Crypto Exchange business~ What made it so unique
Compared to other crypto business models Crypto exchange seems to be unique with its various beneficial factors!
With loads of ideas in your mind as an entrepreneur, you would be planning as hard as you can to emboss your identity in the pile of successful business people’s lists. Among various business models, you could have come across this crypto exchange model at least once. At first, it could have sounded a bit weird. But after making a deeper analysis you could have sorted out the possibilities of tasting the fruit of success. Still, you may have a doubt stuck in some corner of your brain. Likely, why the crypto exchange business is better than others. It’s showtime… Let’s take a closer look at what made this particular business model a dominating one.
Why Crypto exchange business?
Generally, Cryptocurrency exchange acts as a medium for crypto-interested people to buy, sell, and invest in cryptocurrencies with ease. When looking back to the older days, purchasing a cryptocurrency was a nightmare for many. Meanwhile, at present, you can buy/sell any kind of cryptocurrency within a snap of time. This is how technology has evolved at a rapid pace. Speaking of the past, the majority of the population doesn’t even know what cryptocurrency is. But think of the current situation. It’s amusing, isn’t it? Even though there is a wide set of people being aware of cryptocurrencies, this entire count is similar to a grain of sand in a hillock. From a recent survey, there are statistics that convey that only 10% of the world population is aware of cryptocurrencies. Sounds interesting right. Even with this minimal amount of user-base there exist many exchanges dominating the crypto market. So this will be the right time to enter into this. Let me explain the various benefits of running a crypto exchange that makes this business model a unique one from others.
Before stepping into a business any individual’s ultimate goal will be, attaining a higher position with that business and reaping profits. For example, just think of the Binance. It is a leading crypto exchange that has attained the topmost position in terms of the trading volume in the crypto market. This is the level of fame you would be experiencing in the upcoming years as an owner of the exchange. Now coming to the next part, revenue is one of the vital parts that have to be flowing freely at some point in time. As a beginner, there are certain ways where you can generate revenues. After growing to a certain level, the massive user-base you are about to build will take care of the rest. The basic revenue generation streams are,
Revenue Generating streams
Trading fees are considered the basic revenue-generating pattern. As an admin, you will be able to charge a small percentage of money as a fee for your customers who are making transactions in your exchange. (It is highly advisable to charge a minimal amount)
Advertisement fee: (Applicable in P2P Ad-based)
While speaking of advertisement fees, if you are about to initiate your business with P2P crypto exchange type, then you can charge your users a reasonable amount for every advertisement to be posted in your P2P crypto exchange.
Every user you are about to gather for your business will be an active one for sure. Obviously, they are gonna make crypto transactions at a decent count. Considering this, you can allocate a considerable amount as a fee for withdrawal or deposit they are about to make.
Not only from your users, after reaching a level and attaining fame many new crypto token issuers will be approaching your exchange for listing their tokens. In return, you can collect a meaningful amount of money as compensation for the service you provide.
Probably, as an entrepreneur with a goal in your mind to achieve something in this crypto space you would be aware of what an IEO launchpad is. Once you attain a position, you will be noticed by many token issuers. They will be seeking out you to carry over a crowd sale of their tokens in your exchange. This vastly helps both of you, as an exchange owner you would be receiving a sum of money from the issuers as compensation for the service you did. Meanwhile, the issuers will be able to raise funds in a hassle-free manner.
Your customers holding a sum of cryptocurrencies will be making use of this feature, where they will be required to deposit a certain amount of cryptocurrencies with this and they will be receiving a percentage of interest according to the time period they hold. With those cryptocurrencies, you would be able to circulate them which induces the revenue-generating factor into an upgraded level. Also, you can make use of those cryptocurrencies to increase the liquidity on your exchange which creates a positive impression among the users.
These are some of the basic ways of generating revenue that can support you from the initial phase of running your business. There are many other ways too, where you can get to know further after stepping into this business.
After witnessing the above-furnished attributes who would be ready to leave this wonderful opportunity to be taken for granted. Once you initiate with your crypto exchange business and attain a recognizable position among the society, these basic fees structure would be the maximum source of your profit source. All this is because of the fame and trust of your exchange that you are about to build overall. After realizing the best crypto business model among the others, the next important factor you should consider is the method you are going to choose for launching your desired crypto exchange. This is one of the crucial parts of the entire development process. Is there any use in reaching the finish line after losing the race? That’s why many experts stayed on the safer track which led them to their destination in an easier way. They opted for the crypto exchange clone software to launch their dream crypto exchange as this method offers various benefits to them. All you have to do is pick a professional crypto exchange software provider to make your dream business a successful one.