Japan party leader vows to cut crypto taxes if elected.
The crypto craze has been increasing day by day, Crypto Geeks.
We all know that cryptocurrency is the talk of the town. Many entrepreneurs are pitching the cryptocurrency exchange script for their start-ups. They all implement it without any awareness of the crypto and its underlying technology.
Let's see how the crypto business plays a huge part worldwide.
What is a Cryptocurrency exchange script?
Cryptocurrency exchange script is an exchange platform, where users can buy, sell, and trade cryptocurrencies. It is like a normal bank transaction system, the same as what we do with fiat currencies.
It started to ease the transaction process with its transparent and mighty Blockchain technology.
People all over started investing in cryptocurrencies even teenagers. It's the key to the success of the cryptocurrency exchange script. This led to the drastic change of crypto businesses taking over fiat businesses.
One major reason is that many have witnessed the generation of a massive income with crypto platforms.
Let's explore them in brief.
Revenue streams of Cryptocurrency Exchange Script
Integrating the cryptocurrency exchange script brings revenue in many ways.
Transaction Fees
Various trading options are provided in the cryptocurrency trading script to the users. These are Spot Trade, Margin Trade, and Futures.
In these, users have the flexibility to choose the type of orders they want to trade. It includes Limit Orders, Market Orders, Stop-limit Orders, Stop-Loss orders, and Trailing Stop Orders.
These are all advanced features where novices find it somewhat hard to trade. When users make transactions they're charged a certain amount in percentage.
Conversion Fees
For trading some assets, your users may require some specific crypto. So, they'll convert from crypto to crypto. This conversion requires certain charges. You can deduct for this conversion.
Also crypto to fiat and fiat to crypto requires charges. Because after completion of their trade, your users will convert their crypto to fiat.
Withdrawal/Deposit Fees
Sometimes, after conversion users might withdraw their crypto assets, withdrawing assets from their wallet completes with a reduction of their funds. These fees depend on the respective cryptocurrencies that your users want to withdraw.
Exchanges usually don't require a fee for depositing the funds. But some cryptocurrency exchange scripts do charge.
Margin Fees
Your users have the leverage option to trade without owning the asset. They can leverage 2x, 3x, and 5x. It depends on the exchange's protocols.
They will deposit the initial margin that they have in their wallet. It is called as collateral. The remaining crypto will be borrowed from the exchange. The maintenance margin should be monitored for any price drops of that asset.
After closing the order, your users will pay the borrowed amount and the interest for that. Even if it reaches the liquidation state, their collateral will be deposited to the admin's wallet in the exchange.
Staking Charges
Staking is the option many users rely on the cryptocurrency exchange platform. When they don't have an interest to trade, they'll lock their assets for a certain period. They receive rewards in crypto for that.
This staking has two types namely, flexible staking and fixed staking. Flexible staking is where your users stake for hours or days, which means for a short period. In fixed staking, they stake for months or years, a long period. Users receive huge rewards in fixed staking.
After the completion of staking, the rewards will be deposited into the user's wallet. Your cryptocurrency exchange script can deduct a certain fee from that reward.
P2P
In Peer-to-Peer(P2P) trading, users deposit their fiat to receive crypto. It is facilitated by the escrow services to handle problems if arise.
It doesn't involve any intermediaries. When they deposit their fiat, they'll have a chat with the seller who is willing to send crypto. After confirming your deposition of fiat with the seller, your user's crypto will be sent to your wallet. Till then escrow services hold the crypto.
In that receiving crypto, your cryptocurrency trading script will charge a percentage of crypto.
There are still many trading options like OTC(Over The Counter) and Fundraising mechanisms like Initial Coin Offering(ICO), and (Initial Exchange Offering(IEO).
OTC is where your users use it for bulk transactions without any intermediaries. IEO and ICO are the processes of collecting funds for new projects for start-ups that wish to raise capital.
Closing Reflection
A cryptocurrency exchange script's revenue depends on the features that are integrated within the platform. By proper planning, and adopting the best strategies you can make various revenue streams on your exchange platform.
You also need to look after areas like technical, marketing, and budget planning before stepping into the crypto business.
Making your platform user-friendly to all classes of users is important. It holds a major advantage making your exchange platform a successful one.
With equipping and cross-checking all these factors, there's no doubt that your cryptocurrency exchange script will make huge profits for your start-ups.
