Cryptocurrency Exchanges making more money than traditional Stock Exchanges?
Traditional banks and exchanges are starting to see less returns than their cryptocurrency counter parts.
Deutsche Bank reported their earnings this morning and they came in a little on the disappointing side.
They reported net income of $146 million USD in Q1 of 2018.
(Source: https://www.cnbc.com/2018/04/26/deutsche-bank-earnings-q1-2018.html)
Even more disappointing when you consider that number was dwarfed by what Binance was able to do in the same quarter.
Binance reported that they made roughly $200 million in their most recent quarter of this year.
(Source: https://www.cryptoground.com/a/binance-records-profit-200-million)
Some Caveats:
Keep in mind that Binance does the most volume of any crypto exchange while Deutsche Bank's business has been in decline for some time now.
In fact, that number was about 80% less than what Deutsche Bank did the year prior.
Also, keep in mind that Binance only did about $7 million in profits in the previous quarter, so it has experienced incredible growth in a very short time while Deutsche Bank has been in decline.
However, this whole comparison outlines something very important in the crypto space...
Current brokerages, banks, and exchanges are actually chomping at the bit to get involved with cryptocurrencies, and why wouldn't they?!
Coinbase reported that they did over a billion dollars in revenue in 2017, with over half of that revenue coming in just the last couple months of 2017.
There is tons of demand to trade these products all over the world.
So, why haven't the Etrade's, the TDA's, and the Scottrade's jumped on and started trading cryptocurrencies as well?
That is the thing, they will, but there is one major speed bump currently in the way for all of these guys.
That speed bump is regulations.
No one really knows what the regulations are going to be for these things so they can't really get involved at this point.
They don't know how the SEC is ultimately going to define a security, a commodity, or a token.
All of this makes for a waiting game for the traditional banks and brokerages.
Once those rules are clear, I think we will see a flood of new entrants in the cryptocurrency exchange business, mainly from those already in the exchange business.
(Source: https://strategiccoin.com/nasdaq-launch-bitcoin-futures-contracts-2018-wsj-report/)
The Nasdaq is already on board:
The Nasdaq said that they would be open to trade cryptocurrencies once there is a clear regulatory framework in place.
They also said they think cryptocurrencies aren't going away, they are going to be around for some time to come.
More about that can be found here:
https://www.cnbc.com/2018/04/25/nasdaq-is-open-to-becoming-cryptocurrency-exchange-ceo-says.html
We are still in the very early innings of this brand new asset class spreading it's wings and eventually becoming mainstream in the investment world.
Stay informed my friends.
Image Source:
https://www.cnet.com/news/binance-offers-10-million-in-bounties-to-catch-hackers/
Follow me: @jrcornel
I think this mainly has to do with the low barrier of entry.
You can start trading crypto with $25. Most stock exchanges won’t let you swing trade with less the $25k
That is a good point about day trading. $25k minimum to day trade US stocks.
This was what kept me out for the longest of time. Now its not a barrier and i really dont care to partake in that shit show they have going on.
@crypto2crypto Please how much, on the average, can an average trader make daily if the started trading btc with $80?
Trading is extremely risky and even the very best traders on the planet have a tough time being consistently profitable. Tread carefully.
You're right. I've once been a victim, I lost almost everything in one trade.
It's never a win-win stuff.
Tell us about the bad trade.
Well this greatly depends on patience and luck. You may be better off buying a solid crypto and holding long term.
Ok, Thank you Sir.
I agree, crypto is very versatile and profitable than the stock market.
Deutsche bank is essentially a criminal body - so it's hardly surprising it is not doing so great (publicly) - but yes, it is likely these establishments will crumble along with so many others.
Every time I hear the name Deutsche Bank, I think of the movie The International. Great flick if you haven't seen it.
You know that snort laugh you hear sometime when someone is trying not to laugh. I just did that when I read the headline.
The fact that Deutsche Bank got schooled by Binance is interesting.
But, to me the most interesting part of all this is knowing that the only thing holding crypto back now is regulations. Granted, we do not want some insane regulation that is akin to the Glass–Steagall legislation. But, I think we all can see the light at the end of the tunnel in terms of decentralizing currency and what that means for the future.
Great note. I wonder who will get involved pre regulatory clearity. The first one to do it will cause a mad dash. It seems like goldman and Barclays have made moves. Vaneck has been aggressive in indices and of course cme and cboe are already dipping their toe in.
I have been wondering that myself. I think there may be one or two risk takers out there. Who will it be?
Maybe monex, legitimate finance but an outsider at the same time.
The fees on cryptocurrency trading are higher than on stock exchanges. For stocks you can find online traders that apply a flat fee of $10. If you are trading large volumes of crypto you can pay several hundred dollars in fees.
Great stuff.. a full article on what we were discussing the other day. I posted an article today about why Gemini using NASDAQ's SMARTS tool to monitor irregularities in crypto trading on its exchange is an extremely positive step towards institutional adoption of cryptocurrencies. Rather than waiting for regulators to act, crypto community has to be proactive in removing pump & dumps and irregular trading activity.
I wont be surprised if the deal between gemini and nasdaq translates to an acquisition of gemini by nasdaq.
Good thoughts. I would not be surprised to see that as well.
Nasdaq going to make bitcoin go boom boom.
It might not be for some time though. Need clear guidance on the regulatory environment first.
People don't use regular banks anymore, because the interest they pay to the balance has declined year by year and in some banks is only fraction of a percent, essentially promilles of the monthly lowest balance. People also avoid banks because they constantly increase fees.
In cryptoworld, people can choose the coin that has lowest fees and the best return of investment. They can also choose the exchange with best reputation and lowest fees.
Great article, thanks for sharing. I've smashed the upvote button for you!
Also, if you are looking to get some tokens without investing or mining check out Crowdholding (https://www.crowdholding.com). They are a co-creation platform were you get rewarded for giving feedback to crypto startups on the platform. You can earn Crowdholding's token as well as DeepOnion, ITT, Smartcash and many other ERC-20 tokens.
Hi Brother, is this possible to support me?