In this digitally evolving world, Cryptocurrencies and crypto exchanges are making huge rounds in the market among potential investors. The demand and urge for cryptos and crypto exchanges are alive and kicking. There is already a wide range of cryptos and crypto exchanges existing in the market, but the competition for more is never-ending.
Do you want to set foot in the cryptosphere with your own crypto exchange? Are you wondering where and how to begin? Then, this article is for you! Over here, we are going to cover everything you need to know before launching your crypto exchange and make it a hit among potential investors! But, before going into that, if you are a starter, let’s take a look at what crypto exchanges are.
Cryptocurrency exchanges- Unraveled!
Cryptocurrency exchanges are platforms that allow traders to exchange their cryptocurrencies for other digital currencies or fiat money. Crypto exchanges are backed by blockchain technology that helps control, verify, and secure transactions that happen on the exchange, with a chain of blocks encrypted with cryptography. With the advancement in technology, crypto exchanges have also evolved, and new techniques have been introduced, which are highly beneficial and help with optimizing the business experience for the customers. Let’s take a look at some of the significant ones.
What's trending now in the cryptosphere?
Now, you can build and launch any type of exchange of your choice. But to make it authentic, you need to follow certain mandatory steps. What are they? Let’s find out.
What are the essential factors to consider before launching your own exchange?
Deciding where you want to operate
The first and foremost step is to decide whether you want to expand your business globally or operate within a confined region/ country.
Based on your geographical preference, make sure your exchange comprises every necessary legal framework. It is better to gain expert advice on legal terms and licensing for your exchange based on your location.
Connect with banks/ payment processors
Partnering with a reliable bank or payment processor will help your customers efficiently create an account, and with faster settlements of funds. Including additional funds or fiat money can be one via payment gateway integration.
Integrating high-volume liquidity
Liquidity is an essential factor for any exchange. This will help with filling order books and generating activity in your exchange, which will encourage new customers to participate, seeing a full order book. Few ways to integrate liquidity are,
1. Integrating an API interface which will connect your exchange to other active exchanges
2. Stimulating your exchange by conducting artificial buying and selling trades.
3. You can combine your exchange with other exchange networks, thereby the liquidity of all the exchanges are connected. The volume of liquidity increases with the volume of the network.
For any exchange, multilayered security protocols should be integrated and looked into very carefully to protect assets and user information. You should integrate an automated KYC/AML verification option into your exchange, which will allow only authentic users and, therefore, ensure secure, risk-free transactions. Security should be the key factor to be considered while building your exchange.
These are the most crucial factors to be considered before developing or launching your exchange. There are also few other things to be looked into such as,
What exchange you want to build
The features and implementations you want for your exchange
Your exchange transaction and storage capacity
Deciding on the exchange fee
Mobile application support for users, both iOS and Android.
Now, what is the best way to launch your exchange quickly and efficiently? what is the best way to launch your exchange quickly and efficiently?
Developing your crypto exchange from scratch, and then launching them will require an adequate amount of time and cost you ample amounts of money. With the demand and popularity boosting every day, to get your exchange upto speed, the best choice is to hire an experienced company!