Today on #OrderTypes101 we talk about the different ways of buying and selling crypto assets!

When trading cryptos, knowing the different order types can make a big difference in managing risk and improving results 🤑

Here’s a quick overview of the most common order types used on crypto exchanges:

1️⃣ Market Order

What it does: Buys or sells instantly at the best available price.

Best for: Fast execution when you want to enter or exit quickly. 💸

Downside: Slippage—price may change during execution.

2️⃣ Limit Order

What it does: Buys or sells at a specific price or better.

Best for: More control over entry/exit prices. ⚖️

Downside: May not fill if the market doesn't reach your target.

3️⃣ Stop-Loss Order

What it does: Sells a position if price drops to a set level.

Best for: Protecting against big losses, and for resting in tranquility 😴 📉

Downside: Can trigger during market spikes or crashes and false alarms.

4️⃣ Take-Profit Order

What it does: Automatically sells when a profit target is hit.

Best for: Locking in gains without watching the market 😏

Downside: Might miss larger profits if price keeps rising over the target. 📈

5️⃣ Stop-Limit Order

What it does: A hybrid: it triggers a limit order once the desired price is reached.

Best for: More precise exit control.

Downside: Might not execute in fast-moving markets 😰

6️⃣ Trailing Stop Order

What it does: Moves your stop-loss level with the price trend, creating a sort of "safety net".

Best for: Locking in profits 💰 while letting prices run up. 📈📈📈

Downside: Sensitive to short-term volatility that might trigger it unexpectedly.

So, now that you know your theory, it's best to practice your favorite one! 😉