In cryptocurrency trading, the main tasks are to minimize losses and take profits. For thistraders use special tools,which are usually called pending orders. They can be divided into stop orders and limit orders. They allow you to make a deal in an automatic mode when the situation on the market that suits the trader. Thus, you can not sit for hours at the monitor waiting for favorable conditions for the transaction, writes RBC Crypto.
What is a limit order?
A limit order always has an upper or lowerthe price limit, explained Vitaly Kirpichev, director of development for the TradingView platform in Russia. According to him, such an order is used when a trader is ready to wait for the price he needs, taking the risk that such an order may not be executed.
“When you place a limit order:buy bitcoin for $ 50 thousand, which means that you are ready to buy a coin at a price not exceeding $ 50 thousand. At what price you end up buying will depend on the market. That is, you can buy an asset either at $ 50 thousand, or below $ 50 thousand, or not buy at all "- explained the expert.
Sell limit order works in the same wayway, added Kirpichev. If you place a limit order to sell bitcoin at $ 60 thousand, then it will be triggered only in two cases: when the value of the coin reaches the specified mark, or when it exceeds it.
What is a stop order?
A stop order is also called a conditional order, thenis an order that is placed under a certain condition - if the price reaches the set level, Kirpichev notes. According to him, the instrument can be used to exit an already open position and take profit.
“For example, if we want to buy bitcoin at $ 50thousand, and it is trading at $ 55 thousand, it will be enough to place a simple limit buy order. But if we want to sell the coin only when the price exceeds $ 60 thousand, then the $ 60 thousand limit order will no longer work, since it will be immediately executed on the current sell orders for $ 55 thousand. "— noted the director for development of the TradingView platform in Russia.
Stop orders are also used to limitloss, added CEO Cryptorg.exchange Andrey Podolyan. According to him, this tool is triggered if the price of an asset moves in the opposite direction from the desired one. By placing a stop order, a trader sets a loss, which he is ready to go, Podolyan noted.
Effective approach
Using a stop order, you can apply a break-even trading strategy, but for this you need to have a good understanding of the operation of trading terminals, emphasizes Podolyan.
As an example, the expert cited a situation inwhere a trader bought bitcoin for $ 50 thousand, and then the price of a digital coin reached $ 55 thousand. In this case, Podolyan recommends placing a "protective" stop order at $ 52 thousand in order to guarantee a profit and not go into the red even if bitcoin becomes cheaper ...
"I often use this method of protecting my positions."- added CEO Cryptorg.exchange.
In trading, discipline is very important, and if you have opened a position, you should always use stop orders, Vitaly Kirpichev recommends.
When are pending orders not needed?
Do not use pending orders Andrey Podolyanadvises only if there is confidence in the growth of a certain asset and its purchase occurs in order to gain profit in the long term. Vitaly Kirpichev adheres to the same opinion, but in any case he recommends answering the question of when to exit this position and under what conditions when opening a long-term position.
“There are different tactics in trading, someone workswith stop orders someone without, this does not mean that trading without stop orders cannot be earned. Long-term investors usually trade without this instrument, active traders use pending orders, this is a matter of tactics ", - added Podolyan.
Where to trade cryptocurrency? TOP-5 exchanges
For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.
The reliability of the site is primarily determinedtrading volume and number of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.
Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?
Rating of cryptocurrency exchanges:
| # | Exchange: | Website: | Rating: |
|---|---|---|---|
| 1 | Binance (Editor's Choice) | https://binance.com | 9.7 |
| 2 | Bybit | https://bybit.com | 7.5 |
| 3 | OKEx | https://okex.com | 7.1 |
| 4 | Exmo | https://exmo.me | 6.9 |
| 5 | Huobi | https://huobi.com | 6.5 |
The criteria by which the rating is set in our rating of crypto-exchanges:
- Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
- Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
- Feedback and support– we analyze user reviews and the quality of technical support.
- Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
- Platform Features– availability of additional features — futures, options, staking, etc.
- final grade– the average number of points for all indicators determines the place in the ranking.
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