What factors should I consider when deciding between limit and market orders for purchasing digital currencies?

1 answers

• mogli1Dec 05, 2020 · 5 years ago
  When it comes to deciding between limit and market orders for purchasing digital currencies, it's important to consider your personal preferences and trading style. Limit orders allow you to set a specific price at which you want to buy, giving you more control over your entry price. This can be beneficial if you have a target price in mind or if you want to take advantage of potential price dips. On the other hand, market orders provide immediate execution, which can be convenient if you want to buy quickly without worrying about price fluctuations. However, keep in mind that market orders may result in a slightly higher price due to slippage. Additionally, consider the liquidity of the digital currency and the depth of the order book. If the market is illiquid or the order book is thin, placing a limit order may be more challenging to execute. Finally, factor in any fees associated with each order type, as they can impact your overall trading costs.
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