Do You Know? Cryptocurrencies have started changing the operations of several industries because it will create a huge impact in the future. In the current scenario, every business owners are ready to invest in a scalable cryptocurrency exchange platform, and also it has become a more profit for their business. Today, there are many numbers of crypto trading websites available in the market. Everybody is willing to know about the types of cryptocurrency exchanges, the cost to develop, and the basic things related to crypto exchanges.
Let's discuss what is a crypto exchange? and the steps are taken into it before launching your exchange software.
What is a cryptocurrency exchange?
In simple words, it's an online marketplace where you can trade your digital assets at market value. It acts as an intermediate between the customers and traders of virtual currencies.
Types of cryptocurrency trading platforms exist in the market place:
You might have heard about the term "centralized (or) decentralized exchange" before. It refers to the different models of the crypto exchange platform. Let's see, how many models available and what about its advantages.
Centralized crypto exchanges:
It involves a manager who can handle each user's funds, while intermediaries can execute the transactions of trading fees. This type of platform has suffered a lot due to a lot of security issues. Even though it provides more sufficient liquidity and significant trading volumes, the data security problem is a major concern in this platform.
Decentralized crypto exchanges:
It's a reciprocal of the centralized exchange platform. There are no intermediaries where interfere in the process of transferring funds. This kind of exchange platform is very secure and also users can perform their operations independently. However, liquidity is less but there are no security issues available here.
Hybrid crypto exchanges:
In this platform, its a combination of both centralized and decentralized exchanges. And also it provides liquidity and security in a balanced manner. It uses a Peer-to-Peer (P2P) networks for trading purposes. Here, the third party plays a major role and a smart contract integrated with the escrow can perform cryptocurrency transactions faster.
Key points to look on it before initiating the cryptocurrency exchange development process:
Understand market research:
Every country has its demand and supply. You have to fix the cost for different kinds of digital assets and the countries where you have a plan for an official launch. Discuss with the experts who have already experienced in this field. They will give more ideas according to the current market scenario.
Hire an experienced and a legal team:
Remembering the risks involved in the cryptocurrencies, it is preferred to recruit the best and experienced team who have good knowledge of various market situations because they will provide the best from it and also help you to reach a business for an extent level. The people who know about the law can handle the KYC (Know Your Customer) verification process and the AML (Anti Money Laundering) guidelines. They can look over the ID proof of each user such as passport and license in an effective manner.
Find your ideal location to perform operations:
Some of the governments in this world would allow the usage of cryptocurrencies legally but someone won't. For countries like the USA, UK, Japan, India, Singapore, Estonia, Malta, and South Korea, etc.. are more friendly towards cryptocurrency. On the other side, some countries like Saudi Arabia, and china are not allowing any kind of cryptocurrency operations.
Follow the existing regulations:
Before you start your crypto-related operations make sure that you have to follow existing guidelines issued by the country's regulatory authority. If you don't follow these guidelines, they have the right to cancel your license, restrict your operations, and also it will lead to increases your budget.
Determine the cost to build a cryptocurrency exchange platform:
Each of the companies quotes various costs for the platform to develop. It depends upon the factors such as technology stack, features they integrate and the type of exchange platform to be built. Before starting your project, you have to keep up the required amount of sufficient money to withstand the different stages of the development process. If you want to save your costs for developing a platform, you can go with a ready-made Whitelabel crypto exchange platform with all the necessary features built-in.
Collaborate with well-experienced service providers:
The development team plays a major role to make your crypto exchange platform a huge success. Examine the projects that they have already worked and the clients they have associated with before. Make sure about the employees of the company who are experts in different areas like blockchain development, designing UI and UX, digital marketing specialists, and financial advisors.
Every user is not very comfortable to handle the different set of operations, make sure that they have a dedicated technical support team to handle your queries and resolve your issues if occurs each time. A strong technical team can handle any problem easily that helps to create trust between them in the long run.
Reach your target audience:
Once the development process is completed, promote it across various online mediums. The aim is to gain more user's intentions towards your platform. Utilize digital marketing strategies like SEO, PPC, email marketing, content marketing, PR, and social media promotions, etc that aid to reach your target audience easily and gain a more profit for your business.
Features required in every cryptocurrency exchange platform:
- Simplified Registration, ie. Signup/Login
- Enrich UI & Engaging UX
- Secure Admin Panel
- Adequate Liquidity
- Investors Panel
- Multi-Lingual and Cryptocurrency Support
- API, KYC and AML Integration
- Security Measures like Two-Factor Authentication and Encryption
- Advanced Trading Engine and Low Trading Fees
- Automated Transactions
- Security Protocols
The above-mentioned guidelines are the process to begin your cryptocurrency exchange development. To launch your futuristic and well-performing trading platform incorporated with the latest features, reach out to the Osiz Technologies - an eminent cryptocurrency exchange platform development company offers the trendy solutions at an affordable cost that will meet your business objectives effectively.
Want to launch your exchange platform? Get a free demo (or) speak-out to our team and share your business requirements with us here.
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