How profitable are exchanges? - page 6.

JorgeStolfi

hero member

Activity: 910

Merit: 1003

Quote from: sandykho47 on July 22, 2014, 04:12:28 AM

The profit is very big
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.

But they also make money from withdrawal fees; and the may be trading against their clients, with the advantage of knowing the orders of all traders before each trader knows those of other traders. (AFAIK this is illegal in stock exchanges, but there are no regulations for bitcoin exchanges, so why wouldn't they do it?)

sandykho47

sr. member

Activity: 252

Merit: 251

Knowledge its everything

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 Embarrassed

Harley997

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Activity: 266

Merit: 250

Quote from: mrkavasaki on July 19, 2014, 10:54:51 AM

We have learned nothing from the Mtgox disaster?
All Centralized Exchanger can be fucking hacked Embarrassed

It is very important to use only dezentralized exchanger like http://bithalo.org/
http://blackhalo.info/

This is not true, at least IMO. I would argue that exchanges can earn a fair rate of return for their owners and provide a safe place to trade bitcoin for their customers. I also think that the exchanges should provide incentives to their customers to not hold massive amounts of bitcoin on the exchange, as having massive amounts of bitcoin makes the exchanges a target for hackers.

redskins49

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I think exchanges have a very high level of compliance costs as they need to verify the identity of everyone who opens an account, but everyone who opens an account may not actually do any trading or actually make a deposit.

I think that most exchanges barely break even.

mrkavasaki

hero member

Activity: 888

Merit: 500

We have learned nothing from the Mtgox disaster?
All Centralized Exchanger can be fucking hacked Embarrassed

It is very important to use only dezentralized exchanger like http://bithalo.org/
http://blackhalo.info/

money420weed

member

Activity: 78

Merit: 10

Quote from: picolo on July 18, 2014, 06:14:30 PM

Quote from: hollowframe on July 14, 2014, 01:59:37 AM

Quote from: AliceWonder on July 13, 2014, 05:29:01 PM

Quote from: farlack on February 14, 2014, 09:09:39 AM

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.

Yes, I suspected they were playing with the market.

I had a lot of friends who played Magic The Gathering and they were always scheming ways to stack their deck...

I would rather argue that gox probably was the subject of an attack several years ago but did not disclose it. They probably were trying to make the lost coins back via trade fees over the years but the price of bitcoin rose too far too fast, making this not something that could happen.

Actually they disclosed that they had been attacked and lost BTC but they didn't say they lost a huge amount that was endangering the business

Gox had been the subject of several attacks over the years. The last malleability attack just went undetected for a long time so they were not able to disclose it.

picolo

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Quote from: hollowframe on July 14, 2014, 01:59:37 AM

Quote from: AliceWonder on July 13, 2014, 05:29:01 PM

Quote from: farlack on February 14, 2014, 09:09:39 AM

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.

Yes, I suspected they were playing with the market.

I had a lot of friends who played Magic The Gathering and they were always scheming ways to stack their deck...

I would rather argue that gox probably was the subject of an attack several years ago but did not disclose it. They probably were trying to make the lost coins back via trade fees over the years but the price of bitcoin rose too far too fast, making this not something that could happen.

Actually they disclosed that they had been attacked and lost BTC but they didn't say they lost a huge amount that was endangering the business

titulng

sr. member

Activity: 484

Merit: 250

HubrisOne

The fee is a legitimate way. - bitstamp, btc-e, lakebtc ...

But some exchanges choose to make a killing, so they gone far away. - btc-gbl, mcxnow, hkcex ...

Or like some china exchanges, they make false information out to manipulate market price, euphemistically "chinese has controled the bitcoin price!" - Wink

,

, ...

hollowframe

sr. member

Activity: 266

Merit: 250

Quote from: AliceWonder on July 13, 2014, 05:29:01 PM

Quote from: farlack on February 14, 2014, 09:09:39 AM

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.

Yes, I suspected they were playing with the market.

I had a lot of friends who played Magic The Gathering and they were always scheming ways to stack their deck...

I would rather argue that gox probably was the subject of an attack several years ago but did not disclose it. They probably were trying to make the lost coins back via trade fees over the years but the price of bitcoin rose too far too fast, making this not something that could happen.

AliceWonder

full member

Activity: 168

Merit: 100

Quote from: farlack on February 14, 2014, 09:09:39 AM

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.

Yes, I suspected they were playing with the market.

I had a lot of friends who played Magic The Gathering and they were always scheming ways to stack their deck...

InwardContour

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Activity: 644

Merit: 260

Quote from: picolo on July 13, 2014, 03:55:20 PM

Quote from: Harley997 on July 11, 2014, 07:49:00 PM

Quote from: picolo on July 11, 2014, 04:56:41 PM

Quote from: boraf on July 11, 2014, 10:05:29 AM

Quote from: DannyElfman on July 10, 2014, 06:50:32 PM

I have never even heard of MXCnow outside of this specific thread.

It is an exchange written in native language. And they are not accepting new customer.

You get interests on your deposits : "25% of all mcxNOW exchange fees go towards paying interest on deposits every 6 hours! "

It seems very risky

This alone would likely not be risky as it would just be a tactic of the exchange to try to get more people to have coins on and trade on their exchange. IMO it does set a bad precedent of encouraging people to keep funds at an exchange. It also makes them a target to attackers as they know that the exchange has an elevated level of coins under it's control.

