Trading cryptocurrencies can be exciting, but also take a lot of time if you don’t know how to do it. There are many different types of orders you can make to buy or sell on your exchange according to what you want. Read our introductory article and get a basic understanding of the orders available.
Market order, the easiest
When you place a market order, you're telling your broker (the exchange) to buy or sell shares or crypto-assets at the best available price. If you're buying, your broker will try to get the lowest possible price. If you're selling, it will try to get the highest.
That's it! You don't have to worry about timing the market perfectly or anything like that. Just remember that if you're buying, you might not get the exact price you want, and if you're selling, you might not get the highest price possible.
There are other types of orders, but market orders are the easiest to understand and use.
Limit order, the most valuable
When it comes to trading, there are different types of orders that can be placed in order to execute a trade. Among these, the limit order is often considered the most valuable due to its ability to help traders get the best possible price for their desired asset. A limit order is a type of trade that gives you exact instructions on when and how much to buy or sell an asset at any time in future. Your trade will be executed either once your price is met.
Stop order, securing your money
When you're ready to start trading, you need to know the different types of orders that you can place. One important type of order is the stop order. A stop order is an order to buy or sell an asset at a specified price. This type of order becomes active only when the asset's price reaches the specified price. At that point, the order is executed at the next available price.
Stop orders are often used to limit losses or protect profits. They can also be used to enter or exit a trade. For example, if you wanted to buy a crypto at $50 but it is currently trading at $49, you could place a stop order at $50. If the crypto reaches $50, your order will be executed and you will buy the crypto at $50. Or, if you wanted to sell a crypto if its price reaches $40 (in order to protect your gains) while this asset is currently trading at $51, you could place a stop order at $40. If the asset reaches $40, your order will be executed and you will sell the crypto at $40. This would prevent you from holding the asset at lower prices.
Remember, stop orders are not guaranteed to be executed at the specified price. This is because once the stop price is reached, there may not be enough buyers or sellers. Regular stop orders are executed at the best available price at the time of their trigger. Stop loss limit orders can be used to create a limit order when the stop order is trigger and avoid this risk. However since those are creating a limit order, if the price of the limit order is not met, you will end up with an unfilled open limit order.
Take profit order, cash out before it's too late
When it comes to trading, one of the most important things to remember is to take profit before it's too late. That's why a take profit order is such an important tool for traders. A take profit order is an order to buy or sell an asset at a certain price once it reaches a certain level of profit. This ensures that you lock in your profits and don't let them slip away.
One of the biggest mistakes traders make is waiting too long to take profits. They think that they can ride the wave of a rising crypto and make even more money. But the reality is that the market can turn on a dime and all those profits can evaporate just as quickly. That's why it's important to take profits when you have them.
Another thing to remember is that you can always cash out before it's too late. If you're ever in doubt about a trade, or if you start to see signs that the market is about to turn, don't be afraid to cash out and take your profits. It's better to be safe than sorry when it comes to trading.
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