Privasea is a decentralized AI network that uses advanced FHE technology to enable secure computations on encrypted data without exposing the original information.

The arrival of AI has unleashed unprecedented computational power and problem-solving capabilities across virtually every industry. However, as AI solutions multiply, so do concerns about how our sensitive data is being handled, processed and protected.

Privasea (PRAI) emerges as a solution to these fundamental privacy challenges through its decentralized AI network, which enables computations while maintaining complete data confidentiality. This article explores Privasea's innovative approach to confidential computing, how it works — and why it matters in our increasingly AI-driven world.

 is a decentralized AI network that uses advanced fully homomorphic encryption (FHE) technology to enable secure computations on encrypted data without exposing the original information, ensuring data privacy throughout the entire AI process.

 and security experts who recognized that AI's exponential growth created unprecedented privacy challenges for organizations handling sensitive data. The team developed innovative FHE technology to enable AI computation on encrypted data without exposing the underlying information.

Privasea quickly attracted significant investment from major players in the blockchain and cryptocurrency spaces. The company's seed funding round secured $5 million from respected investors, including Binance Labs, Gate Labs, MH Ventures, K300 Ventures and QB Ventures.

Following this initial success, Privasea raised an additional $15 million in its Series A round, bringing the company's valuation to $180 million. This round was led by GSR, Amber and Echo, with continued support from notable investors such as Binance Labs, OKX Ventures, Gate Labs and Laser Digital.

Privasea aims to eliminate the fundamental trade-off between AI functionality and data privacy that has prevented widespread adoption across sensitive industries. Now, organizations can leverage powerful AI capabilities while keeping confidential data fully encrypted throughout the computation process.

The platform also addresses regulatory compliance barriers that prevent organizations from adopting AI solutions due to data protection requirements such as 

. By solving these privacy challenges, Privasea ultimately aims to build trust between users and AI systems, encouraging broader participation in data-driven innovation.

 that transforms FHE from a theoretical concept into a practical application: the Application Layer, Optimisation Layer, Arithmetic Layer and Primitive Layer work together to enable secure AI computation on encrypted data.

The HESea Library forms the foundation of Privasea's technology stack. This open-source library provides developers with efficient implementations of popular FHE schemes and cryptographic optimizations needed for secure computation on encrypted information.

The Privasea API builds on this foundation to offer developers comprehensive tools for creating privacy-preserving AI applications. It serves as the primary gateway to the network, allowing seamless integration of advanced privacy features into existing applications.

Privanetix operates as the distributed computation network in which encrypted data processing occurs. This interconnected system of nodes performs FHE calculations while maintaining data confidentiality, with the Privasea Smart Contract Kit managing network operations and reward distribution via blockchain technology.

The process begins when users encrypt their data using FHE protocols before uploading it to the network. Once uploaded, the distributed Privanetix nodes perform AI computations while data remains encrypted throughout, ensuring privacy is maintained from start to finish.

 to enable AI computation and preserve data privacy.

The ImHuman™ app is the world's first mobile application to use FHE to verify human identity without exposing biometric data. Users can mint a Proof of Human 

 through facial scanning, with all biometric information remaining fully encrypted throughout the verification process.

DeepSea serves as Privasea's decentralized mainnet compute layer in which all FHE-secured AI tasks are processed. This operational foundation incorporates Privanetix, WorkHeart and Acceleration Nodes to deliver optimal speed, security and performance for encrypted computations. It integrates AI agent models, facial recognition and private machine learning capabilities, enabling organizations to leverage AI while maintaining complete data privacy across industries handling sensitive information.

Privasea has developed the world's first privacy-preserving 

 running on the DeepSea Network. This agent allows developers and organizations to easily deploy FHE AI tasks on user data without exposing the underlying information. The built-in models for biometric, medical and financial use cases work alongside the user-friendly API for direct 

Privasea uses two node types to power its computational infrastructure.

Privasea has achieved key development milestones while securing substantial funding to support its privacy-preserving AI vision. In 2023, the project launched its testnet V1 and completed a $5 million seed funding round from prominent investors.

The team accelerated development throughout 2024 with multiple testnet iterations, releasing testnets V2 and V3 alongside the WorkHeart Node hardware. The ImHuman app reached 240,000 users as Privasea secured an additional $15 million in Series A funding.

