Spot Trading Introduction

1. What Is Spot Trading?

Cryptocurrency spot trading refers to the buying and selling of cryptocurrencies between two parties
at the current market price.

For example, in the BTC/USDT trading pair, the price represents
the amount of USDT required to buy or received from selling 1 BTC.

2. Key Features of Spot Trading

• Requires holding cryptocurrencies
  Spot trading follows the principle of immediate settlement,
  where the transaction aims at the transfer of asset ownership
  and is completed through actual delivery of the digital asset.

• No physical assets involved
  Traders do not buy or sell physical assets;
  all transactions are conducted in the form of cryptocurrencies.

• No expiration, suitable for long-term holding
  Cryptocurrencies purchased can be held in anticipation of price appreciation
  or used to acquire other tokens with potential growth.
  There is no forced liquidation or expiration requirement.

• Order matching mechanism
  Market prices are determined by supply and demand,
  and prices can be verified at any time through the market,
  ensuring openness and transparency.

3. What Is a Trading Pair?

A trading pair refers to two digital assets that can be exchanged with each other.

For example, BTC/USDT means
using USDT to buy BTC, or selling BTC in exchange for USDT.

4. What Are Maker and Taker?

• Maker (Liquidity Provider / Placing Orders)
  If the buy price is lower than the best ask price (Ask1),
  or the sell price is higher than the best bid price (Bid1),
  the order will not be executed immediately and will be added to the order book,
  thereby increasing market depth.
  Such orders are referred to as Maker orders.

• Taker (Liquidity Taker / Executing Orders)
  If the buy price is equal to or higher than the best ask price (Ask1),
  or the sell price is equal to or lower than the best bid price (Bid1),
  the order will be executed immediately,
  thereby reducing market depth.
  Such orders are referred to as Taker orders.