How Do You Make Money on DEX?

There are primarily 2 ways to make money on DEX. First and foremost, crypto traders can make money by typical buying/selling of crypto assets on the aspect of arbitraging.

There are primarily 2 ways to make money on DEX. First and foremost, crypto traders can make money by typical buying/selling of crypto assets on the aspect of arbitraging. A successful trade usually requires good timing and insight from traders.

Another way to make money on DEX is to become a liquidity provider. Generally providing liquidity to other crypto traders by submitting crypto-assets into the pool. This rewards the liquidity providers with a small share of the trading fee collected from transactions made with respective crypto assets.

Thus, connected with this question, how do Decentralized Exchanges make money? The answer is simple, DEX collects money in terms of a trading fee incurred with every transaction made on that DEX. A shred of the trading fee is then distributed to liquidity providers to keep the ecosystem going.