Bitstamp is a cryptocurrency exchange based in Luxembourg and is one of the most popular and oldest ones in cryptocurrency. If you are to trade on this exchange, it might involve a maker taker transaction fee, like any other crypto exchange. Maker and taker is based on the concept of market makers and market takers. The makers add liquidity to the market and are paid a fee and the takers, who take away market liquidity and are usually charged a fee. This fee can be the same or different for manufacturers and takers on the same exchange, and usually varies across exchanges.
So this model does not run on a customer priority model, where the orders are usually on a first come first served basis, but here the trader pays a fee for getting his trade to be executed immediately. So traders get an incentive to trade in markets with a lower spread.
Bitstamp Maker Taker System
Bitstamp is an exchange of choice for most experienced traders. It is Europe’s biggest exchange in terms of trading volumes. The minimum trading amount at Bitstamp is 5 USD. Bitstamp only trades 5 cryptocurrencies: bitcoin, ripple, litecoin, ether and bitcoin cash. Both Euro and US dollars can be used.
Some exchanges do not charge different fees between takers and makers. Bitstamp is one such exchange, and has a same maker taker fee of 0.25%, just that the makers are paid and the takers are charged. So we can say that it does not care if you are a maker, or a taker. And for investors who like to use current orders from an order book, this kind of a model attracts. Also, this 0.25% fee is very much in line with the industry average. The best feature that Bitstamp offers is that the withdrawal fee is also zero if you are withdrawing from BTC.
The maker taker fee at Bitstamp might be heavier as compared to exchanges like BitMEX, however, the security and the reputation of the exchange is exemplary and you do not have to worry about withdrawal fees at all with BTC.
Why the Bitstamp Maker Taker System
Bitstamp is known for its credibility and as a trader it gives you the flexibility to fund via credit cards, wire transfers, cryptos etc. Actually Bitstamp acts as a bridge between crypto and traditional finance. It is even more suitable for takers, with flat trading fees for makers and takers. It is also more beneficial for European union residents, as the euros can be transferred through a SEPA transfer with no fees at all. However, for all this, and for exploiting the real benefits of an exchange, it is advisable to hire some expert professionals before you begin. Bitstamp is also considered to be a bit difficult as an interface for beginners, so it can totally confuse and intimidate you. Services like executium.com are easily available online platforms, and these allow you to make witty decisions about the listed exchanges. You do not need to know the ins and outs of every exchange, just hire their services and they shall do the needful.