How Does Cryptocurrency Exchange Trading App Generate Revenue?

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Over the past few years, the cryptocurrency market has evolved immensely. 

According to Allied Market Research, the worldwide cryptocurrency market size was valued at $1.49 billion in 2020. However, it is predicted to touch $4.94 billion by 2030, with a CAGR of 12.8% from 2021 to 2030. 

Well, one of the best methods to leverage this crypto market is owning a cryptocurrency exchange trading app. Mobile apps have become crucial for businesses to grow. 

Moreover, a crypto exchange trading app can also be a massive revenue stream. You can make money from numerous sources if you have volume and users are on your app. 

Do you want to know how?

This blog will discuss various methods through which cryptocurrency exchange trading software generates revenue. 

So, let’s get started. 

How to Make Money From Cryptocurrency Trading App Development

1. Trading Commissions

Commissions on trades are probably one of the most common ways to make money from your cryptocurrency exchange trading app. It is a service fee for striking a trade between buyer and seller.

The fees may look small on a per-transaction basis, but they pile up, mainly when the volume is large. It will also depend on your app’s volume; you can also build your own fee structure per trade. 

You can discuss your trading app idea with a leading cryptocurrency exchange development company to build an engaging and intuitive crypto exchange app. 

2. Listing Fees

The bulk of crypto exchange apps charges listing fees for an Initial Exchange Offering (IEO), an Initial Coin Offering (ICO), or a Security Token Offering (STO). The listing fee differs per app; however, it is usually associated with the size and popularity of the app.

  • Smaller crypto exchange apps generally have listing fees from 1 to 5 BTC.
  • Medium-sized crypto exchange apps can range from 10 to 50 BTC per listing.
  • Top-notch apps with the biggest trading volumes will charge between $1 million to $2.5 million for a listing.

As an operator of your own crypto exchanges app, you can decide the listing fees for tokens that wish to access more liquidity via your app. As your app’s size and the number of users increase, your capacity to raise the listing fees will also grow.

3. Withdrawal Fees

Withdrawal fees are levied by a crypto exchange app when users withdraw the cryptocurrency to their wallet. These withdrawal fees differ from app to app, but many provide users an option. They can either pay a flat fee or a percentage of the amount they want to transfer.

4. Market Making

In the cryptocurrency market, liquidity is a crucial parameter. It helps gauge how fast a specific 

cryptocurrency can be traded in the market without compromising its value. Traders generally do not wish to invest in low-volume tokens because of slow or no movement in prices or, contrarily, too much volatility. 

That is when market makers come in and make it simpler for traders by injecting liquidity. As a crypto exchange app owner, you can manipulate the prices on your app and take positions that would benefit you. 

5. Advertising

Advertising is the most compelling method to generate revenue when commencing your cryptocurrency exchange trading app. You can run relevant ads by linking your app to Google AdSense. Furthermore, you can place personal ads from the merchant and make huge profits. 

Crucial Advantages of Crypto Exchange Trading App Development

  • Ease of use – Orders can be placed seamlessly on the mobile crypto trading app. 
  • Live portfolio review and market updates – View market data in real time. You can also keep track of your portfolio and the performance of a particular cryptocurrency. 
  • Notification feature – Get instant alerts about the latest cryptocurrency or any sudden price movements.
  • Analysis and charts – One of the most valuable crypto exchange trading app features is the historical charts and analysis. It enables users to look at crypto prices and delivers analytical tools. 

Wrapping Up 

The points mentioned above depict the different sources of revenue from the cryptocurrency exchange trading app. If you want to create a cryptocurrency exchange trading app, you can take the help of the best Blockchain development company that provides an easy, secure, and valuable crypto trading app for users. However, before taking the services of mobile app developers, you should check their portfolios, ratings, experience, etc.

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