Basic Explanation of SaviCoin Spot Trading

1. What is Spot Trading?

Cryptocurrency spot trading refers to the method where users buy or sell a digital asset directly at the current market price.

Simply put, spot trading is "handing over money in exchange for coins." After a user buys a certain cryptocurrency, the asset enters the user's account, and the user can choose to hold it long-term or sell it after the price rises or reaches their expectation.

Taking the BTC/USDT trading pair as an example:

If the current BTC/USDT price is 60,000, it means buying 1 BTC requires paying 60,000 USDT; if you sell 1 BTC, you will receive the corresponding amount of USDT.

On the SaviCoin platform, users can independently choose to buy or sell supported spot trading pairs according to market conditions.

2. Characteristics of Spot Trading

1. Ownership of Real Digital Assets After Purchase

The core feature of spot trading is the transfer of asset ownership. After buying a cryptocurrency, the user actually holds the digital asset, which can be used for subsequent trading, long-term holding, or asset management.

2. No Delivery Time Limit

Spot trading has no fixed delivery date and does not force liquidation due to holding for too long. Users can hold long-term based on their own judgment or sell at any time.

3. Risks Are Relatively Straightforward

Compared with contract trading, spot trading does not involve leverage or forced liquidation mechanisms. After buying assets, the profit or loss mainly depends on market price fluctuations.

However, it should be noted that digital asset prices are highly volatile, and spot trading also carries the risk of asset depreciation.

4. Matched Transactions with Transparent Pricing

The spot market price is determined by the supply and demand relationship between buyers and sellers. The platform matches buy and sell orders through a matching system.

Market depth, transaction prices, buy and sell volumes, and other information are usually publicly displayed, allowing users to judge trading opportunities independently based on market conditions.

5. Flexible Trading of Various Digital Assets

Users can purchase BTC, ETH, and other digital assets through stablecoins like USDT, or sell held digital assets to convert back to USDT, achieving asset allocation and conversion.

3. What is a Trading Pair?

A trading pair refers to the exchange relationship between two digital assets.

For example:

BTC/USDT

Means users can buy BTC using USDT, or sell BTC to exchange for USDT.

Where:

• BTC is the traded asset;

• USDT is the pricing asset;

• The BTC/USDT price indicates how many USDT correspond to 1 BTC.

Another example:

ETH/USDT

Means users can buy ETH with USDT or sell ETH to get USDT.

When conducting spot trading on SaviCoin, users should first confirm that the selected trading pair is correct to avoid mistakenly buying or selling other assets.

4. What is a Maker Order? What is a Taker Order?

In spot trading, orders are generally divided into Maker (limit orders) and Taker (market orders).

Maker: Limit Order

A Maker order is when a user submits an order that does not execute immediately but enters the order book waiting for other users to match it.

For example:

If the current lowest sell price is 60,000 USDT, and a user sets a buy order at 59,800 USDT for BTC, since the buy price is lower than the current lowest sell price, the order will not execute immediately but will be placed in the order book waiting for the price to fall.

This type of order increases market depth and is therefore called a Maker.

Common situations:

• Buy price is lower than the current lowest sell price;

• Sell price is higher than the current highest buy price;

• Order enters the order book waiting for execution.

Taker: Market Order

A Taker order is when a user submits an order that immediately matches with existing orders in the market.

For example:

If the current lowest sell price is 60,000 USDT, and a user buys BTC directly at 60,000 USDT or higher, the order will execute immediately.

This type of order consumes existing market liquidity and is therefore called a Taker.

Common situations:

• Buy price is greater than or equal to the current lowest sell price;

• Sell price is less than or equal to the current highest buy price;

• Order executes immediately.

5. Spot Trading Risk Warning

Although spot trading does not involve leveraged forced liquidation like contracts, digital asset prices are highly volatile and there is still a risk of loss. Users should fully understand market conditions before trading, reasonably control their positions, and avoid blindly chasing rises or panicking selling.

SaviCoin recommends users trade according to their own risk tolerance and participate in spot trading only after fully understanding the trading rules.