[2018-03-09] Who Actually Makes Profit On Cryptocurrencies

[Vialaia]

Crypto exchanges are becoming one of the largest beneficiaries of the cryptocurrency boom. Ten largest exchanges earn about $ 3 million a day as commissions, which means more than $ 1 billion in revenue per year, according to Bloomberg research based on CoinMarketCap data on trading volumes and commission information on exchange websites. The research based on the lowest commissions.

This is a very rough estimate, as it is almost impossible to find out which commissions offered to companies close to exchanges, and what, for example, discounts were for the most active traders. Given the daily volume of trading and the mentioned commissions, we can see that the top-10 exchanges earn billions of dollars a year. Although the figures are not accurate, the order of these values ​​shows that the cryptocurrency boom allows you to earn quite real money.

Read more https://en.bit.news/actually-makes-profit-cryptocurrencies/

[Rockstar1]

We all know the answer isn't exchanges. The answer is hodlers . In crypto, it's the ones who hodl long term that profit.

Besides the hodlers, I also think that the coin devs and ICO teams make a lot more money than the average trader. And I'm not just talking about the scams, either.

Coin devs and ICO teams are the most likely crypto hodlers who will actually hodl because they're in it for more than just profit. They want to see their coin grow, flourish, and actually be meaningful. So they're not going to sell just because they see a random spike in price. They're probably never going to sell the majority of their holdings.

What does that mean? It means they'll be hodling for years, until finally they're at the 1000x point. Or even the 100x point . At which point, their greed will get to them and they're going to use an exchange

[Qartersa]

We all know the answer isn't exchanges. The answer is hodlers . In crypto, it's the ones who hodl long term that profit.

Besides the hodlers, I also think that the coin devs and ICO teams make a lot more money than the average trader. And I'm not just talking about the scams, either.

Coin devs and ICO teams are the most likely crypto hodlers who will actually hodl because they're in it for more than just profit. They want to see their coin grow, flourish, and actually be meaningful. So they're not going to sell just because they see a random spike in price. They're probably never going to sell the majority of their holdings.

What does that mean? It means they'll be hodling for years, until finally they're at the 1000x point. Or even the 100x point . At which point, their greed will get to them and they're going to use an exchange

Saying that "in crypto, it's the ones who HODL long term that profit" is inaccurate. You know, if you research very carefully, there are others who HODL but were left with absolutely nothing. I am not saying that you blame the same to HODLING. It may be because these people came in/bought in when Bitcoin's price has already gone way up and suddenly its value has gone extremely low. It happens, and WE all cannot impute that to Bitcoin. You may HODL so long as you want but it is no guarantee that you profit. Remember you have to take into consideration the inflation value because we buy Bitcoin using fiat currency. Nevertheless, you are lucky if you decide to withdraw when you have already earned your return ON investment or your money goal. It is your decision to HODL or withdraw that is determinative of your success story in cryptocurrency, to say the least.

As regards the article, by the way, I, too, believe these major exchanges earn huge bucks! It is obvious, for otherwise, why would they even bother operating at a loss or just merely to profit a little? They are definitely taking advantage of crypto's popularity and inability to thrive without them. To me, they are a cartel in this industry.

[Rockstar1]

I guess you're right, if someone held Confido or Auroracoin, they'd be f'd. But I believe there are more success stories for those who held long-term than those who daytraded, overall. I think it's a lot more rare for long-term hodlers to lose money in crypto.

[Gotottack]

Crypto exchanges are becoming one of the largest beneficiaries of the cryptocurrency boom. Ten largest exchanges earn about $ 3 million a day as commissions, which means more than $ 1 billion in revenue per year, according to Bloomberg research based on CoinMarketCap data on trading volumes and commission information on exchange websites. The research based on the lowest commissions.

This is a very rough estimate, as it is almost impossible to find out which commissions offered to companies close to exchanges, and what, for example, discounts were for the most active traders. Given the daily volume of trading and the mentioned commissions, we can see that the top-10 exchanges earn billions of dollars a year. Although the figures are not accurate, the order of these values ​​shows that the cryptocurrency boom allows you to earn quite real money.

Read more https://en.bit.news/actually-makes-profit-cryptocurrencies/

Yes, they can surmise on that. But one thing I heavily believe is that due to the influx of people who buy in cryptocurrencies and the corresponding number of transactions that come along with it, there is depletion of mechanism in the process that operates the transactions resulting to high transaction fees. This ratio is evident based on the unconfirmed transactions, lag site, among others. Needless to say, this is the very reason why Bitcoin is quite behind among other cryptos because features-wise, there are better performing altcoins available in the market.

Come to think of it, how can these Exchanges earn? To me, they are sort of the admin office that does all transactions and because of their duty, they are being paid. Hence, the more volume of people that transacts with cryptos, the more fees they get. All in all, they benefit from the increasing number of transactions day in and day out.

[Lucius]

There is no doubt that currency exchanges make big profits,because of that we can see that their number is increasing.Miners are also make good profits from mining and from fees.I think these two business take the largest share of the crypto profits,and the rest is taken by whales who use every opportunity on market to dump coins at the highest price,and then buy back when price touches the bottom.

