Blockchain technology and cryptocurrency both have seen tremendous growth recently, and it’s still continuing.
This rapid growth has not only attracted traders but also many entrepreneurs to start their business in crypto because it can yield profits within a short span of time.
There are many business models around the crypto world and the crypto exchange business is the most profitable one among them.
The reason why the crypto exchange business is said to be the best is that it has a lot of revenue-generating models and it won’t be affected if there is any crisis in the world. This makes it the safest one, which is also why entrepreneurs prefer the crypto exchange business.
If you’re an entrepreneur who wants to start a crypto exchange business but is not sure where to start, we’re here to guide you with 10 simple steps.
10 simple steps to start a crypto exchange business
- Research on the crypto market
Whatever business you start, you should have deep knowledge about it before investing in it. When it comes to the crypto exchange business, you should be aware of crypto trends, price analysis, exchange features, benefits, and the list goes on. Since the crypto business has a volatile nature, you should know every nook and corner of crypto. Then you’ll be able to tackle the market easily.
- Choose the country where you want to start your crypto exchange
Because certain countries have not accepted crypto, it is important to decide where you are going to launch your project and to know as much as you can about the crypto market in that country. Countries like the US, European Union, Canada, Australia, India, and more have accepted cryptocurrency. Some countries like China, Nepal, Bolivia, and Bangladesh have not accepted cryptocurrency yet.
- Choose a crypto exchange business model
User to Admin, Peer-to-Peer, and Orders book are three types of models in the crypto exchange. Each type of crypto exchange model has its unique features and works with different functionalities. You can look into them and choose which one correlates with your crypto business ideas and choose them accordingly.
- Make a design for your crypto exchange platform
Prior planning is always best so that you will be clear about how you are going to move forward with your crypto business. The architecture of how you want your crypto exchange platform to be is very important. You need to plan about the interface, trading methods, wallet, exchange pairs, user, admin panel, and many more.
- Build a team for legalities
You need to make sure that you are doing everything legally. To do so, you need to set up a team for handling the legal formalities so that nothing will go wrong throughout the process and your crypto exchange business process will take place smoothly.
- Pick your crypto exchange platform development method
There are 3 methods for creating a crypto exchange platform, including:
- Building from scratch
You can build a crypto exchange platform from scratch. To do that, you need to have a team of blockchain developers and many resources. But the thing is creating a crypto exchange platform from scratch requires a lot of time and investment.
- Using an open-source code
An open-source is nothing but getting the software from a free source on the internet. It is not as easy as it sounds, because when you get an open-source code there is no assurance that your exchange will be safe. There is no security in getting the software through an open-source, it is prone to many issues.
- Getting a clone script
As the name suggests, a clone script is a ready-made software that replicates the original exchange software that is well known in current markets like Binance, LocalBitcoins, Coinbase, and so on.
You can get the crypto exchange clone script from a crypto exchange clone script provider. It is considered the most efficient method among the other methods.
One of the reasons this method is considered efficient is the short amount of time it takes. Customization is available at an affordable cost.
- Select a legit clone script service provider
You should choose a legit clone script provider to ensure the quality and security of your clone script. Various exchange clone script providers are available in the market and choosing the best one among them is the most important thing, so do some research and select a legit cryptocurrency exchange clone script provider.
- Choose the security feature for your crypto exchange platform
You need to integrate with high-end security features like SSL encryption, HTTPS authentication, 2FA, CSRF protection, Anti-DDoS safety measures, and so on. To make sure that your crypto exchange platform is safe and secure because security plays a vital role in the crypto business.
- Partner with a legit payment processor
To provide the payment feature for the traders who use your exchange, you need to join hands with a legit payment processor because those payment processors will have access to the trader’s wallet. So choose a payment processor wisely.
- Develop a beta testing program
Once the development process is over, the final step is to go through the Beta testing, which will ensure your exchange goes live without any hurdles. Then only you can run your crypto exchange business successfully.
Hope you’ve got an idea about how to start your crypto exchange business.
It is very clear that after considering every other aspect of the methods to create a crypto exchange platform, getting the clone script from a professional crypto exchange clone script provider seems to be the best method. You can just approach them, convey your needs and get your crypto exchange clone script within a week.