Dreaming about starting your own Crypto exchange but don’t know where to start? You’re just in the right place!
Starting any new business involves a lot of thinking and planning that could sometimes take months. It’s even harder when you start a Crypto exchange due to the multiple, complicated elements involved in this process. No worries, though, we’ve got you covered!
In this article we’re covering everything you should know in order to start a successful Crypto exchange—what you should do, and how exactly you can do it. So, without further ado, let’s get started!
7 Activities in order to start a successful Crypto exchange
1. Know Your Client Base
The first step towards succeeding in any type of business is defining your client base—this is the step where you get to know more about the kind of people who would be interested in your business, which is a Crypto exchange in this case.
If you plan to expand, take into consideration the places that your target audience lives in, as well as the government restrictions in each place that could possibly decrease the number of people who can access your exchange. So, before you start your Crypto exchange, make sure you’re able to acquire the necessary permissions and licenses to reach your target audience.
- Pro tip: Always seek professional help if you’re not sure about which licenses you should get. You can learn everything about the regulations of international trade from an experienced lawyer.
2. Collaborate with Financial Institutions
Using fiat money in your exchange will require you to contact payment providers or banks. Fiat money is a type of currency that is issued by the government and is unbacked by commodities like silver and gold. Instead, it’s backed by the issuer of this currency, which is the government in this case.
As a result, it’s critical to opt for a trustworthy bank that has considerable exchange rates, suitable terms for partnership, and a plethora of online services. We recommend that you do this in countries that do not ban Crypto trading and accept it as a payment method, like the United Arab Emirates, Estonia, Malta.
3. Plan The Architecture of Your Exchange
Planning the architecture of your Crypto exchange is key if you want to build a professional, well-organized exchange. A good architecture should help you have a general idea about the interactions between each component in your Crypto exchange. As a result, the architecture of your Crypto exchange should be fully dependent on the type of your platform and the nature of its features.
When building a Crypto exchange, you should typically consider its engine, control panel, the login and authentication process, and database, among other things. You should also pay attention to each one of these separately and then plan the way you want to connect them to each other on your platform.
4. Design an Easy-to-use UI
You can’t expect someone to use your user interface unless it’s absolutely attractive! And by attractive we mean it visually looks good, it’s easy to navigate through, and it’s as simple and straightforward as possible. It’s normal for people to trust a Crypto exchange that is user-friendly and clean, it’s also normal for them not to trust an exchange that has excessive, complicated features.
Think about it, a smooth and straightforward UI makes it easier for your clients to know everything about your platform, which is a big advantage when you try to increase the number of your clients. As a result, before starting your Cryptocurrency exchange, you want to make sure that your clients will enjoy a great trading experience on your platform.
5. Build an Anti-Hacking Platform
If there’s one thing that could put people off when using any Crypto exchange, it’s the lack of security. Many people are skeptical about some Crypto exchanges (especially new ones) due to security concerns. So you need to make sure that you have reassuring proof to show to your clients so they can feel secure when trading on your exchange.
You want to ensure that every transaction made on your exchange is completely secured, as well as the personal information and privacy of your clients. Almost all currency-related platforms follow the policy of Know Your Customer (KYC), which entails verifying your client’s identity. The aim of KYC is to eliminate the possibility of any illegal activity that could possibly harm the exchange.
Also, keep in mind that many Crypto exchanges ended up failing due to hacking. It’s literally the job of hackers to set down and try to hack your Crypto exchange that you worked hard to build—don’t let them succeed and work on building a robust, anti-hacking security system for your Crypto exchange!
6. Responsive Customer Support is Crucial!
Have you ever hated a certain brand just because they have unresponsive, or even rude customer support members? We all have! After building everything about your Crypto exchange, you should look for a reliable, experienced staff to hire. As someone who runs a Crypto exchange, expect that there will be countless questions from clients that need to be answered as quickly as possible, unless you want to lose your clients, your main source of profit.
7. Consider an Exchange Provider
Fortunately, starting your own Crypto exchange is now easier than before. The technological advancements that are reflected on the Crypto market is in your favor since it prepared the suitable conditions for ambitious businessmen who dream of establishing an exchange to trade Cryptocurrency.
If you still find it difficult to start your own Crypto exchange by yourself, you can consider dealing with an exchange provider. For example, BTCTrader is an excellent provider of hosted, customized Crypto exchanges. It enables you to launch a Crypto exchange easily without investing in the development or operation of the infrastructure and software.
Also Read About: Smart Contracts
Starting a new Crypto exchange is not easy whatsoever—it involves knowing your clientele, collaborating with financial institutions, planning your architecture, designing a user-friendly UI, building an anti-hacking platform, and hiring reliable customer support members.
It’s important to know that doing all of these things can be difficult, so we encourage you to seek perfection and do your own research about each part of your business. There isn’t one single guide that could lead you to the right path alone regarding this topic, even if it’s crazily extensive. So we’re just showing you the basic steps that you should follow and you have to do your homework after!