In recent years, starting a bitcoin exchange business is playing a vital role in crypto space. Increasing new cryptocurrencies will increase in demand for crypto exchanges. Nowadays many crypto users are interested to trade cryptos to make more money. On the other hand, startups and entrepreneurs are emerging towards starting a bitcoin exchange business in the crypto industry.
Some startups developed their bitcoin exchange business from scratch. But others used bitcoin exchange software to launch their own crypto trading platform. You should notice one thing that starting an exchange from scratch takes more time. Also, the cost of developing from scratch is high compared to software.
Some people are still confused about how to make money after launching the cryptocurrency exchange platform. But if you are a crypto enthusiast waiting to launch a trading platform to make more profits. Then this blog will guide you on how to make huge profits by launching your own cryptocurrency exchange business.
Now, let us look at how to make an enormous amount of profits by building the cryptocurrency exchange platform:
Trading fees are the most common ways to earn money by starting the cryptocurrency exchange. Most of the popular exchanges charge trading fees according to the trading volume. For instance, OKEx and binance exchanges handle the largest volume of cryptocurrency trading. Moreover, the volume trading will be about more than $3 billion daily.
Binance exchange charges about 0.1% for trading fees from their global crypto users. Likewise, OKEx charges 0.15% of trading fees from the users. Depending on the trading volume on your own exchange, you can set your own fee structure. So that you can charge fees for every successful cryptocurrency trading.
Listing fees is one of the smart ways to earn more money when you are a cryptocurrency exchange owner. Many popular exchanges charge listing fees for newly released cryptocurrency or a crypto token. The listing fee will vary based on the size and popularity of exchange.
Some experts say that small-sized crypto exchange charges up to 1 to 5BTC for listing the token or coin in their exchange platform. Whereas medium-sized crypto exchanges charge about 10 to 50BTC for listing the token or coin. So if you start an exchange and make your exchange with a more user base. Then you can also charge fees for listing like other popular exchanges.
Margin trading is the trading of bitcoins or altcoins by using the funds borrowed by the third parties to gain greater capital. It is one of the excellent features enabled in the crypto trading platform. Nowadays, there are lots of popular cryptocurrency exchanges engaging with margin trading. But there are some first-class cryptocurrency exchanges that provide the secured margin trading. Such as
You can also start a cryptocurrency exchange platform with margin trading features. So that you can make an enormous amount of profits by charging interest to the users.
Initial Exchange Offering:
In recent years, IEO is mostly used by startups and entrepreneurs to raise their funds in a hassle-free manner. Before IEO, every business person used ICO websites for raising the funds. But ICO is said to be scams and many fraudulent activities happened in ICO’s. So to overcome those disadvantages, the crypto community invented the IEO module.
IEO is a profitable feature that is enabled in the crypto trading platforms. ICO’s can be developed by anyone but the IEO module can be developed only by the owner of the exchange. Initial exchange offering is the token sale platform where all the newly released tokens will be sold in a hassle-free manner. You can charge fees from the token issuer. So both the exchange owner and the issuer will get benefited from this IEO module.
If you already have an exchange, you can enhance the IEO feature. Else you can build your unique cryptocurrency exchange with the IEO module to make additional profits.
Only some of the cryptocurrency exchange platforms charge fees for withdrawal. But most of the exchanges don’t charge any fees for withdrawal. Even though popular crypto exchanges like binance and coinbase don’t charge fees for withdrawal. But exchanges like Kucoin charge 0.0004 BTC when you withdraw bitcoin from the wallet. Likewise, you can also collect fees from the users when they withdraw bitcoin or other crypto coins. So that it boosts your income.
If your exchange is becoming more popular in the crypto industry, definitely the crypto user base will increase automatically. For instance, Binance was first launched in 2017. But within a few months, they become the world’s largest crypto trading platform based on trading volume. Moreover, they have huge user traffic in their exchange because of low trading fees. So they can allow third parties to post advertisements and they can charge fees for posting advertisements.
Even though Localbitcoins exchange allows the users to post ads with the exchange rates to trade crypto coins. Likewise, you can also start the unique cryptocurrency exchange by allowing the users or third parties to post advertisements. So that you can charge fees as a commission for posting advertisements.
In general words, the stake is used to hold the digital assets or other traditional assets. In like manner, the crypto exchange stake is a feature that holds all the major cryptocurrencies that are available in the marketplace. When a user is holding the cryptocurrencies for long-term investment. Exchange provides some rewards for the users. Moreover, if you are an exchange owner you can make additional profits by the stacking process. Popular exchanges like binance and kucoin have stacking features to hold crypto coins and tokens.
I hope these methods will help you to make more money by launching a cryptocurrency exchange platform. Currently, there are more crypto trading websites that are present in the crypto industry. if you want to start a unique exchange and succeed in your crypto exchange business. Then you should shake hands with the finest professional experts in the crypto industry. They will guide you to build your own bitcoin exchange platform according to your business requirements.