Definition
A spot market is a trading venue where cryptocurrencies are exchanged for immediate settlement at the current, or “spot,” price. In this market, the buyer receives the actual asset, such as bitcoin or ether, rather than a contract based on its future price. Prices in the spot market are determined by real-time supply and demand between buyers and sellers.
Spot markets exist on both centralized platforms, often called CEX, and decentralized platforms, known as DEX. On these venues, the spot price serves as a reference for many other types of crypto instruments, including derivatives like Futures and Perpetual Futures. The spot market is typically considered the most direct way to gain exposure to the underlying cryptocurrency itself.
In Simple Terms
A spot market is where people trade crypto and the trade settles right away at the price shown on the screen. When a trade happens, one side pays with money or another crypto, and the other side delivers the actual coins being traded.
Unlike Futures or Perpetual Futures, which are based on agreements about future prices, the spot market deals with the asset as it exists now. Whether trading on a CEX or a DEX, spot trading always centers on owning or transferring the real cryptocurrency at the current market price.