Spot Versus Futures Trading on MEXC
Spot Versus Futures Trading on MEXC: A Beginner Overview
MEXC is a cryptocurrency exchange that offers users access to a wide variety of digital assets and trading instruments, including both Spot market trading and Futures contract trading. This overview provides a beginner-friendly introduction to navigating these two core trading methods on the platform.
Core Features of MEXC
MEXC positions itself as a platform offering high performance and a broad selection of tokens. Key features include:
- Wide range of listed cryptocurrencies.
- Support for both spot and derivatives trading.
- Relatively low trading fees compared to some competitors.
- Support for both web and mobile applications.
To begin trading, users must first create an account. You can Register here.
Spot Trading vs. Futures Trading
The primary difference between spot and futures trading lies in what is being traded and the leverage involved.
Spot Trading
In Spot market trading, users buy or sell cryptocurrencies immediately at the current market price for direct ownership of the asset. If you buy Bitcoin on the spot market, you own that Bitcoin.
Futures Trading
Futures contract trading involves agreements to buy or sell an asset at a predetermined price on a specified date in the future. On MEXC, this often takes the form of perpetual futures, which do not expire. Futures allow for the use of leverage, meaning traders can control a larger position size with a smaller amount of capital. This significantly amplifies potential profits but also increases potential losses. For deeper insights into derivatives trading, see How to Use Crypto Futures to Trade with a Long-Term Perspective.
Fees and Supported Assets
- Trading Fees
MEXC employs a tiered fee structure based on trading volume and the user's holdings of the exchange's native token (if applicable). Fees are generally competitive. Spot trading fees are typically lower than futures trading fees, though futures trading often involves additional components like funding rates.
- Supported Assets
MEXC is known for listing a large number of tokens, including major cryptocurrencies (like BTC and ETH) as well as numerous smaller-cap altcoins. The availability of assets can vary between the spot market and the futures market.
Order Types and Liquidity
- Order Types
Both spot and futures markets support standard order types essential for managing trades. Understanding these is crucial for effective trading.
| Order Type | Description |
|---|---|
| Limit order | Sets a specific price at which the order should execute. |
| Market order | Executes immediately at the best available price in the Order book. |
| Stop-Limit/Stop-Market | Used primarily for risk management, triggering an order once a specific stop price is reached. |
For more detail on order execution, refer to Essential MEXC Order Types Tutorial.
- Liquidity and Markets
Liquidity refers to how easily an asset can be bought or sold without significantly affecting its price. MEXC maintains deep liquidity in its major trading pairs. Traders should always assess the depth of the Order book before executing large trades, especially in less popular futures contracts. For guidance on assessing market health, see Assessing Liquidity on the MEXC Platform. Advanced traders might explore analysis techniques such as How to Use Volume Profile and Open Interest in Altcoin Futures Trading or กลยุทธ์ Arbitrage Crypto Futures ด้วยการวิเคราะห์ทางเทคนิค.
Security and Account Management
- Security Practices
MEXC employs standard industry security measures, including two-factor authentication (2FA), cold storage for the majority of assets, and encryption protocols. Users are strongly advised to enable 2FA immediately upon registration.
- KYC and Limits
MEXC offers different levels of service based on Know Your Customer (KYC) verification. Unverified accounts typically have lower withdrawal limits, while fully verified accounts benefit from higher limits. Details regarding verification requirements can be found in MEXC KYC Requirements and Limits.
- Funding and Withdrawals
Users can deposit fiat currency (where available) or cryptocurrencies onto the platform. Withdrawals are processed according to the exchange's schedule and network confirmation times. Always double-check withdrawal addresses and amounts.
User Experience (UX)
MEXC provides both a dedicated mobile application (for iOS and Android) and a comprehensive web interface. The platform is designed to cater to both novice spot traders and experienced futures traders, with distinct sections for each market type. The mobile app allows for monitoring and executing trades on the go.
Risks and Responsible Trading
Cryptocurrency trading, especially involving leverage in Futures contract markets, carries a high degree of risk. It is possible to lose all invested capital.
- Never trade with funds you cannot afford to lose.
- Understand the concept of margin calls and liquidation in leveraged trading.
- Use stop-loss orders consistently to manage downside risk.
- Beginners should start with small amounts in the Spot market before exploring futures.
First Steps Checklist
1. Register here for an account. 2. Enable Two-Factor Authentication (2FA). 3. Complete necessary KYC verification based on desired limits (MEXC KYC Requirements and Limits). 4. Deposit a small amount of cryptocurrency or fiat currency. 5. Familiarize yourself with the Spot market interface using a Limit order. 6. If exploring futures, read documentation on margin and leverage before opening a position.
See also (on this site)
- Assets Available for Trading on MEXC
- Essential MEXC Order Types Tutorial
- Assessing Liquidity on the MEXC Platform
- MEXC KYC Requirements and Limits
Recommended articles
- Breakout Trading
- Volume Profile Analysis for Crypto Futures
- A Beginner’s Guide to Trading Crypto Futures
- How to Trade Futures Using the Alligator Indicator
- How to Use the Rate of Change Indicator for Futures Trading Success
Recommended Futures Trading Platforms
| Platform | Futures perks & welcome offers | Register / Offer |
|---|---|---|
| Binance Futures | Up to 125× leverage, USDⓈ-M contracts; new users can receive up to 100 USD in welcome vouchers, plus lifetime 20% fee discount on spot and 10% off futures fees for the first 30 days | Sign up on Binance |
| Bybit Futures | Inverse & USDT perpetuals; welcome bundle up to 5,100 USD in rewards, including instant coupons and tiered bonuses up to 30,000 USD after completing tasks | Start on Bybit |
| BingX Futures | Copy trading & social features; new users can get up to 7,700 USD in rewards plus 50% trading fee discount | Join BingX |
| WEEX Futures | Welcome package up to 30,000 USDT; deposit bonus from 50–500 USD; futures bonus usable for trading and paying fees | Register at WEEX |
| MEXC Futures | Futures bonus usable as margin or to pay fees; campaigns include deposit bonuses (e.g., deposit 100 USDT → get 10 USD) | Join MEXC |
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