Why Crypto Exchanges Should Lower Their Fees and Profit Margins

[erricducducan26]

The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.

https://bitcoinist.com/why-crypto-exchanges-should-drop-their-fees-and-profit-margins/

[jossiel]

The article is telling about the zero fees which was done by Poloniex. But thinking of the consequences if exchanges will allow this to happen, I only see a very small chance that it can. They may implement zero fees but they have to look for elsewhere to continue supporting their costs of operation.

There's already a network fee as stated but it shouldn't be told on the article like that because the exchange isn't the one that confirms the network. But it will be great if we finally see some other known exchanges do this.

[smartbitcoininvestor]

Lower fees =/= happier users

Not necessarily true. There are a lot of factors that go into making a cryptocurrency exchange successful such as branding, marketing, the # of trading pairs, the user interface, accessibility, verification and the country they are located in.

Every exchange is different so it is tough to say when or if they will lower their fees.

My suggestion is to do some research on what exchanges are out there (including their fees) and choose the best one for you.   

[looterrific]

Not going to happen to other exchanges. They need another source to in order to provide profit that the trading fee has. Also, greed will always take them. As long as people are content with the fees, they will still have it since having zero fees doesn't really mean that more users will use it and they will have more profit that way.

[eddie13]

I traded HUOBI pretty hard when it was still possible for me.. It was a zero fee exchange..

I absolutely friggen loved it!!! Zero fees is awesome for a trader like me (daytrader with tons of trades)!!

They made their money on margin positions and WDs instead of regular trades.. It was great!

I wish their was a BTC/fiat exchange like that I could trade again!

And, I even think the volume was real, because I could trade all day with small hits or misses putting down huge volume for my size and still WIN..

[CryptoBry]

The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.

We already have a flood of cryptocurrency exchanges, and yet we don't see massive shift towards minimal fees or even zero fees. Many of these outfits are for making good profits, first and foremost, and so they must be charging the fees or to implement creative ways to make money otherwise they might not grow as big as they want to be. We already know how big exchanges can be so profitable like Binance is doing right now. I am hoping that eventually competition can be taking a tool on charges and many can be lowering whatever they are getting for trades and for withdrawing the assets from their platforms. Some are really charging exorbitant fees and its is time maybe that we users should sound this message to them.

[pooya87]

it will all come down to competition.

so far, there isn't that much competition going on, those exchanges that are trying to offer lower fees or even zero fees don't  count because they are are currently so desperate for volume to just stay afloat and not die!
and the big ones that do count which are getting huge volumes like Coinbase for example, already have their large number of customer (and growing) and are not afraid of losing them so they don't feel they need to compete with anything.
if this situation were to change and more big exchanges were to be created then the fees would automatically reduce, supports and services become better and a lot more!

[Darker45]

The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.

https://bitcoinist.com/why-crypto-exchanges-should-drop-their-fees-and-profit-margins/

The evolution of crypto exchanges should be more focused on the shift from the centralized exchanges that we abundantly have right now into decentralized exchanges. A peer-to-peer exchange platform would definitely reduce the charges and fees that are imposed by the centralized exchanges. And not only that; it will also strengthen the promotion of peer-to-peer trading which is what Bitcoin or crypto should be all about in the first place.

There are a number of new exchanges that are marketing very low to zero trading fees, minimum withdrawal fees, narrower spreads, and so forth but these are mostly young and unknown platforms. We are expecting more of this reduction from the big players.

[the rise]

The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.

https://bitcoinist.com/why-crypto-exchanges-should-drop-their-fees-and-profit-margins/

https://poloniex.com/fees/
poloniex still prioritizes promotional objectives until the end of the year, they also cannot be used as a benchmark. if they really intend to be serious, the same promotion must also be conducted for poloniDEX. In general, we all think a lot of things have changed, but their services have proven popular, even users don't always see the fees set, in the end the business must still benefit the owner.

