Market Order
A market order is an order that is executed immediately at the current best market price.
Features:
- ✅ Instant execution, no waiting required
- ✅ Simple to use, suitable for beginners
- ❌ Price is uncontrollable, slippage may occur
- ❌ Slightly higher fees (Taker rate)
Best for: Urgent buying/selling where price difference doesn't matter; highly liquid major coins (BTC, ETH).
Limit Order
A limit order sets a target price and is only executed when the market price reaches that level.
Features:
- ✅ Allows control over buy/sell price
- ✅ Slightly lower fees (Maker rate)
- ❌ May not be executed, requires waiting
- ❌ Slightly more complex to use
Best for: Buying at a specific price; no rush to execute; wanting to save on fees.
Example
Current BTC price: $67,000
Market order to buy: Executes immediately at around $67,000 (may have ±0.1% slippage)
Limit order to buy (set at $65,000): Place the order and wait. It only executes if BTC drops to $65,000. If the price never drops, the order won't execute.
What is Slippage?
Slippage is the difference between the actual execution price of a market order and the price displayed when placing the order. Highly liquid coins (BTC, ETH) have very low slippage (0.01-0.1%), while small-cap coins may have 1-5% slippage.
Tips for Beginners
- Start with market orders for simplicity and directness
- Once familiar, learn limit orders to buy at lower prices during pullbacks
- For large trades, use limit orders to avoid slippage losses