Cryptocurrency Exchange Business in 2023 — Right time for the right business venture.

We all know that cryptocurrencies have caught us by surprise, perhaps, with only a few preparing for it well in advance. Although these blockchain-enabled tokens have been in existence for more than a decade, their true potential has been oozing only after the world locked itself with a viral pandemic. Post that surge; things seemed to have gone downhill, probably due to all the frenzy that 2021’s crypto market witnessed. Yet, according to seasoned experts in the industry, cryptocurrency exchange platforms could make a viable business in 2023. If you ask me should you believe it, you can read this blog to get the answer.

Cryptocurrency Exchange: The First and Foremost Crypto Application

A cryptocurrency exchange is an application where one can purchase and exchange cryptocurrencies using fiat or other crypto tokens. The first crypto exchange was the now-defunct Bitcoinmarket.com, proposed and created by “dwdollar,” a member of the popular crypto forum Bitcointalk in 2010. Although the use of Bitcoin ($BTC) was still being investigated at the time, exchanging became a popular option from then on, leading to the rise of numerous popular platforms that rose and fell at different times. A fact to note is that these platforms serve as a source for new adopters to purchase cryptos, the other source being staking or tokens.

Different Kinds of Crypto Exchanges Live and Kicking in 2022

• Controlled Exchanges (CEXs) are the popular models utilized in 2022, despite the decentralization movement gaining momentum. These models use the Web2-based trading system, with a venture helping transactions take place, albeit much quicker than fiat transactions. Coinbase, Binance, and Kraken are notable examples of CEXs.
• Decentralized Exchanges (DEXs) are growing in popularity in recent times as calls for decentralization grew strong. These platforms allow users to instantly conduct exchange transactions through automated smart contracts and matching engines without any third-party involvement. Uniswap, Aave, and PancakeSwap are notable examples of DEXs.
• Hybrid Exchanges are platforms that contain all the advantageous features of centralized and decentralized cryptocurrency exchanges. While liquidity and usability are adopted from centralized exchanges, security and anonymity are adopted from their decentralized counterparts, making them havens for crypto traders. Eidoo, Querrex, and Legolas are popular hybrid cryptocurrency exchanges in today’s digital space.

Possible Ways to Create A Cryptocurrency Exchange in 2023

• A crypto exchange platform can be created from the ground up using a well-defined development plan. A typical campaign here consists of consulting, documenting, prototyping, designing, developing, testing, and deploying. While the process allows a business owner to stretch beyond limits to include all features they would like, the time and cost will be high.
• Software for exchanging cryptos can also be launched from a custom-made Whitelabel solution that has been developed and tested beforehand. Using such a platform, one can easily modify and add features and launch it for public use without extensive steps. Typically, the costs and time involved here will be lower. These solutions can be custom Whitelabel platforms or those similar to popular crypto exchanges.

Definitive Proof that Crypto Exchanges are Booming in Recent Times

Although the prolonged crypto winter and most hyped news items do not show a good image of the crypto space, it is thriving indeed. Many popular crypto exchanges have recorded significant figures that show no signs of running crypto winter. Let us see some examples.

• The popular crypto exchange Binance generated US$21 billion in revenue in 2021, and the figure has been estimated to grow a fraction more in 2022. The exchange volume of the platform is close to US$34 billion as of June 2022, according to the firm’s CEO.
• Coinbase, a fierce competitor to Binance, earned US$7.8 billion in 2021, a 550% increase from 2020. The transaction volume reached US$1.65 trillion in 2021, which was massive, according to industry experts.
• Uniswap, the famous decentralized crypto exchange, earned US$1 billion as revenue in 2021, becoming the first DeFi dApp to do so. The platform also recorded US$681.1 billion in trades across the year, showing the world the power of the decentralized finance model.

Conclusion: Is Crypto Exchange a Good Venture Option in 2023?

In a nutshell, the answer to the above question will be a huge “YES!” But why? Cryptocurrency exchanges have always existed in the space, irrespective of what happens to the market. Those platforms had novel ideas and working ethics that succeeded and thrived to live longer. If you are a crypto entrepreneur with a plan in mind, you might have gotten a glimpse of how this model will be crucial for the complete transition to Web3 and some confidence to go ahead with the platform for your business. You never need to confuse yourself with full-fledged planning and development, as there are experienced firms in crafting such platforms that can offer a helping hand in launching your new crypto venture. Let 2023 be your year to succeed and thrive in the crypto ecosystem!