Nowadays, millions of people are directed towards digital currencies for investment and trading. They believe that there are high chances of getting huge profits if they trade in cryptocurrencies. If we consider the last decade, there is a rapid increase in the number of crypto traders and investors. As we know that there are already thousands of existing virtual currencies. But many organizations are coming up with their exchange platform.
These Bitcoin exchange platforms can help in earning significant rewards if millions of people trade through them. If you are planning to start and launch your exchange platform, you need to follow specific tips. Check out bitcoinup for earning good profits and follow this guide to start your crypto trading platform.
1. Need to Check Whether Such a Business is Legal in Your Country or Not
It is the most crucial thing that you need to consider while starting your exchange business. Every country in the world has unlike rules and regulations regarding cryptocurrencies and trading platforms. You cannot start anything new without considering your country’s laws.
You need to check whether the use of virtual currencies on exchange sites are legal or not. There is massive competition in terms of the economy across the globe. Beginning with the exchange business should also be beneficial for the country. Therefore, you can hire a business consultant to know what is right and legal in your country.
2. Target Right Audience for your New Crypto Venture
Indeed, there are multiple exchange platforms, and cryptocurrencies exist across the globe. Investors and traders are actively trading their digital currencies and making out huge profits. People residing in Africa and Asian countries are still not using such platforms.
If you want to start something, you need to target your audience to whom this trading platform can be helpful. You need to check the number of customers that can invest or trade currencies on your exchange. You can also target other countries to expand your venture, but make sure that it should be well-legalized.
3. Decide the Type of Crypto Exchange
There are three types of trading platforms, and you need to decide which one to prefer.
- Centralized: This type includes a third-party to handle all the cryptocurrency transactions. It is essential to consider a trustworthy middleman for trading. It provides high liquidity, which makes it a common choice for many business owners. There are chances to earn money via trading fees because there are 0.1 to 1.5 charges included while trading digital currencies.
- P2P: In Peer to Peer method, there is no third-party included for transactions. A buyer and a seller are directly connected and transfer funds easily. The transactions are done under the smart contract escrow system to handle trust issues. If you want to start your exchange platform, then you can prefer this type also.
- Decentralized: It is a liquidity-deficient exchange type, in which there is no intermediary while making any transactions. But many organizations prefer this option because it offers more security as compared to other types.
4. Look for the Right Application for Your Exchange Business
Software is necessary to run your exchange platform and trade cryptocurrencies. Many ready-made applications are available online that you can buy and start your venture. But if you want to create something unique, then it is better to hire a vendor or a software developer to get a unique application.
You need to wait for a long time to start your venture. But you can create the software the way you like. The cost of the application depends on your budget and your requirements.
5. Choose the Correct Bank for Your Exchange
It is essential to research the right bank that can easily associate with your venture. You need to explain the bank regarding the transactions of cryptocurrencies and how to deal with it. Decide your bank wisely because they can charge a certain amount of fees on every transaction. You can promise them to provide specific commissions so that you won’t lose much by trading fees.
6. Choose the Type of Wallet for Making Digital Transactions
It is necessary to have two types of wallets: Hot and Cold. The Hot wallet consists of cryptocurrencies, which you are using for transactions. If somehow your wallet gets hacked, then you will get some amount. On the other hand, a cold wallet is completely disconnected from the online exchange platform.
Your money is safe in this wallet. It is easy to transfer funds within these wallets. You can save your money by transferring from hot to cold. You can also withdraw cryptocurrency in the form of your country’s physical currency via your banks. It is quite essential to have these two wallets for the safety of the customer identity and security of money.
7. Add Multiple and Safe Payment Gateways
In your exchange platform, it is necessary to have multiple payment gateways. You can collaborate with many payment processors so that your traders and investors get different ways to make transactions. A user can trust the safe option and make payment according to his preference. It is also essential that the payment gateway is well-secure and safe from cybercrimes. You can lose your customers or investors in case of any security issues.
8. Calculate and Gather Funds for Starting and Promoting Your Venture
Every business owner requires funds to start new platforms and promote it. Calculate the approximate cost of the entire project and get enough, to begin with, your Bitcoin exchange platform. People will know about your venture only when you reach them via social media applications or other marketing strategies. Be careful in case of wastage of money in unnecessary things.
If you want to earn massive rewards via cryptocurrencies, it is good to start your crypto exchange platform. Ensure that you follow the tips mentioned above so that every process goes smoothly and as per your planning. Consider security as the primary concern of your targeted audience. Start a unique and well-managed exchange business for your dedicated traders and investors.