Learn Crypto Trading: Understanding Trading Pair, Market Order, Order Book, and Limit Order

Bittime - Cryptocurrency trading or trading digital assets such as Bitcoin (BTC) and Ethereum (ETH) is increasingly in demand by many people around the world. With increasing interest from retail investors to large institutions, crypto trading has become one of the promising opportunities to profit from high price fluctuations.

However, before diving deeper, it is important for beginners to understand the basics of crypto trading so they can manage risks and maximize existing opportunities. In this article, we will discuss some basic concepts such as trading pairs, market orders, order books, and limit orders. Come on, watch until the end!

What is Cryptocurrency Trading?

Cryptocurrency trading is the process of buying and selling digital currency with the aim of making a profit from price changes. Traders will buy crypto assets when the price is low, and sell them when the price rises. This strategy takes advantage of the volatility of the crypto market which is known to be very dynamic.

Cryptocurrencies such as Bitcoin and Ethereum use blockchain technology to record every transaction transparently and securely. Unlike fiat money which is controlled by governments or central banks, crypto is decentralized. This means you have complete control over your digital assets through your personal crypto wallet.

Also read: Pi Coin Price: Will Pi Network Bounce or Rug Pull?

Getting Started with Crypto Trading

To start trading, first you need to choose a trusted exchange platform. Make sure the platform has a good reputation, tight security, and responsive customer service. After that, register your account and verify your identity in accordance with applicable regulations.

Once the account is ready, you can deposit funds in both fiat and crypto. If so, it's time to understand the basic concepts in crypto trading!

1. Trading Pair

Trading pairs are pairs of two currencies that are traded. For example:

• Crypto-to-Crypto: For example ETH/BTC, which means you exchange Ethereum for Bitcoin or vice versa.
  
   
• Crypto-to-Fiat: For example BTC/IDR, which means you exchange Bitcoin for Rupiah.
   

Understanding trading pairs helps you read prices correctly. If the ETH/BTC pair shows 0.05, it means that one ETH is equivalent to 0.05 BTC.

2. Order Book (Order Book)

The order book is a real-time list view that shows all buy (bid) and sell (ask) orders on the exchange.

• Bid: A buy order from a trader who wants to buy crypto at a certain price.
  
   
• Ask: Sell orders from traders who want to sell crypto at a certain price.
   

Order books help you understand the supply and demand that is currently occurring in the market, as well as identify the best prices for making transactions.

3. Market Order

A market order is a type of order where you buy or sell crypto instantly at the best price available in the market.

For example, if you want to buy Bitcoin immediately, market orders will automatically match your order with the best selling offer in the order book. This is a suitable choice for beginners who want to make fast transactions without having to wait for a certain price.

4. Limit Order

Unlike market orders, limit orders allow you to set a specific price to buy or sell crypto.

For example, you want to buy Bitcoin only if the price drops to IDR 500 million. You can set a limit order at that price, and your order will only be executed when the market reaches the price you specified. This strategy is suitable for traders who want more control in decision making.

Also read: Pepe Coin: Analysis and Prediction of its Price in the Near and Long Term

Conclusion

Understanding the basics such as trading pairs, market orders, order books, and limit orders is essential for anyone who wants to be successful in the world of crypto trading. Additionally, always make sure you learn more about trading strategies, risk management, and safe use of crypto wallets to protect your assets.

Crypto trading is promising, but it also requires caution. Start with small capital, learn from experience, and avoid impulsive decisions due to FOMO (Fear of Missing Out).

Hopefully this article helps you be better prepared to start your journey in the world of cryptocurrency! Don't forget to keep following market developments and updating the latest information about crypto.

FAQ Seputar Trading Crypto

1. What is the difference between market orders and limit orders?

Market orders directly buy or sell an asset at the current market price, while limit orders allow you to set a specific desired price. Limit orders will only be executed if the market price reaches the target.

2. Is crypto trading safe for beginners?

Crypto trading can be safe if you learn the basics first, use a trusted platform, and always apply risk management. Avoid investing based on emotions or simply following trends.

3. How do I read the order book?

The order book displays a list of buy (bid) and sell (ask) orders. The best price to buy is usually at the highest bid, while the best selling price is at the lowest ask. Reading the order book helps you understand price movements in the market.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with CoFTRA, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Cek rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the crypto world. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

Binance Academy, A Complete Guide to Cryptocurrency Trading for Beginners, accessed April 5, 2025.

Author: MF