One sentence: This is my price, take it or leave it, buy or not—if it doesn't meet the standard, just hang there and wait slowly!
 
Market order is "I'm in a hurry to run away," limit order is "I'm super steady, waiting for you to beg me."
 
You set a price, the system throws it into the order book to lie flat. If no one hits your price, it won't budge. If it does? Automatic execution. You can sleep, travel, or date without missing out.

How does it actually work?

  • Want to buy: Current BTC at 69,000 bucks, you think it's expensive, set a buy order at 68,000 → Only if the price really drops to 68,000 or lower will your order get filled.
  • Want to sell: Current 69,000 bucks, you think it can go higher, set a sell order at 70,000 → Only if the price surges to 70,000 or higher will your order execute.
 
Two possible outcomes:
 
  • Executed → Sweet, precise bottom-fishing or top-selling.
  • Hangs there forever → The market didn't give you face, your order becomes decoration (you can cancel anytime).

Limit Order vs. Other Common Order Types

Order TypeCore LogicPersonality Tag
Market OrderI don't care about the price, I want it now!Impatient
Limit OrderThis price only, if not, no deal!Steady
Stop Loss OrderWhen it drops/rises to XX price, I admit defeat and run with market price!Survival
Stop Limit OrderAfter dropping to XX price, I still want to exit at my set price—if not, forget it!Want to survive but save face

When must you use a limit order?

  • You've calculated support and resistance, won't enter unless at this price
  • Want to buy low and sell high, don't want to get slipped by market orders and cut like leeks
  • Want to do DCA dollar-cost averaging, split into 10 orders to slowly buy, eat the fish nice and easy
  • Want to make money while sleeping, just set the orders and lie flat

When not to foolishly use a limit order?

  • Major trend suddenly starts / crashes, you're still hanging waiting → Others are gone while you're queuing at the door
  • Shitcoin with rotten depth like a ghost market, hangs forever with no one caring, end up panic-selling at market
  • You have no patience, staring all day wanting to change price → Might as well just use market order

The perks of limit orders

  • Price totally up to you, precise to the decimal point
  • Set it and forget it, auto-works for you
  • Split small orders into a dozen limit ones, eat finer than anyone
  • Slippage? Doesn't exist!

The pitfalls of limit orders

  • Might never execute, wasted effort
  • Major moves gap over, you can only watch
  • Insufficient depth, others' market orders eat yours up, and you think you're so smart

Last words for all you leeks

Market order is the "panic button," limit order is the "money machine."
 
Beginners, learn to set limit orders first, don't smash market orders in excitement.
 
The fish you catch with limit orders will always be more than with market orders.
 

Remember: The real pros in crypto,

 

99% of their orders are pre-set limit orders,

 

The remaining 1% market? That's only pressed when you're really about to die!