How to start a Crypto Exchange - An Eminent Business Plan
Building a crypto exchange needs to consider some substantial approaches. Let us find the feasible approaches here.
Crypto… Bitcoin… Ethereum… DeFi… this era is nothing without these names. They are not just names, they turned out to be a huge revolution in the finance sector. Yes, it is true. I understand this will sound a little outlandish to people who are new to the world of cryptos. For those people, let us have a brief walkthrough on this and thats’ of cryptos.
Let us start with the remarkable phenomena from which the entire cryptosystem got started. Yes, with the Bitcoin.
Flip the pages of History
Bitcoin is the first cryptocurrency and also the pioneer of all the other cryptos. We can say that the entire crypto evolution had started from here. The real name of the inventor of Bitcoin has not become as popular as Bitcoin. The inventor just lives and watches Bitcoin’s behavior and its reception with his pseudonym - Satoshi Nakamoto. It all started in January 2009, Bitcoin was ready to rollout. But there were no crypto exchanges to pursue Bitcoin trade. By hearing this newest form of currency and that is completely virtual, many started to buy and send Bitcoins for hobby purposes. Because that was the time where people may not have seen the online peer-to-peer transactions which is a prevailing thing right now. People did not treat or value Bitcoin seriously as to how it is treated and valued now.
In March 2010, a fancy pseudonym person “SmokeTooMuch” auctioned 10,000 BTC for just $50 (cumulatively), but unfortunately, there were no buyers found. If one could have made the auction deal at that time, by now the person would have been a multi-millionaire. Apart from the auctions and other deals, there was not even a single cryptocurrency exchange to take up the crypto trade.
Here comes the….
Crypto Exchange Raises
In March 2010, the huge vacuum left for the crypto exchange was filled by BitcoinMarket.com. Officially that was the first Bitcoin exchange to operate Bitcoin trading. Later a very little few people came forward to transact Bitcoin and use Bitcoin instead of their fiat currency. We all know about the pizza purchase story in Jacksonville. If that transaction has not happened, now the person will be holding more than $750,000. Such extensive trade and price fluctuations happened only after the arrival of BitcoinMarket.com, the first Bitcoin or crypto exchange.
This point implicitly made clear to all the other crypto enthusiasts and other investors to know about the importance of crypto exchange and its prominent role play in the crypto trade. It is obvious that other financial markets like share and commodity had their respective exchanges for trade, why not with cryptocurrencies. This notion made other crypto investors and other enthusiasts get involved in starting new cryptocurrency exchanges like BitcoinMarket.com.
There were so many exchanges that went live after the BitcoinMarket.com. Except for some, most of the crypto exchanges were shut down due to bankruptcy and money laundering issues. Most of the crypto enthusiasts would have known about Mt. Gox’s downfall.
After the incident, the Securities and Exchange Commission (SEC) and Financial Crimes Enforcement Network (FinCEN) had brought in a set of law enforcement on tightening the security and other favorable features like liquidity, multi-signature system, etc in a crypto exchange which are liable for the crypto users in order to avoid bankruptcy and with providing better liquidity.
The law enforcement kept a big full-stop to all the fraudulent deeds, that ruled out many exchanges which did not fit to stand out for providing the efficient crypto trade. But very few crypto exchanges existed during the tough time. They integrated all the security features and necessary features as per the SEC and FinCEN standards. Such exchanges have now turned out to be a big success and huge trading volumes.
I can smell your eagerness to know about those successful cryptocurrency exchanges.
Later stages of the crypto market paved a way for so many cryptocurrencies and crypto exchanges. There are no restrictions for starting a cryptocurrency exchange except one, that is you should start the exchange from a crypto-friendly country. Yes, this is the most important thing to consider while starting a crypto exchange. The other key points to consider for starting a crypto exchange… Wait, let us have that at the end. Now let us look for the ways available for developing a cryptocurrency exchange.
Also, I will recommend the best approach for developing a crypto exchange at the end with a valid reason for it.
With the advent of cryptos, blockchain technology is taking a larger leap. This paves way for the birth of many blockchain development companies. They develop and deploy all the blockchain products from scratch. By reaching out to the trusted blockchain development company, you can accomplish your dream of starting a new cryptocurrency exchange.
If you choose this approach of starting an exchange, the process will take a longer time and with huge pricing. Before reaching out to the blockchain company, you should have thorough knowledge about the types of cryptocurrency exchange and its functions. Only then you can make a clear requirement to the blockchain developers.
Points To Remember
Here are some of the points as takeaways from this approach. This will give you a superficial idea about approach #1.
- The time taken and the cost required for this approach is high.
- In-depth knowledge about the exchange types and their functions are very important.
- Should be keen to identify the essential features that are required for a crypto exchange.
- This approach requires some technical programming knowledge to follow the code pattern.
- Customizing is a time-taking process.
Don’t feel dejected after knowing that the first approach costs high and a time consuming one. If you are quitting the read right here, then you are missing out on the opportunity of knowing the second method which is completely in contrast to the previous one.
So, here is the next… Approach #2 for you….
