Making money through DEX fee's. The next big thing? - page 2.

Wintersoldier

sr. member

Activity: 966

Merit: 274

Quote from: crazy-pilot on November 09, 2019, 12:56:34 PM

I really like decentralized exchanges and I hope that they will become popular in 2020. However, many people do not use decentralized exchanges due to trading volume.

honestly, it is not just the trading volume that I consider in choosing an exchange. I am also not certain to connect my wallet directly to the dex exchange, though I have the private key, the regulation, and convenience that a centralized exchange is what I want to consider. Most of the time, the volume in DEX is determined by traders, and it might not be the reason why people don't want to trade in DEX since the volume can be achieve if the crpyto do really is performing well in the market. It is the regulation that centralized exchange provides, despite of wallet security or also known as "not your keys, not your coins".

Flux0z

member

Activity: 406

Merit: 10

Quote from: Herbert2020 on November 11, 2019, 12:48:05 AM

the problem is that these DEXes that we see today aren't really "decentralized exchanges" in my opinion.

a decentralized exchange in its true form must not contain any kind of middle man whatsoever which means there is absolutely NO FEES involved when using a "true DEX". the exchange will only be between two parties through a secure channel using cryptography, hashed locktime smart contracts similar to what bitcoin has and the only fee is the transaction (aka network) fees.
with introduction of Atomic Swap technology which majority of altcoins (since they are copies of bitcoin) have this becomes an even bigger reality.

as a result i don't think there is going to be that much "fees" to earn from DEXes in the future as the current design will become obsolete eventually too. just like the centralized "altcoin" exchanges (not those that have fiat involved) will become obsolete too.

Blocknet, as mentioned by the OP, actually is 100% decentralized. It's a 4th gen DEX, check the pic below Wink

Marckolind

jr. member

Activity: 352

Merit: 3

I'm guessing when we get a wider adoption of crypto, and it goes mainstream, that these DEX's will truly take off.

Even though we've had BTC for a decade now, it's still the early days of crypto from a technological standpoint. I think it's safe to say that once people realize they can escape paying taxing on their holdings by utilizing DEX's that more and more people will lean towards them, and actually use them!
You don't need to "cash out" if you can buy whatever you need with your crypto anyway. Cheesy

TGD

hero member

Activity: 1288

Merit: 620

Wen Rolex?

Quote from: angelinyou on November 11, 2019, 01:16:38 AM

I really think that all DEXs out there should just go ahead and combine their orderbooks together. That would help.

That will be great but it needs another party to do the integration of all DEX in to one single exchange. It's really a good idea to combine DEX order so that order book will become thick.
I think some project already doing this kind of Idea but not just DEX but other centralized exchange. I forgot the name but it's a wallet app with built in exchange on it.
They integrate all orders of different exchange to there own exchange and charge only there token for the transaction fee.

angelinyou

copper member

Activity: 6

Merit: 0

I really think that all DEXs out there should just go ahead and combine their orderbooks together. That would help.

X-ray

hero member

Activity: 3066

Merit: 536

Leading Crypto Sports Betting & Casino Platform

Quote from: Convery on November 09, 2019, 01:18:08 PM

Quote from: Marckolind on November 06, 2019, 02:04:34 PM

As of late I've seen a lot on talk regarding Coinbase's $2 billion revenue on trading fees alone. I believe I stumpled upon this through Reddit a few days ago, not sure.

Makes you wonder how much DEX's could make long term if you decide to participate in running one through a masternode?
I looked into Blocknet the other day, and realized that if it ever gathers just 1% of Coinbase's trading volume, you could potentially make a living from running a masternode that collects DEX fee's whenever people trade.

Reason why most people don't care about DEX's today, is that they are inconvenient to use, but as I said, long term, they will improve, hopefully making more people use them.

Thoughts?

The problem is that DEXs probably never reach such high trading volumes like centralized exchanges. There is already DEX that offers you to participate on exchange´s profits - eFin DEX. They had huge marketing, good looking website, working exchange. But the low volumes makes eFin token pretty worthless. I know that also IDEX has its own token - Aurora, but there you earn profit by staking this coin around 20% per year, I think.

