Buy Order
A buy order is a term used to describe an automatic cryptocurrency purchase that is triggered based on price action and/or timeframe variables
Did you know that you don’t necessarily need to buy Bitcoin on the spot? You can also set a buy order for it.
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What is a buy order?
A buy order is a term used to describe an automatic cryptocurrency purchase that is triggered based on price action and/or timeframe variables. You can see all the available buy orders in the order book of an exchange.
Types of Buy Orders in Crypto Trading
Different types of buy orders serve different trading strategies:
- Market Buy Order – Executes immediately at the current market price. This is the fastest way to enter a position but offers no price control. You buy whatever the best available price is at that moment.
- Limit Buy Order – Only executes when the cryptocurrency reaches your specified price or lower. For example, if Bitcoin is trading at $45,000 but you only want to buy at $43,000, you set a limit buy order at that price. The order sits in the order book until the price drops to your target.
- Stop Buy Order – Triggers a market buy when the price rises to a specific level. Traders use this to enter positions after confirming upward momentum. If you want to buy Bitcoin only if it breaks above $50,000, you’d set a stop buy at that price.
- Stop-Limit Buy Order – Combines stop and limit orders. When the stop price is reached, it converts to a limit order rather than a market order, giving you more control over execution price but risking the order won’t fill.
Each order type balances speed, price control, and execution certainty differently. Understanding these helps you match your trading strategy to the right tool.
How does a buy order work?
Traders often set buy orders to purchase cryptocurrencies when the price experiences a decline. While this can happen all throughout the day, some traders do not want to miss out. Therefore, they set their buy orders before going to bed or leaving their house. This way, they can be sure that, once the opportunity arises, they will be able to profit from it.
Buy Orders vs Market Orders: What’s the Difference?
The main distinction lies in timing and price certainty:
Buy Order (Limit):
- You control the exact price
- May take time to execute (or never execute)
- Useful when you have a specific entry price in mind
- Sits in the order book as a “maker” order
Market Order:
- Executes immediately
- Price is whatever the market offers now
- Useful when you need to enter a position urgently
- Acts as a “taker” order that removes liquidity
For example, if you want to catch a Bitcoin dip overnight, a limit buy order at $42,000 lets you sleep while the exchange watches the price for you. A market order would buy whatever price is available the moment you click.
Most advanced traders use buy orders to avoid FOMO purchases at inflated prices and to capitalize on temporary market dips when they’re not actively watching.
How can you set a buy order?
Depending on the exchange you are doing most of your trades on, you will find helpful tutorials to guide you through the process. There are also exchanges that do not support this functionality. In this case, you will need to find an alternative platform to create such automated orders.
Step-by-Step Process to Set a Buy Order
On Most Crypto Exchanges:
- Navigate to the trading interface for your chosen cryptocurrency pair (e.g., BTC/USD)
- Select “Limit Order” from the order type dropdown
- Enter your desired buy price (below current market price if you’re waiting for a dip)
- Specify the amount of cryptocurrency you want to purchase
- Review the total cost and confirm the order
- Your order appears in the order book and executes automatically when price conditions are met
Example: Bitcoin is currently $45,000. You believe it will dip to $43,000 overnight. You set a limit buy order for 0.5 BTC at $43,000. If the price reaches that level, your order executes automatically. If it doesn’t dip that far, your order remains open until you cancel it or set an expiration time.
Major exchanges supporting buy orders include Coinbase Pro, Binance, Kraken, and Gemini. Some beginner-friendly platforms like Robinhood and Cash App offer limited order types, so if advanced order functionality matters to you, consider platforms built for active traders.
For simpler purchases without advanced trading features, platforms like Paybis offer straightforward buying with instant execution – ideal when you want to enter a position without setting up complex orders.
FAQ
Can you buy a money order with a credit card?
Money orders (traditional financial instruments) typically cannot be purchased with credit cards at most providers like USPS, Western Union, or MoneyGram. These institutions treat credit card purchases as cash advances, which come with high fees and interest. However, some convenience stores may allow it with additional fees. This differs from cryptocurrency buy orders, which you can fund using credit cards on platforms that accept them.
Where can I buy a money order with a credit card?
7-Eleven and some other convenience stores occasionally accept credit cards for money order purchases, but expect 10-15% in combined fees from both the credit card cash advance and the retailer. For crypto purchases specifically, exchanges like PayBis accept credit cards directly without treating them as cash advances, making it more practical to use credit cards for digital asset purchases than for traditional money orders.
Can I buy a money order with a credit card at CVS?
No, CVS does not accept credit cards for money order purchases. They only accept debit cards or cash. If you’re looking to use a credit card for crypto purchases instead, most major crypto platforms including PayBis accept credit card payments for buying Bitcoin, Ethereum, and other cryptocurrencies directly.
What is the best way to set a buy order for crypto?
The best approach depends on your strategy: Use limit orders when you have a target entry price and aren’t in a hurry. Use market orders when you need immediate execution and price isn’t your primary concern. For automated strategies, consider using stop-limit orders or setting up recurring buys through platforms that offer dollar-cost averaging features. For straightforward purchases, Paybis offers instant buying with 150+ payment methods including credit cards.
Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at: https://go.payb.is/FCA-Info
