices fluctuating rapidly, which may lead to investors losing funds in a short period.
• Inability to leverage: Unlike derivative trading, spot trading does not allow investors to amplify investment returns through leverage, limiting their ability to operate in the market.
• Demand exceeds supply: In some cases, demand for assets may exceed supply, leading to asset shortages in the market, which may affect price stability.
• Inevitable costs: Costs associated with trading include transaction fees, deposit and withdrawal fees, which directly affect investors' returns.

How to choose the right spot trading?

Before engaging in spot trading, keep the following key concepts in mind:

• Understand the purpose: Consider how you intend to use cryptocurrencies. For example, if you plan to trade or make payments, Bitcoin may be a good choice. If you're interested in participating in decentralized finance (DeFi), Ethereum may be more suitable.
• Small investments: Without in-depth understanding, you don't need to buy large amounts of cryptocurrencies at once. On DigiFinex, you can use small amounts of funds to buy small amounts of cryptocurrencies to try and understand the market.
• Diversify investments: While each cryptocurrency has its specific use case, consider diversifying your investments across multiple cryptocurrencies to reduce risk.
• Timing of purchase: Choosing the right time to buy requires careful consideration, depending on various factors such as market conditions and personal financial situation. Stay calm and avoid being influenced by hot topics on social media or short-term volatility.

How to conduct spot trading?

1. Before trading, make sure you have sufficient cryptocurrencies in your spot account.
   For example, if you want to trade the BTC/USDT trading pair, check that your spot account holds USDT.

2. Select the desired cryptocurrency to trade, where you can view currency information, charts, and trading depth.
   
3. Click "Buy" or "Sell" and choose between limit orders, market orders, or planned orders.
4. Enter the quantity you want to buy in the currency or asset percentage bar.
5. After clicking "Buy," you can see the order details of the current order, and once the order is executed, the purchase is completed.
   

What should I do if I encounter problems during spot trading?

Click here to contact the DigiFinex customer service

Please be vigilant against fraudulent customer service:

• Do not provide account passwords, SMS, Google verification codes, WeChat, or bank card passwords to anyone, including DigiFinex customer service.
• Please recognize the official website: DigiFinex.com.
• Do not click on unofficial links at will to prevent computer viruses and information leakage.
• DigiFinex exchange staff will not ask you to transfer payments.