Bitcoin Forum

Do you prefer to use limit price or market price when doing crypto trading? What are the pros and cons?

Market or limit orders are the same in cryptos as they are everywhere else.

When you are a maker, you usually have lower fees or you get paid a fee. When you are a taker you have a higher fee generally.

If you are day trading then using limit orders will make you save lots on fees. However sometimes taker fees are unavoidable such as during a stop market order.

With stocks it's similar, besides the commission your broker charges you are charged exchange fees when you remove liquidity and on some exchanges get a premium when adding liquidity.

If you are in a rush, just use a market order. If you can wait then do a limit order.

I always use limit price since i've already decide when i want to buy and when i want to sell before i entered a trade. And also sometimes at most exchanges market price fee is higher than limit price fee.
So i think we can save some fee when we order with limit price, we just need to more patient to get our order got by the buyers or the sellers, the fee difference is not much but if we did 1000 trades it will be decent amounts.

depending on the situation and conditions, sometimes using a price limit sometimes using a market price, when in a hurry I will use market prices, but when I have time to relax sometimes use market limits.

If you're a day trader, of course you use limit orders. With day trading whereas you're trading the very small price swings, you definitely want to buy at your target prices. With market orders, you could potentially buy/sell in at bad prices, especially when liquidity is low. In a long term trading perspective though, market orders should be fine if you want to get your funds out as soon as possible.

I always use limit price. Because i want to put my sell orders my own prices. I saw one user told that market price and limit price is same.how? Market price is the price that buyers want to buy (price).In limit you can put your own price.like you can put 1ETH selling for 1BTC.if you guys things that both are same then please explain it to me.
I think market price and limit prices are different.sometimes i use market price when i am in hurry to sell my coins. 

If you use the market price, you are like plainly converting your coins, the thing that you do with conversion or remittance and payment apps. The price is pre-determined and you only have to swipe and your coins are converted into whatever fiat or other coins you choose. In an exchange platform, people are usually choosing their own price. It is based on the current buy and sell prices and the movement of the spread and prices. You are hardly a trader if you are using the market price in your orders.

It really depends in case scenarios if i think that the train or the coin is about to pump i will use market price - this is used for a quick buying order to be executed.
In another trade that i am doing is mostly a limit price where i am waiting for a certain price to reach or it for that price to trigger my order.
Learn how to use it effectively and take advantage over that market and limit setups.

In trading I always prefer to use a limit price, because of course the fee is cheaper than the market price.
Frankly, I have never used a market price other than high fees, if i want to buy or sell coins always do not
want to rush. Because in trading I'm always full of planning so no need to rush. Moreover I'm very happy
do day trading which can be several times a day transactions, if i use a limit price of course can save more fee.

In shady exchanges like bitforex, I have seen at times the limit price exceeds from the market price of the currency and even after quoting the price lower price, the order would never pass.  ::) Either way in terms of reputed cryptocurrency exchanges like Binance I would go for Limit Price since they would provide me with the expected profits over time. On the other hand, Market Price would be used to sell the currency immediately without waiting for the order to get passed.

Both Limit and Market price has its own pros and cons ranging from the immediate profits, withdrawals etc. For most of the time during trading, I would go for the Limit Price and would probably wait for the order to get filled.

I stay well away from the market price when dealing with highly volatile cryptocurrencies.

I've been trading low cap coins for quite some time, often you'll see huge spikes within seconds, which can lead to you being completely screwed when using the market price.

Limit price is ideal for both large and small cap coins, since it basically lets you choose your entry point. No chance of getting caught out by a huge wick.

I actually use both of them depending on the market situation and also the coins we're going to trade. But often I used Limit price when I have to do trading all day but if I have limited time in trading( doing short trades every day), I'll consider market price if it satisfies me and when I feel I've gain already.
Setting into the limit price is worth gaining into our side but sometimes it takes so long before buyers will take it which it sometimes we also feel bored and do the market price again.

I usually use limits to enter and exit whenever possible, though there are times when I will enter using limit orders and exit using market orders when things are moving rapidly as it often happens with crypto. I especially like to use limit orders when the markets are moving slowly or when I'm just letting a trade run when I'm not actively watching it. You don't always need to pay the cost of speed. I also use market orders for stops, especially on leveraged trading sites like Bitmex or Bybit when prices can move extremely rapidly and jump over where your limit stop is set to execute. That's one instance where it's a good idea to pay for the speed that a market order provides.

Some sites, especially leveraged trading sites such as Bitmex, Bybit and Deribit, give you a rebate on fees when you use limit orders because you're helping to provide liquidity by making a limit order, and that helps to offset the fees associated with market orders a little bit.

You need to think about fees and order book liquidity. Others have mentioned the prominent maker/taker fee model. Limit orders are generally cheaper, though some exchanges like Binance employ a flat fee model where there is no difference.

Slippage (https://www.investopedia.com/terms/s/slippage.asp) can be an issue with market orders in a low liquidity environment. Limits orders ensure your orders only execute at the intended price.

