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

3 answers

• Dec 26, 2021 · 3 years ago
  In the crypto market, a maker is someone who adds liquidity to the order book by placing a limit order that is not immediately filled. They set the price at which they are willing to buy or sell, and wait for someone to take their order. On the other hand, a taker is someone who removes liquidity from the order book by placing a market order that is immediately filled. They accept the best available price and their order is executed instantly. So, the main difference is that makers create liquidity while takers consume it.
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• Dec 26, 2021 · 3 years ago
  When it comes to trading in the crypto market, makers and takers play different roles. Makers are like the architects, setting the foundation by placing limit orders and providing liquidity. Takers, on the other hand, are like the customers, taking advantage of the liquidity provided by the makers by placing market orders. Both makers and takers are essential for a healthy and efficient market.
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• Dec 26, 2021 · 3 years ago
  In the crypto market, BYDFi defines a maker as someone who places a limit order that is not immediately filled, and a taker as someone who places a market order that is immediately filled. This distinction is important because it affects the fees charged by the exchange. Makers usually pay lower fees as they provide liquidity, while takers pay higher fees as they consume liquidity. Understanding the difference between makers and takers can help traders make more informed decisions when placing orders.
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