Determine how cryptocurrency exchange for business is a favorable opportunity
In recent years, cryptocurrency exchanges have been widely sprouting up and spinning million-dollar profits in trading volumes. The majority of experts believe that cryptocurrency and blockchain business becoming mainstream is just around the corner. With the wide adoption of cryptocurrencies around the world, cryptocurrency exchange owners are fetching huge profit returns. This has evoked many new entrepreneurs around the world to jump into this business for lucrative opportunities.
If you want to own exchange, but think it’s too late to enter the game, it is not. Because, even though the popularity is wide-spread, in reality, we are still in the early revolutionary stage. Having said that, you must be intrigued by how cryptocurrency exchanges are already making huge profits in the emerging phase? And how favorable is a cryptocurrency exchange for business? That is what we are going to find out in this blog. Here, we are going to discuss the major revenue streams for cryptocurrency exchange owners that will make you want to grab this fruitful opportunity. So, let’s get started.
Primary revenue streams of cryptocurrency exchange owners
The first and the most important source of revenue for the exchange owners is through trading commissions. For executing a successful transaction in a cryptocurrency exchange platform, the traders have to pay a commission to the exchange for validating the transaction. Most exchange platforms charge a very nominal fee such as 0.01% and such low commissions stimulate large trading volumes for the exchange.
The top crypto exchanges in the current market boast a daily trading volume of billions of USD dollars thereby, also generate an 8 figure trade commission, i.e. more than 10,000,000. As we discussed earlier, with the wide expansion of cryptocurrency exchanges, we can expect more growth in the trade volumes, and thereby a profitable opportunity for exchange owners to earn more commission fees.
New cryptocurrencies listing fees
By creating IEO ( Initial Exchange Offering), STO (Security Token Offering), an ICO (Initial Coin Offering), and listing them on popular exchange platforms, exchange owners raise funds for their business which itself will be hundreds of thousands of US dollars. Apart from this, it helps the exchange owners to also earn revenue in terms of listing fees. The listing fees are paid through the cryptocurrency tokens and the listing fees usually range from 1 to 10 BTC. For medium and large scale exchanges, it goes even higher.
Another most favorable revenue opportunity for exchange owners with cryptocurrency exchange for business is market-making. Marketing making, in simple terms, is a process of buying and selling cryptos on your own exchange at moderately lesser prices when compared to other exchanges. Once the trade takes place, the trade then takes place on another exchange, and the exchange owner pockets the difference between the two.
Deposit and withdrawal fees
In the traditional trade systems, conversion of fiat currencies for other fiat currencies such as USD, Euro, etc, costs a huge amount of conversion rates. But in the case of cryptocurrency exchange platforms, for trading crypto-to-fiat and fiat-to-crypto, the additional trading fees are comparatively very nominal. Some exchanges even begin their deposit and withdrawal fees at just 0.01%. This makes crypto exchanges appealing for potential investors and grasps their interest to trade in crypto exchange platforms. Therefore, more trading volume, more fees, and substantial revenues for the exchange owner.
Buy/ sell orders and liquidity
In the case of centralized exchanges, the exchange takes control over the transactions that are happening on the platform, and of the user funds. The user funds are stored in the wallet that is created by the exchange itself. Therefore, the exchange platform offers more liquidity, and more the liquidity, more the cash flow and profitable revenue for the exchange owner.
These are some of the key aspects which make cryptocurrency exchange for business, an advantageous opportunity for the exchange owners. There are also other ways to reap huge revenues such as OTC deals, crypto listings, broker listing support, etc.
One key point to notice here is that there are hundreds of with a trading volume of billions of dollars per day. This means, there are huge commission and revenue opportunities for cryptocurrency exchange owners on a daily basis. Although it is still not clear how much revenue an exchange makes, you can be assured that cryptocurrency exchange for business is definitely a worthwhile investment and a highly lucrative business opportunity. Launch your exchange promptly and pocket millions.