Why Latest Spot Prices Matter for Successful Crypto Trading

Introduction

Outdated and obsolete data takes you nowhere whether you are a doctor, an engineer, a surveyor, an investor or a trader. Up-to-date records serve your purpose and enable you to progress efficiently. In the ever-changing world of blockchain technology and cryptocurrency trading, very high volatility makes it all the more necessary to get the latest information related to your trades. Although spot trading entails holding an asset for a long time, the entry price can be decisive.

What is the Latest Spot Price?

When you open the spot trading portion in an exchange, you come across a price that is constantly changing. The changing speed depends on various factors like current volatility index, speed of your internet connection, etc. Beside, there is also an order book which displays bid and ask prices. However, these prices show only the orders that still exist. The latest trades price is the price at which an asset has been bought or sold last time a trade was made.

Why the Latest Spot Price Matters

The latest traded price reveals the current sentiments of the traders. Market makers use this data to make informed decisions regarding their upcoming trades. The latest spot price tell you what exactly the price was on which buyers and sellers agreed. That’s why it is important to track this data if you want to be a successful trader. In other words, it represents the real value of the asset in question.

Difference between the Latest Trade Price and Other Prices

When you open the spot trading portion, you find charts according to different time frames. Let’s suppose you open the daily chart. The candles show you opening price, closing price, the highest and lowest prices during the day.

Opening Price

The opening price sets the tone, sentiment and direction of the trades. In stocks trading, it is common for the prices to start from below or above the last closing price. Due to this reason, frequent fair value gaps (FVG) arise in stock trading. This is rare in crypto trading because trading goes on round the clock. If the closing price on Friday and the opening price on Mondy are different, a FVG results.

Closing Price

This is the most important level in a candle. You might have read and heard analyses asserting “closing” above or below certain levels is very important. In a downtrend, daily closing below a support level or above a resistance level can change the narrative. On the whole, closing in terms of moving average is even more critical. For example, since 22^nd April 2025, $BTC does not have even a single closing below MA200 on the daily chart. The breakage of MA200 is considered a bearish indicator.

Highest Price

The highest price during a time frame is mostly in the form of a wick as it rarely happens that a coin pumps and closes at the highest point. The upper wick shows that there was some liquidity at the upper level, and it has been collected.

Lowest Price

Exactly like the highest price, a wick usually shows the lowest price. These wicks liquidate the high leverage long positions in futures trading.

Current Market Price (CMP)

The constantly changing price in the spot trading window is the current market price. What might confuse you is whether the current market price is the same as the latest spot-traded price. This is a tricky question. They might sometimes be the same and sometimes different. The CMP is usually averaged value of the asset at a given moment.

If you have performed spot trading, you may have observed that your orders are not all filled at the desired price despite the fact that you had put an order to be filled at the market price. This explains why the CMP is usually slightly different from the latest spot traded price. If buyers and sellers agree on the CMP, it becomes the latest spot traded price. Otherwise, it remains a different piece of data.

How to Retrieve Latest Spot Traded Prices

1. Representational State Transfer API

API stands for Application Programming Interface. REST API is accessible from all reputable centralized exchanges. This API can handle very simple to complicated commands fairly well. You can use single ticker like DOT/USDT or multiple tickers together to get the latest spot traded price accurately. You must remember that these APIs are not dedicated applications. They are protocols that run on your browsers too. For example, if you paste the following command into any browser’s search bar, you will get the result:
                        https://api.binance.com/api/v3/ticker/price?symbol=DOTUSDT

2. WebSocket Stream

Unlike REST API, which gives you the latest traded price only once, WebSocket Stream requires the users to subscribe to a live continuous stream which refreshes automatically and sends you latest prices after a set interval. Compared to REST API, this method is a bit complicated. First you need to have Python on your computer. Then you will need WebSocket-client library. After that, create a python file by opening Notepad and paste the following code into it:

import websocket

import json

# This function will be called whenever a new message (trade data) arrives

def on_message(ws, message):

    data = json.loads(message)

    print(f”Trade executed! Price: {data[‘p’]}  Quantity: {data[‘q’]}”)

# This function runs when the connection is opened

def on_open(ws):

    print(“Connected to Binance WebSocket stream…”)

# Binance WebSocket endpoint for DOT/USDT trades

socket_url = “wss://stream.binance.com:9443/ws/dotusdt@trade”

# Create a WebSocket app and start listening

ws = websocket.WebSocketApp(socket_url, on_message=on_message, on_open=on_open)

ws.run_forever()

The file must have a name ending with “.py”. Now go to the terminal or command prompt, navigate to the Notepad file and run it. You will start seeing the continuous data for your selected ticker.

3. WebSocket API

This is a step ahead of the previously mentioned method of price retrieval. It not only lets you view the latest prices but also enables you to place and cancel your spot orders on exchanges.

Conclusion

Professional traders use advanced methods to view the latest prices traded by buyers and sellers. These prices are not available directly on the regular interface of exchanges. To be able to do this, traders use REST API, WebSocket Stream and WebSocket API. These protocols facilitate traders in monitoring the data and also in interacting with exchanges.