──Do you think you can support the entire exchange just by relying on exchange fees?
Big mistake!
Let’s start with the handling fees:
The friction loss caused when you buy "spot" or "contract" on the exchange.
We will call it a handling fee.
Usually the handling fee is about 0.1%.
Suppose you buy Bitcoin spot for 1 million u.
Then the exchange will earn 1000u.
So the exchange usually divides this profit.
That’s when you usually see KOL promotions.
An "exchange invitation link" or "fill in the invitation code" will be attached.
As long as you register using his link or invitation code.
You are an offline member of this KOL.
Then the handling fees incurred by your transaction here.
This is what we often hear as “rebate”.
There are many KOLs who encourage offline members to trade more.
There will be the so-called "leading single group".
It is normal for a KOL who is good at bringing orders to earn tens of thousands or even hundreds of thousands of dollars a month.
For example:
Xiao Ming opened a contract with a principal of 10,000 U and opened an order 20 times the amount.
That is equal to 200,000 u transactions.
200000*0.1%=200u, which means a handling fee of 200u is incurred.
Exchange commission rates vary from exchange to influencer, ranging from 20% to 80%.
Let’s take a middle value of 40%.
200*0.4=80u, Xiaoming just opened this order and got a commission of 80u.
As long as an order is opened or closed, it will be calculated once, not to mention people who trade dozens of times a day.
Then the overall counterfeiting will be "super scary"!
Then comes the problem.
If the real income of the exchange is to earn handling fees.
So why does the exchange return so much to KOL?
The reason is that "handling fees are not the main income of the exchange at all!"
The fascinating thing about contracts is that they can infinitely amplify your greed.
You may start slowly with small amounts and low multiples.
After playing for a certain period of time, you will start to become addicted. ． ． ．
"Dopamine is kicking in." ． ． ．
"Your contract has triggered forced liquidation". ． ． ．
The exchange takes advantage of this weakness of human nature to provide users with transactions.
Those who open dozens or hundreds of times.
Do you really think they are investing?
Simply put, you can think of it as another legal "casino."
And those KOLs who take orders are "agents".
There are really very few people who can truly restrain their humanity and make stable profits.
Please use "year" as the unit for what I call stable profit.
It's not the kind of profit that can be made by swinging every day for three to five days, which is called stable profit.
I have been in the currency circle for nearly 5 years.
I have experienced many "young coin gods" and "trading geniuses" in the process.
There were a lot of teachers coming and going in the middle.
People who make a lot of money just by trading.
In my opinion it's just survivorship bias.
even
People who can make stable profits from contracts "every year" and live in this kind of up and down market.
Stop talking about 1%.
I think it is a miracle that there is only one in ten thousand people.
Then you will know clearly when you see this.
What exactly does the exchange earn?
The so-called handling fee is just a "small head".
The real “big head” is the user’s principal.
To sum up:
The way exchanges make money is by taking advantage of several characteristics of retail investors.
▋1. Very fond of chasing the rise and killing the fall
▋2. Like to worship Kol and have no independent thinking
▋3. After making a little money, it starts to expand and ignores risks.
As long as the market fluctuates on the above three points, the exchange will make a lot of money.
If you don't believe it, please open the coinglass.
You can see every minute and every second which exchange has made a fortune and how much money users have made.
Then you would say, is there anything wrong with the behavior of the KOL who leads the order?
I think since the exchange can be understood as a legal "casino".
Then KOL is just a legal "agent".
If there is demand in the market, it is normal for there to be supply.
There are many "investment tools" on the exchange.
Although it is said that people with a strong gambling temperament make up the majority.
But there are also many people who buy the "spot" of mainstream currencies and just wait for the market to bring dividends.
So I think there is nothing wrong with KOL’s order promotion itself.
It's the person who uses it who is wrong.
Just avoid as much as possible any financial tools that amplify your greed.
Then you have to survive in this market and enjoy the dividends.
In fact, it is not a difficult thing.
