Cryptocurrency trading has many variations depending on the tools you use for it, from spot markets to challenging futures derivatives. They all imply buying and selling cryptocurrency at different prices and generating income, but, for example, futures trading refers to price forecasting and speculating; margin implies borrowing funds, etc.
When you buy coin crypto for the first time in your life, you need to begin with something easy and less risky. For example, invest in popular crypto assets and hold them long term, waiting for market growth. How to take this first step? The answer is spot trading.
What is Spot?
The name speaks for itself – you pay money and receive needed coins on the spot. That means immediately depending on the speed of exchange. Why do we call it the best trading option for a beginner trader? The fact is that spot market trading implies lower risks compared with such advanced tools like futures or margins, where you need to predict the next market movements and borrow funds.
Spot implies buying and selling cryptocurrency with your own money. Then you can hold them long-term and sell them at a higher price when the market grows.
Here are reliable exchanges for spot trading:
- Coinbase
- Kraken
- WhiteBIT
- Binance
They all charge different fees for spots. We recommend using the WhiteBIT exchange, for it offers an average fee of 0.10%, which may vary for some products but does not exceed 0.10%.
WhiteBIT is the largest crypto exchange in Europe, operating in over 100 countries and having over 2 million registered users. It is a centralized platform that follows all the rules in the crypto field. WhiteBIT implements several layers of protection for clients’ accounts and stores funds securely (96% of the money is always offline). The exchange also has an insurance fund supplemented by user fees.
Once you buy coins on the spot market, you may hold them long-term on your account or try to trade using intraday, scalping, or swing methods. Learn more about these trading methods on the WhiteBIT blog.
