Cryptocurrency is not an uncommon thing anymore in the FinTech world not only people are aware of it but, they’ve also started to invest in it wisely.
Globally cryptocurrency exchange market growth value was $30.18 billion in the year 2021, and it is foreseen to multiply at a growth rate of 27.8% (CAGR) from the year 2022 to 2030.
Following the cryptocurrencies, many new innovations have started to emerge in the market, like crypto payment gateways, NFTs, gaming NFT platforms, and many more. For all these innovations, cryptocurrencies are the base.
People are now more into buying and selling cryptos, and the only medium where people can purchase those cryptocurrencies is the crypto exchange platform. Eventually, this paves the way for many to enter the crypto exchange business.
But the thing is, is this the only reason why many are going towards the crypto exchange business?
Well, the answer is NO because, apart from the demand for crypto exchange businesses, the major reason for business people or entrepreneurs to enter the crypto exchange business is the revenue it generates for the crypto exchange owner. It has many revenue-generating modules to keep the business running at a high speed with huge profits.
Let us get into the revenue streams of the crypto exchange business.
Revenue-generating modules of crypto exchange business
The Crypto exchange business is a vast business that has numerous revenue modules by which the exchange owner can earn huge profits with fewer investments.
Here let us look into some of the vital revenue streams that one can get in the crypto exchange business.
- Transaction fees
Whenever a trader does transactions in the exchange, for every transaction there will be transaction fees that belong to the exchange owner. This transaction fee is set by the exchange owner of their own choice. The transaction fee in a crypto exchange platform on average ranges between 1% to 3%. Binance charges 0.1% whereas, Coinbase charges 2.99%, depending on your business needs, you can set your transaction fees and earn through it.
- Coin listing
If a new coin comes into the market, it has to be listed, on the crypto exchange platforms, for listing the coin, fees are obtained by the exchange owner. With this revenue model, an exchange owner can earn a lot because more and more cryptocurrencies are emerging in the crypto market recently.
- Deposit fee
The deposit fee is another way to earn revenue, in this, when a user deposits fiat or digital assets into the exchange, they have to pay a deposit fee to the exchange.
- Withdrawal fee
The withdrawal fee is one of the most beneficial revenue models, while withdrawing fiat or cryptocurrency from the exchange, the withdrawal fee will be applied, which is usually high in numbers, eventually profiting the exchange owner.
Staking is a method in which the users of the exchange participate in the staking pool, and they will hold their cryptocurrencies in the pool. This can be used by the exchange owners, for various purposes, and in return, the users will receive rewards and interest for holding their cryptocurrencies.
- Margin trading
Margin trading enables the user to leverage their position by buying the stocks with some marginal amount of collateral, either as money or any other asset. This can allow the exchange owner to set up some percentage as interest and can earn huge profits through this revenue model.
- IEO launchpad
Integrating the IEO launchpad into the crypto exchange platform enables one to earn more money because this IEO launchpad helps to conduct the token sale of new coins for a certain period of time, and for this, they need to pay for the exchange, which eventually yields more revenue for the exchange owner.
If a business module has this many revenue-generating streams, then who will ever think of ignoring it? This is the reason many are planning to start their crypto exchange business.
Starting a crypto exchange business in a smart way might help you earn more with less initial investment comparatively.
But the thing is, if you start the business on your own from the scratch, it requires more investment and time, which is not practically possible for everyone. Here is where the crypto exchange script comes as a savior. Now, what is this script? And where to get it?
Cryptocurrency exchange script and where to get it
A cryptocurrency exchange script is a pre-built software that comprises all the exciting features and security options that you can see on popular crypto exchange platforms.
It is end-to-end customizable and available at a budget-friendly cost, which is a win-win situation for a person to start a business.
These crypto exchange scripts are provided by various providers in the market, but only a few are providing the services at a reasonable price. For example, CoinsQueens delivers feature-rich crypto exchange scripts at much budget-friendly price, and they have years of experience in this field. If you are intended to step into the crypto exchange business, you can get started by getting a free demo of their Cryptocurrency exchange script.