Rewards Hub Spot trading is one of the easiest ways to buy into crypto and start off your crypto investing journey. In addition, spot trading is the most-beginner friendly way to start learning about crypto investing. It’s also the safest way to invest because spot trading gives you 100% ownership over your crypto, so if the market goes downward, you won’t have to worry about the risks that trading contracts may present.
For example, the beautiful thing about Bitcoin is that 1 BTC will always equal 1 BTC. This cannot be said about many fiat currencies. Therefore, spot trading prominent cryptos like Bitcoin and Ethereum can be a great way to achieve a diversified portfolio, but one that bets on the future of FinTech and Web3.
Why Is Spot Trading Important?
Spot trading is essentially the best indicator for real crypto adoption. This is because people who buy spot and subsequently use their crypto for other investing services or DApps are true believers in what the industry can achieve (decentralized finance). Therefore, to grow the industry, all players such as centralized exchanges, decentralized exchanges, DeFi protocols, CeDeFi services, and the like, should all encourage spot trading and healthy crypto investing strategies (low risk, managed leverage, informed contract trades, responsible margin).
Unfortunately, in recent years, contract trading volume has exceeded spot volume, which means people are speculating on future price movements with contracts rather than on buying the actual asset. This has led to an over-reliance on leverage, margin, and a heightened risk tolerance that has backfired in 2022.
What Can Phemex Do To Improve Spot Trading?
So to help out retail, Phemex is announcing a month-long spot trading fee waiver (November 10 to December 10). We’re also doing this to celebrate our three-year anniversary. Let’s all keep our eyes on the price, and keep working and building to achieving a more transparent financial system.
