How does exchanges work?

[doomistake]

Actually exchange works very simply, they only provide a place for traders to trade, they benefit from the market activities of traders such as selling, buying or withdrawing assets they have, just like the way foreign exchange or stock market works but in exchange of crypto currencies such as bianance of commodities traded are crypto currencies such as bitcoin and others.

Correct, every trading platform works the same, the only difference is that they have different approach in every altcoins. Like for example, in Binance, Ethereum price is higher than the price of ethereum in coinexchange, and so on. It is like a store which have different set of prices depends on the goods that they are selling, because if they all have the same prices, they won't make any profits

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[Mahanton]

Hi everyone,
We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?

It isn't really that complex at all yet exchangers is just a business where building a platform which would handle out traders who do buy and sell cryptos.

How to make profits? They do get that from trading fees on each transaction made by traders and this is the way they do gain out and with such high number of
users then its just normal to think that they are really reaping out some good profits.

[semobo]

Actually exchange works very simply, they only provide a place for traders to trade, they benefit from the market activities of traders such as selling, buying or withdrawing assets they have, just like the way foreign exchange or stock market works but in exchange of crypto currencies such as bianance of commodities traded are crypto currencies such as bitcoin and others.

Correct, every trading platform works the same, the only difference is that they have different approach in every altcoins. Like for example, in Binance, Ethereum price is higher than the price of ethereum in coinexchange, and so on. It is like a store which have different set of prices depends on the goods that they are selling, because if they all have the same prices, they won't make any profits

The price difference came from the trader,exchanges just providing the place for trader and all other things done decentralized manner there maybe some manipulation on the prices but you can set your own price and can wait for the order to come.

[bonker]

If someone has the Bitcoin in their and they want their country currency then they will do it like exchange in the rivers process if someone had their own country currency to buy the Bitcoin then it will enter into exchange method and it is a normal process.

[LUCKMCFLY]

Hi everyone,
We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?

How do they win? If you open a position only with Stop Loss, the movement of the currency may occur until the trader considers that he has already won, but in case the trader sees a rise in his position and does not want to close it to take his small profit but that leaves because it thinks it can continue to grow, the currency can suffer a fall that touches and take the Stop Loss, then you would be moving from a winning position to a losing, it is totally legal, but restricts the trader to be able to set their rate of profit If you do not touch your profit level, and in case the trader is not pending, you can go up very fast and not give you time to take your profit.

The other way is to open a position only with Take Profit, which the trader expects his currency to rise to where he left the order to take profit, but in case there is no movement, but the market becomes bearish and begins To fall a lot, you would obviously have a substantial loss because you can not place a Stop Loss, and here obviously the Exchange takes profit legally.

These ways are what this type of Exchange has, everything would be solved if for a position they could open both characteristics as it happens in Bitmex and in Bitfinex.

Another way they have to win is that the Exchange knows in what points the resistors and ceilings are really, then according to this information, they can open positions with certainty and be able to win, this is another way that obviously many Exchanges apply it, and the ones in charge of this are the Bots.

[Chacha1000]

Different exchanges have different ways they work because it involve different programmers. What i do is that i watch videos online on how to use a particular exchange .

[celot]

My opinion about how exchange is working based on how supply and demand, after listing on exchange market seller and buyer is the most important make how exchange working with price they buy and sell order.

[poodle63]

Different exchanges have different ways they work because it involve different programmers. What i do is that i watch videos online on how to use a particular exchange .

Im not sure when you are talking about the centralized exchange site because they have used the same methodology but they only have differences in its future and service. that will be different when it comes to the decentralized exchange site in any network because the composition of any platform with another platform will differ from the whole aspects.
But he was asking about the strategy used by binance to get profit. provide more services that will get a lot of demand and charge big fees for that as a major exchange site.

[finaleshot2016]

Actually my fellow students in my university are also conducting a crypto-related research. Think about the platform first and the storage of your project. This whole project was full of programming codes so It might take you a lot of time to create a Binance-similar exchange site. Are you going for a research only or a project for getting a profit? What did you think off about it? Decentralized or centralized? Please be specific on the conditions. Because if it's centralized and for profit, you need investors or sponsors to support your project to be implemented but I don't think it's easy for a group of 3, still kudos to you guys!

[Aldrinx00]

You need a huge sum of money before you can build up an exchange, this is for salary of the staff, developers, equipments, etc. You also need some good connection on the government and Malta is very open for cryptocurrency start up that's why they moved there. Binance exchange get profit from coin listing fees and trading fees, i think the only time that an exchange may loss profit is when they got hacked.

[whirlcoin]

Hi everyone,
We are three university students aiming to research about how exchanges such as Binance work. Since Binance has got a complex system, we were wondering if any of the members in this forum are informed about how did this project started, how does it work and based on the intense fluctuation of the cryptocurrency market how does Binance avoid losses and makes a profit?

there are two types of exchanges if someone wants their Bitcoin to be transferred into the normal currency then second use exchange and makes the the transfer easily with some fees and this is the profit for them and if it reverse process then it also called as exchange.

[calandra78]

Hi everyone,
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They getting new customer and become member to trading them exchange, then they getting trading and withdraw fee while customer did on exchange for trade, Profit gotten. Binance is good one exchange when people going to get what they dream to buy lambo, then getting gready to get losses without skill trading.

[Xampeuu]

I think for those who want listings in binance, they must pay the listing money, besides that by using the transfer fee they get money. on the other hand the more people need binary coins, the higher the price of the coins

[d1ceplayer]

You need a huge sum of money before you can build up an exchange, this is for salary of the staff, developers, equipments, etc. You also need some good connection on the government and Malta is very open for cryptocurrency start up that's why they moved there. Binance exchange get profit from coin listing fees and trading fees, i think the only time that an exchange may loss profit is when they got hacked.

I think Binance has already dominated Malta, and it would not be right for smaller exchanges to go there again, except they have very strong competitive features to compete with bitcoinor has any offer they can give to Maltagovernment that will be higher than that of Binance. We still have some other smaller and big countries that are cryptocurrency friendly, I think Russia is also friendly; Huobi has already dominated china because that part of Asia prefers to deal with Huobi.

Irrespective of all these, any good exchange should still be able to operate anywhere provided they are not avoiding task, because I think one of the reason why Binance moved from US is to avoid task, and that is why US is still having some issue with them now.