common-close-0
BYDFi
Trade wherever you are!

Are there any fees associated with being a maker or a taker in cryptocurrency trading?

avatarjamshad aliDec 27, 2021 · 3 years ago3 answers

What are the fees associated with being a maker or a taker in cryptocurrency trading? How do these fees work and how do they affect the overall trading costs?

Are there any fees associated with being a maker or a taker in cryptocurrency trading?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Yes, there are fees associated with being a maker or a taker in cryptocurrency trading. When you place a market order and take liquidity from the order book, you are considered a taker. Takers usually pay higher fees compared to makers. The fees can vary depending on the exchange and the trading volume. It's important to check the fee structure of the exchange you are using to understand the exact fees you will be charged. These fees can impact your overall trading costs, so it's important to consider them when making trading decisions.
  • avatarDec 27, 2021 · 3 years ago
    Being a maker or a taker in cryptocurrency trading comes with its own set of fees. As a maker, when you place a limit order that doesn't immediately fill, you add liquidity to the order book. Makers usually pay lower fees compared to takers. On the other hand, takers remove liquidity from the order book by placing market orders. They typically pay higher fees. The fee structure can vary from exchange to exchange, so it's important to research and compare the fees before choosing a platform.
  • avatarDec 27, 2021 · 3 years ago
    When it comes to fees in cryptocurrency trading, the maker-taker model is commonly used. As a maker, you provide liquidity to the market by placing limit orders. In return, you usually pay lower fees or even receive rebates. On the other hand, as a taker, you remove liquidity from the market by placing market orders. Takers generally pay higher fees. It's worth noting that some exchanges, like BYDFi, offer a unique fee structure where makers and takers are charged the same fees. This can be beneficial for traders who frequently switch between being a maker and a taker.