Welcome, Guest!!

Date: Saturday, July 11th 2020
Time:

Login Sign Up
 
 

How to start your own cryptocurrency exchange business (16 Views)

Topic Started By: scottmacyy       Created: Saturday, June 27th 2020 - 12:19 PM

Post a Reply or Comment
Share this on:

As the world embraces digitization, the paperless currency is the order of the day. The most exciting addition to digital payments is cryptocurrency. It is a virtual currency that uses cryptography making counterfeiting difficult. Despite the risks involved, it has captured the imagination of businesses and entrepreneurs. Before diving into trading, it is important to know the steps to start a cryptocurrency exchange business

 

  • Identify the type of exchange - There are different types of cryptocurrency exchanges such as Centralised, Decentralised, and Hybrid exchange. Centralized exchanges involve a middleman who controls the user’s movement of funds and transactions. Trading fees are the main source of revenue for Centralized exchanges. Generally, they are seen as highly liquid and trustworthy. Meanwhile, Decentralized exchanges do not have any intermediaries. It offers top-notch security, and users will have higher control over their funds. In the absence of central management, they are well protected against possibilities such as the threat of closure. Finally, Hybrid exchanges mix the benefits of centralized and decentralized exchanges to offer traders with a superior experience.

 

  • Conduct thorough market research - The performance of cryptocurrencies depends upon market conditions. Preliminary research about trends and prices should be undertaken. This will enable clarity in deciding what cryptocurrencies can be listed on the exchange. A small survey on understanding trader’s needs can also be taken up.

 

  • Choice of the location to start the exchange -  An analysis of government policies and laws in different countries is a prerequisite before launching the cryptocurrency exchange business. Some nations, such as Malta, Singapore, Japan, and Estonia, are friendly towards cryptocurrency exchanges. Regardless of the type of exchange, such as custom exchange or white-label cryptocurrency exchange, compliance with regulations is a must to avoid getting into trouble. The bending of rules can affect licensing and endorsements for the exchange.

 

  • Presence of a legal team -  Due to heavy competition, rules are bound to be changed regularly by nations. A legal team must keep track of the latest developments to undertake concrete decision making.

 

  • Estimating the cost -  Cost plays a big role in determining the quality of the exchange. Various factors, such as technology, features, and type of exchange, in finalizing the cost. Generally, white-label cryptocurrency exchanges are priced lesser than developing a cryptocurrency exchange from scratch. 

 

  • Choosing the right cryptocurrency exchange development company -  A well-reputed and experienced company must be given the task of developing the exchange. The company’s team must consist of blockchain developers, analysts, financial advisors, and crypto marketing experts.

 

  • Establishment of payment gateway - A reliable bank or a payment processor should be chosen for creating online payment facilities. It will enable quick transfer of assets and settlement through fiat currencies. A smooth transaction experience will help in the retention of clients for a long time.

 

  • Availability of features in exchange -  Providing the right features that match the user’s demands will go a long way in the success of a cryptocurrency exchange business. Some must-have features are high liquidity, good matching engine, KYC/AML verification, hot/cold wallet, referral program, support for multiple cryptocurrencies and languages, and leverage trading. Additionally, state-of-the-art security can be ensured through HTTPS authentication, Jail login, and Data encryption.

 

  • Separate panels for user and admin - User panel should have options, such as checking of balance, display of buying and selling price, withdrawal amount, trends in the movement of cryptocurrency, and transaction history. On the other hand, the admin panel must have options to manage different cryptocurrencies, maintain liquidity, handle trading fees, validate user accounts, address customer support requests, credit and debit the fiat currencies, based on user’s requirements.

 

  • Marketing strategies for capturing target audience - Conversion can happen only through focussed marketing efforts. Multiple methods, such as Search Engine Optimization (SEO), Social media marketing, Email marketing, Pay-per-Click campaigns, and interactions with forums, such as Bitcointalk, should be used. 

 

  • 24x7 customer support - As trading volumes increase in cryptocurrency exchanges, the client’s grievances and queries must be resolved through an efficient support team. Tasks such as handling investments and withdrawals must also be performed.

 

  

Launch your own cryptocurrency exchange business with the help of Blockchain App Factory. They offer customizable and well-performing white-label cryptocurrency exchange software preferred by the top crypto exchanges in the industry.

