Crypto is unregulated so there's nothing stopping you from doing more than just profiting off of transaction costs. Why get rich slowly when you can get rich quickly? During the height of the cryptocurrency craze, everyone was making huge profits using this business model. I assume the profits stopped when the market shrunk, putting shady companies (slightly) below solvency.
It's hard to compete in a market where big, scummy brokers will ask no transaction fees because they use their customers' assets to speculate and profit. Had they switched tactics to a transaction fee based approach, they'd risk large customers taking their assets to another broker, which can cause insolvency problems to become visible. Switching business models after having your shady business model collapse may not be an option!
I think you can make a decent amount of profit in the cryptocurrency market by just doing the thing that's normal for real brokers, but you'll need quite soms scale to become seriously profitable. You'll also need to prove somehow that your nee company is the real deal unlike all of your shady competitors.
There are probably real exchanges out there, completely solvent and doing honest trades, but without large volumes you'll probably never hear of them. The most risky businesses will make the most money, provide the cheapest service, and get most of the attention, at the risk of collapsing and taking the price of their speculative assets down with them.
It's hard to compete in a market where big, scummy brokers will ask no transaction fees because they use their customers' assets to speculate and profit. Had they switched tactics to a transaction fee based approach, they'd risk large customers taking their assets to another broker, which can cause insolvency problems to become visible. Switching business models after having your shady business model collapse may not be an option!
I think you can make a decent amount of profit in the cryptocurrency market by just doing the thing that's normal for real brokers, but you'll need quite soms scale to become seriously profitable. You'll also need to prove somehow that your nee company is the real deal unlike all of your shady competitors.
There are probably real exchanges out there, completely solvent and doing honest trades, but without large volumes you'll probably never hear of them. The most risky businesses will make the most money, provide the cheapest service, and get most of the attention, at the risk of collapsing and taking the price of their speculative assets down with them.