Most of the exchanges I see online for Crypto and Bitcoin are run by a couple of guys only.
Let's say a lot of people buy Bitcoin when its at a low price, then it spikes up high and starts to drop again...and now everybody wants to sell it before it drops back to the exchange, how can the exchange afford to pay all these people double or triple the price of what they sold them the coins for?
I don't get it.
Why? Because the exchange is not the one buying it. It is the buy orders. The exchange is the middleman, getting the fees.
Exactly. As exchanges we don't hold and make money per transactions or withdraws.