Fees are fixed prices that are charged for a specific service. They can be applied in different ways based on how they are structured and how they are used to maintain or improve a service. As for crypto trading, there are two types that are relevant – taker and maker fees. The fees you encounter when using blockchain platforms are cryptocurrency transaction fees. These are charged to either buyers or sellers. Below, we provide an explanation that will help you understand both types of charges.Understanding Maker and Taker Fees – What Are Maker Fees?Maker fees are related to cryptocurrency trading. In crypto trading, you are required to pay a platform’s commission to either buy or sell tokens. Different exchanges charge different fees when you trade, but they can generally be divided into the two types mentioned above.Before we talk about the fees, it’s important to establish who the so-called makers are. The makers (sometimes called market makers or liquidity providers) are services that provide two-way liquidity to the market. In other words, they buy crypto from sellers and sell crypto to buyers.Examples of market makers include:Crypto experts engaging in institutional trading; Companies participating in HFT; Banking institutions; Market-making bots; Brokerage firms. What is maker and taker fees crypto? In order to answer this question, let’s move on and discuss market maker charges specifically.Whenever a limit order on a cryptocurrency exchange site is placed but not instantly filled, it boosts the level of liquidity of a crypto order book. A crypto order triggers a maker fee if the trade isn’t immediately matched with an open order.Crypto exchange platforms are motivated to attract more trading participants and orders. For this reason, they may charge a marginally lower maker fee to someone who supplies liquidity to an electronic order register than the taker fee they would charge someone who closes orders immediately. The liquidity provider might be charged a fee for a crypto order placed, but they might also get a rebate for boosting the level of liquidity.To explain this in the plainest terms, maker fees are transactional costs that are charged by crypto exchanges whenever orders are placed and not instantly executed. Maker fees are commonly paid by the one who’s making the crypto trade.Maker and Taker Fees Explained: Taker FeesSometimes, when a crypto order is placed, the exchange fulfills it straight away. The order diminishes the level of liquidity of the electronic order register. Since this is far from an ideal scenario for the exchange, they usually charge taker fees to slow down the rate at which trades remove open orders. The sum charged as a taker fee is usually greater than the maker fee.An order triggers a taker fee only if it’s executed with no delay, removing some liquidity from the market as a consequence. Of course, people engaged in trading prefer to get their orders settled instantaneously, so they are fine with dealing with higher (taker) fees.Examples of Maker and Taker Fees CryptoFirst, to set the baseline, let’s talk about industry averages. Usually, taker fees are around 0.213%. Maker fees are lower, approximately 0.16%. Binance, for instance, offers different fee rates based on the type of trading (Spot, Options, etc.), volume, and BNB (a cryptocurrency that supports the Binance Chain ecosystem) balance. By the way, you can read about the fees charged by Exolix on the FAQ page and get in touch with us directly to discuss the taker and maker charges we impose on our customers.What Is Maker and Taker Fees – CalculationsNow, let’s deepen your understanding of the topic – here’s an example with some actual numbers. So, after all the amazing transactions and trades you make, you have enough cash available to buy 3 Bitcoins at the price of approximately $22,453 per coin. Since your order is relatively easy to execute and your monthly trading volume isn’t as high, you will be hit with taker fees, as your order will be fulfilled immediately.Let’s assume that the taker fees are at the average level, so the calculations are as follows:$22,453 \* 3 = $67,359 (total cost of your order)$67,359 \* 0,00213 = $143.47 (taker fees to pay)Now, let’s swap your trading volume with someone who’s a borderline whale. Being the big-money player that they are, they place an order for 101 Bitcoins at $20,453, despite it currently trading at $22,453. The order is not executed instantly since they placed a buy-limit order. It is currently “resting” on the order book, waiting for the price to fall off a cliff.A week later, BTC reaches that price point, the order is executed, and they are charged a maker fee instead of a taker fee. Here are the calculations: $20,453 \* 11 = $224,983 (total cost of the order)$224,983 \* 0,0016 = $359.97 (maker fees to pay)As you can see, the commission is smaller, and the amount paid is lower simply because the trader was waiting for the order to be executed while providing liquidity at the same time. This method is beneficial when you have significant amounts for operations and you are prepared to wait.