In this current time, cryptocurrencies are a trendy topic in the town. Because cryptocurrencies like bitcoin and ethereum made a huge impact in the marketplace. Also, most of the startups and entrepreneurs started to use digital currencies for their business. Also, many global companies and industries started to accept crypto payments. It is due to the price of cryptos that varies daily according to the market. So this made the vast demand for the cryptocurrency exchange platform.
As we can see the number of crypto exchanges started to increase day by day. But still, some people aren’t aware of the cryptocurrency exchange business. The crypto exchange business is the finest and easiest way to earn ample amounts of profits within a short time with less effort.
Currently, starting a crypto exchange business is the best idea. But you may have a question: What will be the future of the crypto exchange business? Right?. Ok, before seeing about the future of the crypto exchange business. Let us see types, features, and other essential things for starting a crypto exchange business. So now, let us begin with…
What is a Cryptocurrency Exchange?
A cryptocurrency exchange is an online crypto trading platform. In this platform, users can buy, sell, and exchange a wide variety of crypto coins in a hassle-free manner. It is also one of the best online businesses that every startup and entrepreneur can begin. Because here one can earn more lucrative money within a few days. But the essential thing is, you should have enough funds to start a cryptocurrency exchange business.
Already there are lots of crypto exchange platforms available in the crypto industry. Such as binance, LocalBitcoins, Coinbase, remitano, and much more. So if you are entering the crypto world by starting an exchange. Then you should have outstanding features and an amicable user-interface to gain a more user base. Here many users will trade within a fraction of seconds. So your exchange platform should be faster and effective. Also if you are an exchange owner, then you can earn money by charging fees for trading, depositing, and withdrawal. This made many people use cryptocurrency exchange scripts from the professional provider to start their own crypto exchange business.
Selecting the type of exchange is more important before starting the cryptocurrency exchange business. There are various types of crypto exchanges in the crypto marketplace. So, let us see…
Main Types of Cryptocurrency Exchanges
A centralized exchange is a kind of traditional cryptocurrency exchange platform. In this platform, there will be a middleman for trading cryptocurrencies. Here the mediator will control all the securities, options, and functionalities of the exchange platform. Here the middle-man will charge some amount as a brokerage for every transaction done through a centralized exchange. Centralized exchanges are divided into three different types. Such as order book, ads-based, and user to admin exchange.
Order book exchange
The order book is a part of the traditional crypto exchange platform. It has a live order book system and that will be shown in the exchange dashboard. So that users can able to track the live trading price of any crypto. Some of the prominent order book exchanges are binance, poloniex, and Bittrex.
Ads based exchange
Ads-based exchange is also a part of the centralized exchange. where the user can post the ad with a fixed price. So that if any user is interested in that price they can directly connect for trading. By using this exchange, users can buy and sell cryptos at a fixed price that is given in the ad. The ad contains all the essential details such as payment gateway, limit, and more. Some Popular crypto exchanges like LocalBitcoins and Remitano support this kind of feature.
User to Admin exchange
Here, the admin of the exchange will have full control over the functionality and the transaction done through the exchange. So the admin will charge some commission for every transaction. The admin has all powers to monitor all your transactions and your wallet balance. If any discrepancies are raised during the transaction, the admin will sort out the problems raised during the transaction. Some of the prominent user to admin exchange are Coinbase, Luno, Coinmama, and more.
A decentralized exchange is a peer-to-peer cryptocurrency exchange. So it is opposite to the centralized exchange So there will be no middleman or a third party to monitor your crypto-based transaction. The buyer and seller can directly connect between them and make a deal. This shows that decentralized exchanges are highly efficient when compared to the other exchange. To be precise, many centralized crypto exchanges are trying to convert into decentralized crypto exchanges.
Now, let us have a look at…
How to start a Cryptocurrency Exchange Business?
Here we list some essential factors to consider for starting a unique cryptocurrency exchange business.
