How Does Cryptocurrency Trading App Generate Revenue?

Many cryptocurrencies like Bitcoins and Ethereum are designed for peer-to-peer value exchange similar to cash but in a digital environment. Cryptocurrency exchanges have sprouted to enable this process, which allows trading for anything without the involvement of third parties like banks or payment apps. 

Over the decade, as blockchain technology is surging, crypto trading apps have been contributing to the trading volumes exchange. As this platform offers a chance to trade cryptocurrencies, many industries are developing crypto trading apps to enter into the realm of Blockchain and Cryptocurrency.

This blog will explain several methods to generate revenue through cryptocurrency trading apps.

What is a Cryptocurrency Trading App?

A cryptocurrency trading app allows access to cryptos available in the market and helps trade them. Through this app, you don’t have to mine cryptocurrencies as it enables users to buy and sell cryptos, such as Bitcoins and Ethereum.

1. Trading Fees

Depending on the industry types, you can engage in different styles of trading. You can charge variations of fees for the variety of products your user trades. 

Every time your users make a sale or purchase a specific digital asset through the exchange app, you can include a fee for that particular trade. Also, don’t forget to provide a discount on the cryptocurrency that your trading app owns. 

Based on the risk and demand of the trading methods, you can charge significantly higher fees.

1. Deposit Fees

These charges are different from trading fees, as you pay this fee when you transfer currencies. In a cryptocurrency trading app, you make transactions through cryptocurrencies; therefore, you have to buy currency by depositing money. 

You can also charge your users some money for adding money to the wallet. 

1. Withdrawal Fees

You can generate revenue through your crypto trading app by charging a withdrawal fee when a trader wants to withdraw their money obtained from the trade. Depending on the exchange, you can set a withdrawal fee either as a fixed rate or a percentage of the amount your user withdraws.

Read our Cryptocurrency Trading App Development Guide to know more revenue generation ideas.

1. Exchange of Digital Assets

You can follow the Binance app’s software-as-a-service (SaaS) model for trading app development, which enables businesses to launch their digital asset swiftly.

Provide your users with a secure app infrastructure that supports crypto-to-crypto, fiat-to-crypto, and P2P fiat exchange with ease of payment, allowing your business owners to list their own tokens.

1. Interest On Loans

You can allow your app users to apply for crypto loans on your platform and generate revenue by charging interest. Trades can put their crypto holdings as collateral in your crypto exchange app.

Set the interest rate according to the currency type, the amount borrowed, posted collateral, and the selected repayment period. 

1. Mining

You can integrate the feature of mining pools, allowing users mining cryptocurrencies like Bitcoin and Ether. These mining pools can draw significant profits by charging a pool fee for different types of currencies.

1. Advertisements

In mobile and web apps, revenue generation from advertisements is a popular process. Therefore, in your Cryptocurrency Trading App Development process, you can integrate ads to monetize your app. However, you can follow this revenue model only if you have a large user base in your app.

Conclusion

Cryptocurrency and blockchain development is still in their initial stages; thus, changes are inevitable in this industry. More and more people are getting in a whirl with this field, trying to make money with cryptocurrency. 

However, not everyone can get success through cryptocurrency exchange apps in making money. Therefore, understanding the strategies mentioned above can be really helpful to build a good plan for revenue generation.