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Using market-price makes me nervous when buying crypto, especially if I am setting up automated trades e.g. "buy if price > X":

  1. not only can prices change very quickly but
  2. I have seen very brief blips (typically on other coins but I think it's still possible on BTC) where for a few seconds the price may spike/crash 50% perhaps due to a very large trade - these could wreak havoc on my trades if I caught one

So limit buys seem preferable to me. But since the price is always changing and we have spread to consider, what is the normal way to do this?

Say I want to create an order to buy BTC when the market reaches $50k because I think that would signal a breakout. If I understand correctly it's no point setting my limit as $50k because if the price is rising, I already missed my price-point.

What would be a typical strategy when setting these limit prices... is there a "normal way" of doing this I haven't read about?

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  • Given this has been closed as off-topic when it is about the mechanics of trading BTC on a BTC exchange, it would be nice to know why. Can't rewrite if I don't knowwhat's wrong. – Mr. Boy Jun 21 at 8:33
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I'll byte, none of this is financial advice, just some experiences I have had.

  1. I read somewhere that something like 90%+ day traders are in the red. So the saying is that "time in the market > timing the market"
  2. also DCA seems to work pretty well for the most traders long term (5+ years) because of the comparative volatility in the crypto market standard trading practices probably aren't useful. The reason to be in crypto is because you believe it is the future like I do.
  3. There isn't much spread in bitcoin, I think there is plenty of liquidity in the market? you must be referring to other smaller cryptos, or you are trying to capitalize on super tiny margins of like 1% which really doesn't make sense.
  4. a signal breakout!? why not not just buy high and panic sell low like the other 90% that are loosing money on day trading? There is another saying in crpyto (buy the dip). If you really do believe that this is the future then it is always just a matter of time before you will be positive so buy at the biggest discount. If you don't believe it is the future then you need to invent some other type of day trading algorithms that will work, because normal market tactics simply don't work
  5. There is something that happens every 4-5 years called the halving, where the supply creation gets cut in half, Basic supply and demand economics say it effects the market. I have my opinions but you should form your own.

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