0.48%/6h for Bitcoin means 2%/day or 77%/month Wink

You probably have near to 0.48% chance of losing all your BTC every 6hours Grin

I don't think that exchanges make quite that much money off of trading fees as a percentage of total balances. They might make that much off of each trade, but their entire customer balance does not turn over that quickly.

picolo

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Activity: 1022

Merit: 500

Quote from: Harley997 on July 11, 2014, 07:49:00 PM

Quote from: picolo on July 11, 2014, 04:56:41 PM

Quote from: boraf on July 11, 2014, 10:05:29 AM

Quote from: DannyElfman on July 10, 2014, 06:50:32 PM

I have never even heard of MXCnow outside of this specific thread.

It is an exchange written in native language. And they are not accepting new customer.

You get interests on your deposits : "25% of all mcxNOW exchange fees go towards paying interest on deposits every 6 hours! "

It seems very risky

This alone would likely not be risky as it would just be a tactic of the exchange to try to get more people to have coins on and trade on their exchange. IMO it does set a bad precedent of encouraging people to keep funds at an exchange. It also makes them a target to attackers as they know that the exchange has an elevated level of coins under it's control.

0.48%/6h for Bitcoin means 2%/day or 77%/month Wink

You probably have near to 0.48% chance of losing all your BTC every 6hours Grin

Harley997

sr. member

Activity: 266

Merit: 250

Quote from: picolo on July 11, 2014, 04:56:41 PM

Quote from: boraf on July 11, 2014, 10:05:29 AM

Quote from: DannyElfman on July 10, 2014, 06:50:32 PM

I have never even heard of MXCnow outside of this specific thread.

It is an exchange written in native language. And they are not accepting new customer.

You get interests on your deposits : "25% of all mcxNOW exchange fees go towards paying interest on deposits every 6 hours! "

It seems very risky

This alone would likely not be risky as it would just be a tactic of the exchange to try to get more people to have coins on and trade on their exchange. IMO it does set a bad precedent of encouraging people to keep funds at an exchange. It also makes them a target to attackers as they know that the exchange has an elevated level of coins under it's control.

Skele

full member

Activity: 224

Merit: 100

VocalPlatform.com

Quote from: undeadknight on July 10, 2014, 09:37:50 AM

Very profitable, but the risk of losing all the money due to hacker is pretty high.

But you have a chance for scamming all your customers closing the exchange unexpectedly so indeed, stills being so profitable Lips sealed

picolo

hero member

Activity: 1022

Merit: 500

Quote from: boraf on July 11, 2014, 10:05:29 AM

Quote from: DannyElfman on July 10, 2014, 06:50:32 PM

I have never even heard of MXCnow outside of this specific thread.

It is an exchange written in native language. And they are not accepting new customer.

You get interests on your deposits : "25% of all mcxNOW exchange fees go towards paying interest on deposits every 6 hours! "

It seems very risky

boraf

full member

Activity: 315

Merit: 103

Quote from: DannyElfman on July 10, 2014, 06:50:32 PM

I have never even heard of MXCnow outside of this specific thread.

It is an exchange written in native language. And they are not accepting new customer.

DannyElfman

sr. member

Activity: 406

Merit: 250

Quote from: cinder on July 10, 2014, 10:27:51 AM

Quote from: Benjig on July 09, 2014, 03:36:42 PM

Quote from: smoothie on July 08, 2014, 02:24:47 AM

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?

I presume you are assuming that the profit that is garnered has no morals?

MXCNOW has shown (as an example) to not care about their users and profit supersedes anything else.

I'd say it is quite profitable. Most scams I would guess are profitable.

BTC-e as a long standing exchange is likely very profitable. I've had little issues with their platform but they seem to have a huge following of users that continue to use their exchange.

Mcxnow and his admin realsolid is the perfect example of a not seriously business, an exchange runned by one person and probably a non trusted user.

Any reason lead to this believe?

I have never even heard of MXCnow outside of this specific thread.

counter

hero member

Activity: 798

Merit: 500

Time is on our side, yes it is!

I think it is safe to say that like most things crypto and has the potential to very lucrative but is also highly speculative. I guess it can be considered a form of gambling. The better the gamble the better their odds to win.

cinder

full member

Activity: 153

Merit: 100

Quote from: Benjig on July 09, 2014, 03:36:42 PM

Quote from: smoothie on July 08, 2014, 02:24:47 AM

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?

I presume you are assuming that the profit that is garnered has no morals?

MXCNOW has shown (as an example) to not care about their users and profit supersedes anything else.

I'd say it is quite profitable. Most scams I would guess are profitable.

BTC-e as a long standing exchange is likely very profitable. I've had little issues with their platform but they seem to have a huge following of users that continue to use their exchange.

Mcxnow and his admin realsolid is the perfect example of a not seriously business, an exchange runned by one person and probably a non trusted user.

Any reason lead to this believe?

undeadknight

newbie

Activity: 8

Merit: 0

Very profitable, but the risk of losing all the money due to hacker is pretty high.

Topic: How profitable are exchanges? - page 6. (Read 15755 times)