8 Steps to Develop and Launch Your Own Cryptocurrency Exchange

In today’s world, where blockchain technology has started to mingle into the mainstream, cryptocurrencies have become the most liquid assets. Many cryptocurrencies have evolved around the globe. Firms that work on exchanging cryptocurrency to fiat cash or another cryptocurrency are working successfully, as they do not need to ponder the volatile nature of cryptocurrencies. This blog serves as an easy 8 eight-step guide to develop your own cryptocurrency exchange.

1) How Do You Start With?

Before drawing any plan to start your cryptocurrency exchange, there are a few factors that you need to consider. 

• Before everything else, you need to do some market research on whether investing your resources in a cryptocurrency exchange can benefit you. It is important to note that cryptocurrencies are volatile and their value can fluctuate between extremes, sometimes even between a matter of hours. It is wise to research the current crypto trends and step in accordingly carefully.

• You need to determine the country or region your exchange would be operating from. While some major nations like Russia and China have outrightly banned cryptocurrencies and related trade, others like the USA, the EU nations, Canada, Australia, Japan and El Salvador have shown a green flag for cryptocurrencies. Some other countries are planning to accept cryptocurrencies soon.

• After choosing your region of operation, decide on the type of crypto exchange you will be operating. Different kinds of exchanges include centralized crypto exchange, decentralized crypto exchange, p2p crypto exchange, crypto derivatives exchange and hybrid exchange. Each of them has its perks and cons and as always, enough research helps you out.

• If you do not have enough funds to start the venture, consider gathering funds through various means. As always, careful planning and research are necessary, in addition to presenting your idea as a valid one.

2) How to Handle the Legal Side of Things?

If you have chosen to operate globally, you would have to carefully analyze all the legal requirements to act as a crypto exchange. If you are concentrating on a single country alone, it is wise to know all the relevant regulations in place to avoid any confusion.

A legal advisory team can only perform analyzing legal requirements and subsequently framing the legal policy for your cryptocurrency exchange. Ensure that you hire qualified legal advisors with thorough knowledge on regulations related to cryptocurrency, as they are the ones you can approach in case of any legal disparity that may occur while your exchange is operational.  

3) How to Develop My Exchange Platform?

This next step is very important as it involves designing the features for the cryptocurrency exchange and subsequent development. 

• One must note that every crypto exchange must have some basic facets such as a trade engine, a multi-cryptocurrency wallet, an admin panel and an effective user interface. Additional features can enhance your exchange platform and enough analysis would give you a rough idea on proceeding further.

• Once you have found your design architecture, it is time to get your source code. There are many ways to develop the platform with your developers, give the work to a cryptocurrency exchange development company, and even take open-source code. But, every method has its pros and cons and it is important to consider your limitations as a half-baked product does no good.

4) How would My Exchange Process Payments?

For your exchange to process payments, you need to partner with a leading payment processor, such as an established bank with enhanced online facilities. Partnering with such a processor facilitates easier transactions between cryptocurrency and fiat money while ensuring a fine user experience.

5) Does Security Play a Major Role?

Yes, security features play a huge role while operating the exchange, as crypto exchanges have become targets for hackers. Ensure that your cryptocurrency exchange platform has advanced security features embedded into it, such as HTTPS authentication, jail login, two-factor authentication, data encryption and more. 

6) How Do I Know If My Exchange Works Flawlessly?

After you have finished developing your exchange and are pondering whether the product works perfectly, beta testing is here to your rescue. You can test the platform by distributing it to a selected number of users and getting their feedback. Any feedback should be considered and action should be taken. 

7) But, How Would People Know Such an Exchange is Coming Up?

As said earlier, offering the beta version to selected users is a marketing tactic by itself. In addition to this, you can reach out via various social media through insightful posts. Also, marketing through community platforms, emails, newsletters and multiple blogs can reach a wider crypto user community.

8) How Would I Know If My Customers have a Problem?

For resolving customer problems, you should have a support team that is knowledgeable on cryptocurrencies and works round the clock. Efficient and professional customer support can often add up many users for your platform.

A Final Note

While this guide can prove to be effective, there are no step-by-step guides to help you out of any troubles you may face in developing and launching your exchange.