In the era of cryptocurrencies, the cryptocurrency exchange business has extended to the peak in the market as the investments in cryptocurrency bump up often. Nowadays, the exchange business also has vast competitors with one another by providing unique features and designs to persuade more users to their exchange.
So, as a startup, you should be familiar with the basic knowledge of cryptocurrency and be aware of the business ideas of crypto which workouts for you. In that case, the OTC exchange type will be a perfect choice among various competitors in the crypto field. This type of exchange is the one with high benefits with low competitors compared with the other exchange types since many entrepreneurs need to be made aware of this. So utilizing this, you would reach your business at the top place in the list of best OTC exchanges and can cover many numbers of users within a short period.
However, planning to start an OTC exchange is a good idea, but it mainly depends on the business model you prefer to choose. Here, we recommend one of the popular OTC exchanges called coinbase. Let’s see, what a coinbase, is and how does coinbase make money.
Do You Know How Much Does Coinbase Charge to List a Coin?
The listing fee in the coinbase is totally free, whereas it welcomes newcomers to list their currencies in the platform to get an immediate reach for their coin.
However, the coinbase platform makes revenue in an alternative way by collecting various charges like withdrawal fees, and trading fees and it collects fees like coinbase pro charges, coinbase prime charges etc.
Now, you might be in the confusion about “ how does coinbase make money?”. Don’t worry. I will make you clear.
How Does Coinbase Make Money in the Crypto Field?
As a startup mindset, we would like to see the risk factor that might go wrong in the business rather than focusing on the benefits of the business. am I right?. so this thought process brought all the possible ways to earn money in the business. This exactly works out for the crypto exchange business too!
Most startups expect to make money smartly and uniquely to compete in the crypto market. But if you creating an exchange like coinbase you should be familiar with how does coinbase make money. For this, you must concentrate on the revenue-generating process, such as wherever fees can be collected from the user on the platform.
Startups prefer to build an OTC exchange like Coinbase because of its high revenue generation module, which allows users to pay fees for secure services in the platform to trade. This is a rare occurrence in the cryptocurrency industry because all users refuse to pay fees in exchange in order to get free services. Users prefer coinbase despite the fact that it is a paid option due to its quality effectiveness and security maintenance.
In this case, coinbase stands out from the crowd when it comes to its revenue generation process, Lets’s take a look at them one by one in the following content.
Coinbase charges a trading fee for the purchase and sale of cryptocurrencies, with a fee of 0.5%. It is applied to all cryptocurrency purchases and sales.
Earn by Staking
Crypto Staking is stepping forward in the market as a lot of users are considering holding or locking their assets for a period of time to get excessive interest from the network. so, users hold cryptos in the coinbase exchange with the option of staking, and their coins help with interest payments in return. For this, coinbase takes a 2.5% commission on the transaction and distributes the earnings.
The transaction of cryptocurrency processing are raised in the past few years since many traders wish to send and receive their crypto by transacting from one platform to another. By utilizing this process, Coinbase charges for transactions, so users pay a total transaction fee of 4% to Coinbase for all cryptocurrency withdrawals.
Crypto to Fiat Conversions
Many people want to convert their cryptocurrency to fiat to manage their immediate expenses. So coinbase helps users to convert all types of crypto to fiat at any time and anywhere. For that, it charges the users 2% for all cryptocurrencies transaction to fiat.
Coinbase allows users to fix their desired cryptocurrency, who wants to make a purchase or sell. This process helps users to make a huge revenue in a short period of time. The only thing user should be focused on here is the demand for cryptocurrency in the market.
Another additional revenue-earning method coinbase you must know,
Crypto Debit Card Transaction Fees
Coinbase gives a user a debit card that allows them to spend only USDC amounts. The card is free, but Coinbase charges a flat transaction fee of 2.49% on purchases made with that debit card.
Earn by Coinbase Pro & Prime
Coinbase pro & prime charges a fee from users by offering them advanced trading options as well as detailed trade history. the coinbase team provides a complete guide to its prime users.
These are the ways coinbase allows you to charge an exorbitant fee to the user while still providing the quality service that they require. So, creating an exchange like coinbase with an above-average revenue-generation process will undoubtedly lead your business to a profit-making business, but it all depends on the service provider you choose to create an exchange like coinbase.
How Much Does it Cost to Develop a Cryptocurrency App like Coinbase?
The cost to develop a cryptocurrency exchange like coinbase ranges from $8000 – $14000. When you prefer a Coinbase Clone Script method, which is a pre-built software of the existing coinbase platform.
Users who like to bulk trade would prefer your platform. So this helps you to gain brand recognition and allows you to attract a large number of users to your platform. So you can proceed with this coinbase clone script to build a platform like coinbase without any hesitations.
If you want to launch your OTC exchange like coinbase using the coinbase clone script, you must focus on its revenue-generating module, particularly on making the users comfortable with the overall process. So that you can make a consistent revenue out of it. To implement these specific processes in your business, you will require an excellent service provider. Here, we the Coinsclone, a team of experts in the blockchain sector provide you with a service by listening to your specific needs and analyzing current market trends to bring you the best possible outcome.