Looking ahead to 2025, Privasea plans to launch the DeepSea mainnet and conduct its PRAI token sale while expanding AI 

 use cases across its ecosystem. The project’s road map extends into 2026 with planned collaborations with Web 2.0 and AI enterprises alongside global expansion of privacy computing solutions.

 of the Privasea ecosystem, has a total supply of 1 billion. Its distribution prioritizes network sustainability, with 35% allocated to mining and staking rewards for participants who provide FHE and privacy services. In addition, its team receives 13% with performance-based vesting, while backers and strategic partners hold 22.5% of the total supply. Marketing and community development account for 15%, with 10.5% reserved for unforeseen needs and 4% dedicated to market liquidity.

PRAI is used to enable access to confidential AI computing services and cover transaction fees for secure computations across Privasea’s network. The token powers identity verification within the ImHuman app and allows users to activate AI agents for data analysis and automation.

PRAI holders can stake their PRAI to support network operations while earning rewards and participating in governance decisions. This utility-driven model ties PRAI's value directly to ecosystem usage and ensures aligned incentives between users, developers and network operators.

Looking to trade Privasea tokens? Bybit now offers the PRAI/USDT Perpetual contract. To get started, you'll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Privasea demonstrates innovative technology and strong backing in the privacy-preserving AI space, investors must carefully weigh its growth outlook against potential risk factors.

Privasea (PRAI) shows promising potential, with substantial financial backing and innovative encoding technology. Increasing demand for decentralized storage solutions provides a favorable market environment. However, potential investors should 

 and consider their risk tolerance, particularly given Privasea’s early position in its development journey.

Privasea represents a breakthrough in addressing AI's privacy challenges through innovative FHE technology. With substantial backing from leading investors and a comprehensive ecosystem including ImHuman, DeepSea and specialized nodes, the project is well-positioned to enable widespread AI adoption across privacy-sensitive industries.

Intermediate

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Privasea (PRAI): Navigating the sea of privacy in AI

Gold’s resilience through Q2 2025 continues to be supported by broad macroeconomic headwinds. 

Gold’s resilience through Q2 2025 continues to be supported by broad macroeconomic headwinds. While equities remain flat year-to-date, gold has gained 28%, bolstered by a weakening US dollar and lingering inflation. With gold priced in dollars, any drop in the currency’s value enhances its appeal — particularly to international investors seeking protection from currency devaluation.

Persistent inflation continues to erode the real returns of fiat currencies, further strengthening gold’s role as a hedge. Meanwhile, the S&P 500 remains stagnant, underperforming relative to both gold and silver and highlighting the precious metals’ safe-haven status during periods of macro uncertainty.

Looking ahead, attention will be turning to the US Federal Reserve.

 The next interest rate decision is scheduled for 

, but markets widely expect rates to remain unchanged at 4.5%. The following meeting, on 

, is viewed as a more likely window for a potential rate cut. A lower interest rate environment would typically weaken the dollar and boost gold, as the opportunity cost of holding non-yielding assets declines.

Geopolitical uncertainty and tariff risks

Geopolitical trade tensions remain a major driver of gold’s outlook. President Trump’s tariff policies, particularly on European Union imports, continue to dominate headlines. Originally expected to begin on June 1, the administration granted a delay, pushing the 50% EU tariff decision out to 

 covering global trade partners is now set to expire 

These back-to-back July deadlines have created a window of relative calm — but expectations are rising. If no deals are reached, and tariffs resume, demand for gold and silver as safe-haven assets could spike sharply.

The market has begun to price in the risk. Exporters, importers and investors are increasingly favoring metals over vulnerable currencies such as the Canadian dollar (CAD), Chinese yuan (CNY) and Mexican peso (MXN). As the July tariff deadlines approach, gold’s role as a neutral reserve asset may be tested again.

From a technical standpoint, both gold and silver remain in bullish territory. Gold’s 

 (MACD) is turning positive again, suggesting that short-term price momentum is reaccelerating. The 12-day moving average is trending above the 26-day, and 

 (RSI) remains under 60 — indicating there’s still room for further upside before overbought conditions emerge.

