There are various methods to place buy and sell orders for cryptocurrencies, just like there are in conventional stock market exchanges. However, it's important to understand how each one operates. A variety of trade kinds are available to traders, allowing them to profit from market volatility or hedge against it. When venturing into cryptocurrency exchange software, it is necessary to provide maximum order options to enhance user experience. This article will explain the main crypto order types: basic, advanced, and conditional.
Order Book
The word order is used in financial markets by the investor to buy or sell investments, which may be in any form such as securities, bonds, cryptocurrencies, etc. In specific, crypto orders exist to exert some control over how crypto transactions are handled on a crypto exchange platform.
Here is a list of the different kinds of crypto orders that we must integrate when developing a crypto exchange platform.
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Basic Orders
The following are the most typical kinds of crypto orders:
Market Order
The simplest type of order to carry out a cryptocurrency buy or sale is a market order. These orders only specify the number of cryptocurrencies that a user wants to buy or sell immediately. The price at which they get executed will be the best one at the time. You cannot execute market orders with any order condition.
Limit Order
When a user executes a limit order to buy, the order book buys the cryptocurrency at the set limit price or a lower price. When a user executes a limit order to sell, the cryptocurrency is sold at the limit price or a higher price.
Limit orders come in use to buy or sell cryptocurrencies when the market price reaches a specified value. Limit orders become executable only when the market hits the specified limit.
Stop Orders
Stop orders are similar to limit orders, but become market orders once the pre-specified price, i.e. stop price, is reached. These types of orders – sell-stop orders/buy-stop orders help protect profits and limit losses of the trader. The stop price of the sell stop order is lower than the market price, and the stop price of a buy stop order is above the market price.
Advanced Order Types a Crypto Exchange Should Have
Conditional Orders
The criteria listed below link various orders together for a variety of purposes. Although they are made up of order types from the Basic and Advanced parts above, conditional orders are also regarded as order types.
One Cancels the Other | OCO
Orders that are OCO (one cancels the other) arrive in pairs, and when one is executed, the other is also immediately canceled.
OCA | One cancels all
The OCA (One cancels all) order type lets traders program multiple (3 or more), potentially unrelated orders as a group with the effect that when one order executes, all others are automatically canceled. If one of the orders can only be partially filled, the other orders will remain open and adjusted to include the remaining value of the partially filled order.
Iceberg / Hidden Orders
Iceberg orders, also known as hidden orders, split a big order size into multiple limit orders of the same size. Over time, each equal part is separately offered to the market. The purpose of an Iceberg/Hidden Order is to conceal the real order quantity because occasionally, the presence of large orders in the order book can have an impact on an asset's price.
Also, Read | Crypto Exchange Platform | Strengthening Security Measures
What's Next
When developing a crypto exchange, we must ensure an efficient user experience. That requires a thorough understanding of crypto order types. Knowing the trading tools at your disposal is crucial, whether a user wants to use stop orders to reduce the possibility of loss or OCO orders to prepare for multiple outcomes at once.
You may connect with our skilled crypto exchange developers if you have a project in mind and want to integrate these crypto order types.
Hire blockchain development company to create the software for your cryptocurrency exchange, which will enable a transparent, secure Web3 environment and streamline NFT transactions.
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Cryptocurrencies have started changing the operations of several industries because it will create a huge impact in the future.
and the steps are taken into it before launching your exchange software.What is a cryptocurrency exchange platform?In simple words, it's an online marketplace where you can trade your digital assets at market value.
It acts as an intermediate between the customers and traders of virtual currencies.Types of cryptocurrency trading platforms exist in the market place:You might have heard about the term "centralized (or) decentralized exchange" before.
Let's see, how many models available and what about its advantages.Centralized cryptocurrency exchanges:It involves a manager who can handle each user's funds, while intermediaries can execute the transactions of trading fees.
This type of platform has suffered a lot due to a lot of security issues.
However, liquidity is less but there are no security issues available here.Hybrid cryptocurrency exchanges:In this platform, its a combination of both centralized and decentralized exchanges.
Cryptocurrency entered the world to create a new future to improve people’s finance.
) PaymentsUsed for purchasing the goods without using fiat currency and paid with the help of a digital medium.
So, storing the cryptocurrency the value will be increased like golds as the value influences.Digital OwnershipThe digital medium can be authorized for personal use only.
No banks or any central system have the authority to use it.Cryptocurrency TaxonomiesAs the crypto gains momentum, the ecosystem is growing rapidly.
Worldwide, private and public created with new policies and rising adoption.PrivacyPrivacy for everyone uses cryptocurrency; the anonymous feature is included.AccessPeople are trusting more in cryptocurrency and having the ability to access every single feature included in crypto space.EfficiencyAny large amount of cryptos can be transferred to anyone around the world.
The time taken is reduced to transfer the currencies.SecurityEvery crypto user is provided with their own private and public key with all the security features like 2 Factor authentication and biometric authenticationProgrammable moneyUnlike fiat currencies, programmable money will eliminate manual and administrative work.Decentralized UtilitiesExchanging between the assets, decentralized utilities helps to have a smart contract system.Cryptocurrency is adding value and utility to the digital environment and offers solutions having complexity in the finance world.
Blockchain, This Giant Tech is revamping the way that primary sectors used to be.
Now in 2020, Cryptocurrency Exchange is the promising revenue-generating business and the increase in acceptance and interest in Cryptocurrencies spontaneously increases the number of Cryptocurrency Exchanges.
To stand out from the competitors, one must need to have their own blockchain in their Cryptocurrency Exchanges.
Brand recognitionA notable recognition is created around the people.
By building a separate blockchain any Crypto Exchange can create their own native coin or token, which will definitely bring Brand identification.Builds Traders TrustTraders' trust rate for your exchange will increase with your own blockchain so that your exchange would get more user engagement.
Privacy level FixationAs you have your own blockchain, it allows you to choose the privacy level of transactionsEnhances Market ShareThe Market Share value will significantly increase because of your own blockchain Faster TransactionEverything is automated from trade matching to payment verification, thus fast transactions occur.FlexibilityYour own blockchain lets traders trade in it more flexibly.
BitOxford is a global cryptocurrency exchange that provides a platform for various trading cryptocurrencies.
People have been investing, mining, getting and earning Bitcoins from last a few years.
Cryptocurrency exchanges are sites where you can purchase, sell or exchange cryptocurrencies for other advanced money or customary cash like US dollars or Euro.
For those who need to exchange with experts and approach extravagant exchanging instruments, you may probably need to utilize an exchange that expects you to substantiate your ID and open a record.
Here square measure a couple of stuff you can wish to contemplate before selecting the most effective cryptocurrency exchange suited to your commercialism and speculative desires.Fees – the majority exchanges charge fees for you to try to business on their platforms.
Most exchanges need some variety of biometric identification within the variety of a passport, driver’s license, proof of residence, or different similar document before the change of integrity.