This low trading volume phenomenon that happens across dex exchanges kind of baffle me. It is a uniqe exchange indeed compared to the traditional ones but I cant think of the reason why dex seems unappealing for the norm. I know it is because the inconvenience that come at cost for the security and the decentralization but I dont find it becomes that inconvenient to the point people need to point it out as disadvantage it is just few extra steps and doesnt require KYC. If only it has trading volume all the problem will be solved by the development considering that the market is not just “gimmick”

Herbert2020

legendary

Activity: 1946

Merit: 1137

the problem is that these DEXes that we see today aren't really "decentralized exchanges" in my opinion.

a decentralized exchange in its true form must not contain any kind of middle man whatsoever which means there is absolutely NO FEES involved when using a "true DEX". the exchange will only be between two parties through a secure channel using cryptography, hashed locktime smart contracts similar to what bitcoin has and the only fee is the transaction (aka network) fees.
with introduction of Atomic Swap technology which majority of altcoins (since they are copies of bitcoin) have this becomes an even bigger reality.

as a result i don't think there is going to be that much "fees" to earn from DEXes in the future as the current design will become obsolete eventually too. just like the centralized "altcoin" exchanges (not those that have fiat involved) will become obsolete too.

sana54210

legendary

Activity: 3318

Merit: 1128

They would have made so much money if they have the support of the end users, but how many dexes do you see now that is working according to the other centralized exchanges, Coinbase revenue is even a small one compared to what binance Is earning, I have forgotten about the amount but I would have quoted it already, but I know that it was really too much, which was even quoted per day.

Most dexes that we have are really struggling to meet up with the volume that is needed to really make the exchange to really function well. I think that before any dex exchange can really do greatly now, it will be towards next year. There are lots of dexes now being built and I know that within the next few years, attention will be shifted from these centralized exchanges to dexes.

Ryan Dugan

hero member

Activity: 924

Merit: 501

Dex is not inconvenient to use. Why do you say this?
A node won't gather anywhere near 1% there are thousands of them so you need to look at it realistically.
You can make a living doing anything. I would not count on just this for a living. A nice extra boost on the side for retirement might be good.

nicecrypto

member

Activity: 1260

Merit: 21

Dex seem to be a bit confusing if you are a first timer and already familiar with cex interface and the ready to use platform, but if people take their time to examine how dex works then things will be pretty easy, I think with all the ongoing shenanigans surrounding some cex I think we would start seeing a much rather quick transition from cex to dex sooner.

zabir.brutov

jr. member

Activity: 280

Merit: 2

Yeah sure. Moreover, if you consider the fact, that there are not so many decentralised exchanges that can provide a good trading volume and Forkdelta is suffering from the lack of money, it seems like a good DEX is needed for crypto world.

target

legendary

Activity: 2282

Merit: 1041

The number of people going to use DEX will increase exponentially especially to the ones who don't ask KYC. Mind you there are DEX who asks KYC. Blocknet looks very promising for a DEX, its very different among the DEX and I firmly believe this is one that might just stand against time even when regulators are going to target all these dex and I mean who will they question if all those who installed their DEX took part of it like seeding a torrent file.

Convery

sr. member

Activity: 966

Merit: 254

Quote from: Marckolind on November 06, 2019, 02:04:34 PM

As of late I've seen a lot on talk regarding Coinbase's $2 billion revenue on trading fees alone. I believe I stumpled upon this through Reddit a few days ago, not sure.

Makes you wonder how much DEX's could make long term if you decide to participate in running one through a masternode?
I looked into Blocknet the other day, and realized that if it ever gathers just 1% of Coinbase's trading volume, you could potentially make a living from running a masternode that collects DEX fee's whenever people trade.

Reason why most people don't care about DEX's today, is that they are inconvenient to use, but as I said, long term, they will improve, hopefully making more people use them.

Thoughts?

The problem is that DEXs probably never reach such high trading volumes like centralized exchanges. There is already DEX that offers you to participate on exchange´s profits - eFin DEX. They had huge marketing, good looking website, working exchange. But the low volumes makes eFin token pretty worthless. I know that also IDEX has its own token - Aurora, but there you earn profit by staking this coin around 20% per year, I think.

dothebeats

legendary

Activity: 3542

Merit: 1352

Cashback 15%

If decentralized exchange platforms are somewhat polished and contain volumes similar to that of centralized ones, this is possible to take profits from as a masternode. But if we're stuck with the same old system of using centralized platforms and are still okay with KYC compliance and regulations encroaching our supposed-to-be free space, then DEXes will never prosper and would never see their prime. It's just so hard to transition from a perfectly-working system to a rather wild-west kind of thing that's why lots of people are still into fiat, bank notes and whatnot, same with CEX and DEX.

crazy-pilot

sr. member

Activity: 860

Merit: 253

SmartFi - EARN, LEND & TRADE

I really like decentralized exchanges and I hope that they will become popular in 2020. However, many people do not use decentralized exchanges due to trading volume.

jossiel

hero member

Activity: 3150

Merit: 636

DGbet.fun - Crypto Sportsbook

I also think that in long term DEXs will be recognized. It's still on the process and many traders are comfortable with the centralized exchanges and you can't blame them if they want to be in that exchange.

