Trading crypto
Spot trading
3 min
Spot trading is the simplest and most fundamental way to trade crypto: you buy or sell the actual asset for immediate delivery, at the current ("spot") price.
How it works
When you buy 1 ETH on the spot market, you own 1 ETH. You can hold it, move it to your own wallet, send it, or sell it later. You only ever risk the money you put in — there is no borrowing involved.
Why spot is the right starting point
- No leverage, no liquidation: the worst case is that the asset's price falls; you cannot lose more than you invested, and no position is force-closed against you.
- You truly own the asset: you can withdraw it to self-custody, which is impossible with the derivative products covered next.
- Simplicity: fewer moving parts means fewer ways to be caught out while you learn.
The cost and the real risk
You still pay trading fees, and on a centralized exchange your funds carry that exchange's custody risk while they sit there. But the defining risk of spot trading is simply volatility: crypto prices can fall a great deal, and a long-term holder must be able to withstand large drawdowns. Spot trading removes the amplified dangers of leverage, but not the fundamental volatility of the asset itself.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.