What are the ways to profit from choosing an exchange wisely?

Previously, we wrote about the free bonuses that exchanges provide us and how they ensure the speed of transactions and minimal slippage. In this idea we will talk about the interface of exchanges, the terminal and what are the main types of orders that should be on any terminal nowadays.

An interface of a cryptocurrency exchange should be user-friendly. We won’t use any product or service which repels us by its “packaging” on first impression. So let's check the most common mistakes and so called red-flags that exchanges make in their interface:

• Cluttered Interface. This can make it difficult for us as users to navigate the exchange and find the information we need
  
• Poor Navigation. If we can't easily find what we're looking for, we're likely to become frustrated and leave the exchange. It's important for exchanges to have clear and intuitive navigation
  
• Lack of Mobile Optimization. You have already known all the importance of mobile-optimized interface. (Mobile devices were responsible for 43% of all cryptocurrency transactions in 2022)
  
• Confusing Terminology. Cryptocurrency can be complex, especially for newbies. It's important to use clear and simple language to help everyone understand the exchange
  
• Slow Load Times. Finally, slow load times can be a major issue for cryptocurrency exchanges. If we have to wait too long for pages to load, we are going to live very soon
  

In a current market with many “players” it's hard to get a user with only a quality design and interface and here we come to another important point for traders - types of orders and options for it . It is important to have many different types because it allows us to execute trades in a way that best suits trading strategy and risk tolerance. Here is the list of the most popular and in the meantime significant ones:

1. Market order: buy or sell a given instrument at the market price. The price for these types of orders is defined as the best price available on the market at the point of time the order is being placed. Since the price changes constantly, the total price and fees are provided as estimates rather than exact values.
2. Limit order: execute a trade at a specified price or better (limit price). A Limit order to buy would be at the limit price or lower, and a Limit order to sell would be at the limit price or higher.
Subtypes of limit orders:

• Good-Till-Cancelled - lasts until the order is completed or canceled.
  
• Day - automatically expires if not executed on the day the order was placed.
  
• Good-Till-Date/Time - automatically expires at the specified date and time.
  
• Fill-Or-Kill - must be executed immediately in its entirety; otherwise the entire order will be canceled
  
• Immediate-Or-Cancel - must be executed immediately. Any part of an IOC order that cannot be filled immediately will be canceled.
  

3. Scaled orders: you can set multiple orders at once. This lets you implement the most sophisticated trading strategies with ease. For example, if you'd like to consistently sell portions of some currency in case its price is increasing. Usually, you would have to create a whole lot of sell orders manually, specifying the desired amount, and the price each time. With Scaled orders, you can noticeably speed up this process.

Now a little bit about options:

• A Stop-loss option on your orders helps with minimising risks attached to trading. This option is available for Market and Limit orders with a preselected Stop option, which ensures that your order will be placed as soon as the price reaches a certain value, called the Trigger price.
  
• A Take-profit option on your orders helps with consolidating your gains from trading. This condition is available for Market and Limit orders with a preselected 'Stop' condition — a condition that ensures that your order will be placed as soon as the price reaches a certain value, called the Trigger price.
  
• A Post only option ensures that your limit order will be added to the order book and not match with a pre-existing order. If your order would cause a match with a pre-existing order, your post-only limit order will be canceled. The 'Post' only option guarantees that you will pay the maker fee and not the taker fee unless matched with a hidden order.
  
• A Reduce only option enables you to create buy and sell orders meant to reduce an existing position without opening an opposite long or short position worth more than the current value of your leveraged assets. This essentially means that you will not be able to execute more than the size of your position, allowing you to trade without risking over-exposure of your assets.
  

In conclusion, it’s crucial for you to choose exchanges that have a user-friendly interface and a variety of order types. It can help execute trades more efficiently and with greater precision, leading to a better overall trading experience.

Thanks for reading! Write in a comment what other important points you pay attention to when choosing an exchange