Cryptocurrency exchanges are one of the few cryptocurrency companies that manage to remain profitable even if the cryptocurrency market falls. In this material, we tried to figure out what are the sources of income for cryptocurrency trading platforms.
Crypto exchanges bring high profits to our company. Even for the difficult year of 2018 for the crypto market, we managed to stay in the black. Cryptocurrency exchanges have four key sources of income that allow them to receive money from both traders and other participants in the cryptocurrency world.Trading commissions
The most obvious and, in most cases, the most profitable source of profit is the commissions that the exchange receives from trading assets on its site and from their withdrawal.
For crypto projects, listing on a large platform is access to investors and liquidity. After adding large crypto exchanges to the listings, the prices of such coins usually skyrocket.IEO
IEO differs from ICO, first of all, in the case of IEO, the partial responsibility for checking the project for obvious connection with scammers lies with the cryptocurrency exchange that will conduct IEO. The idea is simple: if it is a large world-famous crypto exchange, then it is not interested in being noticed in the marketing promotion of scam.OTC
A separate platform for institutional investors who place large orders to buy or sell cryptocurrencies is another source of income for cryptocurrency exchanges. Separate retail investors and institutional cryptocurrency exchanges due to the fact that large players, placing orders worth millions of dollars, can dramatically affect the course of trading, whipping up or collapsing the cryptocurrency rate. In addition, OTC trading involves more personalized and confidential services.