If you’re new to Bitcoin SV or cryptocurrency trading, the fees involved can be confusing. However, when it comes to your bottom line, every cost counts. Understanding the different crypto trading fees can go a long way in helping you find an exchange that will save you the most money over time. If you’re a regular trader, you could be losing tons of money in fees yearly. Here’s a quick look at the two main types of crypto fees out there: taker and maker fees.

Maker Fees

Maker fees are charged when you add liquidity to the order book by placing a limit order below the ticker price. For example, if Ether (ETH) is trading at $120, and you place an order to sell ETH at $114, your trade will be matched with someone willing to buy ETH at that price. You’ll earn a small fee for filling out their order — this is your maker fee.

You can minimize your taker or maker fees by utilizing an exchange like FTX, which has some of the lowest costs on the market. You can further benefit from fee discounts on FTX by investing in the FTX Token. FTT stakeholders are given fee discounts on everything from trades of BTC to USDT and purchases on the NFT marketplace through the FTX platform. If you’re worried about platform fees when trading crypto, compare your options for exchanges closely before you start trading.

Taker Fees

Taker fees are the fees an exchange charges when you buy or sell a cryptocurrency. When you place an order on the exchange, it is filled immediately. This means your order won’t be waiting to be filled in the order book but will be filled immediately at whatever price was paid. You pay this fee when your order is filled (or partially filled) by someone else, so it can seem like there’s no time between placing an order and paying the fee. The taker fee can vary quite a bit between exchanges; some charge more than others, but it’s generally about 0.2% of each transaction.

Differences Between Taker and Maker Fees

The difference between taker and maker fees is that taker fees are charged when you place a trade on an exchange. Maker fees are set when you add liquidity to the order book. If a trade is placed with existing orders on an exchange, the person placing the trade is known as a “taker” because they took liquidity from other platform users.

Maker fees are lower than taker fees because they incentivize users who provide liquidity to exchanges. The more orders there are in an exchange’s order book (and hence, available for trading), the more desirable it becomes for traders and investors alike – meaning that these market participants will be willing to pay higher prices for what they want and lower costs for what they’re selling if their orders don’t get filled immediately.

As a trader, it’s essential to understand the different fees associated with your trading activities. While most people don’t realize it, these fees can significantly impact the bottom line of your trading account—and they’re more complicated than you might think!