What is the difference between a market order and a limit order in the context of cryptocurrency trading?

1 answers

• Jan 01, 2022 · 3 years ago
  In the context of cryptocurrency trading, a market order is like going to a store and buying something at the listed price. You're willing to pay whatever the current market price is, and you want to buy or sell the cryptocurrency as quickly as possible. On the other hand, a limit order is like placing a bid or asking price for a cryptocurrency. You set a specific price at which you want to buy or sell, and you wait for the market to reach that price. The advantage of a market order is that it guarantees execution, but the disadvantage is that you may end up paying a higher price than expected. The advantage of a limit order is that you have more control over the price, but the disadvantage is that there is no guarantee that your order will be filled if the market doesn't reach your specified price.
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