Do you know crypto exchange development has now become a profitable business for startups and entrepreneurs? The reason behind the hype for these crypto exchange developments is the immense growth of its market size. As per the crypto statistics, the market size of the crypto platforms will reach USD 118.12 billion in the year 2028.
This encouraged numerous potential startups to enter into the crypto realm by starting their own cryptocurrency exchange business. But, many newbie startups confuse themselves about the execution process, development process. Not only this, but some are not clear about the revenue-generating streams of the exchange itself. Right now, if you are also in this major confusion, then you have landed at the perfect place.
Is Owning a Crypto Exchange Profitable?
A Big Yes to your Question! Before delving into the business perks of the cryptocurrency exchange, let’s be clear about them. The crypto exchange is a platform where blockchain-based cryptocurrencies can bought, sold or traded securely. As for various crypto purposes, the need for a feature-rich cryptocurrency exchange has increased rapidly.
But, You may ask, Simply Through Enabling Cryptocurrency Trading Features, How Can Startups Earn Enough Profits?
Through various means, revenue can generated by owning a cryptocurrency exchange platform. As per the business needs and marketing strategies, the revenue generation stream varies. Some of the common profit-reaping streams are,
By Enabling Trading
For each transaction, the cryptocurrency exchange deducts a certain amount from the user and buyer. The transaction fees are calculated based on the user’s choice of cryptocurrencies and the mode of the trading feature. The average fee for transactions starts from 0.1 to 0.2%. This may look small, but this tiny amount brings huge profits for the cryptocurrency exchange owner.
For Listing Cryptocurrencies
Every day new ICOs, STOs and IEOs crypto projects are launching. And, they introduce new cryptocurrencies into the market. The cryptocurrency exchange platform lists those new tokens for liquidity purpose. Based on the token’s fame, value and future price prediction, the listing fee may vary accordingly. Startups that are launching crypto projects are always ready to offer millions and billions of dollars to list their new crypto tokens.
Through Withdrawing Cryptocurrencies
If a crypto user tends to withdraw their cryptocurrencies and store them in the crypto wallet, then they have to pay a certain amount. With these withdrawal fees, every day the crypto exchanges are reaping higher profits.
IEO Launchpad
The IEO (Initial Exchange Offering) is more or less the same as an ICO (Initial Coin Offering). But, the only difference is IEO distributes tokens to the crypto exchange market. The crypto exchange itself takes the responsibility and sells those crypto tokens. For conducting this project, crypto exchanges get ample amounts. Other than profit, the crypto exchange can also gain a massive user base.
Presently, the IEOs have become a potential alternative to ICO crowdfunding methods. IEOs are completely transparent and risk-free for generating revenue. Hence, the demand for IEO launchpads is greater among startups.
For Referring New Users
One of the best marketing strategies of the cryptocurrency exchange is paying for its existing users for referring new users. Through this, exchanges collect life-long listing, trading, depositing and withdrawal fees. Hence, it earns user count and profits at the same time.
In simple words, each referral user would bring up a potential crypto user. Through this, life-long listing, trading, depositing and withdrawal fees are collected. Through this, user count and profits are earned.
Crypto Staking and Lending
Like banks and other traditional finances, the crypto exchange also helps to borrow and stake cryptocurrencies. For staking the crypto coins and crypto tokens securely. through this, exchanges collect fees. The staking fees depend on the amount of crypto coins, tokens and the staking period.
On the contrary, lending refers to offering loans with cryptocurrencies as collateral. You can get the borrower’s cryptocurrencies as collateral. If the borrower fails to pay the debt, the cryptocurrencies can be seized by the lender.
Revenue through Yield Farming
Yield farming is the ideal feature slightly different from the staking feature. Here, the crypto users can stake or lock up their cryptocurrencies and earn rewards. This feature rapidly increases the trading volume of the crypto exchange platform. Also, the liquidity of cryptocurrencies has increased.
Advertising
The crypto exchanges display other crypto-related advertisements to generate ample revenue. Private advertisements also play a major role in generating profits.
Premium Services
Through the premium subscription users can enjoy some additional features, functionalities, benefits and others in the crypto exchange platform. Users pay premium service subscriptions monthly or annually.
Cryptocurrency exchanges generate huge profits through these factors that help them take their crypto business to the next level. Therefore, this is live proof that developing a cryptocurrency exchange is a profitable one. So, developing a cryptocurrency exchange with various features would be an ideal business idea. But, you may doubt….
Where to Develop an Exemplary Cryptocurrency Exchange Platform?
Coinsclone, a leading Cryptocurrency Exchange Development Company help you to create your own customizable crypto exchange. As our developer team has enough experience in developing a full-fledged crypto exchange platform, you can contact our team without any regrets. Our developer team, blockchain experts, UI/UX designers, and technical experts are always ready to fulfil your needs.
You can create your exchange either from scratch or simply buy any crypto exchange clone script from us. We offer both the services at its fullest. Our exchange clone scripts are affordable, reliable and customizable. Other than exchange development, we also provide crypto token development, crypto payment gateway development and other blockchain-related services. Don’t waste your precious time, Contact our experts and grab a live demo!