Bitcoin Forum

Apart from the fees, which are usually less than 1% what are other ways they make profits?

Thanks

nobody knows?  ;D

Perhaps via advertisements. Exchanges usually have large numbers of advertisements on their websites. Furthermore, successful exchanges have plenty of users. Thus profits via advertisements and through transactions fees. can be potentially quite high. Moreover, exchanges have other methods such as gambling and games to attain money from their users. Hence, exchanges become quite profitable.

High fees are normal i guess because of the increasing price rate of bitcoin in the market the fees will also imcreases to more than 1$per transaction but also our bitcoin increases so i guess not fair but still. Aside from fees i guess they can already make a lot of bitcoin in just fees.

They actually profit from fees not ads at all. Every exchange charges fees for everytime you buy or sell.

E.g: localbitcoins takes 0,5% of every amount you sell/buy
https://localbitcoins.com/fees

Now imagine other bitcoin-altcoins exchanges like Poloniex who has a huge volume of BTC every day, charging 0.5% for every transaction you make. $$$

So it will take at least 1-2 years to get to the break even point.

One of there major income is from the fees they charge which is 0.5%. The also have profit from trading or buying and selling bitcon because they have different buying and sellingrates of bitcon. We buy bit coin at higher rate and sell it at lower rate so it give them an extra large ammout of income other than fees the charge and the gain much income than we think ..

What? you didn't estimate it well, Poloniex volume is huge so think how many transaction has being made every minute? It won't take that long, and for several advertisement it will only take months for that to happen. However in able to be like Poloniex much influence is needed because in trading sites trust is the main thing that attracts people, you need to spread and gain trust of people but for a new site with less influence to do that might take not just 1-2 years but even more instead.

I don't know about that.  Poloniex, for example, has had over 500 million dollars in volume over the last 24 hours (https://coinmarketcap.com/exchanges/poloniex/), and they charge 0.2% fees on every trade.  That would be about a million dollars in revenue every day.  I highly doubt that their costs are that much every week, never mind every day.

LocalBitcoins charges higher fees and also has pretty crazy volume really.  People trade huge amounts on there every day, and with the right amount of scale it would be one of the most profitable businesses ever created.

Not to mention that Poloniex is suspected of insider trading and other suspicious activity.

They earn good through the escrow service, because in a single day they have been making good number of transactions than many other trading platforms. Also this is a simple way of making a trade rather than the other analytical trading services as the service is something unique providing the users a good number of selling and buying options.

No it does not.

https://localbitcoins.com/fees

Bitcoin trading
Registering, buying, and selling Bitcoin is completely free.

LocalBitcoins users who create advertisements are charged a 1% fee for every completed trade.

When using our merchant invoicing services a fee of 0.5% is deducted from the paid invoice amount of each invoice.

Fees, advertising, and they have quite a lot of money in their hands that they can use if they do them wisely. It is very improbable that all users withdraw their coins at once, so they have a "loan" so to speak they can invest too.

High fees is the most profitable thing . second is they show the high bitcoin value for local currency and it will be displayed in dash board while going to sell in first time or few times we think sold for the money shown in dashboard . But its not there will be different selling price which we din't checked

Easy, many trade are done at there, they take 0.5% fee for every transaction it's enough for give them an income. don't be a foolish, localbitcoins is a big site, you can trade anything at there like you can sell neteler,paypal,perfect money,etc.

It's down to the spread. The prices on localbitcoins are always slightly higher than on the exchanges, and the difference is their profit. Basically vendors on LBC act as marketmakers, and they add about 5% to the prices to make their profits.

I can't think of anything else other than them earning with the fees they charge.
Maybe in some ads? I see some exchanges promoting other services or altcoins. Also like ccex yobit, nova, etc, don't they earn money from listing a coin? They ask for payment afaik.

I think there is only one exchange in localbitcoins, only dollar to bitcoin for me. So you can only earn profit into that exchange if the bitcoin current price is increase. I know an exchanges site that I'm using now is poloniex, that is the best exchanges site and you can really profit to them.

Definitely,they get their profits mostly from the charges they levy for buying or selling bitcoins.Trading occurs in such a huge volume so that even a small percentage of charge would give then huge benefits.

Fees and advertising. Since localbitcoins is very popular, has many of users and its good place to promote yourself. I also think they are one of the most profitable trading places with good reputation and that means a lot these days and they have users from all around the world with wide variety of buying/selling options.

The high fees that have hit the bitcoin network these few months have affected a lot of earning methods, take for exemple trading bitcoin on localbitcoin has become not that great since you lose a lot from exchange fees and transaction fees, gambling sites are shutting left and right because of how transactions are slow and expensive

I guess almost all of their revenues come from the fees. Even if the daily volumes are like BTC50,000 (a conservative estimate), they will be earning close to BTC1,000 in fee (1% from the buyer and the same amount from the seller). At today's exchange rates, that comes to around $3 million per day. It is more than enough to take care of the expenses.