How does Binance profit?
It is not an exaggeration to say that Binance is a 'giant' in the cryptocurrency industry. So how does Binance make money?
1. Trading fees:
The majority of the revenue from exchanges comes from these trading fees because they are mandatory. Whether you buy or sell a token, you must pay this fee to the exchange.
2. Futures:
This is probably how Binance makes huge profits in the minds of many people. The exchange takes it all, 'gobbles' it all up,... Of course, the exchange will receive some types of fees (opening fees, closing fees, etc.) in futures that I will not mention here. When you trade futures with leverage, you are borrowing money from the exchange. Borrowing a lot of money from the exchange means high leverage, which can lead to LIQUIDATION. The amount from LIQUIDATION will be a part of the exchange's income. As for whether the exchange 'manipulates' the price or not, I will not discuss that here.
3. Binance Earn
When mentioning Binance Earn, people will think that the exchange will pay interest to them, right? The answer is yes, but the exchange will still make a profit as they will take a percentage of the profits from the money we deposit. Additionally, Binance also allows users to borrow,…
4. Marketing
The introduction of new tokens by the Binance exchange will enhance the credibility of those tokens. This requires the project to pay a 'marketing fee' to Binance.
There are many other ways for Binance to make money as well. Binance card, financial services,…
Binance's success is due to:
- Diverse products.
- Ecosystem $BNB (the exchange's token).
- Strong development team.
- Good risk management.
Binance is currently the top exchange for cryptocurrency in the world. CZ is getting richer and richer. Wishing you all the same.