For those who are thinking of developing a cryptocurrency exchange from scratch as a mission impossible thing, the second approach will be a fruitful one for you. Also, there are some cryptocurrency exchanges in the market that are on the path to success. The owners of the exchange have opted for this way of approach to start their crypto trading platform. Yes, it is true. Once a famous crypto entrepreneur, who is now an owner of a reputed exchange told his followers about his crypto journey in a single quote is:
“A thrift idea to start exchange is with a script will make cryptos to drift”
With reading this quote, you would have come to a conclusion what this approach is all about, yes, starting a crypto exchange through a cryptocurrency exchange script. This method gives you various options to choose a crypto exchange as a model or sample for how your exchange should look like. There are so many cryptocurrency exchanges available in the crypto market, choosing the right crypto exchange will help you in opting the right cryptocurrency exchange script. Never forget to get your exchange script from the top crypto exchange script providers
By starting the exchange with the script, your exchange will resemble exactly your desired cryptocurrency exchange where UI, UX, exchange functionalities, etc. are unaltered. You can name your exchange with the desired logo to it. Also, if you are interested in integrating any features apart from the inbuilt one, you can easily customize the script based on your requirements.
Points To Remember
- This approach costs very low and time-saving too.
- Choosing the right crypto exchange will help you to choose the right cryptocurrency exchange script.
- Make sure you are reaching out to the genuine cryptocurrency exchange script providers for the legit cryptocurrency exchange scripts.
- This approach does not require any technical or programming knowledge.
- Easily customizable based on your preferences.
Do you believe the second approach would be more feasible than the first one?, Yes, right. I too feel the same.
Great read so far. Never leave the read abruptly. Know the third one to expertise in knowing the complete ways to develop a cryptocurrency exchange.
Here is the walkthrough to the third approach….
In this approach, you will be provided with a pre-tailored, readymade crypto exchange software which is a white-labeled one. The entire white label crypto exchange software has a unique user-interface, an intuitive user experience, with customizable exchange functions based on your business plan.
The white-label exchange software allows the user to have full freedom in personalizing the entire system based on their needs. Obviously, the white label exchange software allows you to do the essential customizations like placing your logo which symbolizes your reliability, a name to exchange that captivates the crypto users, also other UI personalizations like themes, responsiveness, graphics, etc. to make your exchange more unique. These can be modified whenever you wish using the respective module.
Does this type of approach cost more?
No, this approach is way more feasible to go with. The cost is very low and it may slightly vary based on your add-on features and customizations. But this does not mean the price will be more equivalent to the first approach. It is very low when compared to the first one, by the way, the time it takes for deployment is very short. You can live your exchange in a flash by opting for the white-label exchange software approach for starting your crypto exchange.
Points To Remember
- Ready-made script paves the way to easy customization of the entire exchange.
- This method does not require you to be a technically sound person.
- The time taken to set up the whole exchange is very less.
- Choosing the right white label exchange software provider will help you in the perfect deployment.
Ok.. right now, you would be aware of all the possible ways of developing a crypto exchange. These are the only ways that are available to develop a crypto exchange. Also, during the start, I have said that I will recommend the best approach among the three. Should I need to recommend it? Ok, I will do that.
By reading this you might have understood what will be the best way to opt for starting the crypto exchange. Yes, you are right, it is by going with the second approach, which is through cryptocurrency exchange script.
Because an exchange script has all the features and elements that a cryptocurrency exchange should have. By reading through the entire approach you were able to see about the peculiarities which I have quoted about this approach. The cost for starting a cryptocurrency exchange is very low, the time involved in development is very less, adding the additional features is optional, inbuilt essential trading and security features, etc. are some of the noteworthy aspects of this approach. That’s why I recommend you to go with the second approach for an easy start.
Right now we are more clear about the methods available to develop a cryptocurrency exchange. Also, you are given a recommendation on the best method to choose to start an exchange that is with crypto exchange script. But you will be clueless if I didn’t tell you about the right place to get the cryptocurrency exchange script. The place where you get the exchange script plays a vital role. The exchange script providers are the one who is going to travel with you on the entire journey of the exchange development.
So, choosing the right and best cryptocurrency exchange script provider plays a bigger part in this process. Reaching out to the trusted cryptocurrency exchange should be the final destination whereas the other process will be automatically carried out by them genuinely.
A Road to Right Destination
You know, the hype of the cryptocurrency market right now is immense. There are many crypto exchange solution providers available in the market but that does not mean all the exchange script providing firms are well-expertise in providing the crypto exchange script. You should be more cautious in choosing them, also it is a very important one too, that is why I’m emphasizing this every now and then. The crypto exchange script provider should be well-versed in providing any-type of crypto exchange script with a user-friendly admin panel with control of all the functionality to customize your main page or trader console. The provider should have good experience in the field of crypto exchange script provision.
When you choose your exchange script with these conditions, there will be so many crypto exchange script providers will be filtered out in your selection process. There will be only very few left. In that, you should look for a firm that has a good customer base globally. Still, some more providers may get eliminated from your list. By now you will be left with the only option of choosing the right cryptocurrency exchange script provider who fits all the conditions.
This will help you to accomplish all your dreams of starting a new cryptocurrency exchange in the crypto market.