On the other hand, your limit orders are not guaranteed to be filled either, which can result in huge losses if you aren't careful. Let's say the price is crashing and you're long. If you set limit sell orders above the spread, the market may keep crashing without filling your orders. Market selling can save you quite a lot of money in that situation.

It can cost you a lot too when a lot of liquidity disappears because it was never meant to provide any support, just to make the orderbook appear healthy. There have been various instances where people ended up selling waaaaay below what they thought they would sell at. I rather just sit it out and wait a bit than to market sell amidst the massive panic selling that's happening.

It's less likely to happen on exchanges such as Coinbase, but not every trader and their dog are using that platform.

Limit Prices are generally much favorable whenever talking about making a profit. Besides, Market Price offers the fastest transaction possible so I doubt that you would often use it, other than when you really need the cash. That is just basing on the definition of the usage of each one, but it could change depending on situations. I'm more inclined with Limit Prices since I could wait, but its quite risky at times since the order may not even go through. But it is a lot more advantageous if the market meets your Limit price though, so its really a matter of situation. You never know how the market could go so ordering a Limit price may or may not have the results you wanted.

Market price only when I want to sell out and get out quickly to cash into fiat. Limit when I am doing regular trading. If you are looking to make a profit then trading with market makes no sense, I have waited for almost a whole week just to sell a small coin on limit price instead of market price which resulted with me making 10% more profits because the spread was huge and volume was low.

It takes a long time when it is a small one but when you are doing something huge like usdt-btc for example then you are not waiting at all which makes no sense to use market in that matter. However market is there just in case you need to get out very quickly and you want to save time, it would be in a second and you will have the currency you want in your hands instantly.

That may seem intuitive, but in my experience it leads to bagholding. In BTC it's not uncommon to see a 10% drop in an hour. There's no way slippage could net a loss like that on any of the standard tier exchanges. Maybe on Bitmax or some of these other no-name exchanges.

Also, if you want to execute a market sell with a limit on price, just set a limit sell order below the spread. It acts like a market sell unless there are no bids at/above the limit. That will prevent the scenario you outlined above.

Yeah using market price is just only when we are the first one saw the big good news for a coin and we won't our order go through if we use a limit price. So, we will quick buy the coin to make a quick profits. But for daytrading and doing technical analysis for many charts, we should do limit price for a better profits.

 I use both the limit price and market price when doing the trading. Sometimes when i see a coin has pumped and is towards the dumping phase, i usually place market order to get my coins sell at the current good rates and do not risk waiting.
On other cases, i place limit orders where i want to sell / buy coins at my pre-decided prices.
If you are a professional trader, you will be using the both.

I think that would depend on the situation in the market. If one coin starts to increase, and you know that the price will increase so higher, then you can use market price so you can have the coin, and it's ready to sell at a higher price. Sometimes I did this in a short time trade because if I can see my chance to get a nice profit, it is better to act fast by buying the coin at a price now.

The other day, I wanted to buy another coin. I see that the coin has slow-moving at the market, but from what I analyze, the coin can increase in the next week, so I place an order buy with the price I want (I will make a lower price than the market price). So I can prevent if the price is down for more. And if my order buys filled, all I have to do is hold the coin or directly place in the price I want for the next week, so I don't have to always check at a price every day because it will automatically be filled when it reached my order sell price.

Personally, I tend to use limit price because I've usually decided when I want to buy and sell before I enter a trade. Also, it seems as though sometimes exchanges make their market price fee higher than their limit price fee. I think whichever works better for you is what you should go with.

As my own perception base on my own experience I prefer on limit price in which I just relying also on the orders. On the other hand, market price is just basis on the trading site but it still relying on the sell or buy order of the trading site. Also, it may refer the demand on the token as it may be support by many here in crypto currency community.

It depends on your trading strategy, if you are an active intraday trader or scalper, then you will most likely use a market order, if the scalper is exactly a market order. But if you are a moderate trader with a strategy on a 4-hour or daily chart, then of course there is no point in sitting on charts, you simply place a limit order and wait until the price reaches your fishnet. I prefer limit orders, as I am for free trading, which does not take away from a person all day, and the nerves remain whole and somehow it’s easier to live during the day, doing their own business.

depending on market conditions and prices. if the buy / sell order has finished, then I will see the price again. when the pump / dump price arrives. I will use the market price. buy or sell instantly.
but if the price is stable, I will use a limit price. it's better in my opinion. taking 5% -10% profit is using the limit price. that is safe.

I match the situation and conditions, I think doing market place or limit price will not be a problem as long as we can manage it well, and it can be used as one of our options as traders.

I think most traders that don't want to stay at the computer all day long use limit orders. An advantage to this is that most exchanges offer rebates for market-making which basically translates into placing limit orders aka creating liquidity for the market. Market price is mostly for the momentum and breakout traders out there who like to "lead" the movements by getting on the side of the impulse in the market. Also market orders are FOMO'ers best friend haha

If trading, maybe limit price is better. Market price maybe will be good for pump and dumped coin, i mean in past when a coin get pumped and dumped, when we not want to miss opportunity from it, we can use market price so we can buy or sell our coins instantly without afraid late to buy/sell. Because price movement will be very fast.