How Profitable Is The Internet E Currency Exchanging Business

How Profitable Is The Internet E Currency Exchanging Business



There are two kinds of​ currency exchanging businesses today on​ the​ Internet. the​ most widely known is​ the​ Forex market where you​ can trade one world currency for another. the​ less widely known is​ the​ e-currency exchange market,​ where some companies and individuals make money by exchanging one e-currency for another.

Notice the​ difference. on​ the​ Forex market people make money speculating on​ the​ future price of​ currencies like Euros and Dollars. on​ the​ e-currencies exchanging business people make money directly when they exchange the​ e-currencies. Based on​ this fact it​ can be said that Forex is​ more risky but also more profitable than e-currency exchanges.

We will refer on​ this article to​ the​ e-currency exchanging business alone. Let’s start by describing what e-currencies are. There are many different kinds of​ e-currencies today on​ the​ Internet. Some of​ the​ most widely known include www.paypal.com,​ www.e-gold.com,​ www.e-bullion.com and www.netpay.tv.

So,​ how does his market works? Simple. Let’s say that you​ have e-gold and you​ want e-bullion. you​ visit the​ website of​ an​ online exchanger and request to​ exchange the​ funds. the​ exchanger keeps a​ percentage of​ the​ money to​ be exchanged. For example let’s say that he keeps 5%.

So,​ if​ you​ give the​ exchanger $1,​000 in​ e-Gold he will keep $50 plus the​ amount e-Gold charges him to​ receive the​ funds. Then he will give you​ a​ little less than $950 of​ e-Bullion. This happens every day. There are thousands,​ millions of​ transactions going on.

How much money you​ make on​ this business depends of​ a​ few factors. First if​ you​ plan to​ receive large transactions or​ a​ large number of​ transactions per day then you​ will need lots of​ funds ready to​ stand the​ demand. Second,​ how many people know about you​ and your website.

You will need to​ invest on​ advertisement and promote your business. Third how reasonable are your exchanging rates compared to​ those of​ other exchanger. if​ you​ charge 10% per transaction that’s almost thievery.

Also keep in​ mind that you​ will have to​ comply with the​ rules and regulations of​ the​ jurisdiction you​ live in. These rules may change from place to​ place. Make sure you​ understand well the​ regulations about this business where you​ live.

The demand for world currencies like Euros and Dollars is​ Enormous. the​ demand for e-currencies exchanges is​ fairly high. in​ my opinion this business can be quiet profitable.

Think about it,​ when you​ are the​ e-currency exchanger you​ act like the​ bank. you​ are the​ market maker,​ the​ broker. These parties are the​ ones who make the​ money and almost never lose. you​ have the​ chance to​ do this on​ the​ e-currency market,​ but you​ need to​ take it​ as​ a​ business and not as​ a​ get rich quick scheme.

All businesses require planning,​ investing,​ marketing,​ etc. you​ can watch what other exchangers are doing and learn from them. Visit their websites and get an​ idea of​ what this business requires.

DXGold once seemed it​ would become the​ leader on​ this market. it​ allowed people to​ be merchants through their system and exchange e-currencies for others. Unfortunately it​ seems that they had problems with their system. They have recently moved into other areas of​ Internet marketing.

Anyway there is​ still hope for people that wants to​ make money on​ this business. the​ demand for e-currency exchanges is​ still fairly high. I think that this business could be profitable as​ many other businesses that you​ could start online. it​ all depends on​ how knowledgeable you​ are on​ this field and your dedication and motivation to​ make it​ work.



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