Slashdot Mirror
Coinbase Is Making $2.7 Million a Day (bitcoin.com)
An anonymous reader quotes a report from Bitcoin News: In information released to shareholders this week, Coinbase revealed that it recorded turnover of $1 billion last year, which works out at an astonishing $2.74 million a day or $2,000 a minute. As America's largest bitcoin broker, Coinbase claims the lion's share of the money that's pouring into the crypto space at a dizzying rate. 2017 was a bumper year for all crypto exchanges, which reported record numbers across the board: new signups, new staff hired, new trading pairs, and new revenue. Those revenue streams have turned into a torrent that has caused Coinbase' coffers to swell. Recode reports that the company's revenue exceeded $1 billion last year, most of it derived from the trading fees it levies. These vary from between 0.25% and 1%. and quickly add up: in the past 24 hours, 36,000 BTC were traded on Coinbase, accounting for more than 15% of the total market. Coinbase isn't the world's largest exchange (and is technically a broker rather than a conventional exchange -- that duty falls to its GDAX subsidiary) but it's the best known and carries great weight in the cryptocurrency industry.
Use GDAX. The fees are lower (as low as 0) and you already pretty much have an account with them if you have an account with CoinBase. Same username and password and all of that.
I gotta fuckin' pay to use my money!
You don't buy tulip bulbs to spend them, you acquire them as an investment. Think long term -- tulip bulbs are a rare commodity that will only increase in price.
No low volume store in the U.S. gets 1%. My main client is a medium sized business (~16 million/year) and they pay 2.4% + $0.30/transaction. Smaller business will never get better rates than e.g. Square @ 2.75% or Venmo @ 3%. Extremely large businesses like Target and Wallmart are down around 1.5%.
My data was old, my mistake. And wrong. I'd last heard they were 2%-4%, with most around the high 3's...but that was some years ago. A quick google search proves myself wrong. Still, a valid point, I think: we often pay fees to use our money every day.
Revenue is not profit.