Bear markets may require different trading strategies than bull markets. Here are three simple methods traders use on Okcoin. 🔍
TL;DR
- Crypto is, for now, in a bear market
- Navigating a bear market may require different strategies than a bull market
- Traders often use three simple order types: Market, limit, and stop orders
Basic trading methods
With most of the crypto market down about 60% since various all-time-highs, we’re clearly in a bear market – for now. Since prices trend in opposite directions, trading in a bear market may require different strategies than during a bull market.
Depending on what you think is coming next, specific tools are available. Among these tools, the type of trading order you’re going to enter is especially important. There’s a bunch of different types of orders but for now we’re going to focus on the three most common ones:
- Market orders
- Limit orders
- Stop orders
To make things easier to grasp, we’re going to explain each of these order types in the context of possible market scenarios. Let’s dive in. 👇
What are market orders?
Scenario: Imagine Bitcoin is trading at $21,000 and you want to buy or sell it immediately.
This is the most simple order type around, allowing you to buy or sell the amount you want at the current market price.
To place market orders, just select Market from our order type dropdown. Next, simply choose the amount you want – once you click the buy or sell button, your order is instantly executed at or around the market price. ✨
Check out our Help Center to learn more about market orders.
What are limit orders?
Limit orders are trades executed automatically at specific price levels.
Buy limit orders
Scenario: Imagine Bitcoin is trading at $21,000 and you think it will fall to $12,000.
To enter a limit order like that, you just have to select Limit from our order type dropdown, select the price you’re targeting and the amount you want to buy. If the price hits your target (here, $12,000), the order will be executed automatically. It’s that simple:
Sell limit orders
Scenario: Imagine Bitcoin is trading at $21,000 and you want to sell it at $25,000 during the next rally.
To enter a sell limit order at $25,000, select Limit order from our order type dropdown. Enter your target price and the amount you want to sell. If bitcoin reaches the target (here, $25,000), the limit sell order will be executed automatically.
Explore our Help Center to learn more about limit orders and advanced limit orders
What are stop orders?
Scenario: Imagine Bitcoin is trading at $21,000 and you think it will fall further if it falls to $17,500.
Stop orders allow choosing a price level to automatically close, open or add to a trade. They’re usually used to control risk and limit losses.
To enter a stop order, select Stop order from our order type dropdown. Enter the target price (here, $17,500) and the amount to sell. If bitcoin reaches the target, the stop sell order will be executed automatically. Check out our Help Center to learn more about stop orders.
Trading on the go
Crypto moves fast so we’ve made it super easy to access these different order types on our app. Here’s how to enable them and enter trades on mobile:
