The way to declare the situations under certain circumstances in which trading takes place is said to be its order types. Some examples of order types are market orders, stop limit orders and limit orders, etc. In case you are a new comment in the crypto world and eager to trade with cryptocurrency, then numerous order types might confuse you and further intimidate the same. This means that there is more potential for growth in the market, since it can grow faster than traditional investments when invested through a great podium such as Bitcoin System platform. Hence before going into deep, revisit the concepts of each order type:
It is the easiest and simplest version of this type of order. In case you are urging your crypto broker for further sale and purchase of crypto assets at the best price among ongoing cryptocurrencies value let’s take an example, if you want to purchase bitcoin at currency ongoing market rate, you would have to place a buy order as per market rate and in case your broker is pursuing trading on your behalf, he would trade at its best price in the market.
- Advantages: This task is simple to execute and also ideal for pursuing cryptocurrency trading as quickly as it can
- Disadvantages: the crypto purchase will be costly in case you are buying and on the contrary, it would be lower in case you are selling as per market circumstances at the time of execution.
It is bound with a particular price value. A limit order is an order where you have to sell or purchase your cryptocurrency at a fixed rate. Unlike market orders, limit orders cannot be executed at the same moment. Therefore, it will remain open until it reaches a specific price value. However, if limit orders are utilized by the investors who want to sell or purchase the crypto assets at some particular price value, therefore the loss will be limited in case the market suddenly drops.
- Advantages: in this case, the fixed price declaration is in your hands on which you want to buy or sell your cryptocurrency. Moreover, it is ideally available for those traders who wish to buy or sell at a fixed price value.
- Disadvantage: you have to face loss when the market value will be opposite to your expectation. Or you have to wait for a long period for your order to be executed.
This third type of order is used to again sell and purchase assets once it reaches a specific price value. As with other orders, the stop loss order can’t be opened until it reaches its fixed pre-decided value. And when it becomes active, the stop prices reach and will be further executed at the best available price of the crypto asset in the market. However, the stop loss orders are frequently used by investors who wish to restrict their loss value during the bad condition of the market
- Advantages: in case of a stop loss order, it is in your hand to specify the exact price at which you wish to buy or sell your crypto asset. Moreover, traders with specific price value determination would also be referred.
- Disadvantages: in case market rates are not going as per your expectations, your crypto sale purchase task cannot be executed. You have to wait for a long period until the price reaches your expected range.
However, some more things such as identity proof, passport, or driving license would also be required to verify your account and then you would be able to deposit your funds into your account and start trading as well.
The bottom line
The bottom line is that there is no particular way to analyze the crypto market’s ongoing trend. Hence your experience and trading practice will reach you to the best of your results in your trading style.