Why Crypto Exchanges Should Lower Their Fees and Profit Margins

[alyssa85]

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

What other ways?

Exchanges have four methods of monetisation:

1. fees applied to trades

2. fees applied to withdrawals

3. profits made from using members coins and lending them out. This is super risky

4. the exchange using members coins to trade for themselves. This is also risky - if the exchange loses, that's the members coins gone.

Fees applied to trades is the least risky option.

[johnwest]

I would definitely support this thought as the exchanges are taking heavy fees on some coins in the name of 'Network fee'. There are lots of allegations that exchanges take heavy fee on listing also. Exchanges are the gateway for common people to start investing into crypto so they have to think about this.

[Tipstar]

The article mainly covers Coinbase and related exchange that has insanely higher fees. The only reason for people using them are the bank integrations.
For a better trading environment, traders should bypass the high fees exchange in favor of low ones and use them as little as possilbe if you really have to. For example buy a coin with fiat and withdraw immediately to another exchange for trading rather than trading on the higher fee exchange. The cost for you might be the same and maybe a larger hassle but that would be a message for the exchange.

[putukin]

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/

Perhaps Poloniex is thus trying to get out of the bottom. The exchange has long been not popular because of its problems, which began when Circle bought this exchange. I think it is absolutely not profitable for any exchange to make a zero fee and this is an isolated case

[albon]

These fees imposed by the exchange platform on traders like the fuel that drives the machine, without this fuel the machine will not run, the machine here is the exchange platform and the fees differ from one platform to another, according to the services provided by each platform to its traders, and according to the features and developments of each platform, It will be good when platform fees are reduced, but will they continue to provide the best level of security for traders and the services they provide?

[Aikidoka]

I think it's kinda impossible for crypto exchanges to lower their fees because that's how they're getting profit, I hope that's gonna happen in the future but it's so hard to be realized. I just didn't get higher fees for withdrawals on Yobit. I used this exchange platform and the withdraws fees for bitcoin is around 0.0012 btc which it's so high as well as fees for dogecoin are high compared to other crypto exchanges like Poloneix (which it's has 0.0005 btc fees for bitcoin withdrawals)

[Zionatin]

Honestly, for me trading fees are not too much of a problem if they are justified by good and fast service. I do not like paying more than $5 for withdrawing in fact I would prefer to pay only $1-$2 to withdraw bitcoins so that is a factor for me. My choice of where to exchange is between the coins they offer and the withdraw fee basically. Next I look at the fees and if they justified and the first two points are met then I will use the exchange. Obviously only after reading about other users experiences using it and doing a few tests withdraws and deposits. Then I will return and be loyal to that exchange since I feel there is no need to change to another one of everything works well and the fees are fair.

[atjiat]

In order for each trader to be able to reduce commissions and other percentages for their activities on the cryptocurrency exchange, for this exchange create their own token, thanks to which the trader can receive significant bonuses.  But if you look a little into the future, I believe that the commissions will increase by a few percent In any case, especially if the cryptocurrency is legalized And if the state requires tax payment on each transaction, as well as when exchanging cryptocurrency for Fiat.  All responsibility, of course, lies with cryptocurrency exchanges, but in connection with this, exchanges will charge interest with a high coefficient on their users.

[South Park]

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/

It is easy to believe that if an exchange does not have any fees when it comes to your trades then this is good for traders, but this generates a problem, bots could be used in an exchange to try to create fake volume and make it seem as if it is very active when it is not, we already have problems to be able to tell what it is the real volume in this market and such a move by the biggest exchanges will only make the problem even bigger so I'm against it.

[DoublerHunter]

There should be fees for the services they provide and exchanges are like middlemen to facilitate trader's transactions from those sellers and buyers. So, logically, we are talking here about the business that they make revenue and continue their services. Just like Binance, they are one of the lowest fees and at the same time a large volume of traders. So, possible they had a lot of staff to pay and all the cost was made on the exchange revenue. Nevertheless, there are few exchange sites that don't have fees but when transferring your crypto asset but it should be the same site, for example, Cobinhood, it should the same company.

