Learn how exchanges work and how to avoid costly mistakes.
Definition
Market intelligence means making decisions with data, context, and risk rules. Not with hype or fear.
Spot markets in plain terms
Spot means you buy or sell the asset itself. If you buy 0.1 BTC on spot, you hold 0.1 BTC. Your risk is the price moving against you.
Derivatives and leverage
Derivatives let you bet on price without holding the asset. Leverage magnifies gains and losses. It can liquidate your position quickly if the price moves against you.
Warning
Leverage is not a shortcut. It is a risk amplifier. Beginners should avoid it until they can size positions and use stops consistently.
Fees that quietly hurt
- Trading fees.
- Spread between buy and sell.
- Funding rates on perpetual contracts.
- Withdrawal fees.
Checklist before you pick an exchange
- Regulatory standing in your region.
- Security track record.
- Fee transparency.
- Proof of reserves or audits, if available.
Quick quiz
- What is the difference between spot and derivatives.
- Name two types of exchange fees.
- What can happen to a leveraged position in a fast move.