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)
In order to simplify this, I have multiplied the turnover times 30 to get an idea of the monthly turnover. The results are 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.
