Which type of sell order, stop sell or limit sell, is more commonly used by professional cryptocurrency traders?

3 answers

• Nov 26, 2021 · 3 years ago
  Professional cryptocurrency traders often prefer to use limit sell orders. This type of sell order allows them to set a specific price at which they are willing to sell their assets. By using limit sell orders, traders can ensure that they sell their assets at a desired price or higher. This strategy helps them maximize their profits and avoid selling at a lower price due to market fluctuations. Additionally, limit sell orders provide traders with more control over their trades and allow them to execute their selling strategy with precision.
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• Nov 26, 2021 · 3 years ago
  Stop sell orders are also commonly used by professional cryptocurrency traders. This type of sell order is triggered when the price of an asset reaches a certain level, known as the stop price. Once the stop price is reached, the stop sell order is converted into a market sell order, and the asset is sold at the best available price. Stop sell orders are often used as a risk management tool to limit potential losses. Traders may set stop sell orders below the current market price to protect their investments in case of a sudden price drop.
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• Nov 26, 2021 · 3 years ago
  At BYDFi, we have observed that professional cryptocurrency traders predominantly use limit sell orders. This is because limit sell orders offer more control and flexibility compared to stop sell orders. Traders can set their desired selling price and wait for the market to reach that level before executing the trade. This allows them to optimize their selling strategy and potentially achieve better returns. However, it's important to note that the choice between stop sell and limit sell orders ultimately depends on the individual trader's trading style, risk tolerance, and market conditions.
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