Is owning a crypto exchange profitable ?

[Mr Positive]

1) what are the current regulations 2) so you have enough money to hire private security 3) what is your credibility 4) can you spend on video ads some of the questions come to my mind. You’ll also need a solid budget and a place to buy crypto low prices and sell high prices, a solid team too and if your site is slow and transaction take slow be ready to recieve the abuses, and if they get hacked well.... just saying but The answer to your question yes you can do it, but make sure you’re fully covered

 

[kolly]

Good luck, but youd maybe need a good amount of money to start with.

 

[resurrects]

I guess so, right? You get profit from the fees. But you'd need a large capital to start

 

[Chris Newman]

A crypto exchange is like any other exchange : people exchange (or trade) one thing for another at the exchange and the exchange charges a fee or commission for that. Now for an exchange or crypto exchange to be profitable or not, depends on whether you get clients or not and that depends (just like any other business) marketing, promotion, etc.
Regulations, etc is apart, that is a different angle.

 

[Jookar]

it will be hard for sure.
You should give a try

It's not a thing which anybody just do for try. Because it's take a lot Time & money both to Opening an new exchange

 

[nahid133]

OP should try

It's not a thing which anybody just do for try. Because it's take a lot Time & money both to Opening an new exchange

 

[oldguyjoe]

I used to work for a crypro broker.
The level of regulation, security, developers and support required to start, and the amount of ad spend required for people to even hear about makes it impossible to do it without extremely deep pockets.
You can't run ads anywhere unless you're fully regulated, and if your market is India - forget about Google.

And if it's an exchange, you need to keep people's crypto and fiat safe.

The ad spend required to get exposure and users is what would personally turn me away from this idea. Every other problem gets dwarfed compared to advertising requirements. Start a "Follow along thread" and let's make it a BHW experience.

 

[roydan]

The ad spend required to get exposure and users is what would personally turn me away from this idea. Every other problem gets dwarfed compared to advertising requirements. Start a "Follow along thread" and let's make it a BHW experience.

Ad spend at least has some sort of return. The real problem is tons of regulation and developement before you have any money coming in.

 

[oldguyjoe]

Ad spend has some sort of return. The real problem is tons of regulation and developement before you have any money coming in.

Yeah, I bet it has a return, a negative return for the first X months Tech is solvable, regulation is solvable, but business ideas at the wrong time and in the wrong place are unsolvable, just a money sink.


Development is nothing, selling is everything. The will to sell.
- Ra's Al Mogul

 

[roydan]

Yeah, I bet it has a return, a negative return for the first X months Tech is solvable, regulation is solvable, but business ideas at the wrong time and in the wrong place are unsolvable, just a money sink.


Development is nothing, selling is everything. The will to sell.
- Ra's Al Mogul

I just worked for a crypto broker as a marketing specialist, what do I know..

 

[oldguyjoe]

I just worked for a crypto broker as a marketing specialist, what do I know..

Exactly, you worked at one, you didn't build one from the grounds up, or did you? If OP wants to give it a try, fine, I just don't think this is the best investment idea at the moment.

 

[roydan]

Exactly, you worked at one, you didn't build one from the grounds up, or did you?

I'm giving up.

 

[oldguyjoe]

I'm giving up.

Look, I bet you have a lot of insider knowledge about online crypto exchanges, more than anyone else in this thread 100%. But working at a business and creating a business are vastly different things. If you need to solve a technical or a legal problem, there are experts you can hire or take time to learn it yourself. These are problems that anyone can tackle with enough patience and money. But to get the product off the ground and making it profitable, that is something else entirely and has no easy step-by-step plan to follow. It fails most of the time and sometimes shoveling more money at it just makes the hole you are in bigger. This kind of problem is orders of magnitude larger than any technical issue, unless you are inventing something that was never done before. That is why I am telling OP to ignore the technical and legal problems for now (not permanently) and make a plan first on how he'll actually get and keep his users/customers and how he'll pay for it.

 

[Pusro]

the competition is tough my friend, just look at coinmarketcap top 100 exchanges, those are the exchanges that you are competing with.

you will need to fill both sides of buyers and sellers and have them seamlessly able to trade and exchange thru order book...

or maybe start small like build a dex instead, like you said, with this you can do an ICO, and you can open liquidity swap rewarding people with your own coin/token, this is what most dex are doing now, your dex swap has to be the best tho, competition is everywhere.

 

[JavascriptPufferfish]

The owner of wazirx did all alone in start.

stuff was probably easier in 2017, and we don't really have any guarantee he actually did it alone. furthermore, even if he could, doesn't mean anyone can. just saying, it sounds like a very big and difficult project.

 

[ahenna]

You'll need good lawyers and the bank on your side!

 

[winleyworks]

Exchange Services are always an profitable way to make money. however, there are risks involved, if you hold people's money and also legal issues might come, since you need to be registered if you want to offer exchange legally.

 

[IamKing]

I will start a small one for Indian people.

Instead why can't you launch an altcoin & make it successful?

 

[Jookar]

Instead, why can't you launch an altcoin & make it successful?

Developing and Launching coins is not more Harder than Launching an exchange

 

[Nikolaos]

It is very profitable