I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning mobile game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.
We don’t think that bitcoin or cryptocurrency needs any introduction since last year it has become the headlines of every newspaper and breaking news on every news channel. From 2021 to 2030, the cryptocurrency market is forecast to grow at a CAGR of 12.8% to $4.94 billion, from $1.49 billion in 2020.
Bitcoin and cryptocurrency are ruling all over the world, people who have invested in it before 2017, for them it was the best decision and they have turned into a millionaire or billionaire but how they utilized it, it’s all upon them. There was a time when bitcoin was in high trend. But now again it falls, it could say that it was a golden opportunity. Now for those who had missed the opportunity, they don’t have to regret it as they can invest in the cryptocurrency platform in many new ways. By 2028, the global cryptocurrency exchange-platforms market is projected to reach $674.9 million, growing at a compound annual rate of 12.7%.
What is a Cryptocurrency Exchange Business?
Different cryptocurrencies can be bought, sold, and converted on crypto exchanges. The scale at which cryptocurrencies are traded today is not possible without them. In some exchanges, you can find the most competitive prices or the fastest speeds, while in others, specialized products are offered.
Why Start A Cryptocurrency Exchange Business?
There has been a time when you could have earned a good amount, but the circumstances have changed and there have also been new ways introduced, so rather than relying on the prices for a direct house deal, which will always be profitable, create a situation or deal on that platform so that you will make a profit in any case. So here we brought some easy solutions and that is to Start Your Bitcoin or Cryptocurrency Exchange Software Development, you can start dealing with it. A 12.7% CAGR is forecasted for the global cryptocurrency exchange-platforms market by 2028.
So, rather than investing in the cryptocurrency, start dealing in the exchange platform and be a part of the trading sector.
Cryptocurrency Income by Exchanges
There was a 100% growth in cryptocurrency trading on all exchanges listed in the first half of 2021 due to the explosion of cryptocurrency exchange trading platform. In recent months, crypto trading has slowed down somewhat after reaching the highest levels ever in 2021.
How to Start a Cryptocurrency Exchange Business?
So to start dealing with it you need an answer to the question of how to start a crypto exchange platform or exchange website, but it is not that much easy, as it sounds. If you will not plan well, it may screw up your idea. In order to start an exchange platform successfully, you must have a proper plan in place.
Bitcoin and other cryptocurrencies are in vogue. The concept of Bitcoin is becoming mainstream, and those who invested in or mined it early are sitting on small fortunes.
The makers of picks and shovels could be compared to cryptocurrency exchange operators and owners in the gold rush of the cryptocurrency boom.
I hope you’ll find this step-by-step guide for start own crypto exchange helpful if you’re interested in how to start a cryptocurrency exchange business.
Read on to learn about how to start a crypto exchange business, how they work, and which one you should pick.
Getting Started with Bitcoin Exchanges in 10 Easy Steps
1. To ensure compliance with licensing requirements, seek legal counsel.
2. Obtain venture capital funding.
3. Choose a software solution provider for cryptocurrency exchanges.
4. Liquidity can be increased by connecting with other exchanges.
5. Become a partner with a payment processor.
6. Be sure to implement best practices in security.
7. Beta testing is required to go live.
8. Organize a marketing and PR campaign.
9. Support your customers.
10. Maintain an ongoing compliance team.
Get Your Crypto Exchange Started
After seeing how to start your own crypto exchange, let’s take a closer look at them.
1. Licensing Requirements Must be Met with Legal Counsel.
In order to understand the regulatory demands of your new venture, you should seek legal counsel before setting your plan into motion. A proper license must be obtained in every jurisdiction in which the company intends to operate. Since governments and regulations have yet to catch up with technology, cryptocurrency exchanges operate without significant oversight in many places, while in others, including the US, bitcoin mining software development operators must be licensed Money Transmitter businesses and follow rules and regulations issued by the SEC and CFTC, among others. It is imperative to seek legal counsel. Exchanges are typically subject to Know Your Customer (KYC) regulations to combat money laundering because they fall under the currency exchange umbrella.