Once a volume of a DEX starts to go up, it will be followed and traders will come to see on how convenient it is to trade there.

Marckolind

jr. member

Activity: 352

Merit: 3

Quote from: o48o on November 07, 2019, 02:44:57 PM

Quote from: Marckolind on November 06, 2019, 02:04:34 PM

As of late I've seen a lot on talk regarding Coinbase's $2 billion revenue on trading fees alone. I believe I stumpled upon this through Reddit a few days ago, not sure.

Makes you wonder how much DEX's could make long term if you decide to participate in running one through a masternode?
I looked into Blocknet the other day, and realized that if it ever gathers just 1% of Coinbase's trading volume, you could potentially make a living from running a masternode that collects DEX fee's whenever people trade.

Reason why most people don't care about DEX's today, is that they are inconvenient to use, but as I said, long term, they will improve, hopefully making more people use them.

Thoughts?

Even if that 1% sounds like achievable and tiny number, it represent a life changing amounts of money to any exchange, and it's going to require a huge amount of work because there are tons of exchanges, decentralized as well. Fighting over that 1% needs whole another level of exchange. Now i am not saying it won't happen, just that coinbase has started in 2012, that's like 2 generations in crypto time experience. It's pretty hard to get new people that are familiarized with custodial holdings to convince that they have to take a responsibility for their wallets from now on and change to dex.

While that is completely true, and I agree that Coinbase is one of the major players, you gotta understand that crypto ISN'T "mainstream" like stocks and bonds just yet. Which means that there is MUCH more room growth, and reaching that 1% might actually not be that impossible, IF you look at the bigger picture here. Wink

leowonderful

legendary

Activity: 1624

Merit: 1130

Bitcoin FTW!

I agree, though I will also add that a lack of liquidity and trading volume on most DEXes compared to traditional, more centralized exchanges is also part of the problem why most people don't choose to use decentralized exchanges. More and more places starting to require KYC as a result of more pressure from governments to tighten down on crypto is probably also going to make some people look towards decentralized exchanges as a viable option as well, and rewarding those who help keep the entire thing running smoothly is a great idea for all users as well, though I imagine rewards for running a node like this probably won't be as high as expected as more and more people try to get a piece of the pie.

CjMapope

legendary

Activity: 1820

Merit: 1092

~Full-Time Minter since 2016~

Quote from: Marckolind on November 06, 2019, 02:04:34 PM

As of late I've seen a lot on talk regarding Coinbase's $2 billion revenue on trading fees alone. I believe I stumpled upon this through Reddit a few days ago, not sure.

Makes you wonder how much DEX's could make long term if you decide to participate in running one through a masternode?
I looked into Blocknet the other day, and realized that if it ever gathers just 1% of Coinbase's trading volume, you could potentially make a living from running a masternode that collects DEX fee's whenever people trade.

Reason why most people don't care about DEX's today, is that they are inconvenient to use, but as I said, long term, they will improve, hopefully making more people use them.

Thoughts?

i think this would be absolutely epic man, to have the nodes running a true dex get the dust from fees Cheesy

I fear the spam of microtransactions to each node would prob be the major hurdle, i see many projects get stopped at that exact problem
This reminds me of BTT, getting paid for seeding torrents, in the future we should see more of these services, its like Uber for crypto, putting money back in people hands that handle the actual heavy lifting

o48o

legendary

Activity: 3052

Merit: 1168

Leading Crypto Sports Betting & Casino Platform

Quote from: Marckolind on November 06, 2019, 02:04:34 PM

As of late I've seen a lot on talk regarding Coinbase's $2 billion revenue on trading fees alone. I believe I stumpled upon this through Reddit a few days ago, not sure.

Makes you wonder how much DEX's could make long term if you decide to participate in running one through a masternode?
I looked into Blocknet the other day, and realized that if it ever gathers just 1% of Coinbase's trading volume, you could potentially make a living from running a masternode that collects DEX fee's whenever people trade.

Reason why most people don't care about DEX's today, is that they are inconvenient to use, but as I said, long term, they will improve, hopefully making more people use them.

Thoughts?

Even if that 1% sounds like achievable and tiny number, it represent a life changing amounts of money to any exchange, and it's going to require a huge amount of work because there are tons of exchanges, decentralized as well. Fighting over that 1% needs whole another level of exchange. Now i am not saying it won't happen, just that coinbase has started in 2012, that's like 2 generations in crypto time experience. It's pretty hard to get new people that are familiarized with custodial holdings to convince that they have to take a responsibility for their wallets from now on and change to dex.

Topic: Making money through DEX fee's. The next big thing? - page 2. (Read 432 times)