We know that this is the era of cryptocurrencies. Since the successful emergence of Bitcoin, many altcoins emerged and traded faster than light. This could be impossible without a trusted crypto exchange platform. Crypto exchange platforms are evoking business platforms since the march of successful platforms like Binance, Coinbase, etc. The main reason for the success of the cryptocurrency exchange is blockchain technology.
The size of Blockchain Technology is expanding. According to various sources, It has grown up to $1.5 Billion. With its application in various industries including Healthcare, supply chain management industries, etc. Blockchain had conquered an undeniable palace in the entire world. But their contribution to the crypto exchange is the most lauded contribution that led to its growth.
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 have to reach the best Cryptocurrency Exchange 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 2023!
Now, let us quickly look into the 10 instant steps to start a crypto Exchange.
How to Start a Crypto Exchange – 10 Steps
- Determine the type of Crypto Trading Platform you want to launch
- Do Deep Market Research
- Where have you planned to start a crypto exchange?
- Check out the jurisdictions of the country before starting a crypto exchange
- Hire a Legal team of counselors
- Make sure you have the required funds to start a bitcoin exchange
- Hire a team of developers from the best crypto exchange development company
- Technical aspects required to start a crypto exchange
- Market your crypto exchange platform to your target audience
- 24/7 Customer support
1. Determine the type of Crypto Trading Platform
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 are 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 who approach these platforms. This has enhanced liquidity. However, security can still be a concern here.
On the other hand, Decentralized Exchanges facilitate 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!
2. Do Deep Market Research
To start a crypto exchange, you should initially make extensive industry research. In the year 2023, what can be the price of cryptocurrencies? Which country can be the best to set up a crypto exchange in 2023? What features do traders expect in a crypto exchange for 2023?
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. As you all know, most countries have legalized cryptocurrencies and 2023 will be the year of cryptocurrency exchange entrepreneurs.
Here are some of the Crypto friendly countries where you can launch and start a crypto exchange:
- The United States
- The United Kingdom
Some of Asian countries have also legalized the initiation of cryptocurrency exchange platforms with certain restrictions. Middle eastern countries are also not an exception.
Once you have decided on the location, you should figure out the crypto exchanges which are operating there. Find out the features, reviews, and processes of trading on those platforms, and make sure you stand out from the crowd.
Here are certain expectations that traders would expect in 2023
- 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 the Jurisdictions of the Country
Now you would have decided on 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 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 IDs like Passports, Licenses, etc.
In the year 2023, 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, the 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 a Team of Developers from Best Crypto Exchange Development Company
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 team.
On the other hand, if 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 develop 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 Required to Start a Crypto Exchange
Now you need to lay out the features of 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 into your exchange:
- Integrated IEO Module
- Security Token Exchange
- Mobile Application support for Android, iOS
- Atomic Swaps
- Multi-currency pairing and Multi-lingual support
- Crypto Wallet and payment gateway Integration
- Admin and Issuer Console
- Trading Bot
- Cryptocurrency Price Ticker API and Liquidity API
- Leverage Trading
- Referral Program
- Matching Engine
- Futuristic CMS
These are the latest as well as futuristic trends and features you should have in your trading platform. Make sure your crypto exchange development company is capable of providing all these modules in it.
It is also essential to check and implement security factors in the exchange. Here is the set of mechanisms that 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. Market your Crypto Exchange Platform 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.
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.
Wrapping it Up
The year 2023 will be an economic rejuvenation for entrepreneurs in the crypto industry. Entrepreneurs are focussing on the hot business and to be frank, it is always a sensation to invest in cryptocurrency exchange and Blockchain. I hope these 10 steps would help you with Cryptocurrency Exchange Development instantly! So without any delay, start a crypto exchange and get a huge amount of profits in a very short period of time.