How to start a cryptocurrency exchange?
Keep a note of the steps that you will require to initiate your crypto trading platform
Starting a cryptocurrency exchange is not a daunting task nowadays. But one should admit that it is not an easy task too. It comes with a lot of responsibilities and management challenges. But conducting a crypto business is like conducting the work on a computer. All you need to do is to regulate the systems and keep an admin regularly to have a watch over its operation and actively manage them to work on cordially. This is how the cryptocurrency exchange works. But do you know how to start a cryptocurrency exchange platform? No, right? In this blog, let us learn about how to start a cryptocurrency exchange and what are the steps involved in them.
Steps involved in creating a cryptocurrency exchange:
1. Getting proper legal counsel to make sure that the license requirements are met.
2. Gather funding for the crypto exchange platform.
3. Identify the best crypto exchange software solutions provider.
4. Connect your exchange with others for added liquidity.
5. Partner with a crypto payment processor. Better to integrate a crypto payment gateway.
6. Implementation of best security features and additional features on request.
7. Getting it lives after series of quality testing.
8. Marketing and Press release campaigns.
9. Offer customer support.
10. In-house legal team for the company’s compliance procedures.
1. Getting proper legal counsel to make sure that license requirements are met:
Regulatory demands are more important when it comes to the creation of a cryptocurrency exchange platform. While in some countries, the crypto regulation would not be in action. It is because of the lack of awareness of the government over the cryptocurrency regulations and their functionalities would not be known. In some countries, there are regulations that need to be met while creating a crypto exchange software. For instance, in the United States, the bitcoin operators should be a licensed money transmitter and should adhere to the SEC and CFTC rules. Apart from the USA, there are many crypto-friendly countries that do not have strict regulations for initiating a cryptocurrency trading platform.
2. Gather funding for the cryptocurrency exchange platform:
First of all, you need to identify how much you are going to invest in the cryptocurrency exchange platform. Putting a self-analysis on your financial investment is the best way to choose the right option in starting a cryptocurrency exchange platform service provider. You should come up with an estimated average of investment so that you can put in technology, deployment, legal counsel, government registration, and for minimal to rigorous advertising. Based on that estimate you need to gather funding for your platform to be built. You need to get proposals from various cryptocurrency exchange service providers and choose the best one in terms of experience and affordable price. You can choose the service provider who is ready to offer you service ranging from $8k to $15k.
3. Find the best cryptocurrency solutions provider:
If you say the best one, it means a lot of things to consider. Apart from experience, you will need immediate results and a cheaper one to kickstart your cryptocurrency exchange platform. In that sense, the solutions provider should be providing affordable turnkey solutions for your business and customize the platform based on your business requirements. Speaking of which, you will need the cryptocurrency exchange solutions provider to be more compact, quickly responsible, experienced, provides turnkey solutions, and offers 24/7 customer support till deployment to the site when required. To be frank, it is hard to find the best crypto trading platform service provider in the world with the above-said conditions all in a line. But with thorough research and meaningful iterations, I am sure that you can find one such cryptocurrency exchange software solutions provider for your exchange platform.
4. Connecting with other exchange platforms:
Collaboration is not a new concept. It is a process of connecting with an influencer so that we too can get a streak of the limelight they are in and some of them may divert to our service. It is not stealing, but it is essential in this world to do so. You need to connect with other popular exchange platforms to get your exchange platform users and engagement. This is a smart marketing technique where you can dwell to improve your exchange platform to a greater vision. So, it is better to collaborate with an exchange platform to make your crypto exchange platform more effective and reachable.
5. Partnering with a crypto payment processor:
You think that it is very easy to connect with a crypto payment processor. Yes, it is but you need to find out the best crypto payment processor who accepts free transactions in their domain and a lesser amount of transaction fees for withdrawals and other transactions. They should maintain a proper ledger and transaction history by linking it with their blockchain so that the user can take a look at the transactions conducted. Make sure that the payment processor is compliant with the PCI.
6. Security parameters:
Speaking about the security parameters, crypto exchange platforms come with various security underpinnings. Apart from the blockchain technology, there are various security features including 2-factor authentication, CSRF, Anti- Denial of distribution service, etc. You need to put some additional security features in your platform as data breaches are becoming more common and normal. So, it is best to induct as many as protective walls so that the users will come to know about the security that you have put in your platform. This is a trust factor and a game-changer.
7. Beta testing:
After satisfying all the features in your crypto exchange platform, it is time to beta-test your site to know whether it is running efficiently and to test for bugs. You need to check whether your site is following all the rules and regulations that you have set in your software. If there is any discrepancy, it is time to allocate some time to manage the API engine so that it works fine.
8. Marketing and press release:
This is time for showcasing what you have created. It is best for the users and it is great to use your cryptocurrency exchange software. What kind of rewards or airdrops have you thought of introducing in your cryptocurrency exchange software? Yes, it is important. You will need to highlight the importance and significance of your platform and provide attractive offers to your users which will be a driving point for your expansion of the platform.
9. Customer support:
During creation and post creation, make sure that your cryptocurrency exchange services provider offers you enough customer support on all technical and non-technical means so that your software runs without any hassles during the user trading.
10. In-House legal team:
You will need them if there is any sort of legal hustles that you need to prevent. Make sure that you hire the best team so that they have enough knowledge in cryptocurrency-related legal matters and attentive whenever needed.
By the above-said provisions, it is to be understood that you can create your cryptocurrency exchange platform by all your means, but you will require a qualified team of members to assist you to achieve your dream of initiating a new cryptocurrency exchange platform. If you want to start an instant, bug-free, and secure crypto exchange platform, you can go with white label crypto exchange software to initiate your bitcoin trading platform.