What are Maker and Taker?

Understanding Maker and Taker in Cryptocurrency Trading
In cryptocurrency trading, the terms "Maker" and "Taker" refer to two distinct types of traders, each characterized by unique trading behaviors and fee structures:

1. Maker:
Makers are traders who place orders on the market and patiently wait for other traders to match their orders.
By placing limit orders, which are not executed immediately at the current market price, makers contribute liquidity to the market.
Makers typically enjoy lower trading fees and, in some cases, may receive rewards or discounts for enhancing market depth and liquidity.

2. Taker:
Takers are traders who actively match existing orders on the market, executing trades at the market price or a price close to it.
Their primary objective is swift execution, and their trades immediately consume existing orders, potentially causing price fluctuations.
Takers usually incur higher trading fees as they "take" liquidity from the market by matching existing orders.
This distinction is commonly utilized on exchanges to establish varying fee structures, incentivizing increased market liquidity and providing favorable trading conditions.

Disclaimer:
While cryptocurrency presents opportunities for substantial growth, it also comes with inherent market risks and volatility. Users are strongly advised to conduct thorough research. BITOY assumes no responsibility for asset losses resulting from user-initiated investments or trading activities.