The size of the Blockchain Technology has grown up to $1.2 Billion. This technology has been adopted across various sets of industries such as Healthcare, Banking, Finance, Supply Chain Management, Agriculture, etc. Entrepreneurs are interested to start a crypto exchange for the year 2020 to get profits!
It is expected that cryptocurrencies which are the future of the payment industry are intended to raise. The famous crypto Bitcoin created back in 2009 will uprise around $500,000 by the year 2020, said by John McAfee. In addition to Bitcoin and other cryptocurrencies such as Ethereum, NEO, Litecoins are also on the line!
With these stats, it is noticeable that traders would approach Crypto Exchanges to perform trading. Thus, the proprietors of the Bitcoin Trading platforms can expect a huge set of revenues and benefits.
If you are one such Entrepreneur, you can get in touch with Zab Technologies, one of the top-notch Cryptocurrency Exchange Software Development Company to launch your dream Bitcoin Exchange platform.
This guide is primarily meant for Investors who are planning to start a crypto exchange for the year 2020!
Start a Crypto Exchange in 2020: 10 Instant Steps
1. Determine the type of Crypto Trading Platform you want to launch:
Initially, it is crucial to know what kind of crypto exchange you are planning to launch. In addition to this, know the popularity and the type of exchanges that traders are expecting. Since the target audience is the person who would provide you with profits, it is important to decide on the trading platform type. You can choose any of the below lists of exchanges:
Centralized Exchanges: Centralized Exchanges are the traditional crypto exchanges. This type of exchange involves a middleman or a third-party to facilitate the transactions. Hence, the traders put their trust in these exchanges to perform trading. This kind of exchange will charge around 0.1-1.5% of the fee for trading.
They are the most popular crypto exchanges and hence there are a plethora of users approach these platforms. This has enhanced liquidity. However, security can still be a concern here.
Decentralized Exchanges: On the other hand, Decentralized Exchanges facilitate the transactions without an intermediary. Hence, the exchanges don’t hold the funds or other information here. However, DEX platforms aren’t much prevalent. Hence, these exchanges lack liquidity. While security is completely enhanced in Decentralized Exchange platforms.
Know the pros and cons of Centralized Exchanges Vs Decentralized Exchanges before you decide to launch one!
Hybrid Exchanges: As the name suggests, these exchanges are a mixture of Centralized and Decentralized trading platforms. They are built with the primary motto of integrating both liquidity as well as the security in the exchange. For the year 2020, most of the experts expect Hybrid Exchanges to evolve.
2. Do deep market research:
To start a crypto exchange, you should initially make extensive industry research. In the year 2020, what can be the price of the cryptocurrencies? Which country can be the best to set up a crypto exchange in 2020? What features do traders expect in a crypto exchange for 2020?
And much more!
You need to find the relevant solutions and draft the requirements accordingly! You can view the Expert views in this case for a more relevant answer! Crypto calendars like Coindesk, Cointelegraph, Coinidol, Wikipedia, etc can be helpful as well!
3. Where have you planned to start a crypto exchange?
So now you have an idea and a business requirement. Now, you should know the desired place to launch your crypto exchange. It is expected that most of the countries will legalize the cryptocurrencies for the year 2020!
Here are some of the Crypto friendly countries where you can launch and start a crypto exchange:
- The United States
- The United Kingdom
While Asian countries like India can regulate cryptos in the future. UAE is also taking steps to make them legal.
Once you have decided on the location, you should figure out the crypto exchanges which are operating there. Find out the features, reviews, process of trading in those platforms and make sure you stand out from the crowd.
Here are certain expectations which traders would expect in 2020:
- Social Trading
- Multiple Charts in a Single Window
- 24*7 Customer Support
- Easy Withdrawal and Deposits
- Up To date Dashboard
- Ease of Use Website
- High-Level Security
- High- Liquidity
You can integrate these features into your crypto trading platform to gain the user’s attention instantly!
4. Check out the Jurisdictions of the country where you are going to start a crypto exchange:
Now you would have decided the respective country. As each country has separate regulations, you should know about them before you launch a crypto exchange. As I have mentioned earlier, you can start a crypto exchange in any of these desired locations.
