Unlike traditional markets for financial instruments, cryptocurrency markets are divided into two classes:
As the name implies, crypto-spot markets are assets that can be bought and sold on the spot, which means that delivery takes place on the spot. If you buy Bitcoin, it will be shipped and the payment will be settled.
Makers are the initiator of the trade. As a manufacturer, you list potential trades on the stock exchange. For example, if you want to sell your Ethereum coins, you open a trade at a certain price and invite potential buyers to fulfil your order.
A taker is the other side of the equation, and the trader who executes the order is called a taker. The makers are the takers on both sides of the coin purchase process. A manufacturer is someone who brings liquidity to the market. A manufacturer buy and sell order is just like a taker buy or sell order.
For example, if you buy from a customer, you scan the order book and decide to fulfil or accept an existing order or place an order. The platform compares your order with an existing order. An order book or register is available in which already fulfilled orders are recorded.
The cryptocurrency market for derivatives consists of financial instruments whose value is based on a virtual currency value. These are contracts between two or more parties that derive their value from the underlying asset, such as Bitcoin, Ethereum, or other digital assets. They are based on different derivative values and form several levels of the house of cards for you. Unlike their counterparts in the traditional stock market, cryptocurrencies have several derivatives. The most common crypto derivatives include futures contracts, option contracts, contracts for difference (CFDs), leveraged tokens, and token swaps.