Where do exchanges get their Bitcoin?

[Fatanut]

From the start, those bitcoins were mined. And maybe there were no exchanger right after bitcoin was launched. People had to do P2P I guess and that's how exchangers got they bitcoins. The possible ways of obtaining bitcoins on the start were mining and buying it directly from other people. I guess that's how they got their coins and then from that, their exchange site was launched. They would have invested a lot of money in bitcoins first before they get to open their exchange site.

[piloder]

Why those exchanger need bitcoin or have to buy it because they are just like marketplace where vendor sales their items and marketplace get their cuts on sales.

Likewise when some seller sells their coin to buyer in trading platform actually it was sellers bitcoin which goes to buyer and trading platform just take fee usually 0.2% of amount traded, so why should they need to buy bitcoin to buy/sell to users.

[danherbias07]

Yobit got a 20k satoshis fees each withdrawal you make so I think they are getting profit from that. Plus they are also getting a 2% each time you do an exchange from bitcoin to another one. So from that, they could pile up a lot of bitcoin and maybe invest it in a different way.

[shinratensei_]

to me the main source from where the exchanges get their money is from the transaction fee, may be they also have invested their bitcoins in different places,

They are investing their bitcoins for selling it to their exchange site and I am sure that they have other some source of income for supporting their exchange like mining farm. But yes, their main source is coming from transaction fees even the fees are small but out of many users, they are able to collect a lot monthly.

But why about some site or wallet ar not trying for charging a small fee for their member today? like xapo he never charging their member with the another fee except for trying charging for giving fees for the miners get a confirmation for their transaction and how their source? about the ads income are not balancing for their daily spend.

[Indrawan77]

to me the main source from where the exchanges get their money is from the transaction fee, may be they also have invested their bitcoins in different places,

They are investing their bitcoins for selling it to their exchange site and I am sure that they have other some source of income for supporting their exchange like mining farm. But yes, their main source is coming from transaction fees even the fees are small but out of many users, they are able to collect a lot monthly.

But why about some site or wallet ar not trying for charging a small fee for their member today? like xapo he never charging their member with the another fee except for trying charging for giving fees for the miners get a confirmation for their transaction and how their source? about the ads income are not balancing for their daily spend.

Most common way of exchanger det their profit is from transaction fee, for coinbase they got it from buying and selling bitcoin, for xapo i think they got it from the advertising or affiliation from their faucet game

[Doms]

Is there a minimum number of bitcoin required for one to start an exchange business? Or is it up to the exchange how much they can put up as a start up capital. Maybe what they did was buy in bulk or were owners when the price was still very low and when the price started to rise, they deemed it profitable to start an exchange business. Just my thoughts, though.

[Daffadile]

From the start, those bitcoins were mined. And maybe there were no exchanger right after bitcoin was launched. People had to do P2P I guess and that's how exchangers got they bitcoins. The possible ways of obtaining bitcoins on the start were mining and buying it directly from other people. I guess that's how they got their coins and then from that, their exchange site was launched. They would have invested a lot of money in bitcoins first before they get to open their exchange site.

Yes ! True that. The exchanges came after bitcoin since the exchanges were there for bitcoin so bitcoin had to have been first or there would be no reason for the exchanges to exist.

[Zadicar]

Is there a minimum number of bitcoin required for one to start an exchange business? Or is it up to the exchange how much they can put up as a start up capital. Maybe what they did was buy in bulk or were owners when the price was still very low and when the price started to rise, they deemed it profitable to start an exchange business. Just my thoughts, though.

Starting  exchanger sites  is no  joke  because  you would really needs  thousands of bitcoins  to start on. I dont  have  any  idea on where those  bitcins  came from  but  one thing  is on  my  mind that those   bitcoins are their personal possesions and they tend  to build  exchange sites because  these are good  investments too.

[avikz]

Just like any other business, exchange is another business. They have their initial investment, but they are getting profits from the brokerage percentage they charge from every trade. So this is the basic return the exchange owners get.

Also from their earning, if they want to exchange it to bitcoin, they can simply do it from their own exchange system. which is not a very big deal in any ways.

[groll]

to me the main source from where the exchanges get their money is from the transaction fee, may be they also have invested their bitcoins in different  places,

Exchanges when established needs capital and they buy volumes of bitcoin. But later on they dont need to buy bitcoin they just earn it from the transaction fees and other fees they charged during trading. And also they charged the developers of any coin with some amount before they could enter in their site. So exchange is like a market that charges the vendors.

