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Start Your Own Cryptocurrency Business – Secrets about Creating a Crypto Exchange

How To Start A Crypto Exchange

Perhaps one of the most successful investments in the entire history of the economy is cryptocurrency investments. After all, those who bought Bitcoins a little over ten years ago (for a few dollars) can sell coins today for tens of thousands of dollars. Cryptocurrency has become a convenient tool for instant, secure and transparent payments. And many modern companies today accept bitcoin payments. Moreover, the Coinbase IPO conducted research and found that the demand for such payments will grow.

Also, Coinbase is a convenient crypto payment solution and exchange where a client can buy, sell or exchange the desired cryptocurrency. Such a business is very attractive and interesting for investment. And many companies are increasingly thinking about how to create a crypto exchange. Let’s talk about this procedure.

Advantages of Creating a Crypto Exchange

Before creating a cryptocurrency exchange, you need to study all aspects of this process. An analysis of benefits will help you make the right choice and act in the best possible way.

Profitability

Successful forex prime brokers are making good profits. Even small sites with thousands of clients can make great money. Because the marketplace lives off payment commissions. Every time a trader buys or sells cryptocurrency, he pays a small percentage to the exchange. And this is a pretty profitable business.

You need to think about what commission your exchange will take. Standard players in the segment offer a rate of 2%, subject to a large purchase (the limit is determined by the company). And if it is a small transaction, then the standard commission percentage is 3%.

Blockchain access

This technology is very popular and convenient. This cryptocurrency exchange software allows you to efficiently manage your own company, controlling all transactions, making them reliable and transparent. Thanks to access to a modern, updated Blockchain, your clients can be assured of the quality of the services provided.

Start Cryptocurrency Business

Every owner who decides to create a crypto exchange is an entrepreneur. Now that your business has started working, you need to take care of its growth, quality support, promotion, and attracting new customers.

Yes, creating a crypto exchange and taking control of your own business is complex and challenging. But your efforts and the time that you invest in development will bear fruit. Moreover, you can gain new knowledge in the process and become a real professional in your field.

Main Aspects of Starting a Cryptocurrency Exchange

In the first part of the article, we discussed the benefits of creating a cryptocurrency exchange. Now you should move on to practical information and find out how to start a cryptocurrency business.

Development of Cryptocurrency Exchange

The first step, if you decide to start a crypto exchange, is the initial development, and the choice of software. There are several options for resolving this issue. The first is creating your software. But to complete this task, you will need to have strong knowledge in this area, as well as programming experience. Moreover, creating a quality trading platform alone is not possible. You will need a team of highly qualified specialists and testers. And most importantly, this stage will take a long time. You will be able to create your crypto exchange after many months.

The second solution is much simpler and more convenient. In case an entrepreneur does not have global technical knowledge, he can choose a white label cryptocurrency exchange software. This open-source software will help you quickly get the exchange up to and running and customize it to suit your needs.

High-quality white label crypto exchange software offers the user access to the source code and a wide range of settings. This means that your exchange can be branded and customized as you see fit. Moreover, this process will not take much time, which is very important. Only a short testing period will be needed and your crypto exchange is fully operational.

Another interesting option is suitable for those who have good technical knowledge and want to start a cryptocurrency exchange but do not want to spend months building a platform from scratch. This is a GitHub solution, an open-source platform for tweaking. However, you will need to understand the code written by another developer. Also, it will be necessary to conduct a thorough analysis and make sure that there are no malware and viruses. Otherwise, this code will be dangerous for your users, and scammers and cybercriminals will be able to steal money from their accounts.

Trade Platform

Another important decision you need to make before starting a cryptocurrency exchange. Because the exchange will not work without a high-quality and reliable trading system. It is an important part of your business and a tool that allows you to process user orders. The program performs the purchase and sale of assets, accepts cryptocurrency payments, gains access to the order book, calculates customer balances, etc.

Please note that a quality trade engine is your priority when choosing. Therefore, cooperation with the white label trading platform looks like a priority and promising in this case.

User Interface

Every new user who decides to start a cryptocurrency business on your website mustn’t face any problems. Therefore, the design and functionality of the page should be user-friendly. An intuitive interface, simple and familiar buttons and functions will help lower the entry threshold and attract potential customers.

