Taker

In cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain... trading, a takerIn cryptocurrency trading, a taker is a trader who places an order that is immediately executed against an existing order on the order book. Takers... is a trader who places an order that is immediately executed against an existing order on the order bookAn order book on a cryptocurrency exchange is a list of buy and sell orders for a specific cryptocurrency, showing the quantity of the cryptocurrency.... Takers are essentially taking liquidityLiquidity refers to the ability of an asset to be easily bought or sold without affecting its market price. In the context of cryptocurrency, it... from the market, and their trades are executed at the prevailing market price.

In contrast, a makerIn trading, a maker is someone who adds liquidity to the market by placing an order that is not immediately filled, but rather goes onto... is a trader who places an order that is not immediately filled, but rather sits on the order book until another trader takes the other side of the trade. Makers provide liquidity to the market, and their trades are executed at the price specified in their order.

Many cryptocurrency exchanges charge different fees for takers and makers. Taker fees are typically higher than maker fees, as takers are seen as “taking” liquidity from the market and therefore have a higher impact on the exchange’s order book. Maker fees are often lower, as makers are providing liquidity to the market and helping to ensure that there is a healthy supply of orders on the order book.

Some exchanges also offer special fee structures for high-volume traders or those who use their own trading bots. For example, some exchanges may offer reduced fees for traders who exceed certain trading volumeVolume refers to the total amount of a cryptocurrency that has been traded within a specific time period, usually 24 hours. It is a key... thresholds, or who use a specific trading API or platform.

Overall, understanding the distinction between takers and makers is important for cryptocurrency traders, as it can impact the fees they pay and the overall liquidity of the market.