Spot Trading vs Futures Trading on MEXC

MEXC: Spot and Futures Trading Explained

MEXC is a centralized cryptocurrency exchange that offers both spot and futures trading. This article provides a beginner-friendly overview of the platform, its features, and how to get started.

Core Features

• **Spot Market:**

The spot market allows you to buy and sell cryptocurrencies at their current market price. It's a straightforward way to enter the crypto market.

• **Futures Market:**

Futures trading involves contracts that obligate you to buy or sell a specific amount of cryptocurrency at a predetermined price and date in the future. It's a more advanced trading method that can amplify both profits and losses.

• **Order Types:**

MEXC offers various order types to suit different trading strategies.

   * **Limit Order:** Buy or sell at a specific price.
   * **Market Order:** Buy or sell at the current market price.
   * **Stop-Limit Order:** A combination of a stop order and a limit order.

• **Liquidity and Markets:**

MEXC provides a wide range of cryptocurrencies and trading pairs, ensuring good liquidity for most popular assets. The platform also features an Order book which shows the buy and sell orders placed by other traders, giving you insights into market sentiment.

• **Security:**

MEXC prioritizes security with features like two-factor authentication (2FA), cold storage for most funds, and regular security audits.

• **KYC/Limits:**

MEXC requires Know Your Customer (KYC) verification for all users. This helps prevent fraud and money laundering. Trading limits may vary depending on your verification level.

• **Funding and Withdrawals:**

MEXC supports multiple payment methods for depositing and withdrawing funds, including bank transfers, credit/debit cards, and crypto transfers.

• **Mobile and Web UX:**

MEXC has a user-friendly interface on both its website and mobile app, making it accessible to traders of all experience levels.

Understanding Spot vs. Futures Trading on MEXC

| class="wikitable" ! Feature ! Spot Trading ! Futures Trading |- | Trading Style | Buy and sell at the current market price | Buy or sell at a predetermined price and date in the future |- | Risk | Lower risk, potential for smaller profits | Higher risk, potential for larger profits (and losses) |- | Leverage | Typically not used | Leverage can be used to amplify gains and losses |- | Suitable for | Beginners and experienced traders | More experienced traders who understand risk management |

• • Example:**

Imagine you believe the price of Bitcoin will increase.

• **Spot Trading:** You could buy Bitcoin on the spot market at its current price. If the price goes up, you make a profit.

• **Futures Trading:** You could buy a Bitcoin futures contract, agreeing to purchase a specific amount of Bitcoin at a predetermined price in the future. If the price goes up, you can profit from the difference.

• • Understanding the Basics**

For a deeper understanding of futures trading, consider these resources:

• Babypips - Forex Trading (Concepts apply to Crypto Futures)
• Funding Rates and Market Trends: How to Use Them for Profitable Crypto Futures Trading

• • Important Considerations - Risk and Responsible Trading**

Trading cryptocurrencies, especially futures, involves significant risk. It's crucial to:

• **Educate Yourself:** Understand the risks and mechanics of trading before investing.
• **Start Small:** Begin with a small amount of capital that you can afford to lose.
• **Manage Risk:** Use stop-loss orders to limit potential losses.
• **Diversify:** Don't put all your eggs in one basket. Diversify your portfolio across different assets.
• **Stay Informed:** Keep up to date with market trends and news.

• • First Steps Checklist**

• **Register here:** Register here
• **Complete KYC verification:** This is essential for trading on MEXC.
• **Explore the platform:** Familiarize yourself with the interface, order types, and available assets.
• **Start with a demo account (if available):** Practice trading with virtual funds before risking real money.
• **Begin with small trades:** Gain experience and confidence gradually.

See also (on this site)

• MEXC Supported Cryptocurrencies
• Trading Fees on MEXC Exchange
• Understanding Order Types on MEXC
• MEXC Liquidity and Order Execution

Recommended articles

• Memahami Leverage Trading Crypto dalam Perpetual Contracts untuk Keuntungan Maksimal
• Futures Open Interest
• Crypto Futures Trading in 2024: A Beginner's Guide to Market Entry Points
• How to Use Seasonal Trends in Futures Trading
• Futures Trading Simulator

== Category:Crypto Exchange Overviews ==

Recommended Futures Trading Platforms

Platform	Futures perks & welcome offers	Register / Offer
Binance Futures	Up to 125× leverage, USDⓈ-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 50–500 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 → get 10 USD)	Join MEXC

Join Our Community

Follow @startfuturestrading for signals and analysis.