As we all know, the market for cryptocurrency has been in a non-optimal position all through this year. But this has not affected the crypto exchange market, as it is still expected to collect substantial revenues.
The crypto exchange markets are mostly based on the purchase and sale of various cryptocurrencies, and the trading or transaction fee charged on each transaction. Also, exchange markets that offer fiat-to-crypto charge an extra processing fee for the withdrawal and deposit.
The revenues generated by these are impressive to look at, and it can be said that this budding industry remains lucrative after the downfall of the cryptocurrencies itself.
What is Crypto Exchange Market and its Principle?
While there are hopes for the cryptocurrency market to develop and evolve back again, the crypto exchange market all over the world is running smoothly and is making huge profits.
Considering the statistics, there are more than 500 crypto exchanges around the world dealing with a combination of over 2,000 different cryptocurrencies. Most of these exchanges work in a centralised fashion and operate more like a private company. In a way, it can be said that the exchange market is playing its part in facilitating the growth of the cryptocurrency.
With all these factors into consideration, it can be said that the crypto exchange market is a significant part of the crypto world, which cannot be sidelined.
How the Crypto Exchange Market Works?
According to various reports, a lot of exchanges make a profit in million-dollars on a daily basis. This also lets us wonder how is there an increase in the crypto exchange business, even after the drastic downfall of the currencies.
The increase is mainly because of the mediation they serve between the sellers and the buyers. They earn by adding a transaction fee to complete the sell or buy order, irrespective of the rise or downfall of the currency rate.
Decentralisation is another reason that aids in continuous money making for the exchanges. If there is a rise in the rate, there are more buyers, and if there is a downfall in the price, there are more sellers. Both ways, transaction fees are charged, and revenue is made.
This way cryptocurrency exchanges always remain in profit irrespective of the market trend.