Are you a Maker or a Taker?

Cryptocurrency exchanges seem to agree that the maker-taker fee model best supports their business model, as this fee schedule is now commonly encountered on many of them. The maker-taker fee model usually charges lower fees to “makers”, or even provides them with a rebate. Any user can be a maker, as this title depends on the placed order. Users that place a non-marketable order are considered makers. Non-marketable orders are limit orders with a price behind the best bid or ask.

For example, if the best ask for one Bitcoin is $250 then a non-marketable order would be a buy order with a limit price of $249. This order will not be executed until the best ask drops to or below $249. By doing this, makers add liquidity to the order book. On the other hand, a marketable order would be a buy order with a limit price of $251 (or simply a market order). This order would be executed immediately. Users that place the latter type of orders are considered “takers”.

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