Market orders: speed over price
A market order sweeps the order book until it is filled. In a liquid market during normal hours, the difference between the price you saw and the price you got is negligible. In a thin market, during a news release, or on a low-volume altcoin, that difference — slippage — can be substantial.
Limit orders: price over speed
A limit order sits in the book waiting for the market to come to you. Buy limits go below the current price, sell limits above. The trade-off is real: if price never touches your level, you simply do not get the trade, and watching a setup run without you is its own kind of cost.
Maker and taker fees
On most crypto exchanges, a limit order that rests in the book makes liquidity and earns a lower fee; a market order takes liquidity and pays more. On an active strategy that fee gap compounds into a meaningful number over a year.
Stop orders and stop-limits
- Stop-market: becomes a market order when the trigger price is hit. Always fills, may slip.
- Stop-limit: becomes a limit order at the trigger. Protects your price, but can be skipped entirely in a fast move — the worst outcome for a protective stop.
- For exits that must happen, stop-market is usually the safer instrument.