At the end of the line are ordinary small users,most of them are just holding and not make any profit on short term,but they have chance to profit on long term.The difference between exchanges/miners and small players is that first ones make money today,small players need to take a risk and hold for years.

[Proton2233]

I see nothing wrong with the stock exchange making a lot of money. Cryptocurrencies are popular because they give everyone the opportunity to earn. Exchange is not only a graph on the screen. There are a lot of people working there. They spend a lot of money in order to make us feel safe. The risks of becoming a victim of hackers are also very high.

[SaintGraal]

Of course, exchanges get a significant profit, but not for nothing: they actually at least provide people with real service like money exchange (they need strong facilities, security issues etc).
At the same time, the news websites get a huge profit, for example, just for publishing the article, which was written even not by their efforts.
Moreover, people who trade on exchanges make a profit out of the air.
So, I would say that this sphere is just good now for making money from any side.

[Rahar02]

We all know the answer isn't exchanges. The answer is hodlers . In crypto, it's the ones who hodl long term that profit.

There are a lot of people who makes profit on cryptocurrencies such as traders, holders, whales, miners. but this article mentioned exchanges due to it can be calculated based on their trading volume and commission rate. $3 Million a day from commission is a big deal and not many people can achieve this amount just by holding.
On the other hand, we don't know how much profit from miners, holders, or traders. Even many people in this forum who are not ICO developers, but just a layman who can make profit through cryptocurrencies.

[hatshepsut93]

We all know the answer isn't exchanges. The answer is hodlers . In crypto, it's the ones who hodl long term that profit.

Besides the hodlers, I also think that the coin devs and ICO teams make a lot more money than the average trader. And I'm not just talking about the scams, either.

Coin devs and ICO teams are the most likely crypto hodlers who will actually hodl because they're in it for more than just profit. They want to see their coin grow, flourish, and actually be meaningful. So they're not going to sell just because they see a random spike in price. They're probably never going to sell the majority of their holdings.

What does that mean? It means they'll be hodling for years, until finally they're at the 1000x point. Or even the 100x point . At which point, their greed will get to them and they're going to use an exchange

I'm pretty sure that exchanges are actually making a lot of profit, since they take comissions from every trade. A lot of them are also have huge withdrawal fees that don't fully go to pay for network fees, and some exchanges even have deposit fees.

As for hodlers, this is not true for most cryptocurrencies. Altcoin and ICO investors who hold altcoins/tokens for long term are mostly losing value over time. If you look at the charts, the best coins to hold for long term are Bitcoin and Monero.

[jhenfelipe]

The fact that exchanges are up for 24 hrs (except when they have a maintenance) and there's no dull time 'cause traders are always present (most likely in exchanges with good volume), it's not surprising. Well, they will probably stop operating if they are not in profit, right?

On the other hand, ofcourse it won't be limited to just exchanges. There are miners, traders, hodlers (this depends on the coin) who are making profits too though may not as big as the exchanges'.

[tee-rex]

Crypto exchanges are becoming one of the largest beneficiaries of the cryptocurrency boom. Ten largest exchanges earn about $ 3 million a day as commissions, which means more than $ 1 billion in revenue per year, according to Bloomberg research based on CoinMarketCap data on trading volumes and commission information on exchange websites. The research based on the lowest commissions.

Methinks the real amount earned by biggest exchanges should be a way higher, likely an order of magnitude higher. Trading commissions are only a tip of an iceberg because exchanges are the largest holders of cryptocurrencies out there. And given how unregulated the whole cryproscene currently is, they are without doubt the largest price manipulators earning via both direct price manipulations and covert operations like front running the orders of their clients and who knows what else.

[Taki]

That's right. There is no doubt that for now exchangers are those structures that make the most money on crypto currencies.
I saw some one said it's holders who have the most profit, but it is not like that. Holders just hold with the expectation of 100 000$ price for bitcoin and other currencies proportionally, but while they hold exchangers make money on them, on deposits, withdrawing and of course exchanging.
Now I have an idea that maybe that are exactly exchangers who stay behind all those super high prices predictions to hold people on their hooks

[entrepmind23]

There's no doubt the exchanges are the ones who earn the biggest profit in cryptocurrency world. In every business, the ones who are giving the service are the ones who profit the most. For example, grab and uber are profitable because even though they do not have cars, their app is used and it is synonymous to exchanges. The same works for social media platforms. They do not create their own content but they are very profitable. As to exchanges, they do not own any coins but they profit through commission and that's how they earn billions of dollars.

That's why we can see some ICOs from time to time in which their project is an exchange because they want to take this opportunity as well to profit. With billions of profit, I don't understand why they cannot hire more support to address the issues of the traders and some exchanges still take a long time to solve those issues.

[CryptoBry]

I have long suspected that big exchanges are raking in big profits due to the volume of transactions they are handling. No wonder exchanges are sprouting like mushrooms these days. Entrepreneurial people can always smell where the money is. All I wish is that exchanges should take care of the very reason why there are doing business...it should be centered on the people they are serving and not just their pockets.  Exchanges are playing a very critical role for a very healthy cryptocurrency ecosystem.

[Rodon]

In my opinion, people who make the best profit on cryptocurrencies are those who succeed to buy BTC at its lower price and sell it when it goes up and is stabilized. And they do it again and again, every time the price goes down.