How to Use Coinbase Limit Buy to Save on Fees and Buy Crypto at Your Desired Price
Coinbase is one of the most popular and trusted platforms for buying and selling cryptocurrencies. However, if you want to buy crypto at a specific price or avoid paying high fees, you might want to use the Coinbase limit buy option.
A limit buy order is an order that allows you to specify the maximum price you are willing to pay for a certain amount of crypto. For example, if you want to buy 1 BTC at $40,000, you can place a limit buy order at that price. This way, you will only buy BTC if the market price drops to $40,000 or lower.
Using a limit buy order has several advantages over using a market buy order, which executes your purchase at the current market price. First, you can save on fees, as Coinbase charges lower fees for limit orders than for market orders. Second, you can have more control over your purchase price and avoid buying at a peak or during high volatility. Third, you can set your order and forget it, as it will remain open until it is filled or canceled by you.
How to Place a Limit Buy Order on Coinbase
To place a limit buy order on Coinbase, you need to follow these steps:
- Log in to your Coinbase account and navigate to the asset’s page that you want to buy.
- Toggle to the Advanced Trading view by clicking on the button at the top right corner of the screen.
- Select the Buy/Sell tab and choose Buy.
- Enter the amount of crypto you want to buy in the Amount field.
- Select Limit from the Order Type dropdown menu.
- Enter the maximum price you are willing to pay per unit of crypto in the Limit Price field.
- Review your order details and click on Place Buy Order.
You will see a confirmation message that your order has been placed. You can also view your open orders by clicking on the Orders tab at the top of the screen. You can cancel your order at any time before it is filled by clicking on the X icon next to it.
Tips and Tricks for Using Coinbase Limit Buy
Here are some tips and tricks for using Coinbase limit buy effectively:
- Use a price chart or a price alert tool to monitor the market trends and find a good entry point for your limit buy order.
- Be realistic about your price expectations and don’t set your limit price too low or too high. If your limit price is too low, your order might never get filled. If your limit price is too high, you might end up paying more than necessary.
- Check your account limits and available balance before placing a limit buy order. Coinbase has different limits for different payment methods, regions, and account levels . You can view your limits and how to increase them by heading to the Account Limits section of your Settings. You also need to have enough funds in your Coinbase cash balance or linked bank account to cover your order amount.
- Keep an eye on your open orders and cancel them if you change your mind or if the market conditions change. You can also modify your open orders by canceling them and placing new ones with different parameters.
Coinbase limit buy is a useful feature that can help you save on fees and buy crypto at your desired price. To use it, you need to switch to the Advanced Trading view and select Limit as your order type. You also need to enter the amount of crypto you want to buy and the maximum price you are willing to pay per unit. Your order will remain open until it is filled or canceled by you.
Coinbase limit buy can give you more control over your purchase price and help you avoid buying at a peak or during high volatility. However, you also need to be realistic about your price expectations and monitor the market trends. You also need to check your account limits and available balance before placing an order.