Post
Topic
Board Bitcoin Discussion
Re: Why Crypto Exchanges Should Lower Their Fees and Profit Margins
by
alyssa85
on 11/12/2019, 15:19:34 UTC
The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.

https://bitcoinist.com/why-crypto-exchanges-should-drop-their-fees-and-profit-margins/

The article criticises Coinbase and praises Poloniex for having zero fees.

The only problem with this: Coinbase is a solid exchange and Poloniex is crap.

The move from Poloniex to have zero fees is similar to what Cryptsy did before they did a runner. Zero trading fees (to encourage volume) and high withdrawal fees (to discourage withdrawals and make a profit from those who do take their money out).

It's not a good sign. You should always ask yourself how these exchanges make profits. Some are upfront by charging fees. Others are dodgier and are using your coins to trade while trying to discourage you from withdrawing.