Gold’s key level remains at $3,500, while the next upside technical target is $4,000 by year end, which is consistent with prior projections.

Silver is now testing the $35 level — its highest since 2012. A confirmed breakout above $35 could trigger renewed buying and fast momentum toward the 

, last seen in 2011. Technical traders are closely watching this level, as sentiment in silver has lagged behind gold until now but is beginning to shift.

China continues to be a major source of physical demand. With strict capital controls and ongoing economic pressures, Chinese investors are increasingly turning toward gold to preserve capital. As the yuan weakens and growth expectations moderate, gold is gaining status as both a hedge and a domestic alternative to holding foreign currencies or equities.

This trend reinforces gold’s base of long-term demand — particularly as central banks and high–net worth individuals in emerging markets increase their allocation to hard assets.

Silver’s long-standing correlation with gold has once again come into play. While gold led the rally earlier in the year, silver is now attracting renewed attention — especially as it approaches the key resistance level at $35. Notably, silver attempted to break above $35 in 

. These three attempts mark the only serious challenges to the $35 level since 2012, making this zone a critical technical threshold. A confirmed breakout above $35 could generate strong momentum toward silver’s 

, offering a hybrid profile: part safe haven, part cyclical asset. This makes silver a valuable diversification tool in portfolios seeking exposure to both macro stress and global recovery trends.

June 2025 marks a turning point, a brief pause ahead of what could be a highly volatile July for precious metals. With major tariff delays set to expire on July 8 and 9, and a possible Fed rate cut on July 30, traders are already positioning for a significant move in both gold and silver.

With technical momentum still constructive and macro risks building, gold remains on track to reach the $4,000 mark by year end. Silver, meanwhile, is approaching a major breakout level and could become the next headline trade if it crosses $35.

In the weeks ahead, gold and silver may prove to be the key assets navigating through global uncertainty — offering both protection and opportunity.

Advanced

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Bybit X FXStreet TradFi Report: Gold on track for $4,000 by the end of 2025

Pump.fun is reportedly planning a $1 billion token sale at a $4 billion valuation, according to multiple sources. 

The S&P 500 rose 0.58% on Tuesday, extending its gains for a second day as tech stocks led the rally. Investors now await key labor market data later this week. Gold dipped 1.29% as strong U.S. job data signaled a resilient labor market, reducing rate-cut hopes and prompting profit-taking after Monday’s rally. The Coindesk Indices, which tracks the broader crypto market, rose 0.72%, with Bitcoin and Ether up 1.74% and 3.00%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is MKR, up 8.8% after Spark expands to Optimism and Unichain, bringing Sky’s yield-bearing stablecoins to the Superchain ecosystem.

Sky (MKR), founded in 2014, is a DeFi platform evolved from MakerDAO, offering USDS stablecoin, token rewards, and easier governance. Users can upgrade DAI/MKR, earn yield, and trade crypto. 

, bringing Sky’s 4.5% yield-bearing stablecoins (sUSDC and sUSDS) to Ethereum’s Superchain. The move enhances on-chain savings and liquidity through Spark’s Liquidity Layer, allowing users to earn yield without bridging or complex setups. Backed by $2.6B in reserves and supported by the Optimism Collective, Spark enables seamless, composable DeFi across chains.

Check out the latest prices, charts, and data of 

Pump.fun is reportedly planning a $1 billion token sale at a $4 billion valuation, according to multiple sources. The memecoin launchpad, which enables users to mint Solana tokens instantly, has generated over $700 million in revenue and seen nearly 11 million tokens created with a combined $4.5 billion market cap. The token sale—open to both public and private investors—could launch within two weeks, signaling Pump.fun’s emergence as a major player in the crypto space.

Yesterday, BTC spot ETFs saw $317.1 million in net inflows, all from non-GBTC funds, while GBTC recorded no flow.

, its biggest yet, with 500,000 $ALICE tokens up for grabs across four waves starting June 3. Participants can earn points through weekly in-game quests, social activities, referrals, and competitions. The campaign runs until the launch of Chapter One: A New Adventure on June 17.

Beginner

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Pump.fun targets $1B raise at $4B valuation as memecoin launchpad nears token debut

Maple Finance is a decentralized capital marketplace that connects institutional borrowers with liquidity providers. Learn more about how it works here.

