Maker and Taker: Key Roles in the Cryptocurrency Trading System

Understanding the difference between a maker and a taker is fundamental to successful trading on cryptocurrency exchanges. These two types of market participants perform completely different functions, and this directly affects the amount of fees you will pay.

Who are the maker and taker: basic definitions

A maker is a trader who creates new liquidity in the market by placing an order that is not immediately filled. When you place a limit order at a price different from the current market price, you become a maker. This order remains in the order book and waits for another participant to execute it.

A taker is a trader who takes existing liquidity by executing another participant’s open order. When you place a market order or a limit order at the current price that is immediately filled, you act as a taker. You instantly close an existing order from the order book.

How do maker and taker fees differ

On most cryptocurrency exchanges, the fees charged to these two types of participants differ significantly. Usually, makers pay a lower fee than takers. This is intentional — exchanges encourage traders to add liquidity to the market because it improves trading conditions for everyone.

For example, if the maker fee is 0.1%, the taker fee might be 0.15% or higher. The difference may seem small, but at large trading volumes, these percentages add up to substantial amounts.

Why this is important for traders

Understanding the roles of maker and taker helps optimize your trading strategy. If you regularly trade large volumes, it may be more profitable to place limit orders as a maker to pay lower fees rather than rushing with market orders. This is especially relevant on exchanges like Gate.io, which offer loyalty programs for active makers, allowing you to further reduce your fee costs.