Is running a crypto exchange really a profitable one?

  • As an aspiring entrepreneur/start-up planning to initiate a crypto exchange business, probably most of you will be under high-pressure to know whether it will be a profitable one or not. It’s a common thing, feel free to have such thoughts. But not taking any step to solve them is unfair. Don’t worry, let me take care of this.

    Basically, cryptocurrencies are a recent trend where most people would have heard of them once in a lifetime. But there is a certain percentage of people who started to realize the real benefits of cryptocurrencies over trading them. The growth rate is increasing day by day which directly impacts the need for many new exchanges to emerge.

    According to the stats, there are currently 7.9 Billion people in our world. Out of them, around 4% (300 million) of the people are crypto users. There are about 400 crypto exchanges existing in the current crypto market. Just relate with the total crypto users. For every crypto exchange, there are around 6 lakh crypto traders/investors available. You may think it applies to every exchange. Definitely, the answer is No!! There are some popular exchanges available too with plenty of satisfied customers. We shall just focus on them. With this amount of customer base for a business, just think of the circulation amusing one right! Let’s play with numbers,

    Consider you have started your crypto exchange business. Let’s start with a minimal volume. Assume having 0.5% of the total users as loyal customers for your exchange and each of them is making an average of 5 transactions each day which would result in thousands of active transactions. As an owner of the exchange, you would be collecting some amount of fee like 0.4% for every transaction that would result in $6000 USD per day. Just think of the revenue for the month. Huge one right. I have mentioned just one revenue stream for your reference.

    Various revenue generation streams are,

    • Deposit fee

    • Withdrawal fee

    • Listing fees

    • Staking

    • Crypto derivatives

    • Margin Trading

    • IEO Launchpad

    After getting to know these, I’m sure that you would be out of the confused zone. At this particular point, you would be thinking to proceed further with launching your crypto exchange. Here is an extra tip for you. Choosing the best development method is also a crucial factor that needs to be considered. According to various entrepreneurs’ opinions, the crypto exchange clone script is seen as the best way to launch an exchange. Because of its various benefits offered like Faster-deployment, less development cost, fully customizable, pre-tested, bug-free, and much more. So make your choice wiser. If you plan to go with a crypto exchange clone script then select the professional crypto exchange clone script provider available in the current crypto-space and shine along with your business.