Hello traders. In this video, I explain to you about the Spot, Margin, and P2P markets in BINANCE. Many new users, after registering on the Binance website, do not know how to start and which market to choose on this crypto exchange. This video will just tell and show you what and how to do, and explain about all the markets of this exchange differ from each other. Getting started!
Binance Spot Market
A Spot crypto market is a market with special conditions for settlement of deal between traders. And all orders in this market are called cash or Spot. Such a market is characterized during the conclusion of the deal by the instant occurrence of property rights. This is precisely the main distinguishing feature of trades in the Spot market.
Prices in this market show the current and most real situation. By tracking the movement of these prices, you can quickly (though at a risk) understand the main trends that exist on the trading platform. On BINANCE, after registering and opening an account, you are already in the Spot market by default and you have all the settings for the Spot market as well.
Simply put, the usual buying of bitcoin in the pair BTC_USDT, without the use of leverage and contracts, this is just the Binance Spot market. In terms of security, this is the least risky type of trade. Even having bought a cryptocurrency and watching it fall, you can calmly wait for the asset to grow back – while waiting, you became an investor.
Binance Margin Market
No matter how much the price drops, it will never liquidate you – that is, the deal will not close itself if you did not place Stop Loss. But on the cryptocurrency margin market, everything is different. A market is called marginal if the deal is conducted on it with borrowed money. Funds are provided to the trader on credit secured by a margin – the agreed amount.
The margin differs from a regular loan in the amount received, which is several times larger than the size of the collateral. Crypto margin trading offers users more money at their disposal for trades. As a result, the trader earns more. For example, you want to open a deal with 10,000 USDT, with a leverage of 10: 1 (x10), then you need to have on the account 1000 USDT of your money.
The deals can be opened both for buy and for sale. Even in a falling market that margin trading allows a trader to earn large amounts. The main disadvantage and risk is the large losses compared to the Spot market. For example, if you opening the deal with 10,000 USDT and give a pledge of 1,000 USDT of your money, even a slight deviation in the price will lead to the loss of most of the deposit.
P2P Binance Market
P2P market is another market and way to trade cryptocurrency. It is a decentralized, peer-to-peer platform based on user equality. P2P trade BINANCE offers to carry out transactions directly between all participants of the platform. At the same time, the guarantee of transactions is the Binance exchange itself.
You can buy or sell digital money directly to other traders, without having to traditional trade. Now and especially earlier, platforms and forums were popular where traders could find other people and exchange cryptocurrencies. But since there are risks on both sides, a guarantor is needed – a special website through which all these transactions will take place.
Binance just offers such a service. The main difference and advantage of P2P trading from the Spot market is that you can agree to buy a crypto at a lower price, and sell it at a higher price, respectively. And there is also the opportunity to transfer money to another person on a bank account or card, and get cryptocurrency on your account instantly and with a small commission.
I just was explained to you about the Spot, Margin, and P2P BINANCE markets. You have learned their differences and how to trade on these sites. In addition, botcryptotrade.com has a separate article and video about the Binance futures market, which can be viewed on the corresponding page. The video is finished and I waiting for you in my next video releases.