Crypto Exchanges

What Are Maker And Taker Fees – Crypto Trading Course – Day 1/5 #criptocurrency #cripto





Learn how to become a fully self-sufficient trader https://crypto.enzlo.com
Full day 1 post here: https://crypto.enzlo.com/courses/intro-crypto-trading-course/overview-and-mastering-exchanges/

Mastering Crypto Exchanges

All exchanges can be used for both trading and investing. However, we will be trading mainly on GDAX and Bitfinex due to their interface and lower fees, volume and the ability to convert into fiat.

Crypto Exchanges Links & Fees Overview
https://crypto.enzlo.com/community/course/overview-and-mastering-exchanges/#master-crypto-exchnages

To do:
Let’s make an account with at least the first 3 exchanges:

Coinbase/GDAX, Binance, and Bitfinex.

You’ll notice that some exchanges take longer to get approved and you might prefer one over another. Also depending on your country, one may not work for you.

It never hurts to have accounts at multiple exchanges as you are guaranteed to run into some issues (such as deposit/withdrawal limits reached) at some point. When that happens it’s nice to have an active account somewhere else to quickly use that.

FAQ’s
Why are Coinbase and GDAX listed as one?
These are from the same company. Coinbase is NOT an exchange for trading GDAX is the actual exchange used for placing maker and taker orders.

*GDAX is now upgraded as pro.coinbase

What are maker and taker fees?
It’s fairly simple.

Basically, if you want to buy or sell something there are 2 things you can do.

Either you (1) look at the order book (we’ll discuss this in the next chapter, but simply explained it’s a list of prices and amounts people are willing to buy/sell at) and you see what price people are willing to buy or sell some underlying asset (In this case crypto) and you agree to make a trade at that listed price. In this case, you are a “taker”, since you would be removing (taking) volume from the order book.

The other option (2) would be to place to add to the order book (make), create volume. To do this you set a price and order size you wish to buy/sell an asset.

1. Taker – removing something from the order book

2. Maker – adding something to the order book

As a Maker, you are increasing the amount that can be bought or sold on the market. Increasing the size of the orderbook is good for an exchange and in general, it’s participants. Hence, why Maker fees are less. #daytrading #cryptotrading #crypto

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