2. Obtain Venture Capital Funding.
It is important to know how much your project will cost before you get started. There is a bare minimum requirement of $135,000 for the development and launch of a cryptocurrency exchange. Among these costs are those for technology, hosting, some initial legal counsel, registration with the government, and advertising at the beginning.
Although not all funds are required upfront, it is important to ensure there is sufficient capital to allow the venture to be successful. Many startups fail to plan for the future, landing small financing rounds which may cover the Cryto exchange development costs, but leave the venture without the critical operational cash it needs until it becomes profitable. Often, startups license their crypto exchanges from unscrupulous providers that charge ongoing fees and don’t mention the legal requirements and costs involved in setting up and maintaining an exchange.
3. Find a Provider of Technology Solutions.
With BR Softech, cryptocurrency exchanges are turned around quickly and easily without royalties or commissions. The client doesn’t have to pay ongoing fees, can host the exchange themselves, and receives the full source code, which is important for auditing purposes since some regulators ask to see the source code. In addition to developing stock exchanges, BR Softech has developed backend technology used by some of the world’s largest stock exchanges for over 20 years.
4. Liquidity can be Increased by Connecting with Other Exchanges.
Successful exchanges are built on liquidity. Your new venture will be viewed with skepticism by potential customers if you don’t have an order book and trading activity. We can enhance the liquidity of your exchange by connecting your exchange to an existing network of exchanges in order to bypass these issues. You will have fewer liquidity issues with your new exchange if the network of exchanges is larger.
5. Become a Partner with a Payment Processor.
There is no such thing as an equal payment processor. There will be a wide range of fee structures between companies, among other things. If you want to be competitive with other exchanges, you must have the lowest transaction rate. It’s also important to understand the contract you’re signing, since some processors add hidden fees. Besides settlement time, another difference among processors is compliance with PCI DSS, a set of cyber security best practices. The federal government does not require compliance with state laws in the United States, but many states do. To protect your new enterprise against cyber threats, make sure your payment processor is PCI-compliant.
6. Best Security Practices Should be Implemented.
Cold storage wallets, two-factor authentication, and encrypted databases make BR Softech exchanges among the most secure in the world. Passwords are not stored by BR Softech (only hashes). There have been numerous articles written about the data breaches that have become infamous in the industry, including the Mt. Gox and Bithumb incidents. What’s the bottom line? Exchanges are scrambling to differentiate themselves based on security in light of the increasing threat of cybercrime and hacking.
7. Beta Testing is Required to Go Live.
Your exchange has been built. A payment processing firm has been contracted by you. As well as following all rules and regulations, you’ve taken great care to make sure your exchange is compliant. By protecting your venture from cybercrime, you have ensured its security. Having launched your exchange in beta, it’s now time to test its full capabilities.
8. Launch a Marketing and PR Campaign.
It is time to connect with crypto news outlets, such as Coindesk, once your exchange has launched. To ensure your initial raise does not leave you scrambling to raise more funds, you must properly plan your marketing activities and costs. Until a critical mass of traders is reached, exchanges do not include a marketing budget and instead rely on free social media marketing.
9. Support your Customers with Care.
You can determine your long-term success based on your ability to excel in customer support as the final step in creating a successful cryptocurrency exchange. A consumer’s complaint and the technical issue must be satisfactorily resolved by those who deal with them. Since cryptocurrencies never stop trading, you’ll need a ticketing system like ZenDesk staffed with knowledgeable and helpful professionals at all times.
10. Maintain an Ongoing Compliance Team.
In addition to maintaining legal compliance and following all current and proposed laws and regulations, it is also extremely important to ensure compliance not only in the jurisdiction where your exchange is located but also in all foreign jurisdictions where your exchange members or traders will reside or conduct trading. To keep your exchange legal in all geographies where you plan to conduct business, you should either hire a full-time, in-house team or outsource legal compliance to reputable law firms.
