Lots of new age dynamic entrepreneurs reach out to us seeking help in starting cryptocurrency exchange in India 2021. Cryptocurrencies are a huge opportunity for those who are planning to make some financial benefits from them. They are options like mining Cryptocurrencies like Bitcoin, Ethereum, etc. But mining has now become very competitive, and almost impossible for the common public. Another option is to starting a Cryptocurrency Exchange Trading Platform.
So, What are cryptocurrency exchanges?
Cryptocurrency exchanges, as the name implies, are platforms where a trader can trade crypto assets with another crypto asset at predetermined prices. The prices are dictated by market dynamics like the demand, the supply, and the magnitude of acceptance of a certain crypto coin.
One of the Utopian use cases of cryptocurrency was that it could be immune to economic uncertainties. Until the first quarter of 2020, no one expected this uncertainty to barge into everyday lives. However, the COVID-19 pandemic has changed the dynamics not only of the economy but also of the whole life as we know it. In these times when burning becomes difficult, cryptocurrency exchanges presented a lucrative opportunity for common people to make a profit.
With the legalization of a cryptocurrency exchange as a valid financial business, and with the extrapolation that more and more countries/jurisdictions will accept cryptocurrency exchanges as valid financial businesses, This is probably the perfect time to start a cryptocurrency exchange platform like Binance.
The process to build your own Cryptocurrency Exchange Platform involves certain tricks. As a business person, it is not always necessary to have enough technical knowledge to create your own Cryptocurrency Exchange Platform.
But knowing the basics will definitely help you to build a more efficient Cryptocurrency Exchange platform.
Different Types of Cryptocurrency Exchanges
There are mainly three types of Cryptocurrency exchanges. They are discussed in detail below:
- Regular Exchanges: Regular exchanges operate in the same format as that of the conventional methods used in trading. Regular exchanges allow all types of users just to sign up and buy coins. It follows a centralized structure.
- Peer to Peer Exchanges: It allows the transfer of Cryptocurrencies between peers. Such Cryptocurrency Exchange Softwares makes use of smart contracts and other related technologies so that it becomes more trustworthy.
- Cryptocurrency Brokerage Firms: Cryptocurrency Brokerage firms allows users to invest in Bitcoins or altcoins using fiat currencies like US Dollars, Euros, etc. The buyers can wait until the invested funds gain higher value and sell them if needed
How to Build Your Own Cryptocurrency Exchange?
There are mainly three ways through which you can create your own Cryptocurrency exchange platform.
The first one is using a white label software. The second one is developing one with the various open-source platforms out there. The third and final option is building a Cryptocurrency from scratch.
Let’s see those three methods in a little brief.
White Label Solutions
A lot of companies are there which provide the services of Cryptocurrency Exchange Platform development and other Blockchain related softwares. White-Label Solutions allow you to use an already made product by making some minor customizations according to your business needs. This product is an already proven one and will be mostly free from technical errors or other bugs.
Open Source Solutions
There are a lot of open source codes available on the internet. Someone who has sound technical knowledge can try to build a Cryptocurrency Exchange Software from scratch. But there are a lot of issues attached to this type. They are not very reliable, secure, and also do not provide a proper support team.
Custom Software Development
This step involves developing the software from utter scratch. It takes a huge effort, time, and money to develop a Cryptocurrency Exchange Software through this method.
Steps to Be Taken For Starting A Cryptocurrency Exchange
- Choose your business location
- Make sure you complete all the Legal formalities with utmost care
- Consult a leading Cryptocurrency CA Firm for legal & financial advise
- Decide on processing of KYC norms and withdrawal - This is a very important regulatory aspect of the whole Cryptocurrency Exchange. One of the biggest concerns in the crypto realm is the possibility of funds being used for terrorist activities. Therefore, your cryptocurrency exchange should have a KYC/AML verification in place. It might be quite a demanding process, and it is highly recommended that you automate the KYC verification system.
- Generate the funds for your venture
- Consult a leading Cryptocurrency Exchange Software Development Firm - our firm can help you and link you to some of leading vendors in this area.
- Seamless Customer Onboarding - Customer Onboarding is an important moment of truth for the customer. It is his first intimate experience with the working style of the company. Hence it is recommended that onboarding should be as flexible and frictionless as possible. When customers see the speed, ease, security, and convenience of onboarding, a positive perception of the brand is formed which affects the long term brand loyalty.
- Make a connection Between Your Exchange with other service providers for higher liquidity rate
- Opt a suitable Bank Payment Processor
- Do all the things necessary for a safe and secure platform
- Roll out a live Beta Version of the software
- Execute perfect marketing strategies
- Provide 24*7 customer support services
- Maintain a professional and expert team for ongoing compliance
Essential Features of Your Cryptocurrency Exchange Platform
There are certain features that every Cryptocurrency Exchange Platform must possess. We will discuss those below.
- Quick, Secure and Easy Transactions
- 2-Factor Authentication Procedures
- Higher Usability
- Secured Wallet
- Higher Efficiency
- Easily Customizable and Scalability Factor
- Quick Response Time
Approximate Time Required For Building a Cryptocurrency Exchange Platform
The time required to develop a Cryptocurrency exchange software is depending upon the requirements. To make it perfect and precise. Also, it should stand apart from competitors. So it takes some time to give it a special and unique look.
Choose a leading Blockchain application service provider, so the output you receive will be the best!
As the final thoughts of this blog, we have tried to bring out the different aspects you should know before you build your own Cryptocurrency Exchange Platform.
We are helping a number of Established and New Exchanges with Legal, Financial & Technical aspects. If interested, you can consult schedule a consultation so that we can guide you in the right direction! All consultations are paid consultations.