9. How to Place Orders On Cryptocurrency Exchanges

Above is a screenshot of Active Trader on Gemini. This is a trading platform Gemini offers for more experienced traders. Let’s highlight some of the basic principles numbered in the image above:

1. List of Sell Orders

2. List of Buy Orders. 1 and 2 is considered the “Order Book”

3. Where you place your orders

4. A graph and history of price points

Types of Orders You Can Place

1. Market Buy/Sell Order- This is when you place an order that already exists on the order book. Most exchanges will charge you a fee to do this. The advantage of this is that you are guaranteed to buy your coins. On Gemini you will need to do this using the “Market” tab under #3. You will have to manually input the order on other exchanges.

2. Limit Buy/Sell Orders- This is when you place an order on the order book that doesn’t create a transaction. It is a cheaper way to buy, but you also run the risk of not hitting your order. In the order book above, the list of Sell Orders ends at $46.84. To place a Limit Sell Order, you must place it at $46.84 or any price of Litecoin above that. If you want to place a Limit Buy Order, you must place it at $46.83 or below.

3. Stop Buy/Sell Orders- These orders are when you think the market is going up/down but you’re not sure. If it’s going down, you place a Limit Buy Order like normal and hope it hits. You then also place a Stop Order meaning if the price rises above a certain point, the exchange will buy it for you. You do a similar process if you want to place a Stop Sell Order. You place a sell above market price and hope it hits. You also place one below market price just in case the market moves the opposite direction. This way you don’t have to watch the market 24/7.