Spot Trading
trading-basics
What it means
Buying or selling a cryptocurrency at the current market price for immediate settlement. When you spot trade, you own the actual cryptocurrency, not a derivative contract.
Example
If you buy 0.1 BTC at $60,000 on a spot exchange, you now own that 0.1 BTC and can transfer it to your own wallet.
Mistake beginners make
Beginners confuse spot trading with futures/derivatives trading. Spot is simpler: you buy actual crypto. Futures use leverage and can result in liquidation.