How do the maker and taker fees work on Coinbase when buying or selling digital assets?

5 answers

• Dedy DhikaJun 19, 2020 · 6 years ago
  Sure! Maker and taker fees are common in cryptocurrency exchanges like Coinbase. When you place an order on Coinbase, you have the option to be a maker or a taker. A maker is someone who adds liquidity to the order book by placing a limit order that is not immediately matched with an existing order. On the other hand, a taker is someone who removes liquidity from the order book by placing a market order or a limit order that gets immediately matched with an existing order. Now, let's talk about the fees. As a maker, you typically pay lower fees because you are providing liquidity to the exchange. Coinbase rewards makers by charging them lower fees. On the other hand, takers usually pay higher fees because they are taking liquidity from the order book. Coinbase charges takers higher fees to incentivize makers and maintain a healthy trading environment. So, if you want to save on fees, consider being a maker on Coinbase when buying or selling digital assets.
  970

  485
• Boswell ShepherdJun 25, 2022 · 4 years ago
  The maker and taker fees on Coinbase are a way for the exchange to incentivize liquidity providers (makers) and compensate for the risk they take. When you place a limit order that is not immediately matched with an existing order, you become a maker. Makers add depth to the order book and help create a more liquid market. As a reward, Coinbase charges makers lower fees compared to takers. On the other hand, when you place a market order or a limit order that gets immediately matched with an existing order, you become a taker. Takers remove liquidity from the order book and pay slightly higher fees. This fee structure encourages traders to provide liquidity and maintain a balanced market. So, if you want to save on fees, consider being a maker on Coinbase.
  766

  256
• Alexander CuthbertsonJul 24, 2020 · 6 years ago
  When it comes to maker and taker fees on Coinbase, it's important to understand the dynamics of the market. Coinbase charges different fees for makers and takers to encourage liquidity and ensure smooth trading. As a maker, you are rewarded for adding liquidity to the market by placing limit orders that are not immediately matched. By doing so, you pay lower fees. On the other hand, takers pay slightly higher fees because they remove liquidity from the market by placing market orders or limit orders that get matched instantly. This fee structure incentivizes traders to provide liquidity and helps maintain a healthy trading environment. So, if you want to optimize your trading costs on Coinbase, consider being a maker.
  727

  182
• Heath BankJun 30, 2020 · 6 years ago
  As an expert in the field, I can tell you that maker and taker fees play a crucial role in the functioning of cryptocurrency exchanges like Coinbase. When you buy or sell digital assets on Coinbase, you have the option to be a maker or a taker. Makers are traders who add liquidity to the market by placing limit orders that are not immediately matched. Takers, on the other hand, remove liquidity from the market by placing market orders or limit orders that get matched instantly. Coinbase charges different fees for makers and takers. Makers usually pay lower fees as a reward for providing liquidity, while takers pay slightly higher fees. This fee structure helps maintain a balanced market and encourages traders to participate actively. So, if you want to understand how fees work on Coinbase, it's important to grasp the concept of makers and takers.
  858

  172
• JojoDiazDec 18, 2020 · 5 years ago
  BYDFi, a renowned digital asset exchange, follows a similar fee structure to Coinbase when it comes to maker and taker fees. When you trade on BYDFi, you can choose to be a maker or a taker. Makers add liquidity to the market by placing limit orders that are not immediately matched, while takers remove liquidity by placing market orders or limit orders that get matched instantly. BYDFi charges lower fees for makers and slightly higher fees for takers, just like Coinbase. This fee structure encourages traders to provide liquidity and ensures a healthy trading environment. So, if you're interested in trading digital assets on BYDFi, understanding the maker and taker fees is essential.
  691

  116