10 Easy Steps to Start a Crypto Exchange in 2020

The size of the billion-dollar cryptocurrency market is a testament to the burgeoning popularity and global adoption of cryptocurrencies. The number of cryptocurrencies has grown to over 2,300 through 2019, according to CoinMarketCap, and the market has witnessed an incredible increase in the number of crypto investors over the past decade.

Earlier, people preferred Bitcoin mining to earn rewards, however, the reduction in block rewards has shifted people’s interest to cryptocurrency exchange development. Businesses and entrepreneurs globally are riding the wave of exchange development to enter the crypto market and rake in huge profits. Binance, one of the leading crypto exchange platforms, hit a massive $1 Billion mark in cumulative profit, out of which $183.5 Million was made in Q3 of 2019 alone.

This guide will walk you through the steps involved in creating a cryptocurrency exchange. Let’s delve into the step-by-step guide further.

Identifying the type of crypto exchange that you want to launch is crucial. To make this decision, it is important to understand the different types of exchange platforms in the first place.

Once you have decided on the type of exchange, find out whether you want to build it from scratch or rather go with white label crypto exchange software.

Any project should be backed by extensive market research as it helps solidify your decisions. Do rigorous research to identify crypto market trends and the anticipated price of cryptocurrencies in the year 2020. This will help you decide which cryptocurrencies should be listed on your exchange. In addition, find out what features do traders expect in a cryptocurrency exchange. Integrating the most sought-after features into your exchange will help you acquire more users and amplify your revenue generation opportunities.

Take time to choose where you want to base your crypto business. It makes sense to study the regulatory framework and government policy, and also find out if the country you are considering is receptive to cryptocurrency and has a vibrant ecosystem of crypto traders who will support your business.

The following crypto-friendly countries are worthy of consideration before you settle on your headquarter.

As governments across the globe continue to learn more about cryptocurrencies, they are formulating laws to regulate these digital currencies. While some governments are receptive to cryptocurrencies, others are hostile. Understanding regulations of the country where you plan to launch your crypto exchange — be it a custom exchange or white label crypto exchange software — is paramount. Failing to comply with these regulations can put you in trouble so make sure to have complete knowledge about the government policy and regulations before reaching a decision.

It is likely that you may miss out considering some crucial regulatory aspects related to cryptocurrencies and setting up an exchange in a particular country, especially if you are not from a legal background. It is always advisable to hire a legal team that can check out the regulations and guides you on the right path.

The regulations vary from country to country. In the year 2020, some governments may revise the existing laws and others may formulate new laws to regulate crypto, thus having a separate team to stay on top of crypto-related laws across various regions will help you in well-informed decision-making.

You need to hire a cryptocurrency exchange development company to build and launch your exchange. Every company charges a different price for developing an exchange. Furthermore, the cost to build a crypto exchange depends on various factors like the technology on which the exchange will be built, the features that will be integrated into the exchange, and the type of exchange that you want to build. For example, building white label Bitcoin exchange software requires lesser cost compared to developing a crypto exchange from ground zero. Thus, identify the cost to develop a crypto exchange and make sure that you have the required funds.

The success of your project depends majorly on the development team so rely on a trusted crypto exchange development company. Find out if the company has real-world experience working on projects like yours, as it helps ensure smooth and timely delivery of your project. In addition, check the team of the company that you are considering hiring. Your chosen company should comprise the following experts:

The features that you integrate into your crypto exchange will make or break your exchange. Reinforce your exchange with features that users seek in an exchange platform — these include the ones that enable secure, easy and quick trading.

It pays off to underpin a crypto exchange — both white label crypto exchange software and custom exchange — with the following features:

In addition, it is equally important to achieve security for an exchange. Here are some security features that can be integrated into your exchange to fortify the security paradigm and achieve multi-layer security.

Here are some marketing strategies that can be followed to promote your exchange:

This is the most important step. The success of any business depends on its customers; if the customers are satisfied, the business is bound to succeed. Provide 24*7 support to your exchange users. Have a team to quickly resolve any issues or errors that you users may have. This will help you build trust among your existing and potential users, enabling you to emerge as a reliable brand name.

The increasing popularity of cryptocurrencies among traders and businesses alike, and governments worldwide considering the use of these digital currencies direct to the fact that cryptocurrency is here to stay. Businesses that act now and build their crypto exchange underpinned by user-desired features are more likely to edge out the competition and succeed.

If you are planning to build your crypto exchange to tap into the billion-dollar crypto market, we can help. We offer mission-driven crypto exchange development services, so whether you want to build a custom crypto exchange or white label crypto exchange software, we harness our experience and expertise to lay the cornerstone of your exchange platform.

View a free demo of our white label crypto exchange. Additionally, a free consultation is available to discuss your business needs; no obligation, just a friendly chat to work out if we can help.

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