What is Maker or Taker

Maker and Taker are terms used in cryptocurrency trading to describe the role a trader plays in the market.

A maker contributes to market liquidity by placing a limit order. This means they set a specific price at which they’re willing to buy or sell a cryptocurrency. Their order is added to the order book, waiting to be filled. Makers are often rewarded with lower trading fees to encourage their participation.

A taker removes liquidity from the market by filling an existing limit order. They execute a market order, buying or selling at the best available price immediately. This action removes the limit order from the order book. Takers typically pay higher trading fees compared to makers.  

The balance between makers and takers is essential for a healthy and efficient cryptocurrency market.