Day 5 – What is Spot Trading?

📈 The safest and most common way to trade crypto.

Spot trading means buying or selling a cryptocurrency at its current market price and owning it instantly.

Example:

You buy Bitcoin with $USDT on Binance

The $BTC is added to your wallet immediately

You can sell it later when the price increases

In spot trading:

• There is no leverage

• No borrowing of funds

• Lower risk compared to futures or margin trading

This makes spot trading ideal for beginners who want to learn without taking high risks.

Why spot trading matters:

• It helps you understand price movements, market behavior, and basic trading psychology.

Key Takeaway:

👉 Spot trading = simple buy and sell with full ownership of assets.

Follow this series to master spot trading step by step on Binance.

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