The broker must convince new users that it is very easy to register on the platform. The high-quality design will help you find the right section and become a client of the company. It is also important to add useful sections. For example, access to information and advice, how to start a forex business, data on transactions and accounts, information on the balance on the deposit (in fiat currency and cryptocurrencies). It is important to add the possibility of individual settings – adding indicators and signals to the chart, placing stop losses, and other useful tools for managing to trade.

Maintenance

For crypto exchange development to be successful, it is necessary to maintain the site throughout the entire period. Therefore, you need to take care of these points and make the API straightforward. And most importantly, it is convenient for developers and easy to maintain. Don’t be afraid to spend extra time maintaining and configuring your software at this stage. Because this way you can create a cryptocurrency exchange with the highest quality.

It is also important to establish good customer feedback for your white label crypto exchange. Because this way you will receive operational information about errors and can quickly fix them. Moreover, taking care of users will add rankings to your exchange and make it more attractive in the eyes of potential customers.

Main functions

Also, when creating an exchange and cryptocurrency exchange development service, you will need to implement some features that will appeal to your customers.

Wallets

Digital wallets are a reliable storage facility for cryptocurrencies. Therefore, you must make sure that you offer your customers reliable and convenient hot or cold digital wallets.

Hot wallets allow customers to place their cryptocurrency directly on the exchange. These wallets work online, and the keys are stored on highly secure servers. Cold wallets are special USB drives (or analogs) that do not have an internet connection. Therefore, they cannot be hacked and stole money from there.

Also Check: Top-Rated Android Wallet for Cryptocurrencies

Order Execution Speed

Another important factor when creating a cryptocurrency exchange. Obviously, traders prefer high order execution speed. The average for Bitcoin is 7 transactions per second. This means that the rest of the users are queued. A quality cryptocurrency exchange can prioritize orders to improve order execution speed.

A company’s reputation depends on the speed of execution of transactions and their quality. Users will be pleased with fast order execution and attention to their wishes. This will help you build a good reputation and attract more customers.

Crypto Exchange Management

Now that you can start a cryptocurrency exchange, you need to act under international laws and laws. Also, you need to pay attention to the local legislation of the region where the company provides services. This will help avoid problems and simplify collaboration with customers.

Security

This is one of the key factors because the safety of users and reliable protection of crypto payments are vital for the high-quality functioning of the exchange. Remember the KYC (Know Your Client) rule. Establish what information about the user is required by the platform to ensure security and conduct a quality transaction.

Most often, high-quality white label cryptocurrency exchanges use two-factor authentication, additional profile verification, and password strength control. This approach allows you to maximize security and increase customer confidence.

Regulation

There is no single opinion in the world about cryptocurrencies and their legality. Some countries allow payments on the crypto exchange white label, others do not. Therefore, it is important to receive the help and support of qualified lawyers who specialize in this subject. This way you can avoid unnecessary problems and deal with claims as quickly as possible.

This rule also applies to cryptocurrency exchange development in another country. It is necessary to study the local legislation in the region and make sure that the company complies with all the rules and requirements.

Banking and Liquidity

For payments and transactions to be processed quickly, it is necessary to enlist the support of a quality and reliable bank. White Label Forex platform that cooperates with popular banks and payment systems looks more attractive in the eyes of a potential client.

Also, you can find banks that trade cryptocurrencies and accept Bitcoin payments. In some countries and regions, such financial companies are very popular (for example, the USA or Scandinavia).

Another important issue is the choice of a high-quality liquidity provider that allows the cryptocurrency exchange white label to work efficiently. Also, maintaining liquidity helps build a solid reputation among clients. The first way to achieve this result is to buy and sell cryptocurrency only with your authorized clients. In this case, other companies and users will be able to see the trading volume on your site. Another way is to partner with liquidity aggregators and other exchanges. In this case, you will receive liquidity from all services in this structure.

Support

Another aspect to help you understand how to create a cryptocurrency exchange with maximum efficiency. You need quality support. It is necessary to hire professional staff who can assist soon as possible. Best white label cryptocurrency exchanges have 24/7 support services in multiple languages. Therefore, customers can quickly get help and solve the problem. This means that they will be satisfied and recommend the platform to their friends. Now you know how to start a crypto exchange with maximum efficiency. All that remains is to create a high-quality white label FX crypto exchange and start the path to success.

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