[dearbesz1219]

Two that come to mind are Coinbase & Circle.  I did a quick google search, possibly wrong terms.  The information I got was useless.  I am sure this has been discussed.  If there is a good article/link on this it would be appreciated.

Most of the exchanges platform get their bitcoin to all users who sign up/register to their exchange sites to trade their coins through in every transaction charge fees that there gonna make whether they are going to buy a coins or withdraw their coins.

[abel1337]

At first , I think new exchange sites get their bitcoin from their own pocket. Until developers try to put their coin into your site. That the start of earning of your new exchange the more coin and the bigger the coin the more profit from your site will enter. I think that how it works

[wahb]

i think exchange get their money from the transaction fee and may be they have their own currency and my be also invested their money in bitcoin or some alt coints. and there they may be receiving their money.

[Xenophoto]

I think exchanges got their bitcoins by buying them unless they are one of those pioneer miners. They should've bought their bitcoins from a miner personally because there isn't a single exchange at the start of bitcoins. I think most exchanges out there are quite new so I think most of them did buy from a miner and didn't mine themselves.

[Labumi]

i think exchange get their money from the transaction fee and may be they have their own currency and my be also invested their money in bitcoin or some alt coints. and there they may be receiving their money.

Yes that's something right. Because I also see every transaction that is in the exchange would certainly give you tax or fee for those who want to invest or trade. The world is all of these things have to be paid for the hard work you though at first you only have the energy, creativity, and innovation is good then it will give a great advantage to you if do good and perfect. now it is a world in which indonesia will have many websites or applications simplify something

[Doamader]

i think exchange get their money from the transaction fee and may be they have their own currency and my be also invested their money in bitcoin or some alt coints. and there they may be receiving their money.

Yes that's something right. Because I also see every transaction that is in the exchange would certainly give you tax or fee for those who want to invest or trade. The world is all of these things have to be paid for the hard work you though at first you only have the energy, creativity, and innovation is good then it will give a great advantage to you if do good and perfect. now it is a world in which indonesia will have many websites or applications simplify something

Be sure even exchanges taking a fee with bitcoin they cant process all the cashouts, their users does request, taking that into consideration they buy some bitcoins from miners i do believe, they buy a big ammount and has a discount.

[PokerFace3]

Is there a minimum number of bitcoin required for one to start an exchange business? Or is it up to the exchange how much they can put up as a start up capital. Maybe what they did was buy in bulk or were owners when the price was still very low and when the price started to rise, they deemed it profitable to start an exchange business. Just my thoughts, though.

Starting  exchanger sites  is no  joke  because  you would really needs  thousands of bitcoins  to start on. I dont  have  any  idea on where those  bitcins  came from  but  one thing  is on  my  mind that those   bitcoins are their personal possesions and they tend  to build  exchange sites because  these are good  investments too.

Not necessarily their personal bitcoin because they can start an exchange site with small amount of bitcoin also after that people or traders will put in their bitcoin to sell and sell by using it as a platform. The exchangers mostly not necessarily to have many bitcoins but can act as a mediators to ease the exchange or trade of bitcoin between the buyers and sellers from which they benefit by charging some transaction fees.

[Aamir1]

They probably buy the initial capital from somewhere like how we do when we are willing to start a business investing bitcoins in it, and when they are done with that and they started their exchange, they just earn bitcoins from the fees of transactions and trades, like in yobit they charge you 0.2% from every trade you make, and also they charge some fees on withdrawals as well, so that is how they earn their bitcoins.

[n691309]

Two that come to mind are Coinbase & Circle.  I did a quick google search, possibly wrong terms.  The information I got was useless.  I am sure this has been discussed.  If there is a good article/link on this it would be appreciated.

They are big bosses, they have been in the bitcoin industry for a long time or maybe since the beginning of the bitcoin and have invest in bitcoin when the price was really cheap and they hold them and have re-invested them to build good exchanges.

[betohell]

They probably buy the initial capital from somewhere like how we do when we are willing to start a business investing bitcoins in it, and when they are done with that and they started their exchange, they just earn bitcoins from the fees of transactions and trades, like in yobit they charge you 0.2% from every trade you make, and also they charge some fees on withdrawals as well, so that is how they earn their bitcoins.

yeah exchange sites get revenue from trading fees that users do, but is it possible exchange sites get paid when a altcoin included in the list of their trading sites?