What is a Buy Order in the Context of Cryptocurrency?
Did you know that you don’t necessarily need to buy Bitcoin on the spot? You can also set a buy order for it.
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.
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.
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.