Knowledge Base | AI Traders. Spot Trading
The market is flooded with thousands of books and gigabytes of videos about trading. But in the cryptocurrency market, 90% of this knowledge is worthless. Why? Because you need a deeper understanding of how everything works here, who moves the price, you need to think about risks, and stick to a consistent strategy. Otherwise, even if you act according to technical analysis, you’ll be wiped out like a hamster at the first unexpected correction or market manipulation.
My goal is to give you all the key guidelines and tools in a nutshell so that you don’t end up as a "shaved hamster." 😎
That being said… don’t expect to download a book or buy a course from a Guru Trader and start trading profitably. Analyze the trading history of those you’re learning from—how stable are their results? Now, I’ll tell you about my strategy, and you can decide for yourself whether it suits you.
Trader or Investor
First of all, ask yourself this question: what is your goal in the cryptocurrency market?
Do you simply want to allocate some amount to copy trading and watch professional traders or bots do the work?
Do you want to build a medium-/long-term portfolio on the spot market and patiently wait for everything to go to the moon?
Do you want to actively trade and need the skills to do so?
For me personally, there’s no clear answer as to which of these options is better. I’ll just say this: if I had simply held onto Bitcoin since I started buying it back in 2017, it would have been the best decision to date, and my capital would now be measured in millions of dollars. But I made a number of mistakes: I sold Bitcoin cheaply at $7–15K, and I traded without experience, falling victim to liquidations.
So today, looking back, I approach the market much more wisely and combine all of these strategies. Specifically, I diversify my capital into three parts. Let’s start with the first one:
If you already know how to trade on the spot market or have no plans to trade there, skip ahead to Strategy #2 -
https://teletype.in/@aitraders/4CCpHXVXNPj
Spot Trading
I firmly believe that in the coming years, we will see Bitcoin multiply 2-3-5 times its current value.
Fundamental news supports this: Trump and Musk are endorsing crypto, governments are adopting Bitcoin as a reserve currency, MicroStrategy and similar funds regularly buy Bitcoin worth hundreds of millions and even billions of dollars, and even Putin recently made positive remarks about Bitcoin. The largest Bitcoin holders are currently buying up to 100K coins—not to lose later, but because they know they will profit. These facts tell us one thing: you need to buy and hold.
What is Spot Trading?
Spot trading is when you buy or sell something right now at the current price. Imagine you’re in a store buying an apple: you see the price, pay for the apple, and take it with you immediately. No leverage, no risk of losing your deposit if the price goes the wrong way, etc.
In the world of cryptocurrencies or currencies, it works the same way:
- You see the current price of Bitcoin or another coin.
- You pay, and you instantly receive that cryptocurrency in your wallet.
- Or vice versa—you sell your cryptocurrency and immediately get the money for it.
There are no promises to buy or sell anything in the future, and no need to wait. Everything happens here and now.
The market is always volatile, but when you buy spot, you set a goal—to hold Bitcoin until it reaches $1 million, for example—and you don’t care about corrections. No stress, no panic, no risks, and so on.
I allocate 50% of my deposit to this strategy. I simply buy Bitcoin and other promising coins like DOGE (we all know why) and wait—say, for it to reach $1. Once a month, I casually rebalance my portfolio: I might sell something or buy more.
This strategy has proven to be the most profitable throughout my experience while learning to trade. Those who can wait reap the rewards!
How to Buy/Sell Coins on the Spot Market
I’ll Show You an Example Using the Bitunix Exchange
On most exchanges, the menus and trading processes look pretty much the same. Personally, I trade most often on Bitunix because the exchange team has provided me with the lowest trading fees, making it significantly cheaper for me to trade here compared to other platforms. Once you increase your trading volumes, I’ll help you get the same conditions. If I can’t find a particular coin on Bitunix, I use BingX instead.
Whether you’re on a desktop or the mobile app, the menu names are identical.
- Go to the "Market" Menu
Navigate to the Market section. - Switch to Spot
At the top of the screen, switch to the Spot tab. - Select a Trading Pair
Either scroll through the list to find the trading pair you need or use the search function to locate it quickly.
To Buy Anything on the Spot Market, You Need to Transfer Funds to Your Spot Account
- Go to the "Assets" Menu
Navigate to the Assets section in the menu. - Select "Transfer"
Choose the Transfer option. - Move Funds to Spot
This step ensures that your balance is in the correct account for the type of trading you want to do.
Next, go back to the Market section, select your trading pair, and click the Buy button at the bottom.
Now we need to choose between a Market Order and a Limit Order.
Market Order
- What it is: It’s like saying, "Buy/Sell right now at any price!"
- How it works: You want to buy or sell an asset (e.g., cryptocurrency or stock) immediately. You don’t set the price; you accept the current market price.
- Example: Imagine you’re at a supermarket and want to buy a bottle of water. You don’t ask how much it costs—you just grab it and pay whatever is on the price tag.
Limit Order
- What it is: It’s like saying, "I’ll buy/sell only at this price I set, no matter how long it takes."
- How it works: You set a specific price at which you want to buy or sell. Your order will only execute if the market reaches that price.
- Example: You notice that a bottle of water usually costs 2 dirhams, but currently, it’s priced at 3. You place a limit order to buy at 2 dirhams. If the price drops to 2, your order will execute. If not, your order will remain pending until the price matches your set limit.
Key Differences:
- Speed:
- Market orders are usually executed instantly since you accept the current price.
- Limit orders may not execute immediately or at all if the price never reaches your limit.
- Price:
- Market orders give you the current price, whatever it may be.
- Limit orders let you control the price at which you’re willing to buy or sell.
- Control:
What I Do
I choose a Market Order for speed. I use the slider to select what portion of my available deposit I want to use to buy Bitcoin, then click Buy. After the transaction, the asset will appear in the Assets - Spot menu.
That’s all! As you can see, there’s nothing complicated about it. Whether you decide to buy on the spot market and what percentage of your bank to allocate is entirely up to you. I’m simply sharing my strategy and not imposing it on anyone.
In the next article, we’ll cover a Trading Bot that makes 1-2% daily and Copy Trading.