MEXC Spot Trading vs Futures Trading: Difference between revisions
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Latest revision as of 06:15, 30 September 2025
MEXC Spot Trading vs Futures Trading
This article provides a beginner-friendly overview of MEXC, a popular cryptocurrency exchange, focusing on the differences between spot and futures trading.
Core Features
- **Spot Market:** On the Spot market, you buy and sell cryptocurrencies at their current market price. It's a straightforward way to invest in crypto.
- **Futures Market:** Futures contracts are contracts to buy or sell a specific cryptocurrency at a predetermined price and date in the future. This allows for leveraging your position and potentially earning higher profits, but also carries higher risk.
- **Order Types:** MEXC offers various order types to suit your trading style:
* Limit order: Buy or sell at a specific price. * Market order: Buy or sell at the current market price.
- **Liquidity and Markets:** MEXC boasts high liquidity across a wide range of trading pairs. This means orders are typically filled quickly and at prices close to the market value.
- **Security Practices:** MEXC prioritizes security with measures like two-factor authentication (2FA), cold storage of funds, and regular security audits.
- **KYC/Limits:** MEXC requires KYC (Know Your Customer) verification to comply with regulations and prevent financial crime. This process typically involves submitting identification documents. Trading limits may vary based on verification level.
- **Funding and Withdrawals:** MEXC supports various funding methods, including bank transfers, credit/debit cards, and crypto deposits. Withdrawal options are also diverse, allowing you to cash out your profits.
- **Mobile and Web UX:** MEXC offers a user-friendly interface on both its website and mobile app, making it easy to navigate and trade.
First Steps Checklist
1. **Register:** Sign up for a MEXC account: Register here 2. **Complete KYC:** Verify your identity to unlock full platform functionality. 3. **Fund Your Account:** Deposit funds using your preferred method. 4. **Explore the Platform:** Familiarize yourself with the interface, order types, and trading pairs. 5. **Start Small:** Begin with a small investment amount and gradually increase your position as you gain experience.
Understanding Order Books
The Order book is a crucial tool for understanding market sentiment and making informed trading decisions. It displays the buy and sell orders placed by other traders, allowing you to see the depth of the market and potential price movements.
| Buy Orders | |
|---|---|
| Price | Quantity |
| 100 USDT | 10 BTC |
| 99 USDT | 5 BTC |
| 98 USDT | 2 BTC |
| Sell Orders | |
|---|---|
| Price | Quantity |
| 102 USDT | 8 BTC |
| 103 USDT | 3 BTC |
| 104 USDT | 2 BTC |
In this example, the buy orders show the demand for Bitcoin at various prices, while the sell orders show the supply. The intersection of these orders determines the current market price.
Risks and Responsible Trading
Crypto trading, especially futures trading, involves significant risk. Prices can fluctuate rapidly, and leveraged positions can magnify both profits and losses. It's crucial to:
- **Educate Yourself:** Understand the mechanics of trading, risk management, and different order types before investing.
- **Start Small:** Begin with a small amount of capital that you can afford to lose.
- **Use Stop-Loss Orders:** These orders automatically close your position at a predetermined price, limiting potential losses.
- **Diversify:** Don't put all your eggs in one basket. Spread your investments across multiple assets to reduce risk.
- **Stay Informed:** Keep up with market trends, news, and analysis to make informed trading decisions.
See also (on this site)
- MEXC Exchange Features Explained
- Understanding MEXC Trading Fees
- Cryptocurrencies Available on MEXC
- Different Order Types on MEXC
Recommended articles
- AnalizΔ tranzacΘionare BTC/USDT Futures - 15 03 2025
- Hedging with futures
- How to Build a Strategy for Crypto Futures Trading
- How to Trade Futures Using ATR Indicators
- Best Strategies for Successful Crypto Futures Trading
Category:Crypto Exchange Overviews
Recommended Futures Trading Platforms
| Platform | Futures perks & welcome offers | Register / Offer |
|---|---|---|
| Binance Futures | Up to 125Γ leverage, USDβ-M contracts; new users can receive up to 100 USD in welcome vouchers, plus lifetime 20% fee discount on spot and 10% off futures fees for the first 30 days | Sign up on Binance |
| Bybit Futures | Inverse & USDT perpetuals; welcome bundle up to 5,100 USD in rewards, including instant coupons and tiered bonuses up to 30,000 USD after completing tasks | Start on Bybit |
| BingX Futures | Copy trading & social features; new users can get up to 7,700 USD in rewards plus 50% trading fee discount | Join BingX |
| WEEX Futures | Welcome package up to 30,000 USDT; deposit bonus from 50β500 USD; futures bonus usable for trading and paying fees | Register at WEEX |
| MEXC Futures | Futures bonus usable as margin or to pay fees; campaigns include deposit bonuses (e.g., deposit 100 USDT β get 10 USD) | Join MEXC |
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