Are you a fan of LUNO APP? If yes, you probably have been using the wrong way. And that wrong way is using the INSTANT BUY AND SELL option on the app. In this article, you will know how to place order order on LUNO APP without losing money to transaction fee.
Let’s get started.
What LUNO about?
LUNO is one of the top cryptocurrency exchange and wallet presently in Crypto community. With LUNO you can buy, sell or HOLD your coin for as long as you want to. Not only that, LUNO offers spot trading option on their exchange via which you can use the ORDER BOOK to make different kinds of orders.
Video Guide on how to place order on LUNO APP
Disadvantage of using INSTANT BUY AND SELL
When you use this option, either on LUNO or other exchanges, you are simply shortchanging yourself. When you use it, you will be paying TRANSACTION FEES per every transaction you carry out.
The best way is using the LUNO Order Book.
NOTE: Before you can correctly place your orders, you must be able to interpret the chart technically and do fundamental analysis. Want to learn Cryptocurrency trading, CLICK HERE.
Types of Orders ON LUNO APP
- Limit Order: This is the order you place to buy or sell a particular coin at the price you want to. Simply means, when the price gets to that point, your order will be filled.
- Market Order: Simply means the order to buy or sell at the current price of the coin. Disadvantage is, you will also pay transaction fee for this order.
- Stop-limit Order: This is the kind of order you place to help you avoid losing too much money than you can afford to lose. Also called STOP-LOSS.
How to place BUY or SELL LIMIT ORDER
- Open your LUNO APP, Go to exchange section to access the order book
- To buy, click on Buy or Sell then click on LIMIT as shown in the diagram below.
- For BUY ORDER, your limit price must not be the same with already set SELL prices in the order Book. Also, for SELL ORDER, your limit price must not be the same with the already set BUY prices in the Order Book.
- For your BUY ORDER to be filled, the current price for the coin must be less than your LIMIT BUY ORDER. E.g Buy 1 XRP at N200, when the price is less than N200, your order will be filled (i.e a seller’s order has matched yours).
- For your SELL ORDER to be filled, the current price for that must be greater than your LIMIT SELL ORDER. E.g Sell 1 XRP at N200. When the market price is greater than N200, your Sell order will be filled
- When your order is filled, you will be alerted and you can also see in your wallet
How to place STOP-LIMIT ORDER on LUNO APP
- From step 2 above, click on STOP-LIMIT as shown below and you will get one extra section for STOP PRICE.
- STOP PRICE means the price you want the market to get to before placing your order. LIMIT PRICE means the price you want to sell or buy (mostly, stop-limit or stop-loss order is used for selling and to reduce the loss to bearest minimum).
- To set STOP-LIMIT SELL ORDER, the price at the STOP Price must be greater than your LIMIT Price. E.g You bought XRP at N300 and because you may get busy you want to limit your loss. So, you set the STOP-LIMIT order. You can’t afford to lose more than N10 per XRP, you put N291 in the STOP PRICE, then N290 in the LIMIT PRICE. This means, when the market price gets to N291, order to sell your XRP at N290 will be placed. Because, buyers will want to buy lower than the market price.
- If the price do not get to the STOP-LIMIT price you set, it won’t be filled.
TIPS: There are buyers and sellers in the exchange, to avoid transaction fee, make sure your BUY ORDER price is not the same with any SELL ORDER price in the order Book. Also, Make sure your SELL ORDER price is not the same with the BUY ORDER price in the Order Book.
For better understanding, make sure you watch the video above and subscribe to our channel.
Have any question on how to set Buy and Sell order on LUNO APP? Let us know in the comment section below.