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Crypto Exchanges — The Real Cost of Crypto

HedgeTrade | 01.08| 162

Many people may be unaware of the power crypto exchanges hold in the crypto market today. While many people are familiar with the exchanges themselves, many may not know of what it costs companies to get listed on them, or how much profit exchanges generate.

Millions of people all over the world are already familiar with the consumer side of crypto, meaning the acquisition, trading, or selling of cryptocurrency. On the business side, however, crypto exchanges are making stacks of cash by charging companies hundreds of thousands, even millions of dollars for a simple listing.

Being a top crypto exchange means you provide outstanding service and have a huge amount of traffic flowing to and through your site, therefore creating value. This value then is reflected in the cost to those who utilize the exchange, both on the consumer side and the business side.

Commonly most cryptocurrency exchanges will make money through listing fees, transaction fees, and withdrawal fees. This profit structure allows exchanges to make money constantly, no matter the value of the cryptocurrencies they list.

Binance, the biggest and most trusted cryptocurrency exchange, cleared $200 million in profits in January alone from their fee structure. While the rumors of listing prices have suggested Binance charges $1,000,000 to get listed on their exchange Changpeng Zhao, the CEO of Binance, stated back in August that Binance, in fact, charges no fees and instead focuses on which projects meet their standard of excellence and are worthy of listing.

If you are one of the lucky ones to be listed on Binance, whatever they may or may not charge you might seem irrelevant once the value of your coin starts to climb. Although the market is radically different now than it was in July, investors can still expect to see their projects value increase considerably after being listed on Binance.

Binance aren’t the only ones generating massive profits, there are other exchanges out there as well such as South Korea’s Upbit and Bithumb who, despite finding themselves on the wrong side of multiple hacks and a bear market, will still manage to turn profits of $60 — $70 million annually down from their regular $100 million.

There’s no doubt the future of crypto exchanges will undergo changes as the market constantly attempts to return bullish once again. Will larger exchanges buy up their lesser competitors, or will existing financial entities from the centralized world look to capitalize as crypto/fiat relations become ever more developed?

Originally published at HedgeTrade.


Crypto Exchanges — The Real Cost of Crypto was originally published in HedgetradeHQ on Medium, where people are continuing the conversation by highlighting and responding to this story.

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