Which type of order, market or limit, is more commonly used by cryptocurrency traders?

3 answers

• Nov 27, 2021 · 3 years ago
  Market orders are the most commonly used type of order by cryptocurrency traders. This type of order allows traders to buy or sell a cryptocurrency at the current market price. Market orders are popular because they provide quick execution and guarantee that the trade will be executed. However, market orders do not guarantee the price at which the trade will be executed, which means that the trader may end up buying or selling at a slightly different price than expected. Overall, market orders are preferred by traders who value speed and execution certainty over price precision.
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• Nov 27, 2021 · 3 years ago
  Limit orders are also widely used by cryptocurrency traders. This type of order allows traders to set a specific price at which they want to buy or sell a cryptocurrency. The advantage of limit orders is that they provide price control, allowing traders to specify the maximum price they are willing to pay or the minimum price they are willing to sell at. However, the downside of limit orders is that they are not guaranteed to be executed immediately, as they are only executed when the market price reaches the specified limit price. Traders who use limit orders are typically more patient and willing to wait for the desired price level to be reached.
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• Nov 27, 2021 · 3 years ago
  According to a recent survey conducted by BYDFi, it was found that market orders are the most commonly used type of order by cryptocurrency traders. The survey revealed that 70% of traders prefer market orders due to their simplicity and quick execution. On the other hand, 30% of traders opt for limit orders as they allow for more control over the execution price. Both types of orders have their own advantages and disadvantages, and the choice between market and limit orders ultimately depends on the trader's individual preferences and trading strategy.
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