Spot

In the context of cryptocurrency, “spot” typically refers to the spot market. A spot market is where financial instruments, such as commodities or securities, are traded for immediate delivery — or “on the spot.” In the crypto world, this means buying or selling cryptocurrencies for instant delivery of the crypto asset.

The price that the cryptocurrency trades for on the spot market is referred to as the “spot price.” This is the current market price at which an asset can be bought or sold for immediate delivery. It’s the most straightforward type of trade, in contrast to futures contracts or options, which involve agreements to trade an asset at a future date and/or specific price.

If you’re talking about trading “spot” in crypto, it generally means you’re buying or selling the actual cryptocurrency itself, rather than a derivative product. For example, if you’re buying Bitcoin on the spot market, you’re purchasing the actual Bitcoin to be delivered to your wallet immediately.