Understanding the concepts of crypto, exchange, marketmacher and limitation of orders
The world of cryptocurrency trade has exploded in recent years and offers dealers a platform to sell, sell and manage assets such as Bitcoin, Ethereum and others. However, navigating in this complex market can be discouraging, especially for beginners. In this article we will enter into the most important concepts of crypto, exchange, market manufacturers, limit orders and give an overview of how they work together.
cryptocurrency
Cryptocurrencies are digital or virtual currencies that use cryptography for security and decentralized main book technology (blockchain). They work independently of central banks and governments so that users can transmit funds and carry out financial transactions without an intermediary. The best known cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Dogecoin (Doge).
Börsen
A stock exchange is a platform on which buyers and sellers act cryptocurrencies, raw materials or other financial assets. There are two main types of exchange:
* cryptocurrency exchanges : With these platforms, users can buy and sell cryptocurrencies directly.
* Futures exchanges : These platforms offer futures contracts with which dealers can speculate about price movements in the future.
Marketmaker
A market manufacturer is a company or a person who offers liquidity through the purchase and sale of assets at current market prices. They act as a broker between buyers and sellers and take a small commission from each trade carried out by their platform. Market manufacturers are often used for the spot trade, where they buy and sell the same assets at different prices.
Limit orders
A border order is an instruction to a broker to carry out a trade if certain conditions are met, e.g. B.:
* If the price reaches or exceeds a target level : This type of order enables users to block profits by buying or selling assets when they reach a given price.
* Before a specific market condition occurs
To give up a limit order, retailers usually use the platform of your online broker and indicate the following details:
* Buy/sales type : The type of trade (buy or sell) and the direction.
* Course goal : The specific price to which the order is executed.
* Stop loss (optional): A given amount under which the order can be canceled to limit potential losses.
Example: Buy Bitcoin with a border order
Suppose you want to buy a Bitcoin (BTC) with a border order. You open the platform of your online broker and indicate the following details:
* Buy/sales type : Buy
* Course target : $ 30,000
* Stop loss : $ 25,000
If the BTC Prize reaches or exceeds $ 30,000, the order will be carried out and you buy a Bitcoin for $ 30,000.
In summary, the understanding of crypto, exchange, marketmakers and limits is of essential importance for dealers in order to navigate in the complex world of cryptocurrency trade. By seizing these concepts, retailers can make sound decisions, effectively manage the risk and maximize their potential investment returns. While the cryptocurrency market is developing, it is important to stay up to date with the latest developments and strategies in order to be successful in this exciting space.