 

×

Subscribe to get notifications when I create new topics by clicking the SUBSCRIBE button at the top of this page if you have not already subscribed. Thanks.




Report spam or abuse  Reply
Nobody has responded to this yet, you can be the first.
   (Page 1 of 1)      Comments (0)
Post a Reply or Comment

Related Topic (s) in General section.

How do I invest in Instacart

People buy stocks that are available in the market by Instacart. These give you a leverage of handling stocks and sell these stocks ...[Read more]


What do you think about Bike Taxi?

People who commute daily are in constant lookout for convenient, faster, and affordable modes of transportation. This has led to the success of ...[Read more]


What's the legal process to start a Bitcoin exchange in India?

The recent Supreme Court’s quash on RBI’s ban of cryptocurrencies, rejoiced Indian cryptocurrency enthusiasts big time, and the opportunities ...[Read more]


Provide Virtual Consultations With A Robust Telemedicine App

Launching a telemedicine app at budget-friendly prices is now possible with the help of our team at Appdupe. We provide the best Teladoc ...[Read more]


Establish your brand in the entertainment industry with a TikTok clone

With the help of our highly trained professionals at Appdupe, you can build an attractive TikTok clone app for your business. The app ...[Read more]


Cryptocurrency payment gateway

Cryptocurrency payment gateway

Accept digital payment from anywhere in the world with no hidden charges and no recurring fees just by deploying cryptocurrency payment gateway into ...[Read more]


Figure out the top white label cryptocurrency exchange platforms in USA and scale up your business

If you are looking for the top white label cryptocurrency exchange platform in the USA, to launch your business, the answer is without ...[Read more]


Things to Keep in Mind Before Launching Your Own ICO

Things to Keep in Mind Before Launching Your Own ICO

Initial Coin Offering (ICO) has proved to be one of the important fund-raising methods for startups. Through the decentralized blockchain technology and ...[Read more]


Tips to choose SMTP Server For Email Marketing

Here is the ultimate guide or points to keep in mind while buying an SMTP server for email marketing management from providers.  &...[Read more]


What are the benefits of using an offshore dedicated server hosting in business?

Opting for Offshore Dedicated Server provides you actually more power and security, if you choose the right one. It assures your anonymity as ...[Read more]


Best-in-class transportation asset management system

Following the development and establishment of transport facilities such as roads and bridges, there comes the need to maintain them. SmartAMS is a ...[Read more]


Looking for professional blockchain crypto exchange legal consultants? Here's the solution

Hire the most qualified and professional blockchain crypto exchange legal consultants from Blockchain App Factory, to ensure your business is risk-free, and stays ...[Read more]


Set foot in the entertainment industry with a Tiktok clone app

With an optimized and bug-free Tiktok clone, you can become a key player in the entertainment industry in a short period. Talk to ...[Read more]


What are the benefits of online car rental software?

What are the benefits of online car rental software?

Not everybody owns cars and the ones that do, may not have access to their cars at all times. A car rental ...[Read more]


Launch a Fantasy Sports App like Dream11

Fantasy Sports industry continues to grow and shows no sign of slowing down around the global market. Millions of users are playing it ...[Read more]


Which leverage exchange software is the best to make money?

If you are looking for a company offering the best leverage trading platform to boost profits, the answer is undoubtedly Infinite Block ...[Read more]


Pick out a well-performing Cryptocurrency exchange software

In this unpredictable market, opt for the Cryptocurrency exchange software that guarantees adequate liquidity and complete customization. CES has a range of packages ...[Read more]


Advantages of Cryptocurrency Wallet

Advantages of Cryptocurrency Wallet

Get your hands on cryptocurrency wallet development services to secure and store your cryptocurrencies from inflation and economic crisis. Following are the advantages ...[Read more]


Enhance your customer base with an on-demand plumber app development

Enhance your customer base with an on-demand plumber app development

Appdupe’s top-notch on-demand plumber app development solutions will enable entrepreneurs to widen their customer base. A well-equipped technical team initiates the ...[Read more]


Technology-enabled massage services app to suit your needs

The three essential stakeholders in the Uber for massage app includes Users, massage therapists, and admin. Every stakeholder needs its application and a ...[Read more]


Report topic

Report Comment