Why do some cryptocurrency exchanges have maker fees while others have taker fees?

3 answers

• Dec 17, 2021 · 3 years ago
  Maker fees and taker fees are two different fee structures commonly used by cryptocurrency exchanges. Maker fees are charged to users who provide liquidity to the order book by placing limit orders that are not immediately matched with existing orders. These users 'make' the market and are rewarded with lower fees. On the other hand, taker fees are charged to users who place market orders or take liquidity from the order book by matching with existing orders. These users 'take' liquidity and are charged slightly higher fees. The purpose of this fee structure is to incentivize users to provide liquidity to the market, which helps to maintain a healthy trading environment.
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• Dec 17, 2021 · 3 years ago
  Cryptocurrency exchanges implement maker fees and taker fees to encourage liquidity in the market. By offering lower fees to users who provide liquidity through limit orders, exchanges incentivize traders to add depth to the order book. This benefits other traders who can execute their market orders more efficiently. Taker fees, on the other hand, help compensate for the added risk and cost of providing immediate liquidity to the market. The fee structure varies between exchanges and is often influenced by factors such as competition, market demand, and the overall trading volume on the platform.
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• Dec 17, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, also follows the maker and taker fee structure. This fee model is widely adopted in the industry as it encourages market liquidity and rewards users who contribute to the order book. Maker fees are lower to incentivize users to provide liquidity, while taker fees are slightly higher to compensate for the immediate execution of market orders. This fee structure helps to create a balanced trading environment and ensures that there is always sufficient liquidity available for traders.
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