The recent growth of the crypto market is unimaginable. With the price of Bitcoin and Ethereum reaching all times high, and new cryptos giving an insane amount of returns, it is probably the best time to capitalize on this market. Other than investing, you can create your crypto exchange. Now the question arises how to start a crypto exchange? Well, we got you. This article will talk about 10 easy steps on how to create a crypto exchange platform.
What does a crypto exchange do?
But before moving on to our main topic, let’s get some basic idea about crypto exchanges and how do they work.
Just like any other exchange, a crypto exchange provides a platform for users to trade their cryptos. Crypto exchanges also provide On-Ramp and Off-ramp for users to exchange their fiat with cryptos. For each trade done on the exchange, you get a commission, and thus it does not matter if the market is low or high, you will always make a profit. Now you know why it is better to start your cryptocurrency exchange.
There are two types of crypto exchanges-
1. Centralized Exchange – A centralized exchange or CEX is managed by a third party that takes full responsibility for your assets. All the transactions happen on a server, unlike decentralized exchange, where everything is recorded on a blockchain. On a CEX, users have to complete KYC before they can start trading. The biggest advantage a CEX has over DEX is that users can buy cryptos with their fiat money.
2. Decentralized Exchange – Unlike a CEX, decentralized does not have anyone control the trades by using blockchain technology. All the transactions are done on the blockchain, and everything is available publicly. A DEX is more transparent since everything is open source. There is no KYC required to use the decentralized exchange, and anyone with an internet connection can use it.
10 Steps on How to start a crypto exchange
If you are willing to start your own cryptocurrency exchange, then do follow the guide below to get a basic idea of cryptocurrency exchanges
1. Research and Complete all the legalities;
Before you start your own bitcoin exchange, you need to research and work on all the legalities. It is a must to have a legal team that can avoid any legal problems. Since some jurisdictions have different laws for cryptos, your legal team must comply with all the rules and regulations.
For you to start an exchange for cryptocurrency, you will need enough capital to at least make it to the launch. This funding will help you with legal help, the cost of hiring developers and other technologies required, advertisement, etc.
3. Get some payment partners:
A payment partner is the one that will provide a way for users to convert their fiat into crypto. Since you would need your exchange to be in different countries, you require multiple payment partners.
4. UI/UX design:
An attractive user interface and an advanced user experience will help you gain more users. Since your exchange will most likely be used by adults, you would require to make everything minimalistic.
5. Add the best security possible:
Crypto exchanges are more prone to hacking than any other exchange. Since cryptos cannot be easily traced, they are always the target of hackers who would not miss any opportunity to breach the code.
After everything is done, developers must test everything before launching the exchange. You can hire expert developers for this task.
A good amount of marketing is always necessary before and after the release of your project. Make sure you have enough budget to build a marketing and PR team to help reach your project to the masses.
8. Partner with new crypto projects:
Partnering with new crypto projects for giveaways, launches, tournaments will help gain more customer attraction.
9. Customer Support:
Good customer support is always a nice way to make your customers stay loyal to your exchange. Providing 24/7 customer support should be the priority.
10. Upgrade and Maintain:
To stay in business, you will always have to upgrade your security and maintain your exchange to work under any circumstances. There will be times when the traffic on the exchange will increase suddenly. This may cause your exchange to shut down momentarily, and you must avoid this.
So this was a simple guide on how to start a crypto exchange app. There can not be a better time than now to capitalize on this growing market. I hope you liked the article and all the best with your app development.
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