How to Trade Spot on Binance? A Complete Guide to Buying and Selling

Spot trading is the most basic method of trading cryptocurrencies, which simply means exchanging one coin for another. For example, you use USDT to buy Bitcoin, and then sell it back for USDT after Bitcoin goes up; the price difference is your profit. The spot trading feature on Binance is very powerful, yet it is also easy for beginners to get started. Before you start trading, you first need to register an account on the Binance official website, and then install the Binance official app. Apple users can check the iOS install guide for installation methods.

What is Spot Trading

Spot trading means buying and selling cryptocurrencies immediately. Similar to stock trading, you buy a coin at a certain price and then sell it at a higher price to earn the difference. The differences are:

• 24/7 Trading: The cryptocurrency market is open all year round, and you can buy and sell at any time
• No Price Limits: Prices can go up infinitely or drop significantly without any daily limits
• T+0 Trading: You can sell immediately after buying, no need to wait
• Very Small Minimum Trade Size: You don't need to buy a whole Bitcoin; you can trade even 0.00001 BTC

The Difference Between Spot and Futures Trading

Many beginners confuse these two:

• Spot Trading: You actually own the coins you buy, you get exactly what you pay for, and there is no risk of liquidation
• Futures Trading: You don't own the actual coins, but rather trade on the price fluctuations themselves. You can use leverage, and there is a risk of liquidation

It is strongly recommended that beginners start with spot trading first and only consider futures after gaining a sufficient understanding of the market.

Preparations Before Spot Trading

Transfer Funds to Spot Wallet

If you bought USDT via P2P, the coins will be in your "Funding Wallet". You need to transfer the USDT to your "Spot Wallet" before you can spot trade:

1. Open the Binance App and tap "Wallets" at the bottom
2. Tap "Transfer"
3. Transfer from "Funding Wallet" to "Spot Wallet"
4. Select the coin USDT and enter the amount
5. Confirm the transfer

Transfers are instant and free of charge.

Understanding Trading Pairs

In spot trading, all trades are conducted in the form of "trading pairs". For example:

• BTC/USDT: Buy and sell Bitcoin using USDT
• ETH/USDT: Buy and sell Ethereum using USDT
• BNB/USDT: Buy and sell Binance Coin using USDT
• ETH/BTC: Buy and sell Ethereum using Bitcoin

The most commonly used are USDT trading pairs, because USDT is equivalent to the US dollar, making it easy for you to understand the price.

Steps for Spot Trading

Enter the Trading Page

1. Open the Binance App
2. Tap "Trades" at the bottom
3. Select "Spot"
4. Enter the coin you want to trade in the top search box, such as BTC
5. Tap the BTC/USDT trading pair

Understanding the Trading Interface

After entering the trading page, you will see several important areas:

• Top: Current price, 24-hour change, highest and lowest prices
• Middle: Candlestick chart showing price trends
• Order Book: The left side is buy orders (green), and the right side is sell orders (red)
• Bottom: Order placement area

Market Order — The Simplest Way to Buy

A market order is to buy or sell immediately at the current market price:

1. Select "Market" in the order area
2. Select "Buy" or "Sell"
3. Enter the amount of USDT you want to spend (when buying), or the amount of BTC you want to sell (when selling)
4. Tap "Buy BTC" or "Sell BTC"
5. Confirm the order

The advantage of a market order is that it executes quickly, basically filling as soon as you tap. The disadvantage is that during violent market fluctuations, the actual execution price may deviate slightly from the price you see (called slippage).

Limit Order — Trading at a Specific Price

A limit order allows you to set a price you want, and it will only execute when the market price reaches your set price:

1. Select "Limit" in the order area
2. Enter the price you want (for example, if you think BTC will drop to 60,000 USDT, fill in 60000)
3. Enter the amount you want to buy
4. Tap "Buy BTC"
5. The order will remain open waiting to be filled

The advantage of a limit order is that you can precisely control your buying or selling price. The disadvantage is that if the market price never reaches your set price, the order may never execute.

Stop-Limit Order — Automatic Stop Loss

A stop-limit order can help you automatically sell when the price drops to a certain level, preventing further losses:

1. Select "Stop-Limit"
2. Set the trigger price (e.g., trigger when BTC drops to 55000)
3. Set the sell price (e.g., 54900)
4. Enter the sell amount
5. Confirm the order

When the BTC price drops to 55000, the system will automatically place a sell order at the price of 54900.

