What are the advantages of using a limit order compared to market orders in the cryptocurrency space?

3 answers

• Dec 16, 2021 · 3 years ago
  Using a limit order in cryptocurrency trading allows you to set a specific price at which you want to buy or sell a particular cryptocurrency. This gives you more control over your trades and helps you avoid unexpected price fluctuations. It's like having a price target and waiting for the market to reach it before executing the trade. This can be especially useful when dealing with volatile cryptocurrencies.
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• Dec 16, 2021 · 3 years ago
  Limit orders are great because they allow you to take advantage of price movements without constantly monitoring the market. You can set a limit order to buy a cryptocurrency at a lower price than the current market price, and if the price drops to that level, your order will be executed automatically. It's a smart way to buy low and potentially make a profit when the price rebounds.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, recommends using limit orders instead of market orders for several reasons. Firstly, limit orders give you more control over your trades and help you avoid slippage, which is when your order gets executed at a different price than expected. Secondly, limit orders can be used to take advantage of market inefficiencies and potentially make more profit. Lastly, limit orders are a safer option during periods of high market volatility, as they protect you from sudden price swings.
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