You know, I recently noticed that many beginners in crypto still don’t understand why fees are different when trading. And it’s all because they don’t know about makers and takers. Let’s break down this point.

Imagine a cryptocurrency exchange as a regular market, where people exchange one currency for another every day. But here there’s an interesting system — the order book, meaning a list of all buy and sell orders. And that’s where two types of traders show up, playing absolutely different roles.

The first type is the one who “makes” the market. Such a participant places an order that isn’t executed immediately. For example, you want to buy Bitcoin cheaper than the current price or sell it for more. You place a bid, say, to buy BTC for $60,000 when the current price is $62,000, and your order just “waits” in the order book. This order adds liquidity to the market, giving others the chance to trade. People like this are called makers.

The second type is the one who “takes” this liquidity. Such a trader wants to buy or sell quickly and doesn’t want to wait around. They look at the order book, see an offer that suits them, and immediately take it. A taker is the one who executes the trade right away at the best current price.

Why is this important for your wallet? Exchanges charge different fees. Makers usually pay less — sometimes even zero or negative fees, because the exchange encourages people to add to the order book. Takers pay more, because they use liquidity that has already been created. The logic is simple: the more makers there are, the more liquid the market is, the smaller the spread is, and the more comfortable it is for everyone to trade.

A practical example. You want to buy Ethereum for $3,000. If you’re a maker, you place an order at $2,950 and wait. If you’re a taker, you see an offer for $3,000 and buy immediately. In the first case, you save on fees; in the second case, you win time.

Understanding the difference between a maker and a taker is the foundation for any trader. If you plan to trade actively, the maker strategy will help you save on fees. If speed is the priority, then a taker is your choice. It all depends on how you want to trade.