Phemex is the fastest and most trusted cryptocurrency and derivatives exchange, but what exactly does this mean? For many beginners, understanding the difference between spot trading and derivatives trading is the first step to becoming a successful trader.
Spot Trading for cryptocurrency
When it comes to cryptocurrencies, spot trading is the most basic type of investment you can make. This essentially entails purchasing crypto such as Bitcoin and holding it until the value increases or using it to buy other altcoins that you believe may rise in value. On Phemex, we accept BTC, ETH, LINK, USDT, and XRP deposits. We also allow users to buy crypto with credit card directly.
At any point, you can decide to trade (buy/sell) any of these currencies against USDT depending on the trends you see or the strategies that you have. The best benefit of trading cryptocurrencies on Phemex is that as long as you are a Premium member, you will never be charged any trading fees. Phemex is the first major spot exchange to offer this model, as all of our competitors generally charge 0.1% for every trade. Memberships prices range from $9.99/month to 69.99/year.
Derivatives Trading for cryptocurrency
In addition to our spot trading services, we also offer derivatives such as perpetual contracts. Trading contracts is a bit different than spot trading as you do not actually need to own the underlying asset. For example, let’s consider our GOLDUSD contract. When trading this product, you are not actually buying or selling gold itself. However, the value of the contract is designed to follow the price of gold. This means that as the value of gold rises or drops, so does the value of the contract. In this way, you are able to benefit from the price movements of gold without actually ever having to buy or sell gold.
Of course, there are many more complexities involved in trading contracts, but the fundamental idea is that you bet on the price of an asset such as gold or Bitcoin either going up or down. Whether you profit or lose will depend on the accuracy of your prediction.
Since the price of cryptocurrency may rise and drop dramatically within a short time, it’s better to pay additional attention to your investment policy.
Phemex provides various tools to facilitate your cryptocurrency trading policy, like take profit, stop loss, and trailing stop. Take advantage of them for your derivatives trading.
For any inquiries contact us at firstname.lastname@example.org.
Follow our official Twitter account to stay updated on the latest news.
Join our community on Telegram to interact with us and other Phemex traders.
Phemex, Trade Simple