When it comes to cryptocurrency trading, there are two types of fees that traders pay: maker and taker. This article will explain what each means and how much they cost you.
Crypto Trading Fees
Crypto trading fees are the fees you pay to buy or sell crypto. They are different for every exchange but generally fall into two categories: maker and taker (or maker-taker).
Maker Fees are usually paid by the trader who’s making a trade (the one who wants to buy or sell), while taker fees are paid by the trader who is taking a position on behalf of someone else. Maker and taker fees can also be referred to as “maker/taker” because they do not involve any intermediaries like banks or brokers; instead, crypto exchanges use smart contracts distributed across multiple computers around the world that allow traders to trade directly with each other without having any third parties involved in their transactions.
What is the Maker Fee in crypto trading?
The Maker Fee is a fee charged by the trader who adds liquidity to the order book. It’s similar to a taker fee in traditional markets, but with an important difference: Makers are not only adding liquidity to their own trades, they’re also making a profit from the bid-ask spread of orders.
A trader who placed this order adds funds to the order book and provides new options to other traders by doing so. Making orders as a maker involves patience since it will often take some time to fill orders until the market activates or triggers the limit price.
What is Taker Fee in crypto trading?
The taker fee is the fee paid by the trader to the exchange when the trade order is executed. It is different from the maker fee, which the trader pays to the exchange when they place a limit order. While Taker fees apply in case of market order.
The taker’s advantage over makers is that they can take advantage of spreads and market liquidity by trading with multiple exchanges at once and getting better prices than their competitors because their orders are filled at lower prices than those of other traders making them better off overall in terms of profits made per unit volume traded (i.e., dollar value).
Conclusion
In this article, we have discussed the maker fee and taker fee in crypto trading. We hope that you have understood these terms well enough to make informed decisions.
The LCX Exchange offers secure and compliant trading of a range of digital assets. Users who pay with LCX Token receive a 50% discount on their trading fees. Take a look at the overview of our trading fees for more details.