 (DeFi) has transformed lending and borrowing, yet many platforms struggle to deliver sustainable yields without excessive collateral requirements or speculative token incentives. This structural weakness has hampered DeFi's maturation and limited its appeal to both institutional capital and everyday users seeking reliable returns.

Maple Finance is responding to this need with a decentralized capital marketplace that brings professional credit standards to blockchain lending. This article examines Maple Finance's innovative features, its investment potential as it bridges institutional finance with the broader DeFi ecosystem and the tokenomics of its native governance token, SYRUP.

 is a decentralized capital marketplace that connects institutional borrowers with 

. It delivers transparent fixed-rate yields through professionally managed lending pools while maintaining rigorous credit standards and comprehensive risk management.

Maple Finance was founded by Sid Powell and Joe Flanagan, former banking and finance professionals who identified significant inefficiencies in legacy capital markets. Powell, now the CEO, brings expertise in institutional banking and structured credit, while Flanagan contributes operational knowledge from previous roles, including as CFO of Axsesstoday.

 Mainnet in May 2021, with Orthogonal Trading becoming the first pool delegate to manage Maple's initial 

 pool of $15 million. Since then, Maple Finance has originated over $4 billion in loans and established itself as a trusted DeFi lending platform.

Maple Finance targets the inefficiencies plaguing both traditional finance (TradFi) and DeFi lending markets. Conventional financial systems involve numerous intermediaries that inflate costs and restrict capital access, while most DeFi platforms tend to depend upon excessive collateralization. Its protocol aims to bridge this divide by bringing institutional credit standards to blockchain lending. 

By implementing professional underwriting, transparent 

 and proper governance, Maple Finance creates a lending ecosystem that satisfies both TradFi requirements and DeFi principles.

Maple's ultimate goal is to create a marketplace in which lenders earn sustainable yields derived from real economic activity, while qualified borrowers gain efficient capital access without traditional banking limitations. This creates a capital marketplace whose sophisticated financial practices operate alongside blockchain's inherent transparency and accessibility advantages.

Maple Finance operates through a sophisticated lending infrastructure that connects qualified borrowers with capital providers in a secure, transparent environment.

Maple's lending ecosystem consists of four main roles:

Central to Maple Finance's infrastructure are lending pools that are implemented as 

 following the ERC-4626 tokenized vault standard. This architecture ensures transparency while maintaining security for all participants.

The lending cycle begins when borrowers apply for loans and undergo evaluation. Maple Direct then performs due diligence and establishes suitable terms. Approved borrowers submit formal loan requests on-chain, receive capital upon final approval and maintain scheduled interest payments throughout the loan’s term.

Maple Finance maintains robust security with overcollateralized loans backed by high-quality digital assets in institutional-grade custody solutions. The platform's advanced monitoring system tracks collateral values around the clock across multiple price feeds.

If collateral values decline to predetermined margin call thresholds, borrowers receive automatic notifications, and must restore appropriate collateralization within 24 hours. Failure to meet this requirement triggers Maple Finance's liquidation protocols in order to protect lender capital.

Maple Finance often implements yield optimization strategies with borrower collateral to enhance overall returns, including 

 approaches. A portion of these additional yields flows back to lenders, boosting their effective returns beyond base interest rates.

Maple Finance offers a comprehensive financial product suite that’s designed to serve institutional and retail participants across the DeFi ecosystem.

Through its Blue Chip Secured pool, Maple Finance offers specialized Bitcoin yield opportunities accepting only BTC and ETH as collateral. Developed in 

, this product enables accredited investors to generate yield on Bitcoin while maintaining strong security, with collateral held by qualified custodians such as BitGo and Copper.

Maple Finance delivers institutional-grade lending opportunities that combine security with attractive returns. It features fixed yields of 10–20% APY that consistently outperform traditional DeFi markets. The platform ensures complete transparency in loan structures and collateral requirements while implementing rigorous professional credit assessment by experienced analysts. Diversified pool options allow lenders to select their preferred risk exposure balance and potential returns.

