Cryptocurrency trading can be complex, but understanding order types is crucial for success
Market Order (MKT): This is the simplest type. You buy or sell an asset at the current market price. Quick execution, but the price may vary. Useful for high liquidity assets
Limit Order (LMT): You set a specific price at which you want to buy or sell. The order executes only when the market reaches that price. Control over the price, but not guaranteed execution
Stop Order (STOP): A stop order becomes a market order when the asset hits a certain price (the stop price). Used to limit losses or trigger buys when a resistance level breaks
Stop-Limit Order (STP LMT): Like a stop order, but you also set a limit price. When the stop price is reached, it becomes a limit order. Protects against slippage but may not execute if the market moves quickly.