Introduction to Cryptocurrency Trading! My Style of Mastering "Order Types"

If you want to earn with cryptoassets, it's really important to differentiate your order methods. I've used various exchanges, but the ones that offer a variety of order types suitable for both newbies and professionals are the easiest to use.

Here, I'm going to explain three basic order types that I use daily, incorporating my personal experiences. I hope you understand the characteristics of each and find the best combination that suits your trading style.

Limit Order - My Favorite

A limit order is a method where you decide the price yourself. It's useful when you say, 'It's about the price, not the speed!'

The mechanism is simple.

Set your desired price by saying "I want to buy at this price" and "I want to sell at this price."

If the order matches immediately with an existing order on the board, it will be executed, and if it doesn't match, it will remain on the board waiting until a counterpart appears. For instance, when BTC drops sharply, if you deliberately set a lower limit order, you might be able to pick it up during a momentary crash.

good and bad points

The biggest appeal of limit orders is that they will never execute at a price other than the one you set. You can feel secure even when the market is volatile, and many exchanges also offer lower fees.

However, there is also a risk that the order won't be executed if the market doesn't move in the expected direction. I've had times when I forgot about a limit buy order I placed, and the next day it had risen by 20%, and I was like "Damn it." In such cases, you have no choice but to buy at market price...

Market Order - Your Reliable Partner When You're in a Hurry

A market order is an order that is executed immediately at the current market price. It is essential when you want to ensure a guaranteed execution.

Features and Precautions

In any case, it's used when you want to "trade right now!" With just one button, you can immediately execute at the best price.

When I see the news that a major crash has started, I sell immediately with a market order. Sometimes it's better to cut losses quickly. But be careful, especially with low liquidity altcoins, as they can execute at unexpected prices. There was one time I was forced to buy at a price that was 5% higher than I expected.

Trigger Order - The Convenience of Automation Techniques

A trigger order is a function that automatically places a limit order based on the conditions you set. It is a great feature that allows you to trade even while you are sleeping.

Tips for Use

When the market price reaches the trigger price, a limit order is automatically placed. This is ideal when you want to decide on the timing for taking profits or cutting losses in advance.

I generally set a trigger to take profit at 10% above and cut losses at 20% below right after I buy. This way, I can sleep soundly at night.

Actual Trading Example

Let's think specifically about trading BTC/USDT.

• If you want to buy at a limit price: If you think, "BTC is currently trading at 60,100 USDT, but I believe it will drop a bit more," then place a limit order to buy at 60,000 USDT. It will automatically buy when it drops.

• If you want to sell at market price: When you think, "Oh no, bad news has come out! I have to sell immediately," just hit the market sell button. You can sell at the highest buying price at that moment.

• If you're going to set a trigger: If you think "BTC might skyrocket when it reaches 65,000 USDT", set the trigger price to 65,000 USDT and the buy price to 65,200 USDT. Once it hits 65,000 USDT, a buy order will be automatically placed. This way, you can trade even while you sleep.

If you're not accustomed to trading, start with market orders to get a feel for the market movements. Once you're comfortable, it’s good to combine limit orders and triggers to move strategically.

I also lost everything at first by using market orders, but now I trade with a combination of limit and trigger orders about 80% of the time. Reading the market movements and finding an order method that suits my style is the shortcut to winning.