#OrderTypes101

Have you decided to buy or sell some cryptocurrencies? Great! But when you hit the "Buy" or "Sell" button, you'll often find different types of "orders". Understanding these types is essential for executing your trades effectively and reducing risks. Let's review the most common ones!

1. Market Order: Get it now!

What it is: A market order is the simplest and fastest way to buy or sell cryptocurrencies. You simply tell the exchange: "Execute this trade immediately at the best available price right now".

When to use it:

* Speed is the most important: You need to enter or exit the trade immediately, regardless of minor price fluctuations.

* High liquidity: In highly liquid assets, the difference between the buy price and the sell price (the spread) is usually small, so you get a fair price.

Things to watch out for:

* Price slippage: In less liquid assets or during periods of volatility, the price may move against you between the time you place the order and when it is executed. You may end up paying a little more or receiving a little less than you expected.

* Not ideal for large orders: A very large market order may "impact" multiple price levels in the order book, resulting in a significantly lower average execution price.