Maker Fees: These fees are applied to users who place limit orders that add liquidity to the market. When you submit a limit order that isn’t executed immediately (for example, buying bitcoin at a specific price which is lower than the current asking price), your order enters the order-book and waits for a match. This classifies the order as a Maker. Since you provide liquidity, your order, when matched, will incur a lower fee.
Taker Fees: In contrast, Taker fees are charged to users who place orders that immediately match with existing limit orders, thereby removing liquidity from the market. For instance, if you place a buying order at the current market price, and it is therefore immediately matched, your order is considered a Taker. This type of order incurs a higher fee.
Understanding this distinction can help you optimise your trading strategy and manage costs effectively.