Cryptocurrency exchange platform development is currently the hottest and profitable business in the world. Bitcoin, considered the leader of the cryptocurrency industry recently breached the $19,800 mark and is at its highest value since December 2017. Cryptocurrency exchanges make huge money through trading fees whenever a transaction gets executed by a user on their platform and listing fees for adding new coins or tokens to the exchange. Hence, the time is ripe for creating a Cryptocurrency exchange software now and capitalize on the booming trend.
The advantages of involving in Cryptocurrency Exchange Development
- Cross-border transfer of funds between users can be done anonymously.
- The transactions are irreversible in nature ensuring no chance of chargeback fraud to occur on the platform.
- An affiliate program will be present where the existing users will get exciting rewards for referring the platform to new users by sharing the referral link with their friends, colleagues, and relatives.
- Transfer of assets can be done speedily at economical rates in a decentralized manner without any control by an authority.
- It operates 24×7, unlike traditional financial markets that work only for a few hours in a day.
- It is inflation resistant and not affected by government policies or economic downturn.
The different kinds of Cryptocurrency exchange software available in the market now
- The Centralized exchange involves an intermediary who executes the transactions for the users. Users have to deposit their funds on the exchange platform and it will be held under the custody of an authority. Hence, the users of a Centralized exchange will not have access to the private keys of their exchange’s wallet account. Centralized exchanges have been the victim of several hacking attacks in the past and users’ funds have been swindled without any chance of recovery. Therefore, users’ security is an issue faced by Centralized exchanges.
- Decentralized exchanges do not have any intermediary for processing the transactions for the users. Users get more privacy and security in a decentralized platform. The exchange will not hold any of the users’ funds and the users retail 100% control over their assets without facing restrictions in any form. Only the user has access to his private keys which serve as a gateway to his cryptocurrency wallet. They lack liquidity, do not accept advanced types of orders like stop-loss orders and limit orders, and cannot handle huge trading volumes at a time which may not attract professional traders who do high-frequency trading to the platform.
- Hybrid cryptocurrency exchanges combine the aspects of both centralized and decentralized platforms and remove their shortcomings. This ensures a reliable and trustworthy trading experience for the users. No third party will either hold or maintain the custody of the users’ funds on the platform. Some of the Hybrid exchanges are Qurrex, Stoxum, and Eidoo. Many crypto startups and entrepreneurs firmly believe that Hybrid exchanges are the future of cryptocurrency trading. Currently, many projects are in various stages of technical experimentation and development.
The steps to initiate Cryptocurrency exchange platform development
- Ensure that your exchange complies with all the regulations issued by a certified authority in your jurisdiction. This will ensure that there are no operational hiccups in your business in the future. Crypto-friendly jurisdictions make the entire process quicker and more streamlined.
- Raise adequate funding for your venture and approach prospective investors for the needed financial support. Various costs will have to be incurred on technology incorporation, government registration, hosting of the server, getting expert advice from legal counsel, and initial advertising. Adequate cash must be available for carrying out the daily operations of the Cryptocurrency exchange until the platform becomes completely profitable.
- Team up with a reputed and experienced cryptocurrency exchange software solution provider.
- Partner with a bank or a payment solution provider to ensure smooth execution of transactions. Facilitate fast clearance and settlement of funds either through an automatic payment gateway or manual remittance. It will add a lot of convenience to your user. Compliance with the rules laid down by the PCI will safeguard your cryptocurrency exchange platform against various cyber threats from time to time.
- Boost liquidity on your platform by establishing API’s with the other leading crypto exchanges in the market.
- Include some trending features like a robust admin console, a powerful matching engine that manages the entire order book efficiently, a customer management system, spot KYC/AML verification, integrated hot and cold wallets for sending and receiving cryptocurrency safely, multi-platform compatibility, support for the major cryptos and the leading fiat currencies, and ERC20 compatibility.
- Implement the best security practices such as two-factor authentication, end-to-end encryption, jail login, geofencing, IP tracking, cross-site request forgery protection, email authentication, and password-protected user access. Any hacking or phishing attacks can tarnish your reputation in the industry.
- After doing extensive beta testing of the software and eliminating the different bugs and glitches by analyzing the full range of capabilities, launch the cryptocurrency exchange platform officially in the market at an appropriate time.
- Organize massive marketing campaigns across various communication channels to generate positive buzz and greater business traction.
