Maker in Cryptocurrency Trading: A Guide to Optimizing Fees

In the cryptocurrency trading ecosystem, the maker plays a fundamental role by providing the market with necessary liquidity. Understanding how a maker operates in crypto trading is critically important for any trader aiming to optimize costs and increase profitability. A maker in the cryptocurrency world is a participant who adds orders to the order book, creating opportunities for other traders to execute trades.

What is a Maker: Main Role and Function in the Crypto Ecosystem

A maker is a trader or an automated system that places limit orders, which remain in the order book until they are executed. When you act as a maker, you are effectively “creating” liquidity in the market, allowing other participants to trade at their desired price.

The key characteristic of a maker is that their orders are not executed immediately. Instead, they stay in the queue on the market, waiting for demand from other traders. This patient approach in crypto trading is rewarded with a preferential fee structure.

Taker vs. Maker: Differences in Fee Structure

The difference between a maker and a taker lies in the nature of their interaction with the market. If a maker adds new orders to the exchange’s order book, a taker, on the other hand, immediately executes existing orders, consuming liquidity.

A taker pays a higher fee because they receive the service of immediate order fulfillment. A typical taker fee is about 0.055% of the trade volume. Conversely, a maker pays a reduced fee, approximately 0.02%, as a reward for participating in creating market liquidity.

This difference in fee structures is fundamental: market participants seeking quick execution (takers) pay more, while those willing to wait (makers) are financially rewarded.

Practical Example: How Maker Choice Affects the Final Result

Let’s consider a specific scenario of trading a perpetual BTCUSDT contract with a volume of 2 BTC:

Trade parameters:

• Trading pair: BTCUSDT
• Position size: 2 BTC
• Direction: Long (buy)
• Entry price: 60,000 USDT
• Exit price: 61,000 USDT

Scenario 1: Trader using maker orders

The trader chooses a maker strategy for entering and exiting the position, applying reduced fees:

Opening fee calculation: 2 × 60,000 × 0.02% = 24 USDT
Closing fee calculation: 2 × 61,000 × 0.02% = 24.4 USDT
Profit before fees: 2 × (61,000 – 60,000) = 2,000 USDT
Final profit: 2,000 – 24 – 24.4 = 1,951.6 USDT

Scenario 2: Trader using taker orders

The same trader opts for quick execution via taker orders:

Opening fee calculation: 2 × 60,000 × 0.055% = 66 USDT
Closing fee calculation: 2 × 61,000 × 0.055% = 67.1 USDT
Profit before fees: 2 × (61,000 – 60,000) = 2,000 USDT
Final profit: 2,000 – 66 – 67.1 = 1,866.9 USDT

Analysis: With the same gross profit (2,000 USDT), the maker approach results in 84.7 USDT more (about 4.3% additional profit) than the taker approach. This difference becomes even more significant at larger volumes.

How to Become a Maker: Practical Guide

To implement a maker strategy in crypto trading, follow these key steps:

1. Use Limit Orders
Set your order price below the current market price for buys or above for sells. This ensures your order enters the order book and waits for execution.

2. Enable Post-Only Mode
Select the Post-Only option to protect against unintentional taker execution. If the market price reaches your limit level, this mode cancels the order, guaranteeing maker status.

3. Strategically Set Prices

• For buy orders: set the price below the best available bid
• For sell orders: set the price above the best available ask

This approach increases the likelihood of order fulfillment and narrows the bid-ask spread.

Why Makers Are Critical to the Cryptocurrency Market

Makers form the backbone of a healthy crypto market. Without participants willing to add liquidity via limit orders, markets would be less deep, spreads would widen, and trading would become more difficult.

When many makers are active simultaneously, they:

• Reduce the bid-ask spread
• Enable traders to open large positions with less slippage
• Create conditions for price stability
• Contribute to more efficient price discovery in crypto markets

Final Recommendations for Crypto Traders

A maker in crypto trading is not just a mechanism for reducing fees but a strategic approach to market participation. Before trading, it’s essential to consciously choose between speed of execution (taker) and cost savings (maker).

Successful crypto traders often combine both approaches: use maker orders for planned entries and exits, and resort to taker orders only in urgent situations requiring immediate execution. Understanding the mechanics of makers and takers allows you to optimize overall trading results and maximize long-term profits.