The cryptocurrency exchange has become one of the most profitable segments of the blockchain industry. Over the past 10 years, the crypto space has grown tremendously. Many businessmen have made a fortune with cryptocurrency setting up. Today, there are plenty of promising opportunities to start a business in the crypto. So, how to create your own cryptocurrency exchange?
Decide on the jurisdiction
The choice of a country with a proper legal framework is the main criterion for those who are just starting their crypto business. All countries have different approaches to cryptocurrencies, many are still in search of optimal legislation. The most legally favorable at the moment is Malta.
Gather all the necessary documents
After choosing where to register, you will need to research all of the regulatory requirements. The number of documents depends on the country`s regulation so it is best left to local lawyers. Almost all countries require to have KYC (know your client) and AML (anti-money laundering) politics.
Buy or rent server hardware
You can do with the servers in two main ways – buy or rent them. Buying will cost at least a few thousand dollars, but you will own the equipment. Hosting is times cheaper, but for the owners of cryptocurrency exchanges is better no one has access to the equipment except them.
Develop or buy software
To start an exchange business you need safe software that includes a user interface, a trading “engine” and a wallet. The security and safety of the wallet should be given maximum attention. You can develop software from scratch with the help of experienced developers from Devqode or buy open-source code and modify it. Each method has its advantages and disadvantages. The development team must be paid and it will take more time to create the software, but you will have the original shell and more security. An off-the-shelf application can be free, but it will take time to debug.
Start cooperating with financial institutions
Processing centers and banks provide the transfers to the crypto exchange. Without this, you won’t be able to conduct “fiat/crypto” transactions. Note that not all financial institutions are loyal to any cryptocurrency project. The main requirement to the bank is the speed of transfers and security.
Protection and security
Cryptocurrency exchanges suffer from hacks and hacker attacks more often than others. This hits both clients and the exchanges themselves. Protection needs to be constantly updated, including feedback from users. This can be achieved with the help of an experienced development team like Devqode.
24/7 customer support
Deposit issues, transaction rejections, anti-money laundering, and software glitches need to be supervised. All crypto exchanges have customer support that works around the clock. So don’t skimp on hiring customer service staff.
Choose a target audience and start promotion
You can open an international exchange or limit yourself to one country. After this, it is necessary to conduct an advertising campaign to attract maximum people to the cryptocurrency exchange.
Devqode`s conclusion
It is amazing to see the speed at which blockchain is creating new business opportunities. Many in the crypto space are convinced that the decentralized market will grow and develop steadily for a long time. By starting your own cryptocurrency business, for example, setting up a cryptocurrency or broker cryptocurrency, you are directly participating in the digital economic revolution.
