Hi!
I'm trying to figure out all the ways exchanges make money. I'm mainly focused on the sneaky methods that aren't clearly disclosed, but I'll take any verifiable cost. Here're the methods I know of so far, based on experience and reading a couple public board of directors call transcripts:
- Normal exchange fees. You buy X we charge 0.2% on top.
- Spread capture. The market price is $30, but we buy for $29, and sell for $31 - making an extra dollar in either transaction.
- Gas fees. Set a flat fee of $5. Usually they make a buck or two, occasionally they lose during high traffic
- Pulling out fee. To move crypto from exchange account to private wallet costs x% of total moved. I imagine this is also a good time to capture some spread, but I don't know for sure.
Anybody have insights? Admittedly, I haven't used an exchange since the glory days of FTX.
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