SyrupUSDC and syrupUSDT, Maple Finance's permissionless stablecoin lending products, represent deposits into institutional-grade lending pools. Launched in May 2024, these 

 allow users to earn high yields from secured loans to crypto institutions without 

 verification. With target APYs of approximately 15%, these products enhance returns through collateral staking strategies and commitment periods that boost rewards via commitment multipliers (1.5x for 3 months and 3x for 6 months). 

Maple Finance's borrowing service caters exclusively to institutional clients who pass rigorous approval processes. Qualified borrowers can access on-chain capital without traditional banking constraints, with fixed interest rates providing budget certainty.

The platform offers flexible collateral options and refinancing opportunities while maintaining transparent terms throughout the loan life cycle. Borrowers manage the entire process — from application to repayment — through Maple's streamlined web app interface.

Maple Finance has established itself as a leader in DeFi lending, facilitating over $5 billion in loans and growing its 

 beyond $1 billion. The protocol has successfully distributed nearly $60 million to liquidity providers, launched Syrup for permissionless access and unified its ecosystem through the SYRUP token.

For 2025, Maple aims to enhance token utility for stakers, scale institutional adoption through new credit products and grow Syrup.fi to $2 billion in TVL. Its road map includes expanding infrastructure to support lending in any asset (including 

), with the ambitious target of managing $100 billion in annual loan volume by 2030.

 unifying Maple Finance's ecosystem across its institutional and DeFi products. Launched through proposals MIP-009 and MIP-010, the token creates alignment between stakeholders while incentivizing platform participation.

Following implementation, 1.15 billion SYRUP tokens were minted at a 100:1 conversion rate from MPL, its legacy token, with supply projected to reach 1.228 billion by September 2026. The token enables staking for protocol revenue shares, exclusive governance rights, value capture from lending activities and conversion of earned 

This staking mechanism operates without lockup periods through a decentralized contract. Rewards come from both protocol revenue and 5% annual inflation, with 5 million SYRUP distributed to early stakers in the first 90 days. The Drips rewards program enhances earnings through compounding rewards, commitment multipliers and integration boosts.

Looking to trade Maple Finance tokens? Bybit now offers the SYRUPUSDT Perpetual contract for trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Maple Finance demonstrates strong institutional adoption and growing integration within DeFi, investors must carefully weigh its potential against several risk considerations.

SYRUP may appeal to investors seeking exposure to institutional DeFi lending and the expanding RWA ecosystem. Its value proposition derives from actual financial activity rather than purely speculative mechanics, potentially providing some stability. However, investors are advised to consider their 

 before committing capital to this evolving protocol.

Maple Finance exemplifies the way that traditional financial expertise can thrive within decentralized systems. With its professional underwriting standards and transparent operations, the protocol demonstrates remarkable potential as institutional capital flows accelerate and the expansive RWA market continues its integration with blockchain technology.

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Maple Finance (SYRUP): Tapping into sweet yields with DeFi lending

Crypto

Trading

A spot market is referred to assets like forex, crypto, or commodities traded on the spot whenever the buying/selling order is filled. Learn how crypto spot works today!

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With an increasing number of institutions beginning to invest in cryptocurrency, it’s inevitable that more users have started to take an interest in it. To begin a journey in cryptocurrency investing/trading, one would typically wish to start with the basics, understanding how to buy and sell cryptocurrencies before moving on to trading.

Spot trading is the most basic and simplest method for trading cryptocurrency. New traders usually start their cryptocurrency trading journey by interacting with spot markets. Compared to investing in crypto, which typically means holding a cryptocurrency for a prolonged period of time, spot trading involves buying and selling a range of cryptocurrencies in an attempt to generate regular short-term profits.

In this article, we’ll explore spot trading.

Spot trading refers to buying and selling cryptocurrencies at the current market price, also known as the spot price, with the intention of immediate delivery of the cryptocurrency traded. “Delivery” in this context refers to the buyer and seller fulfilling their commitment to the transaction, with the buyer offering the payment and the seller offering the cryptocurrency traded.

Spot traders typically buy cryptocurrencies at the current market price with existing capital, hold onto the cryptocurrency for a period of time in hopes of the price increasing so they can eventually sell their crypto to realize a profit. Spot trading is popular among traders, given that they can open short-term positions with low spreads and no expiration date.

 the cryptocurrency spot market. This involves selling a cryptocurrency and repurchasing it when the price decreases.

