If you’re new to cryptocurrency trading, you’ve probably come across the terms maker and taker. These words describe two different roles that traders play in crypto exchanges, and they directly affect the fees you pay. Understanding the difference is essential to becoming a smarter trader.
In this guide, we’ll break down what makers and takers are, how they work, and why they matter.
What is a Maker in Crypto?
A maker is a trader who provides liquidity to the market.
- When you place a limit order (e.g., buy Bitcoin only when it drops to $25,000), your order doesn’t execute immediately.
- Instead, it goes into the order book and waits until another trader accepts it.
- By doing this, you are “making” the market since you add more orders for others to trade against.
Makers are rewarded for adding liquidity. That’s why exchanges often charge lower fees for makers, sometimes even offering rebates.
Example:
You set a limit order to buy ETH at $1,600. The price is currently $1,620, so your order sits in the book until a seller agrees. You are acting as a maker.
What is a Taker in Crypto?
A taker is a trader who removes liquidity from the market.
- When you place a market order (e.g., buy Bitcoin instantly at the best available price), you are matching existing orders in the order book.
- This means you are “taking” liquidity away.
Since takers use up liquidity, exchanges usually charge them higher fees compared to makers.
Example:
You buy 1 ETH at the current price of $1,620 using a market order. Your order matches with an existing seller’s order, making you a taker.
Why Does It Matter?
- Trading Fees – Knowing whether you are a maker or taker helps you reduce costs. If you trade often, lower maker fees can save you a lot.
- Trading Strategy – Makers usually have more control over the price they pay, while takers prioritize speed.
- Liquidity & Market Health – Makers keep markets active, while takers ensure trades are executed quickly. Both roles are essential.
Which is Better: Maker or Taker?
There’s no one-size-fits-all answer.
- If you want to save on fees and don’t mind waiting, being a maker might suit you.
- If you want to execute trades instantly, even if it costs more, being a taker makes sense.
Many professional traders switch between both depending on their goals.
Final Thoughts
The terms maker and taker may sound confusing at first, but they’re simply about whether you add liquidity (maker) or take liquidity (taker) from a crypto exchange.
By understanding these roles, beginners can make better trading decisions, optimize their strategies, and minimize fees.
Tip for Beginners: Always check your exchange’s maker and taker fee structure before trading—it can make a big difference in your profits.