[todiboa]

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/

I do not think that something can be expected from other exchanges after one exchange has reduced a fee. This is absolutely unprofitable because this is the main earnings of the exchanges is a fee, a decrease of a fee to zero will greatly reduce income

[diazepam666]

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/

I do not think that something can be expected from other exchanges after one exchange has reduced a fee. This is absolutely unprofitable because this is the main earnings of the exchanges is a fee, a decrease of a fee to zero will greatly reduce income

If they does not reduce the fees for teh traders obviously the people who give the lesser fee than them will be capture the trading volume on their platform.
We just need focus on the good exchange also at the same time because the users are looking for good exchange first and then they want to have the fee also as a matter of it.

[zviadits]

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/

I do not think that something can be expected from other exchanges after one exchange has reduced a fee. This is absolutely unprofitable because this is the main earnings of the exchanges is a fee, a decrease of a fee to zero will greatly reduce income

If they does not reduce the fees for teh traders obviously the people who give the lesser fee than them will be capture the trading volume on their platform.
We just need focus on the good exchange also at the same time because the users are looking for good exchange first and then they want to have the fee also as a matter of it.

The reputation of the exchange, reliability, honesty are more important to me even if the fee is high. It will pay off because otherwise, an exchange with a low fee may turn out to be a scam or have weak protection and I will lose everything

[Krislaw]

It's better they slash their fees because it's ridiculous for big names in the crypto space to charge high fees while the small ones are trying to get to the top. They all had low only to get to the top just to increase their fees. Theee are better exchanges with lower fees with great UI if the big exchanges refuse to reduce their fees.

[adzino]

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/

Exchanges are like digital banks? This is where you are wrong. No way exchanges can be compared with banks. You can say people use it as "digital banks" which is in fact the most irresponsible thing a person can do. Exchanges should never be used as a place to store your coins. Exchanges are prone to hacks no matter how secure they claim they are. Remember, nothing in this world is 100% perfect or secure. Everything has flaws.
They will eventually reduce fees and profit margins as more competition arises. But do know that, even exchanges has to earn money, so don't be expecting extremely reduced fee from them.

[Pearls Before Swine]

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.

I see an even smaller chance, as in *zero*.

How do you think exchanges make their money?  Plus I don't understand how anyone could possibly complain about trading fees on crypto exchanges, because they're all very low to begin with.  If you had to complain about anything, it should be withdrawal fees.  Those are usually much higher than what it costs an exchange to actually send your withdrawal out.

Yes, in a perfect world it would be lovely if exchanges didn't charge anything to trade, but we don't live in a fantasy land like that.

[metalglowd]

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/

Crypto exchange, which has this principle, I think has spread a lot since last year, and up to this point it has no significant impact even on their own projects. Low fees are just a caption to lure investors and eventually they will keep giving normal fees so the project can continue.

[Asmonist]

Its really part of the business to earn from charge fees. Of course there are operating expenses to attend to. But of course fees should be standardize so not to abuse the users. The more competitions arising and many exchanging sites to choose from. I guess these exchanges also had their own strategies to attract customers to use there platform. And most likely customers look on the lowest charge fees.

[nydiacaskey01]

Operating a good exchange site comes with a price. I know that lower fees attracts a lot of new traders to sign up however, if you think about it, where are they going to take or get the money to continue with operations? Lets not give them the reason to scam us, but instead lets give them more reasons to give us the best service there is. Im ok with fees as long as they give good client experience and good customer service, fees will never be an issue.

[blckhawk]

I think what they aim when some exchanges impose higher fees on lower volume trades is that they force such traders to go higher. In the business sector, you could see that whenever you buy huge, the prices become lower. Such as when you buy items in wholesale/bulk, you get discounts and lower item price than when you buy in smaller amounts. Same principle is applied to their exchange.