Sp Cefi

Spot trading in crypto refers to buying and selling cryptos for immediate settlement, as opposed to trading derivatives or futures contracts. It is the most common type of trading in the crypto market today that beginners like to work with.

Margin trading is a tool that exchanges offer to allow traders to trade bigger positions than they can buy with the capital in their account. The exchange or brokerage provides additional capital to trading accounts, amplifying their buying power with the ability to take bigger positions, traders can make bigger profits (and losses) with margin trading. The borrowed money is repaid after the trade, while the trader enjoys the profits of the trade in full.

Futures trading in crypto involves the buying and selling of contracts that obligate the buyer or seller to purchase or sell a crypto asset at a predetermined price and date in the future. This means that traders can speculate on the price of the asset without actually owning it.

Lending A crypto loan is a collateralised loan that one can get from a crypto exchange or some crypto-lending platform. The crypto loan functions similarly to a mortgage or a car loan, where you use car or house property as collateral, whereas in this case, you use your cryptocurrency to secure your loan funds

Mining refers to the process of validating and recording transactions on the Blockchain network. The primary purpose of mining is twofold: validating transactions to prevent fraud and adding new blocks to the blockchain, thereby creating new coins in a decentralized manner.

Options Trading Similar to cryptocurrency futures contracts, the value of options contracts is tied to that of the underlying asset. Options are derivatives that allow traders to buy or sell the asset at a pre-established price on a future date

Perpetual contract is a crypto futures contract without an expiry date. Like a futures contract, a perpetual contract is a derivative that derives its value from the underlying crypto asset. Contract is a derivative that derives its value from the underlying crypto asset.

Last updated