What is the difference between a maker and a taker in crypto trading?

3 answers

• Nov 30, 2021 · 3 years ago
  In cryptocurrency trading, a maker is someone who adds liquidity to the market by placing limit orders that are not immediately filled. They set the price at which they are willing to buy or sell, and their orders remain on the order book until they are matched with a taker. Makers typically pay lower fees than takers because they provide liquidity to the market. This encourages market participants to place limit orders and helps maintain a healthy trading environment.
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• Nov 30, 2021 · 3 years ago
  A taker, on the other hand, is someone who removes liquidity from the market by placing market orders that are immediately filled. They accept the current market price and execute their trades instantly. Takers pay higher fees compared to makers because they consume liquidity from the order book. Takers are often traders who want to enter or exit positions quickly and are willing to pay a premium for immediate execution.
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• Nov 30, 2021 · 3 years ago
  At BYDFi, we believe in fostering a fair and efficient trading environment. As a third-party exchange, we provide a platform for both makers and takers to participate in the market. Makers help create a liquid market, while takers provide liquidity by executing trades. Understanding the difference between makers and takers can help traders make informed decisions and optimize their trading strategies.
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