Blockchain and Cryptocurrency Beginner - Spot Trading on Crypto Exchanges

Performing spot trading is quite a straightforward process. On Binance, it is really easy to do because of Binance focus on ease of use and user experience. To spot trade on Binance,

• First go to the Binance exchange website and log in to your account
• Select the wallet tab section and choose "Fiat and Spot”

• On the Spot wallet page, locate the cryptocurrency you want to spot trade
• After that, click on “Trade” and locate the pair you want to trade with. For me, using a stable coin trading pair is good. For this demo, we will use USDC pair.

Buy

• Once in the exchange market, you have two main options, either to use the limit order or market.

• Using the limit order is a good way to go because you set your own buy and sell price and it only gets filled when your set price is reached.

• Select the limit order tab, input the price you want to buy, input the amount of coins you want to buy, you will see the total amount of USDC needed to buy the coin. If you select 100% it means that all your USDC will be used to buy ADA… you can use any percentage you want or input it manually.

• If the coin hasn’t reached that price, it will be added to open orders section, waiting for the price to reach so the order will be filled. However, if the price is the current price, it will be filled immediately, so it depends on your trading choice.

• After that, click buy ADA

Sell

• The same process to sell your coin

• On the sell ADA side, input the price you want to sell at and the amount of coins you want to sell, you will see the total amount of USDC you will receive once the coin is sold.

• If you select 100% it means that all your ADA will be sold for USDC… you can use any percentage you want or input it manually.

• If your imputed sell price hasn’t reached, it will be added to open orders section, waiting for the price to reach so the order will be filled. However, if the price is the current buy market price, it will be filled immediately, so it depends on your trading choice.

• Using the market is much easier but it means you only buy or sell based on the current price. This is only needed if you want to buy a coin or sell a coin immediately without wasting time.

• To do this, click on market tab, and all you need to do in the buy or sell section is to input the amount of coins you want to buy or sell and it will be filled immediately based on the current price.