Topic: How does exchanges work? - page 3. (Read 566 times)
Exchanges function in multiple ways which allow every individual to complete transactions like trading and investing. They offer different services where you will be able to gain a good profit through buying and selling coins. It's a demand and supply cycle that makes the process run continuously.
Exchange doesnt lose profit. Users are paying percent of there listing of new coins, withdrawal, trades and all those percent are going to the exchange itself. They are just paying for tax, staff, website hosting and maintenance. Exchange that are well known are getting surely getting profits.
They make money by listing new coins as they charge a handsome amount in BTC for the same, and in BNB (their own coin) through the way of transaction fees as well as the part they hold for development. Latest way for them to make money is by launching new projects there which we call IEO (Initial Exchange Offering).
I don't know exactly how they can operate in a crypto space which known has high fluctuation. There are to option to pay salary. They can pay their team with a fix amount of fiat money that is converted from trading fees, or they pay in fixed amount of their native token (no matter how much their native token price).
Well, about how they started this. Binance has conducted a tokensale on June 2017 and raised about 15 Million USD. That's not a small fund anyway and since then they become the number one exchange in this crypto space, beated Bittrex.
Well, about how they started this. Binance has conducted a tokensale on June 2017 and raised about 15 Million USD. That's not a small fund anyway and since then they become the number one exchange in this crypto space, beated Bittrex.
Hi everyone,
We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
How could they loss if they are just acting as an escrow.We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
Exchange platform are just acting as an escrow to those who wants to buy or sell their crypto.
They are making profit by the trading fee just imagine how much fee they are making from a single day.
Hi everyone,
We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
Binance exchange started in 2017 and it just like other crypto exchange site which launched an ICO to attract fund to run their project but the reason why Binance gain the heart of many crypto traders was because of it fast transaction processing with low trading fees. We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
Binance as we all know was established in 2017 and since then binance have been growing with it centralized mode of exchange operations it have listed several coins on the platform and also have they own binance chain which services they binance coin. Binance go through lots of process before listen any coin to avoid bringing shit coin inboard, and since binance is a centralized exchange it deal on p2p market system where even if the market crash binance will not lose.
as of most exchanges, the theory is the same, they live on the demand and supply which is created and manipulated in the market. so binance also works on the same points but whatever profit they make every year or month (after a specific time), they buy bnb coins from 10% - 20% of their profit and burn them. and because of this reason, the market faces less supply of the binance coins and so does the demand and price get increased. and that's why most people are in binance exchange.
You have these questions. First is this,
Binance Exchange - Let us grow together. Please provide us your feedback.
about how exchanges such as Binance work.
In what manner you would want to see on how Binance work? about how did this project started
I've been looking for their thread around 2017 as their start but this is all that I've found.Binance Exchange - Let us grow together. Please provide us your feedback.
how does Binance avoid losses and makes a profit?
Binance won't avoid lose, they don't trade but they gather fees from their traders.
There is a lot of programming behind of any exchange and this hel user to deposit, withdraw and exchange to credit deposit and also to get coins they withdraw, and also when people trade exchange get money from fees, and to build a high exchange a lot of money are needed and need to find a good team to build it.
, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
Why would binance lose any money at all? All binance does to bring sellers and buyers together and make money (fees) from their trades.
I believe there are some cases that makes an exchange lose some money such as getting hacked, or probably due to some unknown bugs on the sites that may makes users get money that they do not deserved.
Of course I believe that a big exchange like binance has their best team to make a system and security to avoid what I've mentioned above but the chance of an exchange to lose money does exist.
Quote
how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
They make profit by coin listing and transaction fees. Since Binance has a high daily trading volume and trusted by most traders it takes almost thousands of dollars for them to get listed on their platform. Of course, as one of the leading platform they do have some criteria to make sure they are not supporting shit coins. With the massive daily trade, imagine how much fees they collect daily.
What do you wonder exactly?
It is mostly about the money. Probably multiple tens of millions of dollars. Maybe even a lot more. To create a business as big as binance you need to have enormous amounts of FIAT before you start.
You need to have connections too. Mostly political but also need to know some decent coders&lawyers I imagine.
I remember kucoin and binance probably made their first appearances in the space about at the same time, though kucoin stayed much smaller and binance grew a lot bigger over the years.
Starting an exchange is more or less like starting a bank business. You need money and connections to make that money work...
Why would binance lose any money at all? All binance does to bring sellers and buyers together and make money (fees) from their trades.
It is mostly about the money. Probably multiple tens of millions of dollars. Maybe even a lot more. To create a business as big as binance you need to have enormous amounts of FIAT before you start.
You need to have connections too. Mostly political but also need to know some decent coders&lawyers I imagine.
I remember kucoin and binance probably made their first appearances in the space about at the same time, though kucoin stayed much smaller and binance grew a lot bigger over the years.
Starting an exchange is more or less like starting a bank business. You need money and connections to make that money work...
, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
Why would binance lose any money at all? All binance does to bring sellers and buyers together and make money (fees) from their trades.
Hi everyone,
We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?
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