What is a limit buy and how does it work in the world of cryptocurrency?

3 answers

• Dec 27, 2021 · 3 years ago
  A limit buy is a type of order in cryptocurrency trading where you set a specific price at which you want to buy a certain amount of a particular cryptocurrency. When the market price reaches or falls below your specified price, the order is executed. This allows you to buy the cryptocurrency at a price that you find favorable. The main advantage of using a limit buy order is that it gives you more control over the price at which you buy the cryptocurrency. However, the downside is that there is no guarantee that your order will be executed if the market price does not reach your specified price.
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• Dec 27, 2021 · 3 years ago
  Imagine you're at a flea market and you see a vintage comic book that you've been wanting to buy. You don't want to pay more than $50 for it, so you tell the seller that you'll buy it if they're willing to sell it for $50 or less. If the seller agrees to your price, the deal is done. A limit buy order in cryptocurrency trading works in a similar way. You set the maximum price you're willing to pay for a specific cryptocurrency, and if the market price reaches or falls below that price, your order is executed. It's like haggling with the market, but without the need for direct negotiation.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that a limit buy order is a way for traders to buy a cryptocurrency at a specific price or better. It allows traders to set a maximum price they are willing to pay and ensures that they do not pay more than that price. This type of order is useful for traders who want to enter a position at a certain price level and are willing to wait for the market to reach that price. However, it's important to note that there is no guarantee that the order will be executed if the market price does not reach the specified price.
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