Demystifying Income Generation Strategies by Cryptocurrency Exchanges

Income Generation

The crypto space is highly volatile. Cryptocurrency exchanges can no longer rely on their conventional service provision. They provide a platform for exchanging one altcoin for another or conversion of fiat currency.

Due to the decline in the prices of cryptocurrencies from the colossal figures witnessed in 2017, many investors are skeptical. The majority may shy away from investing in digital currency. To remain relevant as well as generate more income, cryptocurrency exchanges have devised ways to expand their services and product portfolios. 

Matters dealing with regulations in the crypto space pose significant problems due to the volatile nature of the digital currencies. Furthermore, a banking license by federal authorities would bring clarity and a straightforward mandate. Consequently, this would be a perfect guide to crypto firms and entities.

Coinbase has recently made preliminary inquiries to acquire a banking license. According to the Wall Street Journal, Coinbase and Ivy Koin held a meeting with regulators to explore the modalities of acquiring a banking License.

BABB has already submitted applications for banking licenses in two jurisdictions namely; Lithuania and the UK. This was after an Equity Crowdsale that ended on earlier this month, raising approximately £1.5 million which was the minimum capital requirement for the banking license application.

Modern Features

A cryptocurrency exchange that grants users access to multiple currencies and merchant adoption of currencies is bound to entice more users to its platform. Exchange architectural design has encompassed features of a digital economical network that aspires to revamp the overall cryptocurrency experience.

The multiple merchant tools provide a structure where users, cryptocurrency traders, companies, and start-ups can have an attainable market system that amplifies the implementation of new and modern features in the platform.

The allure of free coins, tokens, and goodies from Exchanges is sky-rocketing. It is enough to tantalize the curiosity of new entrants and veterans in equal measure. Such competitions, when carried out by the well-known Cryptocurrency Exchanges have been reported to inflate prices of the advertised altcoins.

Binance Exchange was offering a Community Content Drive competition whereby participants were requested to send their videos for a chance to win 50BNB.

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Image credit: Binance

A partnership with registered broker-dealers would bestow monumental dominance to any Cryptocurrency Exchange. Exchanges benefit due to the possession of middleman powers possessed by broker-dealers thus ameliorating any potential compliance issues.

The acquisition of Keystone Capital by Coinbase signified that Coinbase could now offer alternative trading systems. This includes products and services linked to securities or stocks.

Market trends in the crypto sphere are quite unpredictable. With the blossoming of Initial Coin Offerings (ICOs) and fundraising tactics, Cobinhood Exchange has a dedicated ICO support service in its platforms.

In addition to the support in fundraising, Cobinhood provides legal assistance from their team of lawyers. They inform users about regulatory, legal and mitigating risks. Additionally, the lawyers also provide specialist counsel in the formation of White Papers, token sales, and trading processes.

Most importantly, as the crypto market trends continue to evolve, Cryptocurrency Exchanges will continue to search for ways to increase their portfolios. This will enable them to reach more masses and also augment profit maximization.

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Grace Muthoni is a Staff Writer for Block Telegraph. She is a Crypto Enthusiast and covers topics relating to the digital currencies and the Blockchain. She studied Economics and is well vested with numbers, statistical analysis, data presentation and quality content writing.

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