Crypto exchanges make money in various ways. The most prominent one and the very known one are the trading fee and transaction fee.
So, there is no doubt that cryptocurrency exchanges are very keen to gather a user base.
Now let us know what other ways the crypto exchanges are making money. It is not a secret, It is just a light of knowledge that many of them would not be aware of.
You should know these things if you are about to start your cryptocurrency exchange development company.
Now let us jump into the article.
How do cryptocurrency trading platforms make money?
This is interesting. It is because cryptocurrency exchanges generate revenue from various sources and not only on one source. I remember Warren buffet’s famous quote that goes out like “If you are not able to earn while you sleep, then you will have to work till you die!” This makes it to the cryptocurrency exchange platforms. That does not mean that cryptocurrency exchanges do make a huge lot of money very easily. Risks rely on that too. But the fact is they are able to make money from various sources. Let us find out those money showers that they rely upon.
The trading fee is different from that of the transaction fee. This is calculated based on the trading options that the trader opts for. If you want to go by derivatives trading, then it will attract a different fee and if you want to go by OTC trading, the trading fee would differ. The thing is it differs based on the amount of transaction that one wants to put in the trade and the value of the trade. If you are specifically running a derivative-based cryptocurrency exchange software, then there are chances that the trading fee revenue would be hyping enough if you have a decent number of users.
This is the new feature that the exchange operators are using in their respective exchange platforms. It is a token to keep the users in a parallel fee structure. The purpose of the token is to provide offers and rewards to the user if they use this token to pay their fee and other transactions to the exchange software. This will not only increase the revenue of the cryptocurrency exchange but also keeps your user on your track so that they do not miss out on your crypto exchange platform.
This is one such added advantage of starting a cryptocurrency exchange. If you are having a cryptocurrency exchange platform, there will be a series of companies who would want to list their tokens and their coins in your crypto exchange platform that would allow you to earn a huge chunk of revenue every time they list the token. For that to happen, you should have an acceptable level of user base in which the token owner would consider that putting the token in your exchange platform would be helpful to earn some users and traders to their token or coin.
It would be common that some of the top known cryptocurrency exchange development companies would be established that they provide IEO launchpad to your exchange platform. This is where it comes to help. Some of the entrepreneurs would like to introduce a coin in the exchange platform as an IEO and they will be willing to pay a considerable amount of fees to list their IEO on your exchange platform. By launching their IEO you would generate a part of their tokens or a part of the profit, whichever is negotiable. The more sales you make, the more would be your revenue generation.
It is similar to marketing the token or coin. It is like adding value to the cryptocurrency based on the market they have. It is like buying a token or a coin at the lowest price in the initial level and selling them for higher prices when the prices go up. This can help the users and traders to analyze the importance of the coin or a token. You can also introduce a particular contest for a particular token or a coin and announce cash prizes for that particular token or a coin holder in large amounts.
This is the obvious one when you start a cryptocurrency exchange platform. You can put relevant ads by linking your platform to Google AdSense. You can also run private advertisements from the vendor themselves and earn huge revenue.
This is the most prevalent method in which you can generate a percentage of the fee for every transaction the trader or investor does on your platform. This is the primary source of income for a cryptocurrency exchange platform owner.
The above-mentioned points showcase the different sources of revenue from the cryptocurrency exchange platform. If you have a cryptocurrency exchange platform, embrace yourself, you can use these funnels to make money. What if you do not have a crypto trading platform? Wait, there are three options on how to start your cryptocurrency exchange platform for your crypto business.
How to start your cryptocurrency exchange platform?
A cryptocurrency exchange platform is a digital platform that helps traders and investors to exchange and trade on digital currencies like Bitcoin, Ethereum, Litecoin, etc. It takes very minimal time to exchange your fiat to foreign currencies and vice versa than a traditional exchange platform that involves a huge pile of paperwork and a week to transfer the money to any other countries.
If you are thinking of starting a cryptocurrency exchange platform, then there are three options:
- Cryptocurrency exchange from scratch
- Cryptocurrency exchange clone script-based platform.
- White label cryptocurrency exchange platform
It is very easy to start your cryptocurrency exchange platform using clone scripts rather than the other two options. You can start your crypto platform instantly with fewer marketing efforts if you initiate your crypto business with a clone script. Let us know how these cryptocurrency clone scripts work for your users
How do cryptocurrency exchange clone scripts work?
- Firstly, the user should register his account by using either an email id or using phone number. It would be great if you used your mail id as all the information regarding your transaction and trade will be sent to your mail-id.
- After confirming the mail you can enter your general information that you would have left out while creating your initial information.
- Then you have to enter your bank account details and other verification details to verify your identity and for your KYC norms. Once all of them are considered correct by the admin, the account would be activated for trading, depositing, and withdrawing.
- You can exchange your cryptocurrencies for whatever cryptocurrency your want to change. You can also trade, stock, or stake cryptocurrencies as various types of derivatives and other types of trading options would be available in the market. There are options for both the novice and veteran to trade according to their experience level.
- Once you are satisfied with the profit, you can withdraw the money as soon as possible as the market.
You cannot create your crypto trading platform using some illegitimate clone script software available on the internet. You will have to reach the best cryptocurrency clone script service provider to create your trading platform for your business. In that way, Coinsclone is the forerunner in crypto clone scripts software services.
Choosing Coinsclone for creating your cryptocurrency exchange platform with multiple income sources
We, at Coincslone, are dedicated to providing clone script solutions of famous crypto exchange platforms like Binance so that your crypto exchange platform does perform and generate revenue similar to Binance. We have a solid team who are experts in crafting out the best software for your business based on your business requirements. We are always open to customizing and modify your crypto software by adding or removing the features based on the needs. We use updated and state-of-the-art technology tools to create your cryptocurrency trading platform.
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