#OrderTypes101 #OrderTypes101
What type of order should you use on an exchange? Here’s an explanation as if you were in a coffee shop ☕
Imagine you are in line to buy your favorite coffee:
📦 *Market Order = “Give it to me now”*
You pay the current price, regardless of whether it goes up or down. It’s fast, but you might pay more.
📌 *Limit Order = “I only buy it if it costs \$2”*
You decide the price. If the coffee reaches that price, you buy it. If not… you keep waiting.
⏱️ *Stop-Limit Order = “If the coffee goes up to \$3, sell it at \$2.90”*
Ideal for avoiding losses. It only activates if certain conditions are met.
💡 Knowing how to use these orders is key to not buying or selling on impulse.
It’s not just about buying crypto... but doing it strategically! 😉