Many people are unaware of the power cryptocurrency exchanges hold in the crypto market today. While many are familiar with the exchanges themselves, most do not know of what it costs to companies trying to get listed. Nor is it common knowledge about how much profit these exchanges generate.

Millions of people all over the world are already familiar with the consumer side of crypto. They understand the meaning the acquisition, trading, abd selling of cryptocurrency. On the business end, there is a darker, lesser-known side. Crypto exchanges are actually making stacks of cash by charging companies hundreds of thousands, even millions of dollars for a simple listing.

Supporting the Market

Being a top crypto exchange means you provide outstanding service. It also means you have a huge amount of traffic flowing to and through your site. This translates into value for these exchanges. This value then is reflected in the cost to those who utilize the exchange. Both consumers, as well as businesses, are subjected to increasing prices.

Commonly, most cryptocurrency exchanges will make money through listing fees, transaction fees, and withdrawal fees. This profit structure allows exchanges to make money constantly, no matter the value of the cryptocurrencies they list.

The Top Exchange

Binance, the biggest and most trusted exchange, cleared $200 million in profits in January along from their fee structure. Rumors suggest that their listing prices are upwards of $1,000,000. However, CEO Changpeng Zhao, stated back in August that Binance charges no fees. Instead, they focus on which projects meet their standard of excellence and are worthy of listing.

Maybe you are one of the lucky ones and Binance listed your coin. Whatever they may or may not charge you might seem irrelevant once the value of your coin starts to climb. Although the market is radically different now than it was in July, investors can still expect to see their projects value increase considerably after being listed on Binance.

The Push for Profit

Binance isn’t the only one generating massive profits. There are other exchanges out there as well such. For instance South Korea’s Upbit and Bithumb who, despite finding themselves on the wrong side of multiple hacks and a bear market, still manage to turn profits of $60 — $70 million annually (down from their regular $100 million).

Final Thoughts

There’s no doubt the future of crypto exchanges will undergo changes. The market constantly attempts to return bullish once again. Will larger exchanges buy up their lesser competitors? Or will existing financial entities from the centralized world look to capitalize as crypto projects continue to emerge?


Also published on Medium.