April 13, 2021

How to Start a Cryptocurrency Exchange for your Crypto Business? - 12 Steps

Posted By Admin | 1760 Views

It is not a wonder that the prices of cryptocurrencies are in a great spike. It is best recommended by many experienced crypto traders to trade, but what if you are an entrepreneur? An entrepreneur thinks of a business opportunity and it is wise to start a cryptocurrency exchange and multiply the revenue stream with less efforts. But do you know how to start a cryptocurrency exchange business? That is a good question. Here in this blog, you will get solutions for those questions that arise in your mind.

Start a Bitcoin Exchange in 12 Simple Steps

  1. Decide the type of crypto business
  2. Know the legal regulations in your country
  3. Partner with your bank for funding operations
  4. Attain funding for venture if necessary
  5. Find the best cryptocurrency exchange development company
  6. Modify your exchange as per the present technology standards
  7. Connect your crypto exchange platform with others for additional liquidity
  8. Adopt best security features in your crypto exchange
  9. Beta test your software and go live.
  10. Initiate a marketing & PR campaign
  11. Maintain an Inhouse legal team
  12. Provide 24/7 customer support

Let us see these 12 steps in brief

1. Decide the Type of Crypto Business

When it comes to cryptocurrency exchange, there are different types of cryptocurrency exchange platforms to start with. You should choose the right platform that suits you and the present crypto business scenario. In that sense, there are different types of cryptocurrency exchange platforms that you can start.

  1. 1. Centralized crypto exchange platform
  2. 2. Decentralized crypto exchange platform
  3. 3. Hybrid crypto exchange platform
  4. 4. P2P crypto exchange platform

You can start any of the above crypto exchange platforms as your crypto business. As per the present scenario, it is best recommended to start a decentralized crypto exchange platform as Defi is on the hot seat. It is not like Centralized ones do not generate you huge profits. With a huge user base in your platform, you can generate exemplary ROI with any kind of crypto exchange platform. Before that you should know the crypto regulations in your country.

2. Know the Legal Regulations in your Country

It is true that cryptocurrency has become legal in many countries. Many countries have come forward with an open mind to allow their people to trade in cryptocurrencies but they have come up with some strict regulations that every cryptocurrency exchange platform should follow. In that sense, there are some common regulations like KYC verification and AML verification for every account that is being signed up with your exchange platform. Some countries have some other legal proceedings to prevent money laundering and other fraudulent practices.

Laws and regulations differ from one country to another. So, it is best if you come to know about the prevailing laws and regulations in your country before starting your cryptocurrency exchange platform. That will be helpful to maintain your crypto business. 

3. Partner with your Bank for Funding Operations

It is more important to choose the best financial service provider or a bank to support your financial transactions via fiat payments for your cryptocurrency deposits and withdrawals through your users. To do that, you have to partner with a bank that helps to conduct your transactions at a faster rate without any delay. The settlement of funds should be speedy and efficient enough to make your user’s transactions more quick and reliant. The faster the transactions and trade, the more number of traders will get added to your user base. So choose the bank wisely.

4. Attain Funding for Venture if Necessary

This is a capital allocation phenomenon which every business faces. If your idea for business is new and refreshing and has the potential for a greater future growth, then there is no wonder that VC’s would be surrounding you. It is up to you to choose whether you need a venture capitalist to support your cryptocurrency business investment. As far as concerned, it is best to know that you could start your cryptocurrency exchange business with low investment. So, it is time to avoid questions like “ How to create a cryptocurrency exchange website with the help of VC?”; because with the right crypto trading platform development company, you will not need VC. 

5. Finding the Best Cryptocurrency Exchange Development Company

You will definitely need a cryptocurrency exchange development company to assist you in starting your crypto trading platform of your desiration. Let me tell you why. I am confident that you could start a cryptocurrency exchange platform all by yourself. But consider the manpower and the time taken. You would take a huge amount of time for constructing your site that will lead to the procrastinated success. If you get the help of the best cryptocurrency exchange development company, they will help you to start your platform within a short duration. 

How?