Read More:- Develop a Cryptocurrency Exchange Like Binance
Best Cryptocurrency Exchange Platform of 2022
- Coinbase – The best platform for beginners
- Binance.US – Lowest fees
- Robinhood – Security at its best
- BlockFi – The best way to earn interest
- Bisq – Decentralised Exchange of the Year
- Cryptocurrency interest payments monthly
- Institutionally backed, U.S.-based, and regulated
- Commissions and monthly fees are not charged
- States offer a wide variety of products
- Withdrawals from interest accounts are limited
In addition to earning interest on your crypto, BlockFi allows you to borrow money against your Bitcoin using it as collateral.
BlockFi offers financial products that cater to conservative traders instead of offering bonuses and discounts to high-volume traders.
- Easy purchase process and intuitive interface
- Educational materials of a wide variety
- Cryptocurrency selection is extensive
- best crypto exchange for business
- Fees that are higher
- The structure of fees is complex
Its easy-to-use crypto exchange business interface, extensive educational materials, and strong security features helped us choose Coinbase as the best crypto exchange for beginners.
The learning materials available on Coinbase are also comprehensive and easily accessible. Through Coinbase Earn, users are taught how to trade cryptocurrencies and rewarded with free crypto for using these resources.
Coinbase Pro, Coinbase’s other exchange platform, has more advanced trading and charting features for users who enjoy Coinbase.
- Infrastructure for cybersecurity that is outstanding
- If you fund your account with cash, you will pay low fees
- Charts and graphs for advanced trading
- Purchases with credit cards are currently unavailable
- Select states in the U.S. do not offer certain services
Our choice of Binance.US as the best crypto exchange for low fees is due to its generous fee structure.
Its United States partner, Binance.US, offers many of the benefits of Binance, the world’s largest cryptocurrency exchange by trading volume.
A big advantage of this platform is its low maker/taker fee structure, which tops out at 0.1%. The fee starts low and gets lower as you trade more.
- Infrastructure for cybersecurity that is outstanding
- If you fund your account with cash, you will pay low fees
- Crypto assets available in a wide range
- Credit and debit purchases that are expensive
- The United States does not offer all services.
- Crypto-to-crypto trading is not available
Due to Robinhood’s multiple layers of protection against crypto fraud and cyberattacks, we chose it as the best crypto exchange for security.
The cybersecurity infrastructure at Robinhood is among the best among reputable crypto exchanges. According to the Cybersecurity Ranking and CERtification Platform, the exchange is ranked first.
- Provides support for a wide range of traditional currencies and coins
- Payment methods available in a wide variety
- Process for short-term verification
- Notifications work only on the mobile version
- Only Bitcoin or BSQ can be traded
Bisq is the best-decentralized exchange because it maintains an open-source platform without limiting currency support, maintaining the ethos of Bitcoin.
Formerly known as Bitsquare, Bisq brings centralized exchange features to a decentralized environment along with easy-to-use interfaces. Open-source software is used to build the platform, meaning its design is available to the public, and donations from its users fund the project.
In this blog, we have provided you with all the information you need to start your own cryptocurrency development business. We have given you the simple steps for starting a Bitcoin or cryptocurrency exchange business because it is a trend of the technological era and will surely benefit you. The best step-by-step guide will not answer all your questions, regardless of how extensive it is. I hope you have been able to construct a preliminary action plan that will help you move forward in the future. Please feel free to contact BR Softech by phone or email if you have any additional questions along the way.
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BR Softech Pvt. Ltd. is a prestigious IT company that specializes in providing cost-effective and tailored tech-enabled solutions for different industries and genres. Established in August 2012, we have over 10+ years of experience in mobile game development. Take your business to the next level with our feature-packed metaverse, casino, mobile game, sports betting and fantasy sports software development services.