Crypto trading is getting popular, and new users are beginning to use it with each day passing. It has enormous potential and can double the investment in a few days. But the real question is how crypto makes money and how you can earn profit by investing in crypto trading. Well, there are many ways you can earn profit by crypto trading. This article will learn about the crypto exchange platform and their earning methods. Still, first, you need to understand that crypto currency is not a traditional centralized currency issued by banks and monitored by the government. It is a digital currency that offers person to person transfer without any centralized or third party system. Now, when you need to invest in crypto, you need to change your centralized currency to decentralize and crypto exchange can do that for you in exchange for a small amount, and that is the primary purpose of cryptocurrency exchange.
How Crypto Exchange Make Money
It is a win situation where the crypto exchange and the investor get profit. Crypto platforms make a profit in the following ways.
- Deposit fees: crypto exchange charges some money when you are depositing an amount. This amount is different from transaction fees and means that they are charging money for converting your amount to crypto.
- Withdrawal fees: when you try to withdraw your investment or profit from the crypto exchange, it will charge some fees as exchange charges.
- Trading commissions: trading commission is the crypto exchange deducts every time you trade some coins for other coins. It is the most common earning method for crypto platforms and charges as little as 0.01 per cent.
- Listing fees; In the early phase of the crypto platform, crypto exchanges generate money by listing prices when there are few clients. They can collect amounts from IEO, ICO or STO, creating thousands of dollars by collecting these little amounts.
- Market making: the liquidity of a coin is the main factor in its value. Crypto exchange platforms earn commission in terms of market-making and improving the liquidity of coins.
- Fund collection: crypto exchange platforms can also earn money by collecting funds and showing the paid advertisement of third parties to their customers.
There are many crypto exchange platforms, and some charge more than others. If you need a near free crypto exchange, it is better to choose KuCoin, which charges not only the least amount but also has many ways by which you earn money.
How You Can Generate Money By KuCoin
There are many ways to earn money using KuCoin. It offers mining pool so that you can mine cryptos in groups. It also has trading options in 400 coins other than the bitcoin exchange. You can trade currencies and earn profit. There are many other features like a trading bot that can help you invest and withdraw money from certain Cryptos at the right time, even if you are away from your device. It also has an affiliate marketing feature with more than 40 per cent commission, and it also has a loan out system for earning interest.