Maker And Taker In Crypto And Their Fees

When trading on a cryptocurrency exchange, it is crucial to understand the fees you will be charged. Some traders add liquidity, while others remove it; this determines the fees they pay. Let's explore who makers and takers are, what roles they play, and how exchanges set their fees.

Who Are The Maker And Taker On Exchanges?

On cryptocurrency exchanges, all trades occur between two parties: makers and takers.

• Makers place limit orders that add liquidity to the order book. These orders are not executed immediately but wait for a matching counterparty.

• Takers execute already placed orders, instantly removing liquidity from the market.

Exchanges incentivize makers with lower fees or even reward them, as their trades contribute to market depth. On the other hand, takers, who execute orders immediately, pay higher fees for the convenience. Let’s take a closer look at each type of fee.

What Is A Maker Fee?

Maker fee is the cost of placing limit orders that add liquidity to the market. As already mentioned, these orders are not executed instantly but go into the order book, forming market depth. Exchanges charge makers lower fees (and sometimes even provide a small rebate) because their activity makes trading more efficient. The more liquidity an exchange has, the easier it is to find a counterparty without sharp price fluctuations.

Maker Fee Example

Suppose Bitcoin is currently priced at 98,000 USDT, but you want to buy it for less, say 97,500 USDT. Instead of buying at the market price immediately, you place a limit order at 97,500 USDT. This order enters the order book and will be executed when a seller is willing to sell at your price. If the trade occurs, the exchange charges you a maker fee.

For example, if the maker fee on the exchange is 0.08%, and your order gets filled when the price reaches 97,500 USDT, the exchange will charge you a fee of 0.08% of the transaction amount. If you're purchasing 1 Bitcoin, the fee would be:

0.08% of 97,500 USDT = 78 USDT

So, you would pay a fee of 78 USDT for placing this limit order. Keep in mind that maker fees can vary from one exchange to another, so always check the specific fee structure of the platform you're using.

What Is A Taker Fee?

The taker fee is the cost of executing existing orders that are already in the order book. Takers remove liquidity from the market by executing orders immediately.

Exchanges typically charge takers higher fees since their actions reduce the available supply. The more active takers are, the faster trades are executed, but market volatility also increases.

Taker Fee Example

Suppose you want to buy Bitcoin immediately and do not want to wait for the price to drop to 97,500 USDT. You place a market order, which is automatically executed at the best available price — say, 98,000 USDT. Since you instantly executed an existing sell order, you acted as a taker, and the exchange charged you a taker fee for removing liquidity from the order book.

For example, if the taker fee on the exchange is 0.1%, and you buy 1 Bitcoin at 98,000 USDT, the exchange will charge:

0.1% of 98,000 USDT = 98 USDT

So, you would pay a fee of 98 USDT for executing this market order. Taker fees are generally higher than maker fees since takers reduce market liquidity.

Let's summarize. Makers place orders that go into the order book and wait to be executed → add liquidity → pay a lower fee (or sometimes receive a bonus). On the other hand, takers execute existing orders instantly → remove liquidity → pay a higher fee for speed and convenience.

Thus, makers save on fees but may have to wait for their orders to be executed, while takers get instant execution but pay more. The choice depends on your strategy: wait for a better price or act immediately.

Maker And Taker Fee On Cryptomus

Cryptomus offers a competitive and flexible fee structure that benefits traders of all sizes. By using a tiered system based on monthly trading volume, the platform incentivizes active traders to lower their fees as they increase their trading activity. This allows traders to enjoy reduced costs on both maker and taker fees, depending on their level, which can significantly improve their profitability over time.

Check the table below to see how commissions change with an increase in trading volume.

Level	Maker Fee (%)	Taker Fee (%)	Monthly Turnover (USD)
Level 1	Maker Fee (%) 0.08	Taker Fee (%) 0.1	Monthly Turnover (USD) 0
Level 2	Maker Fee (%) 0.06	Taker Fee (%) 0.095	Monthly Turnover (USD) 100,001
Level 3	Maker Fee (%) 0.055	Taker Fee (%) 0.085	Monthly Turnover (USD) 250,001
Level 4	Maker Fee (%) 0.05	Taker Fee (%) 0.075	Monthly Turnover (USD) 500,001
Level 5	Maker Fee (%) 0.04	Taker Fee (%) 0.07	Monthly Turnover (USD) 2,500,001

Thus, by strategically managing your trading volume and leveraging fee advantages, you can enhance your experience on platforms like Cryptomus and take full advantage of the benefits offered by both maker and taker fee structures.

We hope you found this information valuable and that it helps you greatly enhance your trading strategy. Feel free to reach out if you have any questions or need further clarification.