In cryptocurrency trading, a limit order is a type of order placed by a trader to buy or sell a specified amount of a digital asset at a predetermined price or better.
Unlike market orders, which execute immediately at the current market price, limit orders only execute when the market price reaches the specified limit price or better.
This allows traders to have more control over their trades and potentially secure better prices. Limit orders are commonly used by traders who want to enter or exit positions at specific price levels, and they can help minimize slippage and manage risk more effectively in volatile markets.