The 3 Buttons That Decide What Every Trade Costs You (Order Types Explained)
This is a practical trading lesson, neutral but useful for anyone buying crypto or stocks: it's good news for traders who switch from market orders to limit orders, since it can save real money on fees over time.
- Market orders always cost the most — you pay the spread, a higher "taker" fee, and can suffer extra losses (slippage) if your order is big and the market runs thin.
- Limit orders are the cheapest way to trade — you set your own price and get a fee discount, but you have to wait and there's no guarantee you'll get filled.
- Stop-limit orders act as an automatic safety net — they sit quietly until price hits a trigger you set, then place a limit order for you, useful for stop-losses or catching breakouts without watching the screen all day.
- A "post-only" setting can force every order to be a cheaper limit order, blocking it from ever accidentally filling at the pricier market rate.
- The lesson applies to Bitcoin and crypto trading broadly, with examples shown using real trades on Coinbase.
Outlook: Traders who swap market orders for limit or stop-limit orders going forward should see steadily lower fees, especially the more often they trade.