Trading Basics in Crypto: A Beginner’s Guide to Order Types.
Trading cryptocurrencies has become one of the most profitable activities in fintech (although this has also led to heartbreak). It can be very speculative, and knowing what trading tools are available might help investors make better and less risky decisions.
This post gives an overview of different order types in crypto, similar to orders types used in stock trading. Still, they might be employed differently due to the peculiar crypto market structure and conditions.
In the early days of cryptocurrency, exchanges were generally referred to as the ‘wild west’ due to the propagation of unregulated and risky businesses, culminating in the infamous MtGox hack of 2014.
After Satoshi Nakamoto launched Bitcoin (BTC) in 2009, there were limited ways to trade the cryptocurrency with fiat currencies or goods. Mostly, trades would happen peer-to-peer (P2P) through the popular Bitcoin forum Bitcointalk.
These were risky operations, but Bitcoin was worth nearly nothing back then, so trusting a stranger did not matter as the money at stake was very little when compared to today.
Twelve years later, highly regulated and more reliable exchanges have taken over the crypto scene globally by complying with strict Know Your Customer (KYC), Anti-Money…
