Binance monetization model explained

Primary business models in Binance

  • Exchange fee - Binance will charge 0.2% of fee on every transaction/trade that happens inside the exchange. This can be split up into diversified schemes as they call this as maker-taker, volume based tiering etc.

  • Withdrawal fee - The platform charges certain fees on users when they opt to withdraw the fund. It may be in terms of fiat withdrawal through bank or crypto withdrawal in hardware wallet.

  • Listing fee - Binance exchange list crypto coins and digital assets to enable them for trading with a certain commission fee. The terms of fee may be initial listing fee or revenue sharing for every transaction.

  • Margin fee - Binance can lend you cryptocurrency in advance for trading. The exchange charges specific terms of fee on borrowed amounts.

  • Other fee - When users don’t have time in monitoring crypto movements and conduct trade, there is an option called automatic algorithmic trade. When users opt-in for this, a fee may be charged on every order.

Advanced business models in Binance

  • Institutional & VIP services - Binance has a dedicated program for big institutional investors and traders who do trades in bulk. The platform gives special perks in storage and custody options for accessing their funds which are separated apart from general exchange. Binance earns a percentage of fee for facilitating the custody & VIP privilege service.

  • Binance broker program - Binance gives permission for accessing their trade history and implementing them on external third party business. Through API, other exchange businesses can use binance liquidity and build their business while Binance earns commission on every trade that happens.

  • Binance cloud white label - Binance cloud is the white label solution offered by Binance for enabling entrepreneurs to get started in crypto exchange business. End to end technical infrastructure is provided for operating exchanges. Binance charges a fee for backing up the exchanges technically.

  • Token launch - Like crypto coin listing, Binance hosts token sale through a dedicated launchpad program. The project advice, support, and accessing the Binance liquidity are the benefits one can get. Listing of tokens on launchpad is processed with a standard fee given to binance.

  • Binance DEX - Binance is known for its hybrid nature. It operates a decentralized exchange synchronously and receives gas fees for executing the smart contract agreement.

Summing up

Hopefully, you came to know about abstract understanding of how binance earns through multiple revenue streams(still some business models are not explained here).

When everyone is thinking about the crypto up and downfalls, entrepreneurs only think of the business opportunities in it. Likewise, if you aspire to build a crypto exchange on your own hand without third party support, make use of a binance clone script that’s readily available.