Cryptocurrency exchanges are the most frequented avenues when it comes to trading or investing in crypto. The crypto market is predicted to rise by 5x in 2030 than what it is in 2022. It’s self-explanatory why experts are predicting a solid boom in the volume of traders and investors in the coming 8-10 years. If you too have been planning to foray into the crypto scene with a related business, a cryptocurrency exchange online would be the ideal venture. It’s an elaborate process no doubt but given the popularity of the exchanges today, all the hard work would be actually worth it. Read more at Multibank.io.
The post below offers a brief on the steps to follow to develop a cryptocurrency exchange online.
Step 1
Market study
You don’t just sit to build a cryptocurrency exchange online one fine day.
The entire process will proceed with a thorough study of the crypto market and the crypto exchange market. You will have to understand the customer requirements. Browse through articles that offer tips on choosing the right cryptocurrency exchange online. Then, you should also study the cryptocurrency exchange online website of your competitors. You must check the emerging ICOs as well for the new promising altcoins. Legacy coins are not the only favorites in a cryptocurrency exchange online. There are many traders and investors who are on the lookout for new altcoins.
Step 2
Attain legal counsel
You might have heard that crypto is an unregulated zone. It’s true no doubt but national governments have started formulating certain legal implications for crypto-related businesses, especially crypto exchanges.
So, every exchange now has to follow a certain set of legal framework to ensure legit operation. There is no universal legal framework for crypto exchanges as of now -you have to follow the legal implications that are set by your specific jurisdiction. And for that, you will need to consult with a law firm or a legal professional who is acquainted with the legal needs of a cryptocurrency exchange online.
If you are planning to build a centralized cryptocurrency exchange online, you will have to implement the KYC framework as well. However, if you are planning for a decentralized cryptocurrency exchange online, you won’t need the KYC formalities.
Step 2
Gather funding
You will need something around $150,000 to build up a cryptocurrency exchange online. Take into account not just the budget of developing the website but also the expenses related to legal counsel, advertising, government registration, and so on.
Focus on raising the capital in huge volumes. For that, you will need to jump into regular and proactive advertising that will help to attract willing investors. Crypto is a booming field and a huge bunch of investors are looking forward to putting their money into promising crypto exchanges.
You should also take to crowdfunding platforms to raise funding for your cryptocurrency exchange online.
Step 3
Build the website
Now, we have reached the central part of our article.
Are you confident in your coding skills? Well, then, you can build up the cryptocurrency exchange online all by yourself. There are various tutorials online that will help you to learn how to build up the website of a cryptocurrency exchange online.
But, if you are not acquainted with coding and/or do not want a DIY setup, you can always consult a reliable exchange builder to develop your cryptocurrency exchange online website. Make sure the chosen developer is experienced in building crypto exchanges.
Step 4
Connect for enhanced liquidity
One of the major pointers to check while choosing a cryptocurrency exchange online is the liquidity factor. Your target audience will like to check how much liquidity your exchange can provide. In other words, your potential users are looking for exchanges with high liquidity.
Since yours will be a new cryptocurrency exchange online, it will be initially difficult to attain liquidity. In this case, it’s suggested that you develop a strong rapport with DeFi platforms and other crypto exchanges that can support your cryptocurrency exchange online with improved liquidity.
Step 5
Register with payment processor
Before getting into the discussion, it must be stressed here that you can’t use a personal account for taking payments from your exchange users. You will need to have a separate business account exclusively for the exchange.
Now, in regard to payment processors for a cryptocurrency exchange online, the most common option is the bank. But, not all banks would be equally compatible with crypto exchanges. So, you might have to browse through multiple banks to find the right banking institution for your cryptocurrency exchange online.
Additionally, you would have to strike a deal with payment processing applications as well.
Step 6
Invest in security
The most important pointer that could make or break a cryptocurrency exchange online is the security quotient. Smart users will always check the security provisions practiced by a crypto exchange before signing up with the platform. You have to arm up your cryptocurrency exchange online with the most advanced security features, like cold wallet storage and 2FA authentication. You should also arrange for insurance so that you can compensate your users in case the exchange gets hacked.
Step 7
Test up
You can’t just launch the cryptocurrency exchange online even when all the major features have been implemented. First thing to do here is to send the site for beta testing. Check thoroughly for every bug or error (if any), and look for rooms of UX improvement. Carry the necessary changes and take a test again. Once you are 100% satisfied, it’s time to launch your brand new cryptocurrency exchange online.
Final words
Your work doesn’t end with launching the final version of your cryptocurrency exchange online.
You will also have to invest heavily in marketing, advertisement, and promotion of your crypto exchange. Social media platforms are a great avenue to spread the word about a new crypto exchange. Connect with influencers, even micro influencers. Request them to talk about your exchange. You should also connect with affiliate marketers to promote your crypto exchange.
