What is the maker and taker fee?

Cryptocurrency exchanges operate on a fee-based model, where traders are charged for their participation in the market. These fees are typically divided into two categories: Maker and taker fees.

Makers, or those who add liquidity to the market by placing limit orders, are rewarded with lower fees. However, they may have to wait longer for their orders to be matched with a counterparty, as they are not guaranteed instant execution.

On the other hand, takers, who seek immediate trades by placing market orders, pay higher fees for the convenience of instant execution. This is because their orders are matched with existing limit orders, thereby consuming market liquidity.

The specific fees charged by each cryptocurrency exchange vary, making it crucial for traders to compare the costs associated with different platforms. A careful analysis of fees can significantly impact a trader's profitability.

BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services that cater to traders of all levels. These services include spot trading, futures trading, and a secure wallet for storing digital assets.