Isn't crazy how much does bitcoin exchange earn?

[i_love_rain]

i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!

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[Xester]

i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!

Well that is how exchanges live and survive and earn money. But not all exchanges have a high success rate. Exchanges spend  huge of amount promoting their website and have paid a number of people to be known and to gather more clients. Without clients exchange will bound to fail. I remember the exchange live.megacrypton, it disappeared from the web since only a few users are trading.

Aside from the huge income, the exchanges also make sure that all coins in their site is moving and so they create transaction flows which sometimes are risky and cause them to loss a significant amount of btc.

[Getcoinsite]

i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!

Well that is how exchanges live and survive and earn money. But not all exchanges have a high success rate. Exchanges spend  huge of amount promoting their website and have paid a number of people to be known and to gather more clients. Without clients exchange will bound to fail. I remember the exchange live.megacrypton, it disappeared from the web since only a few users are trading.

Aside from the huge income, the exchanges also make sure that all coins in their site is moving and so they create transaction flows which sometimes are risky and cause them to loss a significant amount of btc.

right mate,you have got the right impression on how the crypto moves in every exchanges not just bitcoin but as what OP said other altcoins also..we must consider how they need to popularized their platform anit cost advertisers too,for them to gain another set of investors and clients .this is not all about incomes theres an opposite side of gaining and thats the overhead expenses,and the people on their backs to push them to mainstream..yeah thats right that they have earning good bucks but not that huge as what OPs thinking

[mk4]

Don't forget that exchanges are surely spending big money on website development, taxes, employees, miscellaneous fees, web security, all those stuff. Especially the security aspect. An exchange can easily easily go bankrupt or at least lose a huge sum of money with a single successful hack. Take a look at what happened to Mt.Gox and Bitfinex in the past. Security is not something they should just "meh, lets just spend a few thousand bucks on this". But it's true though, they do make a lot of money. But they also definitely spend a lot of money. It's definitely unnerving being a constant target for hackers.

[SyGambler]

i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!

they do make a lot , like really a lot but there is some expenses of course also the legal stuffs require money
but even after expenses they make a lot of money , still we don't see a single exchange with good support system so basically they are making tons of money and not giving a damn when their customers need them 

[Kprawn]

Well, Coinbase made $1 billion in revenue in 2017. 

>>>Source : https://www.investopedia.com/news/coinbase-made-over-1b-revenue-last-year-report/

Coinbase has more brokerage accounts, over 13 million, than the trading giant Charles Schwab. 

Kraken, reportedly added around 50,000 new users in a day at the end of 2017. The volume handled by these exchanges are

enormous. Now, you can see why these exchanges are adding more and more Alt coins to their service. 

[gentlemand]

I cannae wait for some robust and simple decentralised exchanges to pop up. People are rushing headlong into enabling cartels once again and they're growing in power and influence by the day.

Exchanges now can make or break most coins. That's not how it should be.

[Slow death]

i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!

the exchange makes a lot of money, but it does not have enough staff to answer the support tickets, the exchange has a lot of money but there is no phone number and no legal accessor, the exchange has a lot of money but there are no physical offices and licenses. becomes a very worrying situation of how it is possible that someone who owns an exchange that makes huge profits has no desire to have a physical office, telephone number and staff enough to provide quality support services.

I would like someone one day to create a thread with details of how many staff each exchange has to know what exchange we have to use and what exchange we have to avoid.

[VitKoyn]

i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!

Yes, cryptocurrency exchanges earn a lot everyday especially those exchanges that have a huge volume of trades, 0.3% trading fee is a small amount for a single trader but if there are lots of people who use their platform and sum all of it, it is sure a huge amount of money, but I agree on what other say here, they also spend a lot of money (for better system security, advertisements, pay their employees, etc) to make a competitive services and for people to choose or trust them with their money. And of course exchanges are still business so they will always find a way to make more money.

[fiulpro]

That looks like a very fascinating number. Nut certainly they have their own expenses aswell. Anyways, they make a hefty margin on transactions and thats a fact. To have this going smoothly, allot of machinery and manpower goes into it. Also, more and more exchanges are coming up and taking a stake in the market. This figure suits a big exchange point but the story may not be same for every exchange.

Also they need to look into taxes and all the legality of running such a business in the country. Its allot of work, and what they make out of it is well worth it. Because 0.3% seems to be extreamly less and this has been possible only because of their expertise and work.

[AlphaWolf]

Still they aren't able to implement a proper support system, let alone proper servers which can handle the traffic. I don't know where they are putting all this money they are earning. Cause it sure isn't on improving the platform and serving their customers better.

[gentlemand]

Still they aren't able to implement a proper support system, let alone proper servers which can handle the traffic. I don't know where they are putting all this money they are earning. Cause it sure isn't on improving the platform and serving their customers better.

The money goes straight in their pocket. They can afford to piss off a minority. They know the majority will continue to pile in. This is what happens when choice isn't diverse enough.

It needs to get past the growing pains and gold rush stages and only then will they concentrate on serving customers properly. Right now the mania covers a multitude of sins.

[supermine]

i just did a simple calculation, about 35k bitcoins are traded on GDAX every day. At its current price of $6900 and a trading fee of 0.3%, the exchange puts about $700,000 in its pocket EACH DAY and it is ONLY for bitcoin. After including all other cryptos, this number can go up to more than $2MM. Since the exchange is active 365 days a year, the exchange's annual revenue can reach almost $1bn!!

So if you think that is too easy then go and start and crypto exchange and earn money as one or $2B per year.

It is not eary right you need to see the work behind all those exchange and they also have expenses and only few exchanges can earn these kind of earnings in future many competitors will come into the field so they also have to upgrade to withstand the new rivals.

[tegarp90]

Yes they earn much money.
But they also have very big responsibilities to hold people's money billions dollars.
I think they deserve it.

[Xavofat]

Many significant crypto exchanges (such as Bitfinex) are operating in foreign countries and serving US customers illegally or otherwise acting in a shady manner.

When you don't have a lot of options except for suspicious exchanges, you search for the exchanges which are just shady and not clearly scams.  And you make a judgement on whether or not they're scams very quickly, because you're probably a newbie whose mate told him that Bitcoin was going to make him rich over the next week, so you don't care if 0.3% or so is sliced off your BTC stash.

[Vit83]

IMHO big fees on crypto exchanges will go lower in the nearest future. Big algotrading companies can't play this games with such fees. They can give great volume to exchanges. So waiting for big players and lower fees.

[Razick]

With the amount of work which goes into keeping these exchanges up and running for people to be able to trade their coins and get money I think they deserve every penny they are getting. They have employees they have to pay and maintaining a site that has millions of users and millions of visitors everyday is no easy feat and they should earn what they are earning for their work.

[freesia_pnp888]

HA! you think they would pull out such business to collect pennies and dimes? noooo, they think big and earn big lol

[1C6fV5DtakfKANLJ8GUV7hCaA]

This explains why these exchanges are really powerful as they are the ones who provide platforms for trading. I always wanted to start an exchange of our own but the competition is really intense.

[talkbitcoin]

I cannae wait for some robust and simple decentralised exchanges to pop up. People are rushing headlong into enabling cartels once again and they're growing in power and influence by the day.

Exchanges now can make or break most coins. That's not how it should be.

exchanges like Coinbase are always going to exist and be necessary since they are working with fiat and fiat requires a centralized place such as these exchanges.

additionally decentralized exchanges are not yet offering same options as centralized counterparts and sometimes are even slower too. which is why they are not yet that popular.