Order Types on Bitcoin Exchanges

In order to become a Bitcoin owner, you can exchange fiat money with another Bitcoin owner and buy Bitcoins from that person, or you can sell goods or services in exchange for Bitcoins, or you can buy Bitcoins from one of the Bitcoin exchanges, which is an easier method, which number approximately 2000 on a global scale.

As it is known, Bitcoin does not have a fixed value. Bitcoin prices are valued according to the free market economy, although an average market price is determined, everyone determines the value of their own Bitcoin. Bitcoin exchanges also work with this logic. We have compiled a few concepts that will be useful for you to survive on these platforms where buyers and sellers meet and to buy bitcoins at the most affordable price.

Market Price: The price of cryptocurrency is formed according to supply and demand. The last price realised in that market is the market price.

Market Order: It is an order type that is executed by specifying only the quantity without specifying the price. It is realised by matching the best price given on the opposite side.  

Limit Order: It is an order type where the price and quantity are determined by the person. The person can offer his/her own cryptocurrency for sale or bid to buy at any price. The price determined must be at a level suitable for market conditions. Otherwise, there will be no buyer or seller to meet the limit order.

Market Maker / Market Maker: It is the person or persons who ensure that prices are formed and the market remains liquid by placing buy and sell orders in the market.

Market Taker / Market Buyer: The person or persons who meet the buy and sell orders given in the market.

Stop Order: When the market reaches a certain price level, a limit order is activated. It is used to prevent loss or guarantee gains when you cannot follow the market.