Greeting! Crypto traders🌸
Let’s suppose you want to buy an Ethereum, and its market price is $4000. However, as you open your wallet, you see that you only have $3500.
Undoubtedly, this price gap will spoil your buying plan and bring tears to your eyes.
This is where DEX Aggregators stand out, online platforms where you can easily set limit orders in advance and execute trading according to your price preferences.
Now, your mind will be buzzing with questions, such as;
- What is a limit order?
- What is a DEX aggregator?
- How to set a limit order on a DEX aggregator?
And so on……
Relax, buddies, relax! When we are here with you, then why to worry…..
This comprehensive article guide will clear all your confusions and answer all the questions spinning in your head.
So, let’s begin….
What Is a Limit Order?
To understand the limit order, first, carefully consider the example given below.
Example:
Let’s suppose you want to buy a crypto coin, like Bitcoin, and the current market rate of this currency is $20000. However, there are only $18000 in your wallet, and you want to get this asset according to your budget.
Now, you will come across a DEX aggregator and set a limit order of $18000. When the price of this Bitcoin falls or reach from $20000 to $18000, you will come to know and immediately buy it. This specific price you had set is referred to as a limit order. It’s time for a definition.
Definition: A limit order is an order to buy and sell a crypto coin or token at a specific rate( you choose), rather than market one. This order is set in advance and executes only when the market price of a cryptocurrency reaches your chosen price.
Hoping! Understood well✌️………..
What Is a DEX Aggregator?
A DEX aggregator is an online platform that scans the trading rates from multiple decentralized crypto exchanges to find the best possible price of a cryptocurrency. There are multiple advantages of such aggregators.
Below are a few of them.
- They help traders in obtaining the best trade execution by searching multiple DEXs.
- Provide them an access to a liquidity pool, allowing them to execute transactions more quickly.
- Save time and effort( as you don’t need to search each exchange for the best rates).
- These platforms charge a lower fee, as they use smart contracts rather than any one to execute the trading rates.
- Aggregators help traders reduce slippage( a gap between the expected price and the market rate)
How to Set Limit Orders With a Dex Aggregator: Step-by-step Guide
Now, it’s time for the backbone section of this blog, in which we will cover a step-by-step guide on how to set limit orders with a DEX aggregator. Don’t worry, this process is quite simple. You just have to focus on each step.
Step 1: Connect Your Wallet With a DEX Aggregator
In this first step, you have to connect your crypto wallet with a reliable DEX aggregator, such as 1inch, Matcha, ParaSwap, or another one. Below is how to do it;
- Navigate to the official site of the preferred DEX aggregator. Click on the “Connect wallet”.
- Select the wallet, such as Metamask, Coinbase, or another wallet you want to use.
- Here, a QR will appear on your screen. Open the wallet app on your mobile and scan this QR code. Your wallet will automatically connect.
Step 2: Choose the Trading Pair
Next, you have to choose a trading pair. As the name suggests, a trading pair is simply a pair of two different crypto assets, one you’re giving and one you’re receiving. For example, if you want to buy Ethereum using USD, then the trading pair will be Eth/USDT.
Step 3: Enter the Amount Detail
Once you have selected the trading pair, you will have to enter the amount you want to trade. However, don’t forget;
- If you want to buy a token or coin, set the limit order(price) lower than the market rate.
- If you want to sell a coin, your specified rate( limit order) must be higher than the market value.
For example, if you have to buy an Ethereum, and the market value of this asset is $2000. Set the limit order below $2000( such as $1800, $1700, $1500, and others).
Step 4: Submit the Limit Order
Check and ensure the amount and other details you have entered are all correct. Once confirmed, click on the “Set Limit Order”. After clicking, your order will be recorded in a blockchain through a smart contract. This order will stay active in the record book until;
- The market rate reaches your specified rate( you had set for trading).
- You cancel this order anytim due to any reason before it’s executed.
Step 5: Monitor Your Order
After submitting your limit order to the aggregator, regularly monitor it. Here, if the price of any coin in the crypto market reaches your targeted limit order, the aggregator will automatically execute the trading.
Otherwise, this order will remain pending( until the market value doesn’t match). Additionally, if you feel that the market value is unlikely to reach your set price, find the “cancel” option and click on it to cancel this order.
Let’s End It
DEX aggregators have made it very easy for crypto traders to trade cryptocurrencies by setting limit orders, giving them full control over their assets. They can easily buy and sell without relying on the market rates.
For traders who want to take advantage of this feature, we have prepared this article. We successfully compiled a comprehensive 5-step guide on how to set limit orders with a DEX aggregator.
So, are you ready to trade like a pro✌️………
You May Also Ask
1. Can you set limit orders on Uniswap?
Yes! It is possible to set limit orders on Uniswap. Your order will remain pending until you don’t cancel it.
2. How to modify a limit order?
To modify a limit order, you have to;
- Click orders on the left side of your screen.
- Select the order you want to modify.
- Make changes and click on the modify order.
3. Do limit orders automatically sell?
Yes! When the market price of any digital asset reaches the specified price( you set), the limit orders execute automatically.
