Spot Price
Current market price of a cryptocurrency for immediate delivery.
Spot price is the current market price at which a cryptocurrency can be bought or sold immediately — unlike futures price which reflects expected future value.
Characteristics:
•Reflects current supply and demand
•Formed through continuous order matching on exchanges
•Different on different exchanges (Binance, Coinbase, Kraken) — arbitrage equalizes differences
Spot vs Futures price:
•Futures usually higher than spot (contango) — market expects growth
•Futures lower than spot (backwardation) — market expects decline
•Basis = Futures − Spot
Bitcoin spot price:
•Formed on hundreds of exchanges simultaneously
•Reference indices: CME CF Bitcoin Reference Rate, Coindesk BPI
•Binance, OKX, Coinbase — leading exchanges by volume
Spot trading benefit:
•You buy real BTC/ETH, not a contract
•No liquidation risk
•No funding rate cost