Remember, if you fail to follow these regulations, you may be put up in trouble. So, it is important to note down the jurisdictions of the country.
5. Hiring a Legal Team of counselors:
To check out the regulations, you need to have a separate set of the team to direct you on the right path. Another suggestion is to integrate a KYC module in your exchange to be on the safer side.
KYC asks for identity requisition from the users to get qualified. This can reduce potential risks from your end. In addition to this, the AML module is also important. Both these entities require proof ID’s like Passport, License, etc.
In the year 2020, regulations can vary from country to country and hence it is mandatory to have a team of counselors with you.
6. Make sure you have the required funds:
Remember, you need a great set of funds for launching a cryptocurrency exchange. The reason is you need to hire a cryptocurrency exchange development company that can bring you the required outcomes you were expecting.
The total price may include the cost of the technology, cost of government & regulations, cost of the solution providers (design, development and sometimes even marketing). Ensure you have the funds for these processes.
Hence, you must know the cost to start a crypto exchange and make sure you have the desired funds for them.
7. Hire Crypto Exchange Solution providers to start a crypto exchange:
Now you should get in touch with one of the top-notch cryptocurrency exchange development companies across the globe. Since to have a great product, it is essential to have a great set of the team.
On the other hand, you are well-versed in programming skills, you can do it on your own. But the concern is the time. But if you hire the right team, you can easily reach the destination.
The team should comprise the following set of experts:
- C-level Managers
- Crypto Exchange Designers & Developers
- Cryptocurrency Marketing Specialists
- Financial Advisors
Make sure they can provide you with both White label crypto exchange as well as developing from scratch based on your requirements.
We people at Zab Technologies, deliver both White label services as well as development from scratch to instantly help you in creating your own exchange platform at a minimal cost.
8. Technical Aspects:
Now you need to layout the features in your crypto exchange platform. As the trading platforms are heading towards various dimensions, here are some of the top-notch features which you can integrate in your exchange:
- Integrated IEO Module
- Security Token Exchange
- Mobile Application support for Android, iOS
- Liquidity API
- Atomic Swaps
- Multi-currency pairing
- Crypto Wallet Integration
- Admin Console
- Issuer Console
- Trading Bot
- Cryptocurrency Price Ticker API
- Rest API
- Leverage Trading
- Referral Program
- Multi-language support
- Payment Gateway Integration
- Market Making
- Matching Engine
- Futuristic CMS
And much more! These are the latest as well as futuristic trends and features you should have in your trading platform. Make sure your solution provider is capable of providing all these modules in it.
It is also essential to check and implement security factors in the exchange. Here are the set of mechanisms which your solution provider has to implement:
- HTTPS Authentication
- Data Encryption
- Anti Distributed Denial of Service (DDoS)
- SQL Injection
- Jail Login
- Anti Denial of Service (DoS)
- Cross-Site Request Forgery (CSRF) Protection
- Server-Side Request Forgery (SSRF) Protection
- HTTP Parameter Pollution Protection
9. Start introducing the Crypto Exchange to your Target Audience:
Now you readily have your crypto exchange built. It is important to promote your trading platform to your global audience. Your solution providers may have the desired set of Crypto Marketing experts to introduce your product. They can make use of Organic Ads and Paid Ads.
Here are some of the marketing strategies by which your product will be promoted:
- Crypto forums like Bitcointalk, Cryptocurrency Talk
- Social Media Channels like Facebook, LinkedIn, Twitter, Telegram
- Messenger Platforms like Slack, Reddit, etc
- Email Marketing Campaigns
- Content Marketing
- Pay Per Click
- News & PR
- Bounty Programs
- Affiliate Marketing Strategy
- Reputation Handling
And much more!
10. Rendering 24*7 Support:
This is going to be the most crucial step of all. You should be ready to support your customers in case of any issues or errors and resolve them instantly! This can make you more reliable and successful in the industry.
In addition to this, you should also maintain a team for ongoing legal compliance. Since regulations are changing with time, the team can support you in this case. This can make you remain worry-free.
The year 2020 has a great set of news for entrepreneurs in the crypto industry. They are here to stay and will stay and most people would start to invest in Blockchain. I hope these 10 steps would help you to start a crypto exchange instantly!