Taking ownership of the actual cryptocurrencies that are being bought and sold differs from trading derivatives, such as a cryptocurrency contract for difference (CFD), in which the asset traded only tracks the price of the cryptocurrency and doesn’t confer ownership of the cryptocurrency upon traders.

A spot price refers to the present market rate for immediate purchase or sale of a particular asset.

Trading pairs describe assets that can be exchanged for one another. There are two main types of trading pairs in the cryptocurrency spot market: crypto-to fiat pairs (e.g., ETH/USD) and crypto-to-crypto pairs (e.g., ETH/USDT).

 gives traders information regarding the depth of a given market. It displays a real-time list of open buy and sell orders for a selected cryptocurrency. There are two sides to the order book:

An open order refers to unfilled orders that have yet to be executed.

There are different kinds of orders that can be made in a cryptocurrency spot market.

This allows spot traders to prepare spot trades in advance. Users can set the desired price at which they wish to buy or sell the cryptocurrency, known as the limit price. Once the market price reaches that price, the trader’s order will be executed, made possible through conditional agreements that have been specified by the trader.

A market order is executed immediately at current market prices. This order type is used by traders when they wish to complete their trade orders as quickly as possible. Spot traders can make this order easily, without having to enter a price. Once a market order has been executed, a trader can purchase or sell their holdings immediately at the best available spot price.

There is no guarantee that the market price won’t change while the order is being executed, especially given the volatile market conditions of cryptocurrency.

Traders can refer to the transaction history to keep track of the type of orders they’ve made.

Most exchanges charge a transaction fee for each spot trade order. The amount of fees to be paid depends on 

Takers are traders who remove liquidity from the order book. A buyer who inputs a market order is considered to be a taker. A trader whose order is matched immediately with an existing buy or sell offer subjects them to a taker fee.

A maker is a trader who provides liquidity to the market by increasing the market depth of the order book. A maker fee is applied when a trade order is placed in advance with limit orders.

However, not all limit orders are charged a maker fee. For example, when a trader is matched with an order straightaway, they might be charged a taker fee instead. To ensure that a maker fee is charged, traders can place a limit order so they won’t be matched with an order immediately even when the terms are met.

Differences Between Spot Trading & Margin Trading

In spot trading, traders purchase cryptocurrencies with the capital they have available, fully possessing the asset once the trade has been executed. 

, traders borrow capital from a third party to complete the purchase of cryptocurrencies. This allows margin traders to purchase larger quantities of cryptocurrencies or enter larger trading positions, resulting in the potential for more significant profits. However, this is considered riskier as a losing margin trade could potentially amplify the losses and cost margin traders more than their initial capital.

In addition, margin traders are required to consistently meet their margin requirements to avoid receiving a margin call, which could cause the trader’s assets to be sold off. Margin traders are thus required to constantly keep an eye on their trades. In addition, the costs of a margin loan can pile up, rendering the need for margin traders to trade in shorter time frames more often as compared to spot trading.

Differences Between Spot Trading & Futures Trading

With spot trading, cryptocurrencies are purchased with immediate delivery and spot traders will own the underlying asset. Afterward, spot traders generally wait for the price of the cryptocurrency to increase before taking profit.

, on the other hand, don’t own the underlying asset; they merely own a contract which represents the cryptocurrency’s value. In futures trading, both the buyer and seller agree to trade a certain quantity of cryptocurrency at a specific price in the future, which is then locked in the contract until the transaction is completed at a later date. When the contract matures on the predetermined date, the buyer and seller come to a settlement.

The main difference between spot trading and futures trading lies in the use of leverage. Futures trading allows for the use of leverage, so that futures traders can enter a larger position even if they have a lower account balance.

Spot markets, also known as cash markets since traders make payments up-front, are available for a wide range of asset classes. These include stocks, bonds and the foreign exchange (forex) market. NASDAQ and NYSE (New York Stock Exchange) are two of the most popular spot markets.

To understand how the spot market works for cryptocurrency spot trading, let’s take a look at a BTC/USDT spot trading pair.

Buyer A, with 1,000 USDT, puts in a buy order for an equivalent amount of BTC at the unit price of $42,000. Buyer A will be matched with Seller B, who offers BTC in exchange for USDT at Buyer A’s desired price. Once Buyer A and Seller B have agreed on the price, the order will be executed and filled immediately.

