How profitable are exchanges? - page 11.

leezay

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Quote from: ajareselde on June 15, 2014, 05:07:22 PM

Quote from: Gilberto on February 04, 2014, 06:16:25 AM

MCXNow, Crypsy, BTCT, BTC-E?

I'm conducting a survey to determine the actual profitability of the popular exchanges.

Does anyone have any idea of what the volume is for these exchanges? What these exchanges make weekly or monthly and how we could find out?

you can observe the volume on sites themselves , and on sites like bitcoinwisdom.
Judging on the fact that most of the time exchanges have multi-milion traffic, their profit is huge.
and not just huge, but large enough that they can influence the price by keeping the profits in bitcoin or selling it for fiat.
funny when u think about it.

Should be glad there are now more exchanges vs MtGox monopoly a year ago.

ajareselde

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Quote from: Gilberto on February 04, 2014, 06:16:25 AM

MCXNow, Crypsy, BTCT, BTC-E?

I'm conducting a survey to determine the actual profitability of the popular exchanges.

Does anyone have any idea of what the volume is for these exchanges? What these exchanges make weekly or monthly and how we could find out?

you can observe the volume on sites themselves , and on sites like bitcoinwisdom.
Judging on the fact that most of the time exchanges have multi-milion traffic, their profit is huge.
and not just huge, but large enough that they can influence the price by keeping the profits in bitcoin or selling it for fiat.
funny when u think about it.

leezay

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Quote from: ShakyhandsBTCer on June 15, 2014, 04:04:35 PM

Quote from: pastet89 on June 15, 2014, 04:58:25 AM

Mintpal makes half a milion USD per month, according to their volume and fees.

What about their costs and expenses?

Low compare to the fee they get.

ShakyhandsBTCer

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Quote from: pastet89 on June 15, 2014, 04:58:25 AM

Mintpal makes half a milion USD per month, according to their volume and fees.

What about their costs and expenses?

jbrnt

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Apart from fees, exchanges receive nice income from votes too. In order to get new altcoins listed on exchanges, they go through a voting system where people vote by sending bitcoin to the exchange.

waldox

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exchanges are most profitable if they steal their customers money and dont get caught

pastet89

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Mintpal makes half a milion USD per month, according to their volume and fees.

ShakyhandsBTCer

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If you were to multiply their average daily trading volume by ~.5% then you will calculate their revenue.

To calculate their costs is more complicated. They need to pay for support (likely their biggest expense), network access, cloud computing, AML/KYC staff.

troy112

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They make huge amounts of money, but you should also see the opposite side. Hosting fee, support fees, downtimes and all. Its a high risk, there are hacks all the time. You also have to contribute the security needed, and developers...
But yea they do make a lot of money.

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Quote from: D05GTO on February 14, 2014, 02:26:30 PM

If it's a Registered MSB in the USA, then it costs a mint just to get started. Would be to high of a risk investment for me personally. But no risk no reward.

Well now it would be a high risk investment unless your exchange service brings something new or a new level of security.

D05GTO

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If it's a Registered MSB in the USA, then it costs a mint just to get started. Would be to high of a risk investment for me personally. But no risk no reward.

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Quote from: efarah2549 on February 13, 2014, 11:30:27 PM

Extremely profitable that's why it is so insane that mt gox has not gone through any effort to fix their issue or even offer competent customer relations.

Gox probably borrowed a lot of their customers coins early on without permission and the price jumped and they could not catch up buying back. Just my opinion.

efarah2549

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Extremely profitable that's why it is so insane that mt gox has not gone through any effort to fix their issue or even offer competent customer relations.

PoolMinor

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From Cryptostocks.com

From dividends section: Period = 1 week
Dividend Payout 01/25
Collected Fees This Period: (Jan 17 - Jan 23)

BTC Fees: 335.28 btc
LTC Fees: 1100.02 ltc @ 0.0266 = 29.26 btc
XPM Fees: 163.86 xpm @ 0.00357 = 0.585 btc

Total Fees Collected: 365.125 btc

Nagle

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Quote from: Gilberto on February 04, 2014, 06:16:25 AM

I'm conducting a survey to determine the actual profitability of the popular exchanges.

Nobody releases audited numbers, so you don't know.

In theory, running a large Bitcoin exchange should be reliably profitable. In practice, over half of all Bitcoin exchanges have gone bust.

There's an enormous temptation in financial services companies to speculate with the customer's money. This was a major cause of the 2008 financial collapse. In the Bitcoin world, with no audits, it's probably common.

scryptographer

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Quote from: Gilberto on February 04, 2014, 06:16:25 AM

MCXNow, Crypsy, BTCT, BTC-E?

I'm conducting a survey to determine the actual profitability of the popular exchanges.

Does anyone have any idea of what the volume is for these exchanges? What these exchanges make weekly or monthly and how we could find out?

Assuming the volume numbers given by Cryptsy's own API are accurate, in the last 24 hours they have made about 6BTC on fees (0.2% of 3043).

BTC-e reports 10,000 BTC trade volume for last 24h in BTC/USD market alone (~20BTC in fees).

Sonny

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Quote from: zaigon on February 04, 2014, 07:32:19 AM

in theory they make huge amount of money per day 0.2% fee for BTC if the volumen is BIG for example the volumen today is 5800 btc for BTC/USD market from that they make like 12 BTC only from that pair..i rememmber in november when the first big pump of 1100 usd per bitcoin they make 400k usd in 1 day only from fees

True, but some says the volume figures are fake...

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Pretty amazing if your name is Ukyo / Jon Montroll, and you treat all of your customers' deposits as going into your own personal wallet. Not to mention the other exchanges that vanished suddenly.

To be serious though, I'd imagine the profits are massive. If you get big, you'd have to spend a lot on hardware, and you should be spending tons on security analysis and other good developers, but even after those costs are taken away, it has to be wildly profitable.

BitcoinBobbeh

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Gox is looking pretty profitable right now!

knightcoin

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Stand on the shoulders of giants

+- 2% ... I wondering how much profit EBS, Reuters, interbank, Eurex and ... also .. for stock NASDAQ et All Grin

and the data they sell ....

I still waiting for a proper opensource exchange ... Sounds like butter coin will follow bex.io steps .. you going to be like a broker guess not exactly exchange ... an exchange holds far more valuable information ...

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