Choose the type of Exchange
Selecting the type of crypto exchange you want to launch is more essential before starting a crypto exchange business. Because each user prefers different types of exchange. As I said earlier, there are different types of exchanges that you can launch for your business. They are
- Centralized exchange (CEX)
- Decentralized exchange (DEX)
- Hybrid exchange (combo of both CEX & DEX)
Choose any one type of exchange for starting a crypto exchange business.
Do Market research
After choosing the type of exchange, you need to do market research. Also, you need to understand the crypto market, like how it functions and more. Then, you need to understand the price variations of digital currencies in the market. Finally, you need to analyze whether this would be the right time to get into the market.
Identify the place to start your crypto exchange business
You need to identify the right location to start your crypto exchange business. Because some countries banned crypto and crypto exchanges. But in some countries, they allow starting a crypto exchange business. Such as Japan, the United States of America, Canada, India, Malta, and more. By choosing the right crypto-friendly country to start your business, you can generate more profits.
You need to cross-check the laws of the country in which you are about to start your cryptocurrency exchange business.
The feasibility of the project will be completely based on the cost, time, and resources needed for the development. Also, the crypto exchange solution provider will analyze the following topics.
- Operational Feasibility
Identify the exemplary cryptocurrency exchange script provider
The most essential part of starting a crypto exchange is choosing the best bitcoin exchange script, provider. Because there are lots and lots of solution providers. But everyone doesn’t offer good products. So choose the first-class Bitcoin exchange script provider in the market and launch your own crypto exchange platform.
It is a final step and you will get your fully furnished and ready to go live crypto exchange platform. Once your crypto exchange gets deployed, you just need to market your exchange through promotions to your targeted global users.
By following these steps, you can start your own crypto exchange business easily. Now, let us see another crucial one for the crypto exchange business.
Must-have features for your cryptocurrency exchange Business
- Margin Trading
- Liquidity API
- Atomic Swaps
- Integrated IEO Launchpad
- Multicurrency Crypto Wallet creation & integration
- KYC/AML Solution
- Admin Console
- Trader Console
- Futuristic CMS
- Cryptocurrency Price Ticker API
- Integrated Referral Program
- Multi-Currency Pairing
- Rest API
- Matching Engine and much more
These are the paramount features to integrate into your crypto exchange. Ok now, you might have a question…
What will be the Future of Cryptocurrency Exchange Business?
The startups or entrepreneurs who are looking to enter into the blockchain industry, starting a cryptocurrency exchange will be a good way. Because the crypto exchange is one of the best businesses to kickstart and more prominent in the blockchain industry. Experts in the crypto space say that the market will grow to more than $2 billion in 2021. As per the recent report, many big global companies are using blockchain technology.
While seeing the growth of digital currencies, it has become more popular among investors and other individuals. So the governments and banks decided to influence the cryptocurrency market. Also, saying that cryptocurrency might be the next economic fizz. However, few countries have banned trading in cryptocurrencies. Due to the lack of control in the marketplace. Also, Many business magnets started to accept cryptocurrency as a payment method. It indicates that there is a possibility of changes in the direction of cryptos in the upcoming days.
On the other hand, experts in the crypto community say that exchanges will be a future for budding startups and entrepreneurs. Because it helps to earn a lucrative income by charging fees. In the future, there are lots of profitable ways to earn money by starting an exchange by Whitelabel crypto exchange software. Such as trading fees, listing fees, withdrawal fees, deposit fees, and more. So you can earn ample amounts of profits by starting a cryptocurrency exchange business. The future of the crypto exchange business and the demand for it will be certainly high. So starting an exchange now will be the best option.
Currently, We can see the increased growth of crypto usage daily. Also, the demand for crypto exchanges is getting high. When there is a demand and you are the owner of a crypto exchange. Automatically people will come forward to trade cryptocurrencies in your crypto exchange. So there is a bright future for the cryptocurrency exchange business. If you need to earn lucrative income daily in upcoming days or months. Then you need to start an exchange by choosing the best cryptocurrency exchange software solution provider. Because they will offer you the premium white-label cryptocurrency exchange to start a customizable exchange within a few days.