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Say I have ETH & other person has ZETH and we trade them.

My ETH is sent to his wallet & his ZETH is sent to my wallet. Who pays the 8$ ETH transfer fee & 2$ ZETH transfer fee? I mean in order to send eth to another wallet you pay a fee to miners. Also the exchange takes a cut. So it means 8$ is paid twice because my eth is sent to two wallets, to other person wallet & exchange cut fee is sent to exchange wallet. This makes no sense, exchange will be broke in no time if it pays the fees, how is it possible?

I want to understand the principle.

teemo Tomcat
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  • Please edit the question to limit it to a specific problem with enough detail to identify an adequate answer. – Community Oct 27 '21 at 08:08

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Crypto exchanges makes money 2 ways:

  • First one is of course by charging transaction fee for each of the transaction.

  • Second is giving you the exchange price, which makes profit for them as they take off-setting positions if you are buying crypto from them and not a brokered transactions.

sandeepsign
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