When it comes to trading, there are multiple ways to execute a trade. Some require a trader to be present in front of the screen and make manual decisions, while others are more automated as traders can set some targets, which can then be executed by the platform they are using for trading.
Among many other crypto exchanges, Coinbase also offers different options to traders so they can buy or sell their favorite assets with ease. But before you can utilize them, it is first and foremost important to understand how they work.
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What is a Limit Order?
A limit order is a command that you give Coinbase that makes it buy or sell a certain asset at a specified price or better.
Limit orders are different from other types of orders because they do not execute right away; rather, they let the price go up or low at your desired amount and then execute the trade.
Due to this, limit orders are effective when the markets are volatile as they help traders avoid slippage because they can set precise targets on when to buy or sell a particular asset.
On Coinbase, users have two distinct types of limit orders. These include:
- Good Til Canceled (GTC): this type of limit order stays active unless or until the trader decides to cancel it. There is no automatic expiration date, which is ideal for long-term strategies.
- Good Til Time (GTT): this type of limit order has an expiration date that is set by the traders themselves. GTT remains active either when the specified time is reached or when the trader cancels it.
How to place a limit order on Coinbase
To place a limit order on Coinbase, follow these steps:
- Select “market pair” from your browser or app.
- Click on the “Buy” or “Sell” tab and select the “Limit” button.
- Enter or specify the size of your order.
- Select your order execution and expiration instructions from the dropdown menu.
- Click on “Confirm order” after reviewing your order.
Placing Market Order on Coinbase
A market order on Coinbase is a type of order that is executed immediately at the current market price. Experienced traders usually place market orders because they cannot be canceled as they are filled immediately. You can place a market order on Coinbase as follows:
- Select a market pair from a web browser or a mobile app.
- Click on the “Buy” or “Sell” tab.
- Select the “Market” button.
- Enter or use a slider to specify the size of the order.
- Upon confirmation, your market order will be placed immediately. Therefore, it is vital to double-check your order.
Tips for Successful Crypto Trading on Coinbase
The following are the important tips for successful crypto trading using Coinbase:
- Avoid FOMO: In the crypto market, fear of missing out (FOMO) has a strong presence, which often leads traders to buy a certain crypto impulsively. Most of the time when traders follow FOMO, they end up losing money.
- Research each token: Multiple cryptocurrencies are listed on Coinbase. While Coinbase does thorough research before listing crypto on its platform, however, this does not mean all cryptocurrencies will remain stable. Therefore, it is vital to research each token thoroughly, and if you agree with what the token stands for only then invest in it.
- Prepare for a volatile market: As the crypto market is unregulated, therefore it is one of the most volatile markets worldwide. The responsibility for sudden price changes lies solely on the trader, and they should be aware of the potential risks when entering the market.
- Keep an eye on global and crypto news: It is important to remain fully updated with global developments and crypto affairs, as most of the news has a direct impact on the price of cryptocurrencies.
Diversify portfolio: Diversification of your crypto portfolio is equally important because if the price of one crypto goes down, you will have other tokens to protect your portfolio. This way, you will not lose all of your money and will rather enjoy potential gains in different altcoins.
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- Take a short quiz to test your understanding.
- If you get at least 6 correct answers, share your results with our admin, Crypto Soka, along with:
- the date you signed up on Coinbase.
- the screenshot proving you have an account on Coinabase.
Upon verification, you will be added to our Premium channel, where exclusive insights await!
Trading Cryptocurrencies on Coinbase
Choose the most appropriate answer for each question. To pass, you should get at least 6 correct answers. Share your results with Crypto Soka to gain access to exclusive market insights. Good luck!
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