Next, you need to decide how and when you wish to open your trade. You effectively have two choices at this stage, you can either open a trade on the spot (a market order) or choose to enter at a specific point (a limit order).
A market order is the simplest option. Here you will see your trade executed instantly and the price you enter the market at will be close to the price quoted at the time. There is can be slight variations, due to the time taken to execute a trade and the speed at which prices move, but ultimately a market order can be thought of as what you see is what you get.
Limit orders allow you to specify the price at which your trade is executed. This is an incredibly useful feature as it allows you to enter the market at the most favourable point. For example, you may be expecting the price of Litecoin to drop before it starts to increase, in which case you can activate your trade from a better position, with more potential for gain. It should be noted that, if Litecoin does not reach the specified price, your order will expire without being executed.
This of course begs the question: which type of order should I use when trading Litecoin? There is no set answer here – the situation and trading environment will always dictate the best type of transaction at the time.