Topic: Profits of The Exchange (Read 86 times)
The exchange will be like middleman who give its service to help people who want to buy bitcoin. They use the fee of helping between you (as a buyer) and a seller. Every exchange will have different fee for their buyer and seller, so if you ask about that on here, we can not give the details about that and we can only guess how much profit the exchange made. Even if the exchange use a smaller fee than the other exchanges, as long as they have a big number of members, they are make a big profit from them. The exchange can not take all of your money unless you are not be careful to take care of your money.
When you go to a car dealer (or to an individual, doesn't matter) and buy a new ride you pay all the money to that dealer, too. But - surprise - the dealer doesn't create cars, it was created by a plant somewhere else, however you don't start asking naïve questions, do you? What's different with btc and exchange then?
Well, they earn money from the swap rate, for example: they buy your bitcoin at $50000 and sell them at $50050 (depends on how much they charge, in this situation is 0.1%). That is how intermediate exchange earning money from selling and buying activities of customers
Centralized exchanges are just a place where different "people" meet to trade with each other and the exchange only provides the server and security and gets paid for that when they receive the trading fees for each trade you make.
The exchange is not supposed to earn all the money. BTC is from the blockchain.
As I said you are paying for the service they provide.Quote
Can the exchange take all the money from me?
Considering the fact that when you deposit money or bitcoin into your exchange account you are giving the exchange full control of those funds the answer is yes. 
Of course not. The bitcoin you're buying from the exchange has to come from somewhere, right? They'd either have to mine it(highly highly unlikely), or just buy the coins from others and sell them to you for a small fee(which is definitely most likely).
Unless you say the exchange can take freely from the blockchain.
Bitcoin wouldn't be worth this much if that was possible.
When i pay to buy BTC from an exchange using a card, does the exchange earn all the money?
For instance, when i pay USD100 to get 0.0016627 BTC from an exchange using a card, does the exchange earn all the USD100? Is that all the profit earned by the exchange?
When a shop sells something to a customer, it earns only profits other than the original price from the manufacturer/supplier, other than the capital.
BTC was not created by the exchange itself. But i pay all the money to the exchange. The exchange is not supposed to earn all the money. BTC is from the blockchain.
Unless you say the exchange can take freely from the blockchain.
Can the exchange take all the money from me?
BTC itself has a price exclusive of any addition made by the exchange
For instance, when i pay USD100 to get 0.0016627 BTC from an exchange using a card, does the exchange earn all the USD100? Is that all the profit earned by the exchange?
When a shop sells something to a customer, it earns only profits other than the original price from the manufacturer/supplier, other than the capital.
BTC was not created by the exchange itself. But i pay all the money to the exchange. The exchange is not supposed to earn all the money. BTC is from the blockchain.
Unless you say the exchange can take freely from the blockchain.
Can the exchange take all the money from me?
BTC itself has a price exclusive of any addition made by the exchange
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