A limit order is a good option for cryptocurrency trading for beginners. This way of trading gives you more control over your assets and allows to save money on fees, unlike a market order.
With limit order you can buy or sell your crypto assets only when the price on the market reaches certain price. The price is set buy you, so you can risks of loses because of sudden market fluctuation. The advantage of a limit order is an ability to sell or buy higher or lower than the current market price. However it might take time for a price to reach the determined level or opposite, the price might raise or fall so rapidly, that the trade will be executed with lower profit level, than it could be in case of higher limits. For the later case, you can split your order into smaller portions with raising price each and reach in that way accumulative effect.
To sum up, limit orders should be used when you do not need to buy or sell crypto assets immediately. Unlike market order, the trade isn’t executed instantly, giving you time to reach the balance between the current market situation and the desired profit. Also, there’s no fees, as you don’t act as a market taker.
Now let’s have a look how to place the limit order in Torex.One:
- Choose an exchange with needed assets in “Exchange” list.
- In the “Base coin” drop-down list you can choose a coin, which is quoted to the another coin you’re interested in.
- Then choose the desired coin pair in the “Coin” list.
- Set a deal type with the switcher.
- Choose the second coin (not the Base coin) deal volume.
- Enter the price you want to execute trade on.
- This button turns on the limit.
- After setting up and clicking on the Create Order button, you can find your order in the order list.
