Topic: Isn't crazy how much does bitcoin exchange earn? - page 2. (Read 682 times)
Just shows nobody is going to run a exchange for nothing however to become a trusted exchange they have to put the work in.
It is a medium to improve the platform or service their customers better and here you can earn through exchanges have a trading volume in millions. For a novice it is not easy to know the exchanges which are just shady and not clearly scams.
i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!
They have expenses as well like for staff and servers. Also, do not ignore the chances of a possible hack and the money they have to spend to protect against it.
the 0.3% fee is a standard and normal fee for any exchanger out there. the number of benefits they do need to keep the exchanger safe, running well and certainly not just die. but the profit figure you count is a gross profit. an exchanger needs to pay for website development, website security, employees they own, etc. so yes this is a business, while there are many demand and people need, there will be a group of people who take advantage of it.
True, crypto exchange makes big money, but operating costs are also high eg the bursa should hire experts to secure websites, purses and crypto currencies stored on the exchange. There are also other costs such as advertising. 
i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!
Why did you look GDAX ? Look another bigger exchange like binance. You will surprised more!
cryptocurrency has a very big volume in the market to trade now. The big exchanges will have a very very good incomes because the market growth.
It does seem crazy especially when you compare oh a first year tier 1 exchange to a bank that has been in operation for over 145 years time. Look no further than Binance vs Deutsche Bank. https://www.ccn.com/binance-surpassed-germanys-biggest-bank-deutsche-in-profitability/
i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!
This your calculation makes its kind of so straight forward but in the real sense, its not as straight forward what you consider is only the revenue which might not even be up to that before the need to start factoring cost which can eat into that revenue really fast. Before the payment of staff who have to be on rotation to work 24hours due to the nature of the clients they service all around the world, the amount they have to incur to ensure that the site available at every time, what of the cost of security, wallet maintenance, hosting, licences, legal fees based on retainership, heavy equipments, database management and other ancillary costs. Its more than what we imagine.
this is surprising, indeed these exchangers are making hell of money as transfer charge on a daily basis. even when bitcoin price is down, they don't reduce the charges.
This is why crypto busines such as exchange is a serious business and you can make your fortune from almost nothing just like Changpeng Zhao.
yeah that's why Zhao Changpeng just need 7 months to become billionaire from almost noting haha
I suppose you wanna do same?
sadly it is't easy and many troubles will come from authority and hackers too.
Yeah I admire his intelligence and business mindset and how he did well for a very short period of time. His life is now decided and he can just sit everywhere he wants while making big bucks everyday. Making your own exchange isn't so easy and the hardship starts from the beginning. I suppose you wanna do same?
sadly it is't easy and many troubles will come from authority and hackers too.
Exchanges are truly making huge money from transaction charges. The scenario painted by the poster stands and by the time they remove all the running cost incured, you will find out that they still have much left. Besides, they don't answer to government that much, like banks or other financial/payment outfit whose activities are checked from time to time in order to protect customers. So many people's cryptocurrency have been stucked on various exchanges for months and yet unresolved, which means that the exchanges can also sit on some people's money for ever.
Maybe they can't hold it forever but the process to retrieve the money back could be very long term and painful too. It's true that they are obliged with different rules and laws but still some of them are doing their business on the edge of the law so this may have some bad consequences for users.
But let's be honest, cryptocurrency users are those who enable huge profit to exchanges, they just use this business opportunity.
I think that number is bigger and harder to imagine. This shows that trading volumes from bitfinex, bittrex, binance can be up to hundreds of millions of transaction fees a day. The volatility of the explosion, this number also increased.
Exchanges are truly making huge money from transaction charges. The scenario painted by the poster stands and by the time they remove all the running cost incured, you will find out that they still have much left. Besides, they don't answer to government that much, like banks or other financial/payment outfit whose activities are checked from time to time in order to protect customers. So many people's cryptocurrency have been stucked on various exchanges for months and yet unresolved, which means that the exchanges can also sit on some people's money for ever.
All those money and they can even invest some on their support system? Most of the exchanges have the shittiest support system you will ever see. Just employing few more staffs to handle their customer support won't actually hurt them, but nope they won't do that.
Anyways, they do earn a lot, but they also spend a lot to cover their expenditures like upgrading their system, security and what not.
Anyways, they do earn a lot, but they also spend a lot to cover their expenditures like upgrading their system, security and what not.
remember, sometimes hackers can stole money from it, so it is not easy business, safety is most important thing in it, so u have to pay a big price for the good security
A large sum of money from the trades people make on their platforms. Some of the exchanges they get are about $ 15 for every bitcoin traded on their stock and most of the exchanges here have trade volumes up to millions so they earn a great income.
i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!
yeah that's why Zhao Changpeng just need 7 months to become billionaire from almost noting hahaI suppose you wanna do same?
sadly it is't easy and many troubles will come from authority and hackers too.
i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!
it is just a fact. big exchanges is earning much profit by trading volume.
more volume = more fees. no wonder they can reward expensive cars in many events.
this is showing us that many peoples already using cryptocurrency for trading.
Yeah its really crazy that only exchanges are earning good , that's why with just very short period of time , so many exchanges popped up .
This is a business. Every business should be profitable, if you know how many banks make an hourly basis simply by collecting transaction fees and sending from 0 to 1 from one person to another. You should check all this before looking at the exchange fees made, this money is also used to maintain their website in other to make it free from hack and exchange gets market attack from its investors.
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