Breaking Bitcoin News

1 BTC = 1 BTC

Latest Article ↗️

Breaking Bitcoin News

1 BTC = 1 BTC

Latest Article ↗️

Unique Trading Fee Models Emerge as Exchanges Compete

written by

Unique Trading Fee Models Emerge as Exchanges Compete

Support free journalists: > send a tip

As exchanges fight for space in a proliferating sector, newer exchanges are implementing alternatives to fee-based trading to attract traders. Current leaders like Binance offer lowered fees when trading using its own native digital tokens, while others like CoinBene and Bit-Z have introduced a “transaction fee mining” concept that generates new cryptocurrency by trading.

Estonia-based DX cryptocurrency exchange won’t be launching until July 2018, but has already pre-registered 500,000 users. It is attracting so much interest because it offers a unique subscription model where traders pay EUR 10 monthly and then can trade EUR 50,000 without any further fees.

DX says it has attracted institutional investors and brokers since it is officially licensed by Estonia’s Ministry of Economic Affairs and Communications. Additionally, it has forged a partnership with global stock trading powerhouse Nasdaq.

CEO of DX, Daniel Skowronski, says money managers have been in talks with DX to use it as a cryptocurrency custodial service, expected to pave the way for large amounts of money to enter the cryptocurrency markets from institutional investment.

Typical exchanges charge at least 0.25% per cryptocurrency trade. At that rate, EUR 50,000 of trades would cost EUR 125 of fees. Therefore, a subscription-based model makes it very attractive for cryptocurrency traders. Institutional investors often trade much higher amounts in excess of EUR 100,000 per trade though, and it is unclear what the fees will be for such trades.

DX says it will be integrating Nasdaq’s matching engine to process trades, and although this is unconfirmed by Nasdaq itself, it wouldn’t be the first time Nasdaq has licensed its technology for use on a cryptocurrency exchange. For example, major US cryptocurrency exchange Gemini uses Nasdaq technology to prevent fraud and market manipulation.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

Help spread this article :)

BitcoinNews.com is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of BitcoinNews.com

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by BitcoinNews.com to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of BitcoinNews.com 

   Advertisement

Read More Bitcoin News

   Advertisement