3 Best Methods to Start a Cryptocurrency exchange in 2024— Cost and Procedure Explained
“I think Bitcoin is on the verge of getting broad acceptance by conventional finance people”, said Elon Musk (CTO of Twitter) on the future of Cryptocurrency in 2022. With the world moving into more and more digital life, Crypto could easily creep up into the top searched words on Google in a few years. Hence, I can assure you that starting a Crypto exchange will bring you more popularity and ample revenue without a doubt. However, to start a Cryptocurrency exchange and be successful in the long term, you need to adopt the top methods.
Additionally, your other primary task before starting a Crypto exchange is to find which company can ideally help you in the process. What happens on most occasions is that entrepreneurs get carried away with the number of services the company provides without focusing on the specialized niche. You can be one step ahead of your competitors if you can neglect those and pick a suitable company for your business.
In this blog, I am here to reveal 3 best methods to start a Cryptocurrency exchange without any hassles. Also, being a Crypto enthusiast, I have taken into account various factors before bringing up these 3 popular methods. Each method has its plus and minus which we will discuss elaborately. Before that, here’s why you should start a Cryptocurrency exchange among many business ideas.
Why Should you Start a Cryptocurrency Exchange?
Cryptocurrency exchange business has plenty of benefits for entrepreneurs and is regarded as one of the best methods to make money. You will not have to wait until the Crypto prices increase or decrease. A Crypto exchange is a platform where users trade, buy, and sell Cryptocurrencies to make profits and you as the platform admin can charge a commission fee for regulating the trade. Although this remains the primary reason to start a Cryptocurrency exchange, there are a few more reasons as well.
- Market-making and liquidity providers
- You can introduce your own Crypto-coin
- Affiliate marketing
- High returns with low investment
- Brand building in the market
- Audience capturing
I think you would have got an idea why many are starting a Crypto exchange. You can be one of those millionaires if you follow certain smart strategies and start your business. The revenue modules that come with starting a Cryptocurrency exchange are
- Transaction fee
- Crypto Listing fee
- IEO Launchpad
- Fiat deposit fee
- Margin trading
- Staking
Since there are many methods in the market, plenty of choices could be misleading at times. Instead, I will provide you with three easy options to start a Cryptocurrency exchange.
3 Best Methods to Start a Cryptocurrency Exchange
Whether you choose centralized or decentralized cryptocurrency exchanges for business, the ultimate purpose will be to generate revenue. Hence, you need to choose the easiest way to start a Cryptocurrency exchange. By opting for easy methods, you will have a lot of time to think about unique business strategies and to market your product.
White label Services
Purchasing a white-label product is probably the best way to start a Cryptocurrency exchange at the moment. Just by the name, adopting white-label services means purchasing a ready-made product from a provider and renaming it to improve its brand. This is one of the smartest options as you can reduce the development energy, time, and money needed to develop an exchange.
Since the product is already available, you can customize it to your interest and build your business most easily. The average cost of launching an exchange using white-label services ranges from just $7,000 to $15,000.
Development from scratch
Developing an exchange from scratch is one of the traditional methods to start a business. In this process, all the components of the exchange have to be constructed from the base. If you are an entrepreneur looking to build an exchange quickly, this method might not be ideal or suitable.
The exchange development process from scratch takes up to a year time and the final cost varies accordingly. However, many companies still offer this method to start an exchange despite it being costly. The average cost of developing an exchange from scratch ranges from $80,000 to $1,00,000 depending upon the requirements of the entrepreneurs.
Clone scripts
Using a clone script to build your exchange is the wisest option you can take if you compare the other two methods. A clone script is nothing but a pre-fabricated script that helps startups launch an exchange exactly similar to a popular existing exchange. The script can be customized and effectively used for launching exchanges instantly without much hassles.
Besides, clone scripts are multi-tested and secure with a high probability of successful outcomes for the owners. You can directly deploy the exchange clone in the server after completing alterations and do not have to wait more than ten days. The clone scripts are quite affordable and the cost ranges from $9,000 to $17,000.
Having discussed the 3 best methods to start a Cryptocurrency Exchange, you will also have to be aware of the features to be included before starting an exchange.
Features to Know Before you Start a Cryptocurrency Exchange
Once you have decided to start an exchange, one aspect you cannot compromise on is the features. By including some special features, the user base can easily increase to your platform and ultimately, it can add up to the revenue. Here are the mandatory features you should know before starting an exchange.
- User login system
- An order book-based functionality
- Crypto wallet integration
- Powerful Admin panel
- Margin trading facility
- Crypto live price feed and analytics
- Fund deposit/withdrawal
- Modernized Trading charts
- Crypto payment gateway integration
- Crypto Staking
- IEO launchpad
While you focus on adding these mandatory features, security needs to be considered as well.
Security Aspects to Consider Before Starting a Cryptocurrency Exchange
Security is crucial in terms of building trust among your platform users. No user would want to trade in an unsecured platform as there have been numerous cases of hacking and malware attacks. In order to avoid those situations, it would be better to include some of the top security features in your platform. Here are the top security features to consider before you start a Cryptocurrency exchange.
- HTTP authentication
- Jail login
- Anti-denial of Service (DoS) protection
- Anti-distributed Denial Of Service(DDoS) protection
- End-to-end encryption
- Cross-Site Request Forgery — CSRF Protection
- Server-Side Request Forgery — SSRF Protection
- Data encryption
- Two-factor (2FA) authentication
- SQL injection prevention
Finally, approaching a development company or a service provider where you can get the entire package is key to success. These companies have specific flowcharts while designing your Cryptocurrency exchange and a freelancer might miss out on some of the luxuries that come with exchange development companies.
Development Process Involved in Starting a Crypto Exchange
To understand the significance of approaching a Crypto exchange development company, I have underlined the systematic development procedure followed by top service providers. These companies are highly popular in the industry due to their invaluable development approach. Here is the development procedure you should adopt before starting your Cryptocurrency exchange.
- Requirements Gathering
- Planning
- Designing
- Developing
- Testing
- Deployment
Whether you opt for white-label services, development from scratch, or clone scripts, the company you choose should be able to have a similar kind of development procedure. These factors help in the longevity of the business and will take you to higher strides in a short span.
Final thoughts
With the number of development companies at the moment, it’s vital that you find the ideal company. You will have to take a deep analysis before you decide on the company by checking client reviews and ratings, the number of clients they have worked with, experience in the industry, etc. By concentrating on these factors, you will get a clear idea of the company’s stature in the market and how they can help you to solve queries.
Additionally, look out for the benefits provided by the company. Several reputed companies can charge high, but you should be aware that it could involve risk too. Instead, check for the budget-friendly method to start your Cryptocurrency exchange which means that you are automatically in the race for an increased ROI. To sign off, I don’t think there are many better businesses than to start a Cryptocurrency exchange!
