Trading fees differ from exchange to exchange. How do the exchanges utilize these fees? Where does the money go and what are you getting in return? To answer these questions, I’ve done some research in the matter in order to see what the fees are; and consequently, the turnover of several crypto exchanges.
If we look at coinmarketcap.com we can extract the daily volumes of the crypto exchanges. The trading fees are taken from the respective exchange website.
(Trading volume x Trading fee) x 30 = Turnover
Trading volume = Daily trading volume in $
Trading fee = trading fee in %
Turnover = Turnover per month in $ (indication)
For simplicity I have multiplied Turnover x 30 to have an indication what the monthly turnover is. See the results in the below table:
I’ve been active in the crypto ecosystem since 2013. For me, the blockchain technology is about giving back to the community. Exchanges are the infrastructural backbone of the crypto ecosystem. So far, we cannot exchange our coins without the use of these centralized exchanges. This is in my opinion counterintuitive — and rather ironic — if you keep in mind that decentralization of the financial service industry is currently at play due to blockchain adoption.
The above monthly turnover figures raise the question as to why crypto exchanges still deal with large organizational and process issues. It definitely looks like they’re earning plenty of money. Why are they then not able to implement a functioning helpdesk? Helpdesk tickets are taking ages to be resolved and it can be extremely difficult to speak to a customer service representative. This causes frustration and is detrimental to the experience with the exchanges. Helloo?? Can somebody pick up the phone? I want to talk to a human being! Is this so hard to organize?
It is time for a new exchange. One who makes sure that trading fees are strategically invested back into the user’s experience. Tradebits (www.tradebits.co) is becoming this and much more. Mark my words: this will be the largest exchange in the crypto ecosystem. A stable, reliable, scalable crypto exchange that gives back to the people and is designed with the user as the priority.
Headquartered in The Hague, The Netherlands, Tradebits is building the digital currency trading platform for the next 100 million users. It is the most high-performance, flexible and reliable digital currency exchange platform, capable of scaling and handling an unparalleled number of users and transactions per second and adaptable to the skill level of any trader.
Tradebits uses the same principles that power and secure the world’s most demanding stock exchanges. One of Tradebits’ hallmark features it it’s configurability to match the sophistication level of every cryptocurrency trader. Users of the exchange will have access to 24x7 live customer service as well as a myriad of 3rd party trading apps and resources through the Tradebits Marketplace. Tradebits gives back to its community by using 40% of all trading fees for the continuous purchase of XBITS tokens across various exchanges to generate upward price pressure.
To learn more about Tradebits, visit www.tradebits.co and download our whitepaper.
Announcements Channel: https://t.me/tradebits_announcements
Discussion Channel: https://t.me/tradebits_exchange