Spot Trading
Buying or selling an actual asset for immediate delivery, as opposed to trading derivatives like futures or options. Spot traders own the underlying crypto; derivatives traders only hold a contract based on its price.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Ledger
A record of all transactions. In blockchain, the distributed ledger is maintained across all nodes in the network.
Dollar Cost Averaging
An investment strategy where you invest a fixed dollar amount into an asset at regular intervals, regardless of its price. This approach reduces the emotional impact of market swings and lowers the average cost over time. Often abbreviated as DCA.
Ethereum
The second-largest cryptocurrency by market capitalization and the leading smart contract platform. It enables developers to build decentralized applications and supports a wide ecosystem of DeFi protocols and NFTs.
Airdrop
A distribution of free tokens or coins to wallet holders, often used as a marketing strategy or to reward early adopters of a protocol.
Faucet
A website or application that distributes small amounts of cryptocurrency for free, typically used for testing or introducing newcomers to crypto.