Revolutionising Crypto Trading Fees
Zero trading fee exchanges are interesting for a bunch of people but they are not ideal. People start to wash trade, DOS the exchange, create zero spreads so traders can’t earn and generally mess up markets. None of these is good long term. We needed a better solution for traders and the market and negative fee trading is the answer.
How to solve the liquidity problem
One of the largest complaints people have about Vaultoro is the lack of liquidity. We heard you and so In the second half of 2020, we are doing everything to change that. Liquidity is a chicken and egg problem. How do we get traders in when there is little liquidity and how do you raise liquidity without more traders?
So how do we get more liquidity?
We offer negative trading fees to people adding liquidity to the market! We do this by paying them half the fee we charge people that are taking liquidity from the market. This is bringing the Maker / Taker trading fee model to the next level.
If you have an account then login now and take a look at the news fees. If you don’t have an account yet, then NOW is the time! Click the button below and open your account in 60 seconds.
What is a maker / taker and how do I get paid to trade?
A maker is someone who puts an offer into the order-book but it doesn’t get matched right away. That means, if you put an order in and it doesn’t get matched right away, then you will earn 0.05% of the trade when it happens.
This will happen when another trader takes your offer. This is because you become a “market maker” by adding liquidity to the market. The trader buying your order is taking liquidity from the market and so is paying a small fee.
Some call it a negative trading fee and sometimes its called a trading fee split. Whatever you want to call it, the vaultoro fee schedule is designed to help bring liquidity to the markets.
This Fee schedule incentivizes traders to fill up the order-book with reasonable prices.
Be sure to check the Fee Schedule page for the full details.
Strategies to becoming a successful trader using negative trading fees.
The most successful traders in the world have a plan and the stick to it. Here are some actionables you could use to become a better trader. (Not trading advice, just for educational use only.)
- Calculate the negative trading fee you will earn into the spread you are willing to provide as a market maker.
- Put orders into the market on both sides and keep track of them using a spreadsheet that can calculate profit and Loss
- As soon as an order is triggered, place another order on the other side of the trade to flip it and earn more on the negative trading fee.
- Learn to write a bot and use our soon to be live API to do the job for you. Bots are far better than humans at keeping tack of all the ins and outs.
- Don’t deviate from your trading plan, doing so is usually due to your emotions getting the better of you. Never trade on emotion, always logic.
I know that these points sound obvious but it’s amazing how many people don’t do the basics.