In today’s highly competitive market, the success of your business largely depends on the cryptocurrency trading features you offer. These features not only play a crucial role in revenue generation but also in attracting and retaining people worldwide. Therefore, it is imperative to prioritize and implement the right profit-generating features along with other useful features.
Generally, your software should include both basic and advanced-level features that contribute to the profitability of your platform. However, selecting and integrating revenue-centric features could be a time-consuming task for some startup founders. To ease your work, we have come up with a list of features that will help you make consistent profits along with other revenue streams.
Here is the list of the top 15 cryptocurrency trading features your software should possess:
- Staking Services
- IEO Services
- API Access Services
- Listing Cryptocurrency
- Trade Matching Engine
- Margin Trading
- Derivative Trading
- Onramp/Offramp
- VIP Level Services
- Lending & Borrowing
- Liquidity Pool
- Payment like Binance Pay
- Referral System like MLM
- Trading Bot Service
- Instant crypto Buy/Sell
These cryptocurrency trading features will become the essential source of revenue for platform owners if they prefer to incorporate them. To better understand how these features make money for your platform, let’s take a brief look at each one.
#1. Staking Services
Staking is a popular one in almost all the crypto exchanges for their users to earn passive income. By providing staking services, you can enable users to lock their digital assets and receive rewards in return.
You can charge a service fee, often a percentage of the staking rewards, to further benefit from this service. Moreover, this approach not only increases your exchange’s liquidity but also enhances user engagement and activity.
#2. IEO Services
As your exchange user base continues to grow, it can act as launchpads for crypto projects. Admins can conduct token sales on behalf of startups similar to ICO. For this, you can charge listing fees and a percentage of the tokens sold during the IEO. This creates a revenue stream that is directly tied to the success of the projects, making it a lucrative opportunity for your exchange.
#3. API Access
Your exchange platform will have valuable trading data, histories, real-time market data, and other information. Providing API access allows algorithmic traders, institutional investors, or third-party apps to use this data for trading decisions and strategies. By doing so, it can be a lucrative revenue stream for your exchange charging according to high usage levels.
#4. Listing Cryptocurrency
Listing new cryptocurrencies can be a major source of revenue for your crypto exchanges. Crypto launchers will pay substantial amounts to list their cryptocurrency on your exchange because it provides exposure.
Therefore, listing fees should be part of the revenue stream of your cryptocurrency exchange business model, as it plays a significant role in overall profitability.
#5. Trade Matching Engine
The trade engine plays an important role in your exchange, as it is responsible for executing crypto buy/sell orders. The performance of the trade processing engine determines the satisfaction of your users, which increases the trade volume.
You can charge a transaction fee for each successful trade between your users. So having an efficient trade matching engine that directly impacts user experience and revenue generation is crucial.
#6. Margin Trading
Margin trading allows users to borrow funds to enhance their trading positions, thereby increasing their potential profits. By providing this service, you can charge interest and also take a percentage of the profits made through margin trading. This feature attracts experienced traders and generates revenue from both interest payments and transaction fees from their trade.
#7. Derivative Trading
Similar to margin, derivative trading involves financial contracts whose value derives from the price of an underlying asset. You can offer futures or options trading or both, charging fees on trades and settlements.
Particularly in option trading users will pay the premium fee to exchange which is non-refundable. This derivative trading is appealing to a diverse user base and enhancing the revenue potential for exchanges.
#8. Onramp/Offramp
Onramp/offramp services act as bridges that enable users to seamlessly convert their fiat currency to cryptocurrencies, and vice versa. These services are essential for users who are new to the crypto and want a hassle-free way to get started.
As an exchange, you can profit from the conversion costs incurred during these transactions. Every time a user converts their fiat currency to a cryptocurrency, a small fee is charged. This fee can add up over time, and as more users turn to your platform for fiat-crypto conversions, your income will go up too.
#9. VIP Level Services
Exchanges like Binance offer different levels of membership to users, which come with varying benefits and costs. These VIP-level services, give users access to exclusive features, faster customer support, and higher withdrawal limits. Users pay a premium to avail of these privileges, adding a consistent revenue stream for your exchange.
#10. Lending & Borrowing
The exchange or your users can earn interest (passive income) by lending their cryptocurrencies or borrowing assets for various purposes. Your exchanges can facilitate these transactions, charging fees on interest earned or levying interest on borrowed assets.
This feature is appealing to both long-term investors and short-term traders, as it enables them to diversify their revenue sources. By utilizing this feature, users can earn interest on their holdings, which can contribute significantly to their overall returns.
#11. Liquidity Pool
If you are running the DEX platform you can create liquidity pools where users contribute their crypto pairs to facilitate trading or swap. In return, liquidity providers earn a share of the trading fees (LP fee) generated within the pool. These services improve the overall liquidity of your exchange, attract more users, and increase revenue through exchange rates.
#12. Payment Services
By integrating payment services into your exchange platform, you can offer your users the convenience of making purchases using their cryptocurrencies. Eg. Binance Pay. You can skip third-party payment systems and charge fees for processing these transactions, thereby expanding your revenue streams beyond trading activities. This feature not only enhances the user experience but also promotes the widespread adoption of cryptocurrencies for everyday transactions.
#13. Referral System like MLM
Referral systems incentivize users to invite new participants to the exchange. In an MLM style, users earn commissions from their direct referrals. This can create a viral growth effect, which can help expand the user base and generate a steady stream of revenue for your exchange.
By incentivizing users to bring in newbies, your exchange can benefit from increased visibility and a broader network of users. This can ultimately lead to higher profits and sustained growth over time.
#14. Trading Bot Service
In your exchange, you can offer trading bot services to earn profit indirectly. By doing so, your users can automate their trading strategies, saving them time and effort. You can even set up fees for using these bots, which can attract both new and experienced traders looking to optimize their trading activities. Additionally, offering trading bot services can add an extra layer to your crypto exchange’s revenue model.
#15. Instant Crypto Buy/Sell
Instant buy/sell services provide users with a quick and convenient way to convert their assets. You can charge fees for the speed and convenience of offering these services. As the demand for instant transactions grows, so does the revenue generated through this feature.
By taking into account the list of features mentioned above, you will be able to create an exceptional and effective business revenue model. These features are crucial as they can help you generate steady income and also streamline operational processes.
With a well-planned revenue stream in your cryptocurrency exchange script, you can ensure that your platform runs smoothly and leads to increased profits. Therefore, make sure to consider all these revenue-centric features while creating your business model.
