HOW TO SET UP YOUR OWN
CRYPTOCURRENCY EXCHANGE SETUP - STEP-BY-STEP GUIDE
The recent IPO of a popular crypto exchange, "Coinbase," has evidently laden cryptocurrency's significance, importance, and global demand. Its Initial Public Offering (IPO) valuation was $66 billion, and this valuation superseded those of one of the biggest banks in the world, JPMorgan.
1.) Choose the type of exchange and additional modules you want to launch.
Centralized exchange- Most trustworthy exchange system as there is a third party involved to handle the transactions. Exchange charges are charged to perform this duty. It is highly liquid.
Decentralized exchange- It lacks liquidity.
P2P exchange- It connects buyers and sellers with no third-party involvement.
Apart from the above 3, to attract more people, you can add the following modules:
a) Margin trading exchange- Traders are attracted to exchanges that provide leverage. i.e., more significant earning opportunities for both traders and owners of the exchange.
b) Derivatives exchange
c) NFT exchange and Wallets
After identifying the type of exchange, you want to create and the additional modules you wish to offer, you need to decide to start from scratch or continue with white-label crypto exchange software, which decreases time to market.
2.) Conduct a Market research
3.) Identify the launch location.
Preferably in like the USA, Japan, Switzerland, Singapore, Hong Kong, Malta, etc. You must check the regulatory and government policies of the countries where you plan to launch your exchange.
4.) Have an experienced advisor
Crypto-related laws and regulations change very frequently and vary across various regions, so having a professional by your side can help you adhere to those laws and regulations properly.
5.) Consult with technical experts
Apart from having an experienced advisor, you need to consult other subject matter experts who can help in your exchange's smooth development and running. Experts like:
a) Blockchain developers and designers,
b) Financial advisors,
c) Blockchain analysts, etc..
6.) Connect with other exchanges to add liquidity
The more extensive the network of exchanges higher the liquidity. High liquidity attracts more traders and ensures proper order book management.
7.) Partner with a payment processor
A lower transaction rate is directly proportional to a higher competitive advantage. No payment processor is equal, so you need to do your diligence in picking the right one for you. Apart from transaction rate, other things you need to look out for are hidden fees some processors have, settlement time, and cyber security compliance.
8.) Deciding other features
The more features you provide to the users higher the chances for you to have a successful exchange. Other features like:
Instant KYC verification,
Secure wallet integration,
Market making, etc.
9.) Ensure multi-layer security and customer support
You need to provide top-notch security for every transaction and customer data as they are the building block that can make or break a crypto exchange. As the saying “crypto never sleeps” so does the exchanges and traders using those exchange, and apart from security, those users look out for 24/7 customer support.
10.) Work on Marketing and PR
Crypto exchanges or digital currencies have created a paradigm shift in how we look at money. Like any other new technology, it sure has its shortcomings, but we cannot ignore the upside and potential it carries in it. Acting fast to capitalize on this lucrative opportunity might be an intelligent choice for you and your money. Our management team has over 3 decades of successful track record, we specialize in establishing cryptocurrency exchanges, Investment banks, offshore banks, Licensed Investment funds, Digital Payment solutions, Capital trusts, etc., at a fraction of the cost of other similar service providers.
Contact us for a confidential consultation! Our experts will respond to you within 24 hours.