Why do some traders prefer to use maker orders instead of taker orders in cryptocurrency trading?

3 answers

• Dec 28, 2021 · 3 years ago
  One reason why some traders prefer to use maker orders in cryptocurrency trading is because it allows them to provide liquidity to the market. By placing a maker order, traders are essentially adding to the order book and creating opportunities for other traders to execute taker orders. This can be advantageous for traders who want to earn transaction fees by providing liquidity to the market. Another reason is that maker orders often come with lower fees compared to taker orders. Some cryptocurrency exchanges incentivize traders to place maker orders by offering reduced fees or even zero fees for such orders. This can be a cost-saving strategy for traders who frequently engage in trading activities. Additionally, using maker orders can also provide traders with more control over their trades. Maker orders allow traders to set specific price levels at which they are willing to buy or sell cryptocurrencies. This can be useful for traders who want to execute trades at specific price points or who have specific trading strategies that require precise entry and exit points.
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• Dec 28, 2021 · 3 years ago
  Traders may also prefer maker orders because they can help reduce the impact of market volatility. When a trader places a taker order, it is immediately matched with an existing order in the order book, which can lead to slippage if the market is highly volatile. On the other hand, maker orders are not immediately executed and are only filled when another trader takes the opposite side of the trade. This can help traders avoid slippage and potentially get better execution prices. Furthermore, using maker orders can be a strategic move for traders who want to manipulate the market or create artificial demand or supply. By placing maker orders at specific price levels, traders can influence the market sentiment and potentially attract other traders to take taker orders, thus creating a desired market movement. It's important to note that the preference for maker orders over taker orders can vary among traders and may depend on individual trading strategies, market conditions, and personal preferences.
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• Dec 28, 2021 · 3 years ago
  From BYDFi's perspective, maker orders are a key feature of our platform. We believe that maker orders provide traders with more control and flexibility in their trading activities. By placing maker orders, traders can actively participate in the market and contribute to its liquidity. This not only benefits the traders themselves but also enhances the overall trading experience for all users on our platform. We encourage traders to explore the advantages of using maker orders and discover how it can improve their cryptocurrency trading strategies.
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