The threshold for cryptocurrency businesses to make money is getting higher and higher, but profit margins remain considerable — An in-depth analysis of the crypto industry in 2024

Where Do Crypto Dealer Profits Really Come From

The business logic of crypto dealers may seem simple and straightforward: buy USDT at a low price, sell at a higher price to earn the spread. For example, buying at 6.9 and selling at 6.93, earning 300 RMB per 10,000 USDT. Based on an average daily trading volume of 100,000 USDT, monthly earnings easily reach around 90,000 RMB.

As a stablecoin pegged to the US dollar, USDT is regarded as hard currency in the crypto circle. This is also why crypto dealers are called the “only consistently profitable industry in the crypto world”—no need to worry about holding U and not being able to sell, nor fear losses. Even during volatile market conditions, coin-based trading can still guarantee relatively stable income.

However, this seemingly “easy money” business actually has much higher technical barriers than imagined.

Entry Barriers Significantly Raised, Veteran-First System Has Become Industry Norm

After regulatory adjustments in 2017, exchanges withdrew from direct redemption services, transforming redemption into a C2C peer-to-peer trading model, giving rise to the crypto dealer industry.

Initially, as long as you had some startup capital, you could apply to become a crypto dealer. But now, the situation is completely different—newcomers basically have no chance to enter.

For example, a leading exchange requires not only a deposit to become a dealer but also a recommendation from an existing dealer. The recommended person’s “price” on the secondary market has stabilized at 20,000 USDT. This fee may seem exorbitant, but it reflects the exchange’s real considerations.

Recommenders are not “cutting leeks,” but are bearing responsibility. If a new dealer faces complaints, account freezes, or misappropriation of funds, the recommender will face joint liability with the exchange. This is akin to a “master-apprentice” risk-binding relationship.

Why do exchanges prefer veterans over newcomers? The answer is straightforward: Exchanges need “reliable, capable” executors who come when called, and no one has the leisure to start from zero to cultivate newcomers. Crypto dealers generate billions in profit for exchanges annually, and resources are tilted toward experienced veterans, which is far more cost-effective than risking to train novices.

The True Core Competencies of Crypto Dealers Surpass Imagination

On the surface, crypto dealers just buy and sell USDT for profit, but in reality, there are two major core challenges:

First, capital vetting. Crypto dealers must accurately assess the account history and bank transaction records of trading counterparts, tracing the source of funds to ensure they are clean. This requires rich experience, sharp insight, and even the ability to identify forged documents. Once involved with black funds, at best, the client account could be frozen by authorities; at worst, legal risks arise. Novice dealers without strict vetting methods will likely fail within a month.

Second, payment and income channel resources. Traditional channels (bank cards, standard payment tools, etc.) have the strictest risk controls. Skilled dealers can only use these channels for about a year before needing to switch. To survive long-term, they must master diversified, secure, and reliable payment and income channels.

This is also a key indicator distinguishing industry veterans from ordinary old-timers—veterans have their own unique payment and income channel systems, while ordinary dealers still rely on traditional tools.

Why Do Crypto Dealers Still Remain Attractive

Despite higher entry barriers, the appeal of crypto dealers has not diminished.

First is stable income. Unlike spot and futures trading, which are uncertain, dealer profits come from arbitrage spreads, making income relatively predictable.

Second is network and perception upgrade. The average asset of a crypto dealer reaches the 5 million level (excluding salaried workers). Once you delve into this circle, you’ll realize that the actual wealth in the crypto world far exceeds common expectations. The business mindset, investment logic, and money-making methods of high-net-worth individuals will gradually change your perspective. You will realize that there are many more ways to make money in the crypto space.

Finally, is advanced opportunities. After accumulating wealth and connections in the crypto dealer field, you can enter higher-end ecosystems, gaining more investment and profit opportunities—forming a virtuous cycle.

Conditions Needed for Actual Operation

To enter the crypto dealer industry, the most basic setup is: 200,000 RMB startup capital and a computer. But this is only the surface threshold. The real costs include recommendation fees, risks during the learning period, and resource investment needed to maintain diversified payment and income channels over the long term.

Crypto dealing is fundamentally a contest of resources, experience, and judgment. Exchanges prefer experienced dealers because they have already honed these core abilities, making risks more manageable. Novices without systematic guidance and sufficient capital buffers are easily overturned by risk control issues.

This also explains why the crypto dealer industry appears highly profitable but remains a secret business only insiders understand.