The cryptocurrency industry is expanding very quickly with adoption increasing worldwide. As of 2024, an estimated 560 million people own cryptocurrencies. In Africa, cryptocurrency ownership has also seen immense growth, increasing from 40.1 million users in 2023 to 43.5 million in 2024, marking an 8.5% rise.
The cryptocurrency industry is experiencing rapid global expansion, with an estimated 560 million users owning cryptocurrencies as of 2024. This growth is mirrored in Africa, where cryptocurrency ownership increased by 8.5% from 2023 to 2024, reaching 43.5 million users.
Additionally, the global crypto wallet market, valued at USD 8.42 billion in 2022, is projected to grow at a compound annual growth rate of 24.8% from 2023 to 2030.
If you run a crypto exchange, this growth presents a major opportunity for your business but only if you’re maximizing profitability.
Many exchanges generate revenue, but high operational costs, inefficient processes, and market fluctuations can eat into profits. The key isn’t just making money; it’s keeping more of what you earn.
This guide isn’t filled with vague industry jargon or impractical theories. Instead, you’ll find real, actionable strategies to help your crypto business thrive—no matter the market conditions.
Now, some might say they are already making money, but let’s be honest, they’re spending even more. High transaction costs, expensive marketing, and crazy operational expenses are eating up profits faster than you can say Bitcoin to the moon!
The big question is, how do crypto exchanges make money and actually keep it? That’s what this guide is all about. No complicated tech talk, just real, practical ways to make more profit in 2025.
Where Nigerian Crypto Exchanges Are Losing Money
To make things clearer, running a crypto exchange is like running a restaurant, you can make all the money in the world, but if your expenses are too high, you’ll still end up broke. Many crypto exchanges spend a significant portion of their revenue on:
1️⃣ High Transaction Fees
Every time users deposit, withdraw, or trade crypto, it costs money to process those transactions. Some exchanges end up paying too much to handle these transactions, which means:
❌ Either users get charged high fees (and they leave for cheaper platforms).
❌ Or the exchange absorbs the cost (and makes less profit).
2️⃣ Liquidity Costs (a.k.a. Not Enough Money in the System)
Crypto trading needs a steady flow of money for smooth buying and selling. Poor liquidity management can lead to inefficient spreads and slippage, causing direct financial losses.
3️⃣ Customer Acquisition & Retention
Marketing expenses (ads, promotions, influencer partnerships) can quickly add up. Retaining users is equally expensive when transaction fees, UI/UX inefficiencies, and slow withdrawals push them toward competitors.
4️⃣Regulatory and Compliance Cost
With crypto regulations evolving in Nigeria, exchanges must invest in compliance, legal fees, and KYC/AML processes to avoid potential penalties. This is non-negotiable but can be optimised.
5️⃣ Infrastructure & Security Costs
Running a secure, scalable platform with robust customer support isn’t cheap. Many exchanges overspend on infrastructure when they could leverage third-party solutions for better efficiency.
How Crypto Exchanges Can Make More Money (And Keep It) in 2025
💡 The trick isn’t just to make more money, it’s to stop wasting it. Instead of just chasing higher revenue, smart exchanges are also focusing on spending smarter in 2025. Here’s how:
1. Lower Transaction Costs Without Losing Users
💡 Solution: Integrate a more cost-effective Crypto API to process transactions at lower fees.
- Offering lower trading and withdrawal fees makes an exchange more attractive to users. In fact, this is an amazing unique selling point for your users!
- More transactions = more revenue in the long run.
- With the right API partner, exchanges can drastically cut costs on payment processing.
If you are looking to integrate a Crypto API exchange that has up to 99% uptime while offering unbeatable transaction fees in 2025 then think of Quidax Crypto API. With the industry baseline currently at 0.7%, Quidax offers transaction fees as low as 0.5%.
2. Optimise Liquidity Management
💡 Solution: Partner with liquidity providers that offer automated market-making and reduce slippage.
- Smart liquidity management ensures tighter spreads, better pricing, and fewer losses.
- Exchanges can integrate third-party liquidity solutions instead of holding excessive capital in reserve.
3. Automate Compliance & Reduce Fraud Risk
💡 Solution: Implement an automated KYC/AML system instead of hiring large compliance teams.
- Investing in compliance tech saves money on manual reviews and reduces fraud-related chargebacks.
- AI-powered identity verification tools can process onboarding at scale, keeping exchanges compliant and secure.
Funfact: With the Quidax Crypto API, you don’t have to worry about your AML processes at all. Another money saving tip!
4. Cut Marketing Waste & Focus on Retention
💡 Solution: Target the right audience with precision marketing and invest in retention strategies that drive long-term growth.
- The primary audience for crypto in Nigeria consists of tech-savvy millennials, Gen Z digital natives, freelancers, traders, and small business owners looking for seamless financial transactions. This group is highly active on social media, prefers peer recommendations, and values affordability, speed, and ease of use in financial products.Now, the question boils down to how to attract crypto traders to your platform. Instead of burning money on broad, unfocused marketing campaigns, crypto startups should:
- Leverage Influencer & Community Marketing – Crypto users trust peers over ads. Partnering with crypto influencers, Telegram groups, and Twitter (X) spaces can build credibility.
- Focus on Referral & Rewards Programs – Encouraging existing users to bring in new ones through cashback, trading discounts, or token rewards reduces customer acquisition costs.
- Target High-Intent Users with Precision Ads – Use data-driven audience segmentation to target people already engaging with crypto-related content online.
- Improve User Experience to Reduce Churn – A seamless onboarding process, low transaction fees, and fast withdrawals keep users from switching to competitors.
5. Leverage Third-Party API Solutions Instead of Building from Scratch
💡 Solution: Instead of spending millions on custom infrastructure, integrate a reliable API provider.
- Many exchanges overspend on building proprietary solutions when turnkey API solutions can handle the same functions at a lower cost.
- Using a plug-and-play API reduces development costs, maintenance expenses, and security risks.
If you are looking for a Crypto API that eliminates the need for heavy backend development, providing instant access to fiat-crypto onramp/offramp, liquidity pools, and payments without the overhead then head right on to Quidax and request a demo with the API team to get started immediately.
Maximise Profit in 2025 with the Right API Partner
Crypto exchanges that survive and thrive in 2025 aren’t just chasing revenue, they’re spending smarter. Instead of burning cash on:
❌ High transaction fees
❌ Liquidity inefficiencies
❌ Expensive compliance
❌ Marketing that doesn’t work
❌ Overpriced infrastructure
👉 They’re integrating the right solutions, reducing overhead, and optimizing user retention.
💡 Quidax API helps exchanges scale profitably with:
✅ Lower transaction fees (save on deposits & withdrawals)
✅ Instant liquidity access (smooth, cost-effective trading)
✅ Fiat-crypto integration (seamless transactions for your users)
✅ Regulatory-friendly solutions (no compliance headaches)
✅ 99% uptime (users love a stable platform!)
Ready to Increase Profits & Reduce Costs?
The smartest exchanges in Nigeria are already making the switch.
🔗 Don’t get left behind. Get started with the Quidax API today.
