NEVER BUY ON ROUND NUMBERS
This post will be relatively technical, but it will teach you a lot and greatly help you understand the market. Read it carefully and reread it if everything is not clear in your mind.
Many of you probably use "Limit" orders to buy or sell your cryptos. For those who don't know, "Limit" orders are orders that allow you to buy or sell automatically at a certain price. For example, if you want to sell 1 BTC at $68,500, you place a Limit sell order at $68,500, and it will automatically sell your BTC when it reaches that price.
But what you need to understand is that you should never place Limit orders at round numbers like $70,000, $75,000, or even $75,500. When you do this, you are doing what a lot of people do, which is placing your orders at key psychological levels, and therefore at these levels there are a lot of people selling. This means that your order is drowned among thousands of other orders, and therefore it takes a lot more money to fill your order.
For example: imagine there are 1,000 BTC for sale at $70,000. This means that 1,000 BTC need to be bought from these people to fill all the orders. However, 1,000 BTC, for many people: there is very little chance that there will be 1,000 BTC available for purchase at this level. Now imagine that you place your order at $69,999: this doesn't change anything for you, however, you will not be drowned among all the other orders, and therefore you have a much better chance of your order being filled.
Obviously, this works for all cryptos and any round number.
Feel free to ask your questions in the comments if it's not clear enough.
This post represents my personal views.
Thank you for reading.
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Livio P-V.
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