Using a Crypto Exchange: The Essentials
Order types, prices and fees - the essentials to understand before you place your first trade.
An exchange is where buyers and sellers meet. Understanding a few basics before you trade will help you make clearer decisions and avoid surprises.
Market orders and limit orders
A market order buys or sells immediately at the best available price. It is fast, but the final price can differ slightly from what you saw, especially when markets move quickly. A limit order lets you set the exact price you are willing to accept; it only executes if the market reaches that price.
Reading a price
Every asset has a bid (the highest price a buyer will pay) and an ask (the lowest price a seller will accept). The difference between them is the spread. Narrow spreads usually indicate an active, liquid market.
Fees
Trading fees are typically charged as a percentage of each trade. Check the fee schedule before you trade, and remember that fees apply when you buy and when you sell.
Good habits
- Start small while you learn how orders behave.
- Only trade assets you have researched and understand.
- Never invest more than you can afford to lose.
- Keep a record of your trades for tax purposes.
Cryptoasset prices are highly volatile. You could lose all of the money you invest.
For information only. Not financial advice. Cryptoassets are high risk and your capital is at risk.
