Order Types (Market vs Limit)

Order Types: Market vs Limit – Which Should Beginners Use in Crypto?

When buying or selling crypto, the order type you choose can have a big impact on how much you pay, how quickly your trade is executed, and how much control you have. For beginners using Coinbase Advanced, the most important types to understand are market orders and limit orders.

These two options represent very different trading strategies:

• A market order is fast and automatic, but usually comes with higher fees and less control over price.
• A limit order takes a little more thought, but gives you the power to choose your own entry or exit point—often with lower fees.

This guide will break down exactly how each order type works, the pros and cons of each, and when you should use one over the other. If you’re using Coinbase Advanced and want to start trading smarter, this is one of the first things you should learn.

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What Is a Market Order? (And Why Most Beginners Start Here)

A market order is the default way to buy or sell crypto on most platforms—including the basic Coinbase interface. When you place a market order, your trade executes immediately at the current best available price. It’s quick, simple, and requires no setup.

Here’s how it works:

• You enter how much crypto you want to buy or sell.
• The system looks at the order book and matches your trade to the best available price.
• Your trade fills instantly, and you’re done.

Pros of Market Orders:

• Fast execution
• Easy for first-time users
• Good for urgent trades

Cons:

• You pay a taker fee (usually higher)
• You may experience slippage, where the price moves before your trade completes
• You have no control over the exact price

For small or urgent trades, market orders are fine. But for most users—especially those trading on Coinbase Advanced—there’s a better way to buy: limit orders.

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What Is a Limit Order? (And Why It Can Save You Money)

A limit order is a type of trade where you choose the price at which you’re willing to buy or sell crypto. Instead of taking the current market price, your trade is only executed if the market reaches your target.

Here’s how it works:

• You select “limit” as the order type.
• You enter the amount of crypto you want to trade, and the price you want to pay (or receive).
• Your order goes into the order book and stays there until it’s filled or canceled.

Benefits of Limit Orders:

• Lower fees: You act as a maker, qualifying for reduced fees on Coinbase Advanced.
• More control: You’re not forced to buy at a bad price.
• Less slippage: You avoid market spikes or dips during execution.

Limit orders are ideal for beginners who want to buy low and sell high, without having to watch the market all day. You can set the price, step away, and let the market come to you.

They’re also the foundation of more advanced strategies—but even used simply, they help you trade smarter and cheaper.

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Key Differences Between Market and Limit Orders

Let’s put it all together with a head-to-head comparison of market vs limit orders. Understanding these differences helps you choose the right type of order for your goals—whether that’s speed, savings, or strategy.

Feature	Market Order	Limit Order
Execution Speed	Instant	Only when price target is met
Fee Type	Taker (higher)	Maker (lower)
Control Over Price	None	Full control
Slippage Risk	High	Low to none
Good for Beginners?	Yes, but often costs more	Yes, and saves money over time

Which should you use?

• Use market orders when you need speed and don’t care about small price differences.
• Use limit orders when you’re patient and want to trade at better prices.

For most beginner trades—especially if you’re using Coinbase Advanced—limit orders will give you better long-term results.

When to Use Market Orders vs Limit Orders on Coinbase Advanced

Knowing when to use each order type is just as important as understanding how they work. Even though market orders and limit orders are both beginner-friendly, they’re best suited for different situations. Using the right order type at the right time can help you avoid unnecessary fees, reduce risk, and get better results with every trade.

When to Use Market Orders:

• You’re in a fast-moving market and want to execute immediately.
• You’re buying a small amount and don’t mind slight price differences.
• You’re okay with paying a bit more in fees to get it done instantly.
• The difference between bid/ask prices is minimal (low spread).

Market orders are useful if you’re buying crypto during a dip and want to lock in the price quickly, or if you’re cashing out during a surge and don’t want to miss the move.

When to Use Limit Orders:

• You want to buy low or sell high at a specific target price.
• You’re not in a rush and are willing to wait.
• You want to pay lower fees using the maker model.
• You want to reduce exposure to volatility or slippage.

For example, if Bitcoin is trading at $31,000 and you’d rather buy it at $30,500, a limit order lets you set that price and walk away. If the market hits your target, your order fills automatically.

Limit orders are especially effective for recurring strategies like dollar-cost averaging. By placing multiple small limit buys below the market, you can gradually build your portfolio with better entry points and lower fees.

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How Using the Right Order Type Can Impact Your Fees and Strategy

One of the biggest advantages of using Coinbase Advanced is that it rewards strategic trading with better pricing. Your choice between a market or limit order directly impacts how much you pay in fees—and how well your trade performs.

Fee Impact:

• Market orders trigger taker fees, which are higher.
• Limit orders (if they add liquidity) trigger maker fees, which are lower—and sometimes zero depending on your volume tier.

Over time, these savings are substantial. Imagine placing 20 trades a month. If each market order costs $2 in fees, that’s $40 a month. A similar series of limit orders might only cost $8–$12. That’s real money you can keep in your portfolio instead of losing to platform costs.

Strategic Impact:

• Limit orders help you avoid buying too high or selling too low.
• You can set price alerts or conditional entries that align with your goals.
• You develop discipline by planning trades instead of reacting emotionally.

This is why learning to use order types properly is one of the most important skills for any beginner. It turns you from a passive buyer into a strategic investor.

And don’t worry—Coinbase Advanced makes it easy. You can practice placing limit orders with small amounts and cancel them anytime. The interface shows you exactly how much you’re spending, the expected fees, and your position in the order book.

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FAQ: Market vs Limit Orders on Coinbase Advanced

Are market orders bad for beginners?
Not at all—they’re simple and fast. But they come with higher fees and less control. Beginners should learn to use limit orders to save money and avoid poor trade execution.

Do limit orders always guarantee a better price?
Not necessarily. A limit order only executes if the market reaches your chosen price. If it never does, the order remains open or expires. But when used strategically, it can absolutely secure better pricing.

What happens if I place a limit order and the market moves away?
Your order will stay in the book until it’s filled or until you cancel it. If the price never returns to your limit, it won’t execute—so there’s no loss unless the order is filled at your chosen price.

Can I place both market and limit orders from the same account?
Yes. On Coinbase Advanced, you can choose your order type before each trade. No restrictions—you can switch based on your goal at any time.

Is it safe to place limit orders on mobile?
Yes. The Coinbase app supports limit and market orders through the Advanced Trade section. The experience is similar to desktop.

Should I always use limit orders?
For most beginners—yes. Unless you’re in a rush or trading very small amounts, limit orders help you control price and reduce fees.

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Conclusion: Choose the Right Order Type to Trade Smarter, Not Harder

Market and limit orders are simple concepts—but they have a big impact on how well your crypto journey goes. Choosing the right order type based on your goal can mean the difference between saving money or overpaying, making a smart trade or reacting emotionally.

Market orders are useful when speed matters. But they often come with higher fees and weaker control over your results. Limit orders, on the other hand, are designed for strategy—they help you set your price, reduce your fees, and build discipline with every trade.

For anyone using Coinbase Advanced, limit orders are one of the most valuable tools you can master. They’re easy to place, easy to adjust, and they help you trade like a pro—even if you’re just starting out. This guide is part of our full Coinbase Advanced series designed to help you trade smarter.

If you’re ready to stop guessing and start planning, it’s time to explore the full power of Coinbase Advanced. Try placing your first limit order today and experience the difference for yourself.

👉 Get started here: Coinbase Advanced Sign-Up