In 2021 alone, Binance’s revenue was approximately $20 billion. Coinbase was 7.4 billion. That’s billions with a capital B!
Given these numbers, there is no doubt at this point that running a crypto platform is big business with huge opportunities for entrepreneurs.
Not only that, but nowadays you don’t really need a huge investment to start your own crypto exchange as many would think. These have become increasingly accessible businesses thanks to the development of a powerful crypto white label tools and services that facilitate all the steps to set up a functional and easily customizable exchange.
This new opportunity has caught the attention of a large group of people interested in trying it out in this ever-growing industry. Still, many are not fully aware of the business opportunities of an exchange platform and delay launch, resulting in wasted potential.
Because of this, this article will share the 10 key benefits of building and launching your own exchange so that you can see the many online business prospects of running a crypto platform.
I guess you expected this one. Since the dawn of online trading, trading fees have been the main source of income for exchanges around the world.
Long before cryptos even existed, traditional exchanges and brokers were already benefiting from small commissions on every transaction, a model that has endured over time thanks to its simplicity and effectiveness.
Crypto exchanges have proven to be no exception to the rule, with every major trading platform charging at least a tiny fee. Enjoy the joy of simple things!
This is one of those underrated features that not many people talk about, even though it has the greatest potential and can become a major source of daily income.
Market Making, Liquidity and Spread are undoubtedly money makers if you know how to use them. It’s not easy, but once you understand how it all works, all you need is a trading bot, a spread, and some multi-exchange funds to start earning an extra profit from your platform trading activity.
Some exchange systems include a simple broker system This allows you to set your own prices and easily apply spreads on popular crypto assets, and also makes profit estimation easier.
If you have your own coin project, you surely know how difficult it can be to attract new investors. In this highly competitive world, getting the attention your assets need can sometimes feel impossible.
Any coin founder will tell you that it is almost impossible to list your project on any of the major exchanges, especially if you don’t have a big pocket to offer or a large coin market cap. Undoubtedly, getting started can feel like an impossible challenge when entering the business.
Having your own exchange solves many of these problems as your investors have a safe and trusted place to trade your coin. In contrast, you don’t need to invest large amounts of money into a regular listing, and once your active user base starts buying the coin, your platform’s balance sheet will be in dire need of it.
It’s no news that we’re in the age of digital advertising; Everyone has been running ads everywhere lately, and crypto exchanges are no exception.
Be it a simple banner above your market listing, a popup for newbies, or a GIF on the side of the screen, any of these formats will get the good traffic you have going.
Previously, we talked about how difficult it can be to get your own token listed on a reputable exchange. But what if you’re on the other end of the deal?
If your exchange has a decent user flow, chances are coin teams are interested in listing their assets on your site for a reasonable price.
Not only that, but listing multiple projects will attract niche audiences to your exchange who will likely shop around and maybe even make some additional trades.
With your own business you can offer products and services that others in the same industry do not offer. This strategy is called differentiation and the crypto exchange is a perfect financial system to create different services.
For example, you could support fiat currencies that most exchanges overlook, offer exotic trading pairs, or give your users creative ways to earn interest on their assets. The key is to offer something new and useful!
Imagine you followed my last advice and built your own little community; What now?
Well, you can now offer them your own new products! And because they already trust another of your products (your crypto exchange), they’re more likely to buy your new stuff, or at least pay attention to it.
Investing your extra money can seem like a tough decision as the sheer volume of options these days can be crippling. With so many ways to do this, I don’t blame you if you’re feeling lost or confused.
Luckily, if you have a crypto exchange, this can be a no-thinker; Reinvest your money in things like providing liquidity or setting one up OTC Funds is much easier than it looks and can bring great returns if planned well.
Many people have pointed to Bitcoin as a kind of angel of savior since it was created just a year after the infamous global crisis of 2008, in which many people lost their entire life savings accompanied by their trust in banks.
Now, 15 years later, cryptocurrencies are still filling in the gaps that banks don’t have, offering people the ability to access banking services like loans and savings accounts who previously weren’t able to access them the traditional way.
If you’ve been surfing the web for a while, you probably know how important audiences are. This is even more important if you are running a crypto exchange as it will have a multiplying impact on all of the above benefits.
These are the people who are watching your brand and waiting for new stuff, so building an audience with your crypto exchange wouldn’t be a bad idea. Who knows where it will take you?
Additionally, you could also bring an existing audience to your brand new crypto exchange to offer them new products from a trusted source they already know. Reach more audiences with recommendations and marketing campaigns right on your platform.
As you could see, building your own exchange has a pretty decent list of benefits that most have never thought of, thinking it’s way too late or way too difficult a venture. But exchanges are actually much simpler and more versatile business systems than they might appear at first glance, and all thanks to white-label tools like HollaEx this makes it a lot easier to get started!
From token projects, market making and marketplaces for crypto products, the possibilities are actually endless when running your own crypto exchange and these 10 were just a few examples of what can be done; Your imagination is the limit!