For beginners in the crypto sector, the language of the market can be daunting. Check out many of the most used terms in the crypto universe in relation to trading types:
Market Order: A market order happens when you make a deal with a broker to immediately sell and buy certain amount of an asset at the best available price. Depending on the size of your order and the trading volume at the broker, this may end up offering you an extremely below-ideal price, despite allowing you to conduct your trade immediately.
Limit Order: A limit order is an agreement you make with a broker to conduct a trade at only a certain or better price point. If this price point is never reached, your order may never be executed. Orders with limits also allow you to set a time limit for the order, after which the trade will not be executed at all.
Stop-loss order: A stop-loss order is the setting for a broker to execute a trade immediately if an asset reaches a specific price point. As the name suggests, this type of order was created to limit your losses: if you invested in bitcoin and you don't want to lose a lot of money if the asset is in tanking, you can set up a stop-loss order to make sure your bitcoin will be sold immediately if the price drops to a certain point.
Take advantage of crypto fever as an opportunity to learn about concepts and strategies that underpin a good investment. By arming yourself with more and more knowledge, you will be able to take advantage of opportunities in this new sector without taking unnecessary risks. Learn more terms in the full Brave New Coin article.