How to start Cryptocurrency Exchange Business – Step by Step Guide
Cryptocurrency Exchange Business is one of the hot topics of today!
After the discovery of cryptocurrencies like Bitcoin, Ethereum etc. a platform to exchange these digital currencies are very much essential. And these became a trend.
Owning a cryptocurrency exchange platform has a lot of advantages. You will be getting an amount for every transaction that occurs through your platform.
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Well, all this is a completely different topic. And if you could really foresee the potential behind the cryptocurrency exchange business, hope these steps by step guide will help you in finding the right direction.
Now onto the steps to be followed.
Steps to start Cryptocurrency Exchange Business
Step 1 – Make sure that you acquire the necessary licensing requirements under your geographical area.Before starting out your own Cryptocurrency Exchange Business, it is very much essential to seek the necessary legal advice and follow the formalities. Obtaining the required licensing is very much necessary to run your business smoothly.
In many places, the cryptocurrency exchange business operates without the required foresightedness, as many of the Governing bodies are still unaware of this technology. But in countries like the United States, the Cryptocurrency operators must be registered as a Money Transmitter business and also should follow the SEC and CFTC rules and regulations. Your business should also follow the KYC (Know Your Customer) regulations.
Step 2 – Get the required financial backup for starting out the business.Before beginning the project, you should be fully aware of the costs to be involved in the Cryptocurrency Exchange Business. Usually, it costs an amount of $135000 to function the business very smoothly. This amount is including the cost of technologies involved, hosting, marketing and advertisements etc.
Holding up a proper backup is very much necessary so that you can even plan for expansion in the future.
Step 3 – Find a leading Cryptocurrency Exchange Platform Development CompanySelecting a leading Crypto software development company is another thing which helps you to own a self Cryptocurrency Exchange Business, even for the people who do not know about the complexities involved in developing a good platform. A well established and reputed Blockchain development firm will be guiding you properly with all the necessary information.
Always check whether the firm delivers you a white label software so that it allows you to customize the technology according to your needs. It also reduces your costs significantly.
Hire a leading Cryptocurrency Exchange Platform Development
Step 4 – Connect your exchange with others for more liquidity.For a successful Cryptocurrency exchange business, liquidity is a very big factor. So always try to connect your exchange with the maximum possible partners so that liquidity will never be a hurdle for your business success.
The public will be investing their hard earned money in your business, so it’s very much your responsibility to live up to their expectations, by providing higher liquidity options compared to your competitors!
Step 5 – Create partnership with a payment processor.Different payment operators charge different amount for the transactions. So always try to create partnership with the best and leading payment processors, which charge fewer transaction charges.
Also, make sure that the payment processor operators do not charge any hidden charges before signing up the contract with them. Also, make sure that the payment processor operator you sign the contract follows all the required cybersecurity practices.
Step 6 – Make sure that you implement the best security practices.Since your cryptocurrency exchange business involves dealing with digital currencies which have high monetary value in the present world, it’s very much necessary to implement all the best security practices that are available today. And this makes sure that there will be no security breaches with your platform.
Step 7 – Only make your platform live after the Beta testing.Go online with your platform only after performing the Beta testing. The main advantages of performing Beta testing is that it brings out all the flaws that have occurred while developing the platform. And all these errors can be corrected up. Your cryptocurrency exchange will be free from the errors and other technical glitches.
Step 8 – Do the necessary marketing works.After the successful launching of your Cryptocurrency Exchange Platform, you need to do the marketing works really well, so that it reaches out to the maximum people. Planning of your PR and marketing works need to planned properly to execute it really well. The planning process should include to prepare a sketch about the things to be done, the cost involved etc. Social media marketing would be one of the best ways to promote your products. It’s also completely free, and if needed you can try out the paid options in these social media platforms, so that the reach would more than the normal option.
Step 9 – Provide the necessary customer support.Providing really good customer support is the final step involved in the making of a successful Cryptocurrency Exchange Platform. Since you will dealing with a lot of customers, it is very much mandatory to make them happy and satisfied all the time with your best services. 24*7 customer support would definitely an attractive feature that you could provide. Try implementing a ticketing system, like ZenDesk and recruit some staffs with sound knowledge in dealing with the customers.
Step 10 – Maintain a legal team always to provide the necessary legal support.It is really important to follow all the rules and regulations in your jurisdiction as well in foreign jurisdictions, since it involves customers from different parts of the World. The Cryptocurrency laws are rapidly changing around the globe, and it’s always advisable to hire a legal team who stays updated with formalities.
Hope this guide gives you a clear picture about the things to be aware of before starting out a Cryptocurrency exchange business.
Well, go through this, and do comment below if you feel there are certain other things to be included in the blog!
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