The fifth decision you must make is to decide how you would like to start off with your capital. The optimal way to begin is by adhering to the original suggested capital allotments that can be found within the Choose your Character section.
Now, let’s cover how you to physically buy and sell on an exchange. Take a look at the order form section that can be found highlighted within a drawn white box.
There are two main types of orders types you will learn. As referenced in the Trading Term List:
A Market Order (also called a taker order) is an order that executes immediately at the best bid if you choose to sell and at the best ask if you choose to buy. Almost always, these orders carry higher fees than limit orders.
A Limit Order (also called a maker order) is either a bid that you set below the current price or an ask that you set above the current price. This order will only trigger at the price you set it at. Almost always, these orders carry lower fees than market orders.
There is a third order type, called a Stop Order (commonly called a stop loss) — however when spot trading this is not an order type we will be using.
The order you should be using at least 90% of the time is a limit order. This order carries lower fees and a guarantee of transacting at the given price you set it at. Take a look below for how to properly create a limit order.
Let’s say that I want to sell 4 of my 7 BTC at the price around 25200 due to predetermined analysis I had made. What I am going to do is not set all 4 of my BTC to sell at that exact price level, but rather stagger orders around 25200 as shown below. Get into the habit of setting multiple limit orders, as that makes it more likely that those orders will be filled then if you had solely placed all of your BTC to be bought/sold at a single given price.
To set a limit buy or sell order, hover over to the amount section and type out the amount of BTC that you would like to buy or sell. Then, set the limit price at which you would like to buy or sell at in the field directly below the amount.