Spot markets are commonly affected by market sentiment, and spot prices for nearly all cryptocurrencies fluctuate wildly. Therefore, understanding 

There are different types of spot markets for cryptocurrencies, which we’ll discuss in the next section.

Spot trading occurs in two major types of spot market: Exchanges and over-the-counter (OTC) trading.

Exchanges are platforms where market demand and supply are aggregated, allowing spot traders to buy or sell cryptocurrencies quickly at market price. In cryptocurrency spot markets, there are two distinct exchanges: centralized exchanges (CEXs) and decentralized exchanges (DEXs).

 acts as an intermediary between spot traders and cryptocurrencies, functioning as a custodian and managing the traded cryptocurrencies. CEXs provide an order book, which will provide spot traders information with regard to the amount of cryptocurrency available for sale, and also the market demand for a cryptocurrency. This is useful for gauging the market liquidity available for trading.

CEXs grant spot traders access to fiat-crypto trading pairs. To begin spot trading, users simply have to deposit either fiat or crypto into their account.

There are certain responsibilities specific to CEXs:

Since CEXs offer the above functionalities and services for users, spot trading on CEXs often involves transaction fees. Fees are also charged for listing and other trading activities. Thus, CEXs can profit regardless of the market state as long as they have sufficient trading volume and users.

This type of exchange is most commonly used for cryptocurrency trading. 

 have similar functionalities and services as CEXs. However, the greatest difference lies in that there are no intermediaries involved in DEXs. The matching of buyers and sellers is achieved through blockchain technology, where smart contracts with predetermined rules are used to execute trades directly from a trader’s wallet. With self-executing codes, traders are able to transact without needing to trust an intermediary to complete the trade for them. Similarly, the traded cryptocurrency doesn’t need to be held in custody by the CEX, giving traders full ownership of the cryptocurrency.

When using DEXs, traders aren’t required to create an account, and can bypass the KYC process. This provides users with a lot more privacy and freedom, allowing them to trade directly with others. However, the tradeoff is that should there be any technical issues, the lack of KYC and customer support leave the trader largely stranded.

Some DEXs use an order book model, similar to that of CEXs. A more recent development within the space is the automated market maker (AMM) model, such as that of Uniswap and PancakeSwap. AMMs use a formula to determine prices and make use of 

Spot trading can be carried out through OTC trading or P2P trading, with each carrying its own benefits.

OTC trading is considered to be off-exchange, as the buyer and seller transact directly, without any third party or trading platform overseeing their trade. The buyer and seller aren’t using an order book, and instead can choose to transact any cryptocurrency at any price that they both deem fit, even if it's below or above market price.

OTC trading is popular among spot traders for the following benefits:

, particularly for cryptocurrencies with lower liquidity such as small-cap cryptocurrencies. This results in spot traders being unable to fill their order at the price desired. OTC trading bypasses the order book, letting spot traders fill their trade positions without experiencing high slippage.

Since OTC traders are transacting off-the-market, they can trade a large amount without worrying about causing volatility that would result from trading in an open market.

Spot trading allows users to hold tokens for up to multiple years. It’s thus used by many traders to dollar-cost average (DCA) their favorite cryptocurrencies. Note that profits only become “real” when cryptocurrencies are “moved,” meaning converted to fiat currency or stablecoins. It’s also at this point that cryptocurrencies become taxable, but they can be held indefinitely before they’re taxed.

If you’re interested in trading the spot market with Bybit, the following is a step-by-step guide to help you get through the process.

. Register on Bybit web or Bybit App, and do the KYC verifications to unlock a higher trading volume, higher deposit and withdrawal limits.

2. On the left dropdown icon, hover your cursor and you will see all supported Spot trading pairs, along with the Last Traded Price and the 24-hour change percentage of the corresponding trading pair.

What Is a Spot Market for Crypto Trading?

Compete for 2,500 USDT USDT Every Week

What Is a Spot Market for Crypto Trading?

Grab Up to 5,000 USDT in Rewards

Compete for 2,500 USDT USDT Every Week

Grab Up to 5,000 USDT in Rewards