Advanced trading offers you a wider range of choices in trading. It is not recommended to the first time users. It is because advanced trading is a bit different than simply buying and selling. So how is Advanced Trading different than simple trading?
Firstly, let us go through the definition of ‘Buy Order’ and ‘Sell Order’.
Buy Order– It is the order which indicates that you are ready to buy cryptocurrency at market price or at a custom price.
Sell Order– It is the order which indicates that you are ready to sell your cryptocurrency at market price or at a custom price.
Advanced trading offers you two types of orders: Market Order and Limit Order.
Understanding Market Order-
Market Order: In most simple words, it is an order to buy or sell immediately at the best available price or at market price. It will not guarantee the price you want to buy/sell at, however, it will guarantee immediate execution or completion of an order.
So, you should use Market Order when you want to buy/sell immediately.
If you are placing a Market Order to buy Bitcoin, then you will pay an amount around the asking price posted by someone else who is ready to sell Bitcoin. Similarly, if you are placing a Market Order to sell, you will receive an amount around the price at which someone else in the market is ready to buy.
Another important element to keep in mind is that last-traded price may not necessarily be the price at which your market order will be completed. Because cryptocurrency market is highly volatile, there may be a price difference between the last traded price and the price at which your order is completed.
Understanding Limit Order-
Limit Order: A limit order allows you to set minimum or maximum price at which you want to sell or buy a cryptocurrency. For example, if you want to buy a Ripple coin at Rs.40, you can initiate a limit order by entering 40 in the price tab (also entering the number of coins you want to buy). This will mean that you are ready to pay a maximum of Rs.40 for a Ripple and you will not pay a rupee more than 40. Also, this means you can buy a Ripple for less than Rs.40.
BuyBitcoin and Advanced Trading
Now that we have a good understanding of both Market Orders and Limit Orders. Let’s see how BuyBitcoin offers advanced trading.
On Buybitcoin app-
- On the home screen, click on the cryptocurrency you want to advanced trade in. Let’s say you want to advanced trade in Bitcoin. Click on Bitcoin.
- The screen will now show you three options: ‘Buy’, ‘Sell’ and ‘Go to Advanced Trading’. Click on ‘Go to Advanced Trading’.
- The screen will now show you a very wide number of options and it will look like this:
- On the left corner, below the ‘Trade’ tab, you will notice ‘Market’ in a drop-down menu.
- Placing a Market Order: If you wish to place a market order, you do not need to change anything. Just enter the number of crypto-coins you want to buy/sell. And then click on ‘Buy/Sell’ button to make a ‘Market Buy Order’/‘Market Sell Order’.
Please note that you cannot enter a custom price for Market Orders.
- Placing a Limit Order: If you wish to place a limit order, you need to click ‘Market’ in the drop-down menu. The drop-down menu will show ‘Market’ and ‘Limit’. Click on ‘Limit’.
- You can now enter the number of coins you want to buy/sell in Coin Quantity tab and enter a custom price (the price at which you want to buy/sell)/
And, now you just have to wait for a few moments before your order is completed.