Is there ever an instance where a crypto is being sold at a certain price even though the market price for the crypto never falls to the set price? Say you want to sell for 0.50 USDT but the market price never falls below 0.52 USDT but your Order is filled because someone bought at the 0.50 USDT Order Book price. Does this mean that you've lost money? Since the Market Price never went down to 0.50? I am a little confused on this.
Do not contradict yourself, once someone is ready and set his/her buying price at $0.50, then the limit order price should be at that price for people to buy. Although the order book is more complex than this but this is how it works, sellers will set prices, buyers will buy at that price, buyers will also set prices while sellers will sell at that price if they like. The people that set price are the market makers while the people that are buying and selling immediately are market takers. If the price set is filled, then the order will be filled.
You should be able to know the difference between limit order and market order, I believe this will totally answer your question.
If you buy or sell using limit order, the order will be filled exactly at your order price. For example, if Bitcoin price is at $50100, you set the limit order buying price at $50050, when the market falls to $50050 or below, the order will be placed and you will buy it exactly at $50050. But if you used market order, the coin will be bought at $50100 or higher price or price slightly higher in a way you will no notice differences.
Reverse is the case for low volume coins and shit coins, that is why it is good to always use limit order, there was a day I bought a coin, the price of the coin at the time was $0.0022, if I use limit order, it can take time like hours or more before my limit order will be filled, I wanted to buy the coin at the same price ($0.0022) it did not filled for hours, which means nobody was selling at that price, I later had to use market order, and the trade was filled at $0.0017, it was a loss for me.