[xZork]

There are many exchanges in the cryptocurrency market and each one has a different strategy to attract traders. Reducing exchange fees and withdrawal fees is also a very good tactic to attract traders to use the exchange. However, all exchanges are for-profit, so they will definitely not be able to reduce transaction fees too low.
Personally, when choosing a transaction to use I am more concerned with the reputation of the transaction than the exchange fee. Because if I was hacked to lose all my assets, then what does the transaction fee mean?

[perla]

About fees, there will always pro and contra about it. I think for now exchange's fee still not be a problem. If they are a big problem, maybe a lot of traders wouldn't trade in exchanges. And they are not open for social work, i mean they need operational cost so, i think as long traders still use it, not need to be worry about exchange fees. If me, as long the exchanges really do their work, like security or maybe good services, fees in trading and withdrawal i will follow it.

[b2u01]

Bitcointoyou it is a cryptocurrency exchange created at 2010 and now have more then 350 thousand users.

It is not charging fees to trade BTC, LTC, ETH, USDT, USDC

We don't believe is heatlhy to an exchange to not charge fees to all pairs/cryptos. So we charge to do FIAT withdrawn and pair BTC/BRLC

[arimamib]

About fees, there will always pro and contra about it. I think for now exchange's fee still not be a problem. If they are a big problem, maybe a lot of traders wouldn't trade in exchanges. And they are not open for social work, i mean they need operational cost so, i think as long traders still use it, not need to be worry about exchange fees. If me, as long the exchanges really do their work, like security or maybe good services, fees in trading and withdrawal i will follow it.

as long as these costs are incurred and the exchange provides good services, I am also willing to pay. so in my view it is not much different, when they provide good service then they pay workers there to provide services for us, and therefore costs are needed.

[acdc]

The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.

https://bitcoinist.com/why-crypto-exchanges-should-drop-their-fees-and-profit-margins/

https://poloniex.com/fees/
poloniex still prioritizes promotional objectives until the end of the year, they also cannot be used as a benchmark. if they really intend to be serious, the same promotion must also be conducted for poloniDEX. In general, we all think a lot of things have changed, but their services have proven popular, even users don't always see the fees set, in the end the business must still benefit the owner.

Polo deleted my friend's account, they don't have any notifications. He tried to contact support but just received silence. At the present time the email that he uses to register for the polo exchange can create a new account.
Therefore, transaction fees are not as important as reputation. Even when the polo brings the transaction and withdrawal fees to zero I never use the polo exchange, it's too dangerous for my assets.

[alyssa85]

The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.

https://bitcoinist.com/why-crypto-exchanges-should-drop-their-fees-and-profit-margins/

The article criticises Coinbase and praises Poloniex for having zero fees.

The only problem with this: Coinbase is a solid exchange and Poloniex is crap.

The move from Poloniex to have zero fees is similar to what Cryptsy did before they did a runner. Zero trading fees (to encourage volume) and high withdrawal fees (to discourage withdrawals and make a profit from those who do take their money out).

It's not a good sign. You should always ask yourself how these exchanges make profits. Some are upfront by charging fees. Others are dodgier and are using your coins to trade while trying to discourage you from withdrawing.

[Youghoor]

What people in this crypto space need to understand is that crypto exchange platforms provide services and people are expected to pay for them services they provide them. In as much that some platforms provide lesser fees than others does not really guarantee that they all provide similar services. There is no way most crypto exchange platforms will agree on the fact that they should lower their fees and profit margins. No one will provide services without having the mind of making profits.

[sovie]

There won't be zero fees at any exchange, let's be realistic. To bear expenses like maintaining infrastructure, employee pays and cyber defense exchanges need money. The only thing we can suggest about the fee is that it should be under some limit. Reasonable the fee, happier will be the client and this will attract more business to exchange.

[codegnome]

That's why I HODL. No trading means no exchange fee. Exchange fee trouble those who do the day or very frequent trading. The exchange fee is not only a matter of concern in crypto but in equity, forex and commodity also. In my opinion, nothing can be done against them as long as day traders are willing to do so many transactions per day.

[icewitch0612]

I think that you can find other ways to monetize, in addition to fees. Fees must remain in the past.

[pjcaruci]

Reducing fees is definitely necessary, but to understand how much you can reduce, so as not to harm, you need to do it gradually.