Altcoin exchanges are very very profitable for the people running it, because after 4-8 months, they get "hacked" and shut down. No questions asked :p
I don't think this so much has to do with the profitability of the exchanges but rather the amount of coins stored on these types of exchanges. I think a lot of people like to trade altcoins in a "day trading" fashion and as a result keep their coins on the exchanges. This results there being more coins on the exchange then there really should be. 
Topic: How profitable are exchanges? - page 5. (Read 15797 times)
Altcoin exchanges are very very profitable for the people running it, because after 4-8 months, they get "hacked" and shut down. No questions asked :p
Yeah, it used to happen with bitcoin exchanges too, but bitcoiners cry too loudly whan that happens... 
Altcoin exchanges are very very profitable for the people running it, because after 4-8 months, they get "hacked" and shut down. No questions asked :p
Exchanges get a lot of fast and easy cash so this cash flow help them even if they mis manage or lose money but who knows if they have enough to pay back all balances?
I haven't dealt much with the BTC exchanges so I don't know what data a user can actually see.
most exchanges offer information about the trade volume (and the trade volume for different time frames -> a day, a week, a month...)
this could indeed be an additional stream of income for current/future exchanges.
At least for the exchange bitfinex there is a large website dedicated to all kinds of data:
bfxdata.com
I haven't dealt much with the BTC exchanges so I don't know what data a user can actually see.
most exchanges offer information about the trade volume (and the trade volume for different time frames -> a day, a week, a month...)
this could indeed be an additional stream of income for current/future exchanges.
At least for the exchange bitfinex there is a large website dedicated to all kinds of data:
bfxdata.com
I haven't dealt much with the BTC exchanges so I don't know what data a user can actually see.
most exchanges offer information about the trade volume (and the trade volume for different time frames -> a day, a week, a month...)
I haven't dealt much with the BTC exchanges so I don't know what data a user can actually see.
most exchanges offer information about the trade volume (and the trade volume for different time frames -> a day, a week, a month...)
Is it possible to see the difference between the bid and the offer for an order? That spread is going to the exchange. And their overhead is rather low and the transaction volume is high, so I'd guess there's plenty of profit for them. The benefit to us is that we need the service and the spread is very small per transaction...they make profit on the volume.
I haven't dealt much with the BTC exchanges so I don't know what data a user can actually see.
I haven't dealt much with the BTC exchanges so I don't know what data a user can actually see.
The profit is very big
Example (BTC-E) :
24 hour volume : 1771 BTC
fee : 0,2%
24 hour fee : 1771 * 0,2% = 3.542
1 BTC = 615 USD
1 month fee : 3.542 * 30 * 615 USD = 65349 USD
Sorry, if my calculation is wrong
You forgot to include expense like their employees and servers and hosting. Example (BTC-E) :
24 hour volume : 1771 BTC
fee : 0,2%
24 hour fee : 1771 * 0,2% = 3.542
1 BTC = 615 USD
1 month fee : 3.542 * 30 * 615 USD = 65349 USD
Sorry, if my calculation is wrong
PS. I must point out that I am not a trader, so figuring out ways in which exchange owners could cheat on their clients is merely a curious puzzle for me. Exchange owners have much stronger motivations, so they surely will find much "better "solutions to that puzzle.
One way to find such solutions in to read the laws and SEC regulations that apply to the operation of ordinary stock exchanges. Every practice that is prohibited by them must be a proven way to unfairly take money from customers; so one can bet that the bitcoin exchange owners are doing it.
Hey, this is copy-paste of a post of mine! A robot trying to bump his post count?One way to find such solutions in to read the laws and SEC regulations that apply to the operation of ordinary stock exchanges. Every practice that is prohibited by them must be a proven way to unfairly take money from customers; so one can bet that the bitcoin exchange owners are doing it.
Don't forget owners who operate an exchange that turn scammer will have a permanent marker on their forehead.
How do people find out who they are?
Don't forget owners who operate an exchange that turn scammer will have a permanent marker on their forehead.
In the case of BTC-e, it is not known whether the owners have foreheads. 
And, last time I checked, no one knew who the owners of BTC-e were. That may complicate the revenge plans a bit.
Don't forget owners who operate an exchange that turn scammer will have a permanent marker on their forehead.
In the case of BTC-e, it is not known whether the owners have foreheads. Don't forget owners who operate an exchange that turn scammer will have a permanent marker on their forehead.
In the case of BTC-e, it is not known whether the owners have foreheads. I think that most exchanges need to have a lot of AML employees to verify their customers' identities and to monitor accounts for suspicious activity.
That may not be a big item in the budget of that particular exchange, I suppose. 
Are there companies that offer customer identity verification services for other businesses?
Don't forget owners who operate an exchange that turn scammer will have a permanent marker on their forehead.
I think that most exchanges need to have a lot of AML employees to verify their customers' identities and to monitor accounts for suspicious activity.
That may not be a big item in the budget of that particular exchange, I suppose. Are there companies that offer customer identity verification services for other businesses?
The profit is very big
Example (BTC-E) :
1 month fee : 3.542 * 30 * 615 USD = 65349 USD
Example (BTC-E) :
1 month fee : 3.542 * 30 * 615 USD = 65349 USD
I see no mistake in the calculation; but that is the revenue, not profit. Considering that they have to pay salaries an other expenses, the profit from fees may be ratehr modest.
The most profitable exchanges are the one that run away with all the money (mtg).
Jump to: