1. What is Spot Trading
- Spot trading is a financial activity characterized by its reliance on blockchain technology, using cryptocurrencies as intermediaries to exchange assets globally. This mode of trading involves using one cryptocurrency as a means of payment to acquire another cryptocurrency. For instance, one can use Bitcoin to purchase Ethereum or exchange Ethereum for Bitcoin. This trading model facilitates the liquidity of digital assets, enabling traders to flexibly adjust their investment portfolios based on market fluctuations. In the current digital asset trading landscape, it's common to purchase stablecoins (e.g., USDT) anchored to fiat currency values using traditional currency. These stablecoins are then utilized as benchmarks for trading various cryptocurrencies, providing users across the globe with a convenient and efficient means of exchanging digital assets.
2. How to Place Orders in Spot Trading
Below are the steps to place orders in spot trading on Astral:
- Login to Your Account: Open the Astral app and log in to your account. Click on "Assets" to ensure your "Spot Account" contains sufficient funds for trading.
- Select Trading Pair: Click on "Trades" - "Spot" and choose the crypto pair you wish to trade. For example, if you want to buy Bitcoin, you can select BTC/USDT or BTC/ETH trading pairs.
- Choose Trading Type: Select the trading type you want to use. Typically, you can choose between market order or limit order. Market order executes at the current best market price, while limit order executes at a specified price or better. Limit order will only execute if the market price reaches your specified price or better.
- Input Order Information: Input the price and quantity of crypto you wish to buy or sell.
In limit order, set the desired limit price and quantity for buying or selling.
In market order, input the quantity you want to buy or sell.
- Confirm Order Information (Using BTC as an Example): Before submitting the order, carefully review the information you input. If the details are correct, click the "Buy BTC" or "Sell BTC" button. If any information is incorrect, return and make the necessary changes.
- Wait for Order Execution: Your order will be placed in the exchange's order book, waiting for execution. Market order will be executed immediately, while limit order might take some time to execute, waiting for the market price to reach your specified price or better.
- Order Status: You can check the order execution status in your crypto order history.
- Completion of Execution: Once your order is executed, you'll see the corresponding asset balance in your crypto account.
In addition to spot trading, Astral also offers various business line products including futures trading and stable trading. If you would like to learn more about the details, you can click on the following tutorial link.