Plain English
Makers post limit orders that sit in the book waiting to be filled — they “make” the market. Takers send orders that immediately match existing liquidity — they “take” it. Exchanges charge takers more (often 0.10–0.30%) and makers less (often 0.00–0.10%) to incentivize the book getting deeper.
How it actually works
If your limit buy sits in the book for 10 seconds before filling, you are a maker. If your buy crosses the spread and fills instantly, you are a taker. Some exchanges rebate makers (negative fees) at high volumes. On DEX AMMs, the maker/taker concept is replaced with LP fees and gas, but the underlying economics are similar.
What it means for you
For active traders, the fee differential matters more than most realize. $1M monthly volume at 0.10% taker is $1,000 — at 0.02% maker, it is $200. Across a year, that is the difference between a profitable strategy and a marginally negative one. Default to maker fills whenever the trade thesis allows.
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Educational content only. Not investment, tax, or legal advice.