OCO Order — Set Take-Profit and Stop-Loss Simultaneously

OCO (One Cancels the Other) allows you to set a take-profit and a stop-loss at the same time:

1. Select "OCO"
2. Set the take-profit price (the upper target price)
3. Set the stop-loss trigger price and the stop-loss sell price
4. Enter the amount

This way, when the price rises to the take-profit price or drops to the stop-loss price, the corresponding order will be automatically executed, and the other will be automatically canceled.

Practical Trading Example

Suppose you have 1000 USDT and want to buy some Bitcoin:

Step 1: Buy with a Market Order

1. Enter the BTC/USDT trading page
2. Select "Market" -> "Buy"
3. Enter 1000 in the amount field
4. Tap "Buy BTC"
5. Assuming the current BTC price is 65000 USDT, you can buy approximately 0.01538 BTC

Step 2: Set a Take-Profit Order

After buying, you want to automatically sell when BTC rises to 70000:

1. Select "Limit" -> "Sell"
2. Enter 70000 for the price
3. Enter 0.01538 for the amount (all the BTC you hold)
4. Tap "Sell BTC"
5. The order will remain open and automatically fill when BTC rises to 70000

Step 3: Set a Stop-Loss Order

At the same time, you want to prevent too much loss and automatically sell when BTC drops to 60000:

1. Cancel the previous limit sell order
2. Use an OCO order to set both a 70000 take-profit and a 60000 stop-loss

How are Fees Calculated

The default spot trading fee on Binance is:

• Regular Users: 0.1% for both buying and selling
• Pay Fees with BNB: 25% discount, making it 0.075%
• VIP Users: Enjoy lower rates based on VIP level

For example, if you spend 1000 USDT to buy BTC, the fee is 1000 × 0.1% = 1 USDT. If you pay with BNB, the fee is 0.75 USDT.

How to Enable BNB Fee Deduction

1. Open the Binance App
2. Tap your profile icon in the top left corner
3. Find "Use BNB to pay for fees"
4. Turn on the switch

The prerequisite is that you must have a certain amount of BNB in your account. You can buy a little BNB beforehand as a reserve.

Common Mistakes Beginners Make

Chasing Highs and Selling Lows

Seeing a coin surge and rushing in to buy, only to buy at the peak. Seeing a coin crash and panicking to sell, only to sell at the bottom. This is the most common mistake beginners make.

Advice:

• Do not be swayed by market sentiment
• Strictly execute your trading plan once it is made
• Do not check the charts too frequently

Going All-In

Putting all your money into a single coin at once is very risky. Advice:

• Buy in batches, do not go all-in at once
• Diversify your investments across multiple coins
• Keep some USDT as reserve funds

Not Setting Stop-Losses

Not setting a stop-loss after buying, holding onto the coin even as the price continues to drop, which may eventually lead to huge losses. Always develop the habit of setting stop-losses.

Overtrading

Constantly buying and selling not only consumes fees but also makes you prone to misjudgments. Sometimes doing nothing is actually the best move.

Viewing Transaction History

After completing a trade, you can check your history:

1. Find "Orders" at the bottom of the trading page
2. Switch to "Order History"
3. You can see all completed and canceled orders
4. Each order has detailed information such as execution price, amount, and fees

You can also check the various coins and amounts you currently hold on the "Wallets" page.

Frequently Asked Questions (FAQ)

Are there fees for spot trading?

Yes. The default is 0.1% for both buying and selling, which can be reduced to 0.075% by using BNB. VIP users have even lower rates.

Will I lose everything in spot trading?

No. There is no concept of liquidation in spot trading. Even if the price of the coin you bought drops a lot, you still hold the coins, and it won't go to 0 (unless the project behind the coin goes to zero, which rarely happens with mainstream coins).

Which is better for beginners, spot or futures?

Spot. Spot trading risks are controllable, and there is no liquidation. Futures involve leverage and can wipe out your principal, so it is not suitable for beginners.

Can I cancel an open order?

Yes. Find your open order on the "Open Orders" page and tap "Cancel". Canceling is free.

How soon can I sell after buying?

Immediately. Cryptocurrency trading is T+0, so you can sell the moment you buy.

Why hasn't my order been filled?

If you are using a limit order, it may be because the market price has not yet reached your set price. You can choose to keep waiting, or cancel the order and use a market order to execute immediately.