As a crypto trader, are you a creator or a taker? Find out.
Creators are market creators who enable two-sided markets
Takers (takers) are those who trade at prices set by market makers. Takers setting market orders pay execution fees, while originators setting limit orders may receive execution fees.
Markets are made up of creators and takers. Creators create buy or sell orders that are not executed immediately (for example, "sell BTC when the price reaches $15k"). This creates liquidity, which means it is easier for others to instantly buy or sell BTC when the condition is met. People who instantly buy or sell are called takers. In other words, takers fill orders created by makers.
Meanwhile, on any exchange, sellers are matched with buyers. Without these meeting points, you would have to advertise your Bitcoin to Ethereum trading offerings on social media and hope that someone is interested.
Therefore, every market participant falls into at least one of these categories - in fact, as a trader, you will probably act as both a maker and a taker at different stages. This is the concept of MAKERS AND TAKERS - they are the lifeblood of many trading platforms, and their presence (or absence) separates the strong exchanges from the weak.
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