Altcoin Daily
A Coinbase-sponsored Altcoin Daily tutorial walks through market, limit, stop-limit and time-weighted average price (TWAP) orders on Coinbase Advanced. It uses Bitcoin purchases to show the difference between buying immediately and setting a price at which an order can execute. The video also covers perpetual futures and take-profit and stop-loss settings using a hypothetical XRP trade.
Market orders take available liquidity and typically incur taker fees. A limit order can add liquidity and qualify for maker fees if it does not execute immediately; the post-only setting cancels an order that would instead take liquidity. A stop-limit order places a limit order when its stop price is reached, while TWAP divides a larger order into smaller trades over time.
The XRP example shows how a trader can set exit levels before a perpetual position opens and adjust them later. Perpetuals also introduce leverage and financing considerations that spot trades do not. The tutorial discusses trading pairs involving Bitcoin, Ethereum, USDC and USDT, and notes that Coinbase requires identity verification.
Frequently asked questions
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How do market and limit orders differ on Coinbase Advanced?
A market order buys or sells against available liquidity. A limit order sets a price and waits for an opportunity to execute at that price.
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Why can a limit order qualify for a maker fee?
A limit order can add liquidity to the order book if it does not execute immediately. Market orders take available liquidity and typically incur taker fees.
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What does the post-only setting do?
Post-only cancels an order if it would take liquidity rather than add it to the order book.
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What are stop-limit and TWAP orders used for?
A stop-limit order places a limit order when a specified stop price is reached. TWAP divides a larger order into smaller trades over time.
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What risks does the XRP perpetual example illustrate?
The example shows how to set and adjust take-profit and stop-loss levels. Unlike spot trades, perpetual positions also involve leverage and financing considerations.
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