When a market taker places an order, they accept the prevailing market price and take the liquidity that is available at that price.
Market takers are often characterized as traders who require immediate execution of their orders, rather than waiting for a more favorable price. For example, a trader who places a market order to buy a particular cryptocurrency will be considered a market taker, as they are accepting the current market price and taking the available liquidity.
Market takers often pay a fee for executing their orders, which is typically higher than the fee paid by market makers. This is because market takers are essentially taking liquidity from the market, which is seen as a higher-risk activity than providing liquidity.
In contrast to market makers, market takers do not create a market. Instead, they accept the prevailing market price and take the available liquidity. Market takers can play an essential role in providing liquidity to the market, especially in highly liquid markets where there are many buyers and sellers.
Overall, market takers are an important part of the cryptocurrency market, providing liquidity and helping to facilitate trading. While they may pay a higher fee for executing their orders, market takers are essential for ensuring that there is always liquidity available in the market.