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What is Spot Trading
"Spot trading" is the process of buying and selling digital assets such as Bitcoin and Ethereum for immediate delivery. In other words, it involves buying at a low price and selling at a high price.
For example:
Suppose you want to buy Bitcoin with fiat currency in the spot market. In this case, you can go to a decentralized exchange to find a Bitcoin/fiat trading pair to trade at the price and quantity you desire.
After the transaction is completed, your Bitcoin will be stored in a spot wallet, which you can hold onto until it appreciates. Alternatively, you can also exchange it for other tokens that you believe will appreciate.
When holding crypto assets in the spot market, the assets appreciate over time, allowing you to benefit from capital appreciation.