Spot trading is one of the simplest ways to engage with cryptocurrencies, allowing users to trade digital assets at the current market rate for immediate ownership. This guide will take you through the essentials of spot trading on the XT, highlighting key differences between spot and futures trading, along with actionable steps to get started. We’ll also explore the benefits of spot trading, especially for those looking to avoid the complexities of leveraged trades. We will also show you how to do XT spot trading.

Table of Contents

What is Spot Trading?

What’s the Difference Between Spot Trading and Futures Trading?

Benefits of Spot Trading

How to Start Spot Trading on XT?

What is Spot Trading?

Spot trading is a straightforward method of buying and selling assets in real-time at the current market price, or limit price. In spot trading, assets are exchanged instantly, like BTC/USDT, ETH/USDT and XT/USDT, meaning the buyer immediately owns the asset after the purchase, and the seller receives payment right away. This method is popular in financial markets, including cryptocurrencies, stocks, and commodities, as it allows for quick transactions without contracts for future dates.

Spot trading can occur directly between traders, but transactions are usually facilitated by an exchange like XT.com.

What’s the Difference Between Spot Trading and Futures Trading?

Feature	Spot Trading	Futures Trading
Definition	Immediate buying and selling of cryptocurrencies at the current price.	Agreements to buy or sell cryptocurrencies at a set price on a future date.
Ownership	Buyers instantly own the cryptocurrency after the trade.	Ownership is transferred only at the contract’s expiration.
Settlement	Instant; cryptocurrencies are transferred immediately upon purchase.	Future settlement; transfer occurs on the agreed-upon expiration date.
Pricing	Based on the current (spot) market price.	Set price in the contract, which can vary from the current spot price.
Risk Level	Lower risk due to instant settlement but still impacted by market volatility.	Higher risk due to price fluctuations until expiration, often involving leverage.
Leverage	No leverage; traders pay the full amount upfront.	Often high leverage is available, allowing traders to control larger positions with less capital.
Purpose	Ideal for buying and holding cryptocurrency immediately.	Used for speculating on price changes or hedging against market risks over time.
Example Use	Buying Bitcoin to hold in a wallet.	Speculating on the future price of Ethereum or hedging against Bitcoin’s price drop.

Benefits of Spot Trading

Simple and Transparent: Spot trading is straightforward, with transactions occurring at the current market price. This transparency helps traders understand exactly what they are buying and selling without complicated terms.

Lower Risk: Spot trading typically involves less risk than leveraged futures trading. With spot trading, you are less exposed to forced liquidations and margin calls.

Immediate Ownership: In spot trading, you instantly own the cryptocurrency upon purchase. This is ideal for investors who want to hold assets in their wallets and control them directly.

How to Start Spot Trading on XT?

In this example, we’ll explore:

• The XT Spot trading interface.

• How to buy BTC USDT with a limited order on XT.

• How to sell BTC USDT with a market order on XT.

The XT Spot trading interface.

1. Log in to your XT account and find [Trade] – [Spot].

2. You will be redirected to the XT trading interface.

3. On the left side is the trading chart of the selected trading pair. In this example, BTC/USDT

4. Hover over the trading pair name in the top left corner to open the trading pair list on the left side. This list displays all available trading pairs on XT, and you can use the search feature to locate specific pairs easily.

5. The order book is located on the right of the trading chart, displaying sell orders (Maker) in red and buy orders (Taker) in green.

6. To the right of the order book is the trade history panel, which dynamically shows the most recent trades, including time, price, and quantity. Red entries represent sell orders, while green entries indicate buy orders.

7. On the far right side of the screen is the action panel, where you can place buy and sell orders.

8. Open orders, order history, and trade history are displayed at the bottom, where you can review current holdings and past order details.

9. In the lower right corner, you’ll find the Assets panel, where you can manage deposit, transfer, and withdraw functions. This section also displays the balance of relevant cryptocurrency in your wallet. In this case, BTC and USDT.

How to buy BTC USDT with a limited order on XT?

1. On the trading section, select either a Limit or Market order. Here, we’ll use a limit order as an example. A limit order lets you set a specific price for your trade (which can differ from the current market price), while a market order aims to execute immediately at the current available price.

2. Enter the price and amount you wish to purchase, then click the Buy button to place the limit order.

3. An order confirmation box will appear in the center of the screen, displaying details such as the trading pair, order type, order price, amount, total price, and estimated fee. Click Confirm to finalize the order.

4. You can monitor your open orders at the bottom of the trading interface. Use the buttons on the right to edit or cancel an order if needed. In this case, if BTC reaches your specified order price, your order will be executed.

How to sell BTC USDT with a market order on XT?

Creating a sell order follows a similar process. Here’s how you can sell your BTC USDT using a market order in this example.

1. Choose your order type, set the amount, and click [Sell BTC].

2. Enter the amount of BTC you wish to sell, then click Sell BTC to complete the order.

Closing Thoughts

Starting your cryptocurrency trading journey is made easy with the straightforward and accessible approach of spot trading. XT Spot, with its intuitive interface, competitive fees, and robust liquidity, is an ideal platform for both new and experienced traders alike. Whether you’re looking to make your first crypto purchase or manage a diversified portfolio, XT Spot provides a seamless trading experience to help you achieve your goals in the dynamic world of crypto.

About XT.COM

Founded in 2018, XT.COM now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM crypto exchange supports a rich variety of trading, such as spot trading, margin trading, and futures trading together with an aggregated NFT marketplace. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.