How to create your own crypto exchange?
2021 is the year of crypto because dozens of cryptocurrency businesses appeared in a short time. The innovative industry gathered thousands of people who decided to benefit from digital assets and understand how to do it. As for cryptocurrency exchange development, the number of platforms increases and makes the competition even higher. This is why newcomer brokers need to deeply analyze the crypto market before launching a turnkey trading solution.
However, new brokerages face a whole array of obstacles. The following guide may explain how to start cryptocurrency business.
Key steps of deploying a crypto platform from scratch
When you start to learn how to build cryptocurrency exchange, the following 7 stages are mandatory:
- Choose a preferred type of platform.
- Make a detailed analysis of the legislature.
- Choose the top-notch cryptocurrency exchange software.
- Partner with reliable payment providers.
- Get access to the best liquidity pools (like global banks and hedge funds).
- Guarantee first-class protection for traders and investors.
- Have the upper hand for updates and new technologies.
Following these steps, you can launch a highly competitive platform that accepts crypto payments. There are more than 400 trading platforms, so newcomers need to offer unique features for traders and investors. Let’s learn all the steps in more detail.
Centralized and decentralized cryptocurrency platforms
As we mentioned earlier, the primary issue is to choose the type of your future crypto exchange. All platforms are roughly divided into centralized and decentralized. The latter type covers anonymous exchanges, which are more in line with the core principles of digital coins. At the same time, more and more countries accept cryptocurrencies as legal tenders: this is why centralized exchanges provide 98% of the overall turnover.
Follow the legal requirements and regulations
If you want to start a cryptocurrency exchange and face no hurdles, your platform must follow the legislature. Therefore, you need to choose a reliable country to register your company and get a license from the regulatory body. The more in-demand jurisdiction is, the more traders and investors join your platform.
Top-notch software that makes trading more convenient for users
Cryptocurrency platform software includes features that are essential for a smooth and productive operation. For example, it’s crucial to integrate a matching engine that processes at least 10,000 transactions per second. As for other vital functions, there needs to be a top-notch CRM system that tailors the crypto exchange to users’ needs, tools for generating real-time reports, etc. When it comes to software, it’s strongly recommended to get a turnkey solution from a reliable company.
The more payment methods – the better
At the very beginning of the crypto era, exchanges accepted no fiat payments. As a result, deposit and withdrawal operations were challenging for traders. Since the crypto industry attracts the attention of millions of people, platforms need to partner with reliable and convenient payment providers. It will make deposits and withdrawals more straightforward and allow traders/investors to refill the account with a bank card, Wire Transfer, or electronic wallet.
High liquidity as the key to the success of the cryptocurrency market
In the crypto industry, there are two categories of liquidity (L), The L of a specific trading pair depends on the demand of users. In contrast, platform L directly depends on a trading turnover inside an exchange. Newcomer platforms may access an L1 liquidity provider to connect the order book to the top-notch liquidity pools. It’s essential for new traders because their orders will be executed instantly.
The proper protection is valuable for crypto traders
Most new crypto users have little knowledge of this industry. In addition, trading platforms often become the targets of hacker attacks; this is why new platforms need to pay great attention to security. For example, many first-class exchanges keep over 90% of assets on cold wallets around the world. Furthermore, business founders recommend turning on two-factor authentication, email authentication, and a specific white list of cryptocurrency addresses as the most effective options for better protection.
Integrate new technologies
Due to the high competition in the industry, traders and investors have the best position. While creating a cryptocurrency exchange, new businesses offer the best features for their clients. Moreover, the crypto market is constantly growing, forcing owners of trading platforms to provide more favorable conditions (for example, more trading pairs, lower fees, etc.).
How to run your own crypto exchange without hurdles and headaches?
When newcomers are learning more about how to make cryptocurrency exchange, three options are available:
- Launch a platform solely. In this case, you need to gather a team of developers, lawyers, accountants, and many other specialists to create a crypto exchange from scratch. It’s vital for a successful business because the lack of expertise in the cryptocurrency sphere leads to failure.
- Find the open-source script on GitHub. It’s more effective for a newer business owner, but there’s no guarantee that the code is bug-free. Further, a deployed exchange may not meet your demands and will require thorough development.
- Apply to a reliable company for White Label solutions. This is the best decision for a newer platform owner since it cuts expenses and provides 24/7 support. In the end, you will get a ready-made exchange that meets the traders’ demands.
B2Broker is a successful company that offers White Label cryptocurrency exchange solutions. This company does its best to help businesses conquer new heights in the cryptocurrency market.