Many people trade spot for six months without ever paying attention to fees. But maker and taker are two terms worth understanding.
When you place a limit order on the order book and wait for someone else to fill it, you're a maker, helping add depth to the market. When you take an existing order off the book—for example, by placing a market order—you're a taker.
For regular Binance Spot users, both fees are currently 0.1%. Buying 1000U worth of $BTC means paying a 1U fee. Keep some $BNB in your account to enable fee discounts, and you’ll get 25% off, bringing the fee down to 0.075%. Once your trading volume increases and you reach VIP status, maker fees are lower than taker fees. At that point, whenever possible, I try to place limit orders.
The fee on a single trade may not seem like much, but if you're constantly buying and selling, it adds up over the course of a year.
#CryptoBasics #BinanceSquare
When you place a limit order on the order book and wait for someone else to fill it, you're a maker, helping add depth to the market. When you take an existing order off the book—for example, by placing a market order—you're a taker.
For regular Binance Spot users, both fees are currently 0.1%. Buying 1000U worth of $BTC means paying a 1U fee. Keep some $BNB in your account to enable fee discounts, and you’ll get 25% off, bringing the fee down to 0.075%. Once your trading volume increases and you reach VIP status, maker fees are lower than taker fees. At that point, whenever possible, I try to place limit orders.
The fee on a single trade may not seem like much, but if you're constantly buying and selling, it adds up over the course of a year.
#CryptoBasics #BinanceSquare