Definition ∞ Spot market buying refers to the immediate purchase of a digital asset at its current market price for instant delivery. Unlike derivatives trading, which involves contracts based on future prices, spot buying means acquiring the actual asset. This activity directly influences the asset’s price on exchanges. It represents genuine demand for the underlying cryptocurrency.
Context ∞ Spot market buying activity is a fundamental indicator of direct demand for a cryptocurrency. Analysts frequently monitor spot exchange volumes and order book depth to gauge current market sentiment and liquidity. News reports often reference increases or decreases in spot buying to explain price movements or market trends.
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