Crypto exchanges
Trading fees differ from exchange to exchange. How do the exchanges utilize these fees? Where does the money go and what are you getting in return? To answer these questions, I’ve done some research in the matter in order to see what the fees are; and consequently, the turnover of several crypto exchanges.
If we look at coinmarketcap.com we can extract the daily volumes of the crypto exchanges. The trading fees are taken from the respective exchange website.
(Trading volume x Trading fee) x 30 = Turnover
Trading volume = Daily trading volume in $
Trading fee = trading fee in %
Turnover = Turnover per month in $ (indication)
In order to simplify this, I have multiplied the turnover times 30 to get an idea of the monthly turnover. The results are in the below table:
I’ve been active in the crypto ecosystem since 2013. For me, the blockchain technology is about giving back to the community. Exchanges are the infrastructural backbone of the crypto ecosystem. So far, we cannot exchange our coins without the use of these centralized exchanges. This is in my opinion counterintuitive – and rather ironic – if you keep in mind that decentralization of the financial service industry is currently at play due to blockchain adoption.
The above monthly turnover figures raise the question as to why crypto exchanges still deal with large organizational and process issues. It definitely looks like they’re earning plenty of money. Why are they then not able to implement a functioning helpdesk? Helpdesk tickets are taking ages to be resolved and it can be extremely difficult to speak to a customer service representative. This causes frustration and is detrimental to the experience with the exchanges. Helloo?? Can somebody pick up the phone? I want to talk to a human being! Is this so hard to organize?
It is time for a new exchange. One who makes sure that trading fees are strategically invested back into the user’s experience. Tradebits (www.tradebits.co) is becoming this and much more. Mark my words: this will be the largest exchange in the crypto ecosystem. A stable, reliable, scalable crypto exchange that gives back to the people and is designed with the user as the priority.
I have this same thought every day. Except I replace the word functioning with another word that starts with 'f'. :)
Good post, what are your thoughts on Cobinhood, and the Robin hood app introducing crypto? Both are fee free.
Eventually someone pays the bill, having a good exchange for free it not sustainable. We provide the best exchange and you pay a trading fee for that. Security and scalability costs money.
That makes sense, thanks for the explanation!
w000t @abajnath
It is time for a new exchange. And I am launching one! Stay tuned. Mark my words. Great!!, Are you serious? descentralized exchanges are the future imo.
btw bro did you saw my comment bout @redlambo in your last post?
Hi i am serious about this. Team is 24 people strong now and still hiring!
Excellent! i'll keep an eye. Here in my place (Barcelona) we have exactly the same problem, you need to be a explorer to join crypto is very hard to explain, there is no friendly place to join easy.
I am with you, let’s do it haha. DApps are the future and DExchange is the way to go.
I completely agree with you on customer service lack in all of these exchanges including Cinbase not mentioning fees. I definitely encourage you to create your own exchange. I wish you the best. If you become successful I will be glad to join you as your customer.
Thanks.
Do you think that it's time for a new exchange? Cause I think so.. What do you think?
I would agree with you.
I definitely agree with u. If u are going to open your own exchange, I will be the first one to accompany u. Trust me.. I wish u al the best and Good luck bro.
Many thanks.
You are welcome. Sir do it as soon as possible. Wishing u a very good luck
@abajnath thank you for simplifying this. Sometimes i wonder why these guys can do the needful while they earn huge amount.
Bitcoin for example charges huge amount for transactions to be succesfully executed and when it does it takes hours for it to reach the other end.
You must be a lord here man.
But how can we all solve this problem because it is giving me a whole lot of concern.
I am me @brightfame
Thanks I am following you
It's really great research. Thanks for this amazing post. I appreciate your work. Keep it up. Wish you avery happy and bright future.
Do you really plan to open an exchanger? this is a big WOW! Tell us when!
I will sinner
Wouldn't the calculation be .2% since they charge the seller and the buyer?