It is because an outstanding cryptocurrency exchange development company has well-developed, readymade, bug-free, and reliable cryptocurrency exchange scripts of popular exchanges that will help you to start your trading platform right away. They provide this kind of scripts at very low investments that you will never need a VC to support you for your endeavour. They also provide technical expertise and support that you could reach them anytime for technical support. You can also go with a white label cryptocurrency exchange software for your crypto business.

You know what, you could also modify your cryptocurrency exchange platform as per your business requirement.

6. Modify your Exchange as Per the Present Technology Standards

With a trusted crypto exchange development company, you could be provided with the option of modifying and customizing your white label or your clone script software and app based on your business requirement. They will support such modifications at any stage of development. Make sure that you modify your crypto exchange software based on the current trend of crypto investments that will have a bright chance of attracting a huge number of traders to your site.

7. Connect your Crypto Exchange Platform with Others for Additional Liquidity

In order to get more visualisation and brand awareness, you could collaborate with other exchanges that have achieved them to get more liquidity. Just connect with other exchanges rather than just providing a dummy account. This will not only increase liquidity but also increases the credibility of your exchange platform. 

8. Adopt Best Security Features in your Cryptocurrency Exchange

This is the most important part that you should concentrate while creating your cryptocurrency exchange software. It is not a wonder that cryptocurrency exchange platforms would be guarded by blockchain technology. But that is alone not enough. You can increase the security of your platform by increasing the security features in your software and in the app. The more the security features, the more secure and encrypted your software would be. 

9. Beta Test and Go Live

You have successfully developed your bitcoin exchange software and app and it is time to deploy. Initially, you will need to release the beta version of your cryptocurrency exchange platform to conduct the proper functioning of the software without any technical interruptions. Run this for a particular period of time and after successful running, you can go live with your original software.

10. Initiate a marketing and PR campaign

It is enough wondering how to start a crypto exchange as we are going to move towards creating a PR campaign to familiarise your platform to the traders and investors. Make sure that you create an attractive PR with stunning offers and airdrops that would attract a huge number of users to your site. Release periodical offers and rewards to the traders and create a trust among your traders. Be socially active that can make your cryptocurrency exchange website more vibrant and trade-friendly.

11. Maintain an in-house legal team

Your legal counsel is not done when you have satisfied with the legal regulations. You will need an inhouse legal team for your platform to work on legal matters related to the exchange and its related disputes and other matters. It is a precautionary yet professional mechanism to have a legal team by your side to conduct your business.

12. Provide 24/7 customer support

The success of your platform relies on the customer service you offer. So make sure that you give 24/7 customer support to your users, traders and investors and perform a speedy dispute resolution to maintain the trust, efficacy and goodwill of your cryptocurrency exchange platform.

Summing it up

These are some of the important steps you should follow while you are about to create a cryptocurrency exchange software for your crypto business. Cryptocurrency trading platform is gaining a huge momentum among the business arena and almost 70 percent of the entrepreneurs and startups have started their investments in crypto businesses as a side hustle or as their main business. So, it is the best time for you to start your cryptocurrency exchange platform in a world class way by following the above discussed steps in an efficient manner. 

Why waiting, let us start with step 1.

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Frequently Asked Questions

Cryptoexchanges make revenue from various sources, the prime ones are the transaction fees and trading fees. Other sources of revenue include google ads, premium fees, collaborations, etc.
There are two major types of crypto exchange platforms - Centralized and Decentralized. You may also come across the hybrid type of crypto exchange, but most of the crypto markets focus towards the centralized and decentralized types.
It is obvious that starting your whitelabel crypto exchange is more beneficial compared to the unique business model from scratch. It is because whitelabel software is customizable and secure and easy to market compared to the unique software from scratch.
Starting a crypto exchange software with a clone script may take less than a week to implement and run your software along with the developing and testing process. It would take some more time if you need some additional features or options as per your convenience.
It may differ based on the modifications and alternations that you need to put into your exchange software. But We assure you the best cryptocurrency exchange development services at affordable cost that is best suitable for entrepreneurs and startups.

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