There are different ways to trade crypto on various exchanges. These different trading methods offer traders a unique opportunity to make a profit in the market. It could be by using leverage and increasing profitability. Or it can be through stop-limit and take-profit to minimize loss and lock in profits. Also, it can be in the form of price speculation through futures trading, which allows crypto trading without owning the asset. These trading methods differ based on the crypto exchange you are using and the asset being traded.
But this article will focus on Kucoin, a foremost crypto exchange and limit order, a popular means of trading crypto. Therefore, we will discuss the details of limit order and a step-by-step guide on how to create a limit order on Kucoin exchange. We will conclude with brief pros of limit order trading.
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What is Limit Order Trading?
A limit order is a famous means of trading crypto. It is not exclusive to the crypto market but is also used across the forex and stock market. It is simply the process of setting the price you want to buy a digital asset or sell a cryptocurrency and the trade is executed once the market price gets to that level.
A limit order is an order type that is an alternative to a market order, where the trade is opened using the existing market price of the cryptocurrency at the time the trade is executed. Whereas for a limit order, the trader sets a desired price to buy or sell which is either below or above the existing market price of the cryptocurrency. And once the price of the coin gets to the level indicated, the trade is executed automatically.
Step-By-Step To Create a Limit Order on Kucoin Exchange
To begin with this guide on how to create a limit order on Kucoin Exchange, you need to have an account with Kucoin. If you do not have an account, search www.kucoin.com and click on “sign up“, then, follow the prompts to create an account on the exchange. If you already have an account, go to the website and log in or log in to the mobile app. After you log in, click on the ‘Trade’ tab on the menu. A dropdown menu will appear, select ‘Spot trading’. This is the first step.
The page will load and redirect you to the trading market page. Kucoin has different trading markets, including KuCoin Token (KCS), ALTS, Bitcoin, Stable Coin (USDⓈ). Depending on which you choose, the trading pairs differ.
Let’s assume that you want to set a limit order on BTC using KCS. Click in the Bitcoin market, then select KCS from the search bar and click on the KCS/BTC trade pair. So, now you will be on the KCS/BTC interface.
Kucoin takes user security very seriously. So, before you can trade you need to input your trading password in the required boxes.
Next, you have to choose your order type. This is where limit order comes. Kucoin offers four order types, but our focus is on ‘limit order’. So, at the top left side, select ‘limit order’ as your preferred order type.
You will see two boxes below the limit order. The first one is to include the price at which you can buy the trading pair. While the second is to include the quantity of KCS you are willing to use to buy BTC. Let us assume you want to use 80 KCS as the quantity and buy at the price of 0.93. All you do is include 0.93 in the price box and 80 in the quantity box and click on buy. Your order will be filed and when the price gets to that level it will be executed.
If you want to sell. There is a similar menu beside the buy option. Also, fill in the price you want to sell at, the quantity and click on sell. It is always advisable that you review the current market price of the trading pair to get a good price for your limit order.
Conclusion
That is your step-by-step guide to creating a limit order on Kucoin. But it is important to know that limit order is beneficial to crypto traders because in a fluctuating market it gives them the ability to control the price at which they buy or sell assets. Thus, traders have a bit more control over the fluctuation in price and can reduce losses, while maximizing a potential uptrend in the price of a cryptocurrency. When buying with limit order, the price should be below the market price. When selling with limit order, the price should be above the market price.
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