Market Maker, Market Taker
A market maker and a market taker are two different types of investors in the world of cryptocurrency trading. A market maker is an investor who adds liquidity to the markets by placing both buy and sell orders for assets within it, increasing the number of transactions that can occur. On the other hand, a market taker is an investor who removes liquidity from the markets by filling existing buy or sell orders placed there by other traders. Both roles are important in order to ensure efficient trading on any given cryptocurrency exchange.
The main difference between market makers and market takers lies in how they interact with each other’s trades. As mentioned above, a market maker will place both buy and sell orders onto the exchange while a market taker will fill existing orders already present on the exchange – making them “takers” of these open positions as opposed to “makers” like their counterparts are described as being. Furthermore, one way to think about this distinction would be that whereas a maker creates their own trade opportunities (by providing liquidity) which others can take advantage of; conversely, a taker takes part in pre-existing trades set up by makers who prefer not to wait for someone else interested in taking them up instead opting out immediately upon placement themselves from such offer(s).
It is also important to note that due to having more control over pricing when executing trades as well as allowing for faster transaction times than manually placing limit/stop losses – many professional day traders opt towards using bots designed specifically for either role depending on their individual preferences or strategies employed at any given time frame throughout trading sessions regularly observed across exchanges worldwide nowadays regardless whether large-scale institutional investors or small retail ones account sizes apply alike per se here too! This added layer of convenience surely makes it even easier now then ever before managing cryptocurrencies portfolios around clock with ease so make sure you keep this information handy whenever planning your next investment move accordingly indeed!
