Spot Crypto Markets

Definition ∞ Spot crypto markets are venues where digital assets are traded for immediate delivery at the current market price. Participants exchange cryptocurrencies directly, with ownership transferring almost instantly upon transaction settlement. Unlike futures or derivatives markets, spot markets involve the actual purchase and sale of the underlying asset. These markets form the primary mechanism for price discovery and liquidity for individual cryptocurrencies.
Context ∞ News frequently references activity in spot crypto markets as a direct indicator of demand and supply for various digital assets. Major cryptocurrency exchanges operate as central hubs for these transactions, influencing global price benchmarks. The introduction of new assets or significant trading volumes in spot markets often drives market narratives. Understanding spot market dynamics is fundamental to interpreting daily cryptocurrency price movements and overall market health.