- Offer end-to-end customer support services round the clock to ensure greater user retention. Hire a dedicated team to approve new KYC requests, respond to different customer complaints, and for processing the deposit and withdrawal of fiat currency.
The various methods to kickstart Cryptocurrency Exchange Development
- You can form an in-house team of experienced blockchain developers. Estimate the time involved and the costs to be incurred beforehand. Many factors need to be considered like the developers’ work experience, the tech stack to be used, and the functionalities you want to incorporate into your exchange.
- You can visit platforms like GitHub and gain access to open-source Cryptocurrency exchange scripts. The biggest advantage of this method is that the source code is completely free. You need a technical expert to understand the coding aspects of the open-source script.
- Another alternative present is to acquire a customized white label cryptocurrency exchange software. It would have been already extensively pre-tested and comes without any bugs or glitches. You can also add your brand name, UI/UX design, languages, and colour theme according to your business requirements. There is no need to possess any technical knowledge to operate a white label exchange software. All the core components will be present beforehand and it is extremely budget-friendly.
The future in store for Cryptocurrency exchange platform development
Many brokers, hedge funds, institutional traders, asset management companies, and financial institutions are flocking to cryptocurrency trading these days. It is always a revenue-generating business. There are a few concerns regarding how blockchain technology can permanently disrupt traditional financial systems.
More institutional investors and corporate companies entering the market would lift the credibility of the fast-growing cryptocurrency industry to a new level. It can act as a medium of exchange, as a store of value, as a unit of account, for processing transactions, used to prove digital ownership, and is highly superior to physical currencies as it is free from any government interference and manipulation.
The market capitalization of cryptocurrencies may skyrocket in the coming years depending on the pace of digitization and the adoption of blockchain technology in business operations. Extreme market volatility is another issue that cryptocurrencies need to counter as their value can drastically fluctuate in a short while.
Are you planning to launch your own cryptocurrency exchange??? Then follow these simple steps to build your exchange platform within 7 days.
Quick Steps to Launch a Successful Cryptocurrency Exchange Solutions:
> Choose the location to launch your crypto exchange business
> Do some industrial market research (Related to Cryptocurrency & Cryptocurrency exchange)
> Hiring a legal team of counselors
> Get the proper licenses from the targeted location
> Determine the type of crypto exchange that you want to launch
> Make sure you have the required funds
> Providing expectations of crypto traders
> Hire the best cryptocurrency exchange software solution, provider
> Decide the supreme features to integrate into your crypto exchange
> Connect your platform with other popular exchange for high liquidity
> Combine with payment gateway
> Implement bug-free & high security for our exchange platform
>Start marketing & PR campaign
> Offer 24*7 customer support
If you need detailed info, dive into the article: https://bit.ly/33QOqiq
Very useful article….
Do you have a plan to start your own cryptocurrency exchange platform, but stuck up in the making process. Don’t worry. Here are the 10 instant steps to start a crypto exchange within your budget in 2021.
1. Determine the type of Crypto Trading Platform you want to launch:
2. Do deep market research:
3. Where have you planned to start a crypto exchange?
4. Check out the Jurisdictions of the country where you are going to start a crypto exchange:
5. Hiring a Legal Team of counselors:
6. Make sure you have the required funds:
7. Hire Crypto Exchange Solution providers to start a crypto exchange:
8. Technical Aspects:
9. Start introducing the Crypto Exchange to your Target Audience:
10. Rendering 24*7 Support:
I hope these 10 steps would help you to start a crypto exchange instantly!
wanna more information about how to start a crypto exchange platform, click here >>
Great crypto exchange article.
I recommend you check this all-in-on Blockchain Platform white label
Being a Blockchain consultant, I would say the safe and simple way to launch a crypto exchange platform is using white label crypto exchange software. It is a predeveloped software where entrepreneurs can launch a crypto exchange in just 10 days. The modules are all pre-developed and it is fully customizable. All you need to do is to check the price and demo of the software. One white label crypto exchange software provider is Zab technologies. They are experts in developing and deploying crypto platforms with almost every best feature in the market. You can get a free demo of their white label crypto exchange software here.
Their highly experienced Blockchain experts can guide you with ultimate solutions to build your crypto exchange platforms in the best way possible. Happy entrepreneurship!
Great crypto exchange article.
I recommend you check this all-in-on Blockchain Platform white label
So, we are looking to start own hybrid exchange platform. What would be the steps to start hybrid exchanges? Any suggestions
Really a nice article. Thanks for sharing