Almost everyone is busy to invest in cryptocurrency and I was too but how many of us have ever thought to start a white label cryptocurrency exchange software?
Now the question is, what are the reasons to start the white label crypto exchange platform?
Is there an opportunity to make money?
The answer is yes, there is an opportunity to make a million-dollar income if you are the owner of white label crypto exchange software.
Probably every new investor is aware of Binance and Coinbase, the two largest exchanges in the cryptocurrency world.
In a recent report, Bloomberg reported that Coinbase the largest cryptocurrency exchange has made close to $460 million profit in 2018 while Binance reported a profit of $200 million in January 2018.
Now the question is, how the owner of these exchanges are making a large amounts of profits by simply setting up the white label crypto exchange platform?
Here I highlighted a few of the major revenue streams and in addition, there are a lot many others.
Major Revenue Streams For White Label Cryptocurrency Exchange Software Owners
If we start counting the opportunities for an exchange owner to monetize from his platform, you will come across countless ways. We decided to highlight a few which are very famous and major sources of income.
Below listed ways are very famous among all exchanges.
Trading Fees
The objective of any white label crypto exchange platform is to bring all traders together on a common platform and allow them to trade with cryptocurrencies.
Every exchange is listed with more than 50+ cryptocurrencies to trade among each other and to place, buy, or sell orders traders have to pay some trading fees.
These trading fees are the primary source of income for any white label crypto exchange platform owners and if take an example of various exchanges then
- Binance trading fees vary between 0.05% to 0.1% depending on the amount you trade.
- Coinbase has trading fees of around 2.99%.
- Bittrex has trading fees of around 0.25%.
While considering the Binance, it has a daily trading volume of more than $1 Billion.
So you can imagine the profit Binance is making by their white label crypto exchange.
Cryptocurrency Listing Fees
Every cryptocurrency project is listed on more than one white label crypto platform, and the fact is that there are more than 2000+ cryptocurrencies trading in the market.
However in my knowledge, at present, there are very few or a limited number of cryptocurrency exchange platforms available today.
The owner of the crypto project loves to list its currency on one of the trading exchanges, as a result, it can increase its market value and the price of its cryptocurrency.
In order to list any cryptocurrency on a cryptocurrency exchange software platform, they have to pay some listing fees which will vary as given below.
- Medium to average exchange charge in between 1-50 BTC.
- Bigger exchange charge in between $1-$10 million.
Imagine what exchange owner has done, nothing. He just gave a space or approval to cryptocurrency and few backend changes to support that crypto wallet and made more than $1 million income from only one listing.
Isn’t it surprising?
Let’s move ahead and focus on one more.
Deposit and withdrawal fees
Cryptocurrency exchange only allows trade-in cryptocurrencies and no fiat currency like USD, GBP, EUR, etc.
So what if you are willing to buy cryptocurrency like Bitcoin, Ethereum using the fiat currency, you need conversion right?
Yes, the White Label Crypto exchange platform provides a service to do the conversion from fiat to crypto by an average charge of a minimum of 10$ or 5% as transaction fees whatever is maximum.
On another side, if you are willing to transfer or withdraw cryptocurrency from the exchange platform then you have to pay withdrawal fees of around 0.01% for every transaction you made
And no one can deny that we all need the conversion one way or another.
All this comes as revenue for the Bitcoin Exchange Software owner.
Another source of Income from White Label Crypto exchange platform
What I explained were among the most popular sources of income but there are a lot many others like:
- Allowing new crypto projects to launch their Initial exchange offering (IEO).
- Launching your own exchange token and promoting it among traders to take advantage of trading fees and increase the value of your token.
- Increase the crypto holdings or liquidity by offering the stacking facility in exchange for interest commission.
- Reinvesting the crypto holding into other industries like retail, stocks, etc.
To learn more on all, here is a detailed guide on how any exchange owner can make a million-dollar income by Cryptocurrency exchange software platform.
If you are interested then why don’t you deep dive into it and find out your opportunity to scale the current crypto holdings into the ownership of the exchange.
