Spot trading is the foundation of the crypto market: everything you need to know on Bybit

Spot trading is the direct exchange of one cryptocurrency for another at the current market price. It is the simplest and most straightforward way to trade assets on the crypto market, where buyers and sellers instantly transfer tokens to each other upon executing a trade.

Understand the basics: what is cryptocurrency spot trading

Spot trading is a transaction in which participants trade real assets directly “on the spot” (from the English word “spot” — place, point in time). For example, in the BTC/USDT trading pair, the price shows how many USDT units are needed to buy one BTC, or how many USDT can be obtained by selling one BTC.

Unlike other forms of trading, spot traders deal with the actual asset, not contracts or derivatives. This means you own the cryptocurrency immediately after purchase.

Spot trading is not the same as futures: key differences

The crypto market offers several trading methods, and it’s important to understand how they differ.

In spot trading, the trader must have sufficient funds to purchase the asset. You buy and sell cryptocurrencies at the current market price, and assets are transferred instantly. This method is ideal for those who want to accumulate and hold crypto assets.

Futures trading works quite differently. Participants trade contracts that represent an agreement to buy or sell an asset at a predetermined future date and price. In the derivatives market, you do not receive the actual asset — you are predicting the price movement. You can open a long position if you expect the price to rise, or a short position if you anticipate a decline. Futures trading involves margin (depending on leverage), which serves as collateral to cover potential losses.

Spot trading is separate from margin trading: what is the essence

Both methods occur on the spot market but have fundamental differences.

Regular spot trading is a direct operation: you spend your own funds to buy assets and sell them at the current price. Your profit or loss depends on the amount of the asset you hold.

Margin trading involves borrowing funds to increase the size of your position. If you have 1000 USDT, margin allows you to trade significantly larger volumes. This amplifies both potential profits and losses. It’s important to remember: interest is accrued on borrowed funds, and the loan amount is not automatically repaid.

How to start trading on Bybit: practical aspects

Fees and their structure

On Bybit, the fee for spot trading is 0.1% per executed order. Note: if an order is only partially filled or canceled, no fee is charged. This means you pay only for actual completed trades.

Role of Maker and Taker in market liquidity

Traders often hear the terms “maker” and “taker” but may not fully understand their roles. A maker is a participant who places an order in the order book and waits for it to be filled. Thus, the maker provides market liquidity. A taker is someone who instantly buys or sells at the existing maker’s order, reducing the market depth.

Where to deposit funds for trading

To perform spot trading on Bybit, transfer your funds to the Unified Trading Account (UTA). This is your main trading wallet on the platform.

Methods of funding your account

There are two main ways to fund your UTA:

1. Direct deposit: if your account has no assets, you can top up the balance directly
2. Transfer between accounts: if you have another account with funds, transfer assets to the UTA

Managing orders: types and features

What types of orders are available

On Bybit’s spot market, various order types support different trading scenarios:

• Market order: executed instantly at the current market price
• Limit order: you set a desired price; the order executes when the price reaches that level
• Conditional order: triggers when a certain condition is met
• TP/SL order: allows automatic closing of a position at profit (Take Profit) or loss (Stop Loss)

How to view average order prices

While trading on the spot market, you can view the average price of your orders directly on the chart. Enable this feature via the “Show” menu and select the average price you want to see. You can also choose the calculation period: last 7, 30, 60, or 90 days. The system will calculate the average from the current day to the last day of the selected period.

Understanding market orders and entering quantities

Often traders do not understand why they cannot specify an exact amount of cryptocurrency in a market order. This is because market orders are executed at available prices in the order book, which can change rapidly. Therefore, instead of specifying the amount of the asset, you need to enter the amount of the base or quote token you are willing to spend.

Viewing order history and statuses

On the Bybit website, go to “Orders” → “Single Order” to see your entire history. In the mobile app: Trade → Spot Trading → Trade → the “History” icon in the top right corner.

Differentiate three types of information:

• Open orders: orders that are still pending execution or trigger
• Order history: orders that have been completed or canceled
• Trade history: successfully executed deals; if a large order was filled in multiple trades, all will be shown here

Trading rules and restrictions on Bybit

Order placement limits

The platform imposes certain limits to manage risk:

• Up to 500 active orders can be placed simultaneously (the last 50 are visible in the records)
• Conditional orders can be created up to 10, and all will appear in the positions tab

Additionally, there are minimum and maximum limits for each trading operation. Find detailed information in Bybit’s spot trading rules.

Maximum asset holdings

Due to high market volatility, the maximum amount you can hold of a single token in the Zone of Adventure is equivalent to 100,000 USDT. However, for tokens outside this zone, no maximum holding limits are set.

Trading via sub-accounts

Yes, you can perform spot trading through a Bybit sub-account. Before starting, ensure your main Unified Trading Account has sufficient funds. To transfer funds, go to “Account & Security” (top right) → “Sub-Account” → “Transfer Assets.”

Advanced features: margin spot trading

How to borrow funds for trading

Spot trading is the primary trading method, but Bybit also offers borrowing via margin trading. Enable it by switching to the “Margin” tab in the order zone and turning on margin trading.

Remember key conditions:

• Interest is charged on borrowed funds
• Position liquidation begins when the LTV (Loan-to-Value) ratio reaches 92%
• The maintenance margin ratio (MMR) at 100% also triggers liquidation

For more details on cross margin trading, refer to the official Bybit guide.

In conclusion: spot trading is the most accessible and transparent way to trade cryptocurrencies for traders of all levels. From understanding basic concepts to managing orders and following trading rules — the Bybit platform provides all the necessary tools for successful trading.