We know that this is the era of cryptocurrencies. Since the successful emergence of Bitcoin, many altcoins have emerged and traded faster than light. This could be impossible without a trusted crypto exchange platform. Crypto exchange platforms are evoking business platforms since the march of successful platforms like Binance, Coinbase, etc. The main reason for the success of the cryptocurrency exchange is blockchain technology.
As blockchain technology advances, cryptocurrencies are also making headway in the crypto space. According to the ‘Research and Markets’ survey, the global crypto exchange market size is anticipated to reach USD 264.32 billion by 2030. Consequently, cryptocurrency usage has grown in various industries including Healthcare, Supply Chain Management, and more. All of this boosts the demand for secure and feature-rich crypto exchanges. Considering their growth and revenue many newbies are eager to start a crypto Exchange business.
If you are one such Entrepreneur, you have to reach the best Cryptocurrency Exchange Development Company to launch your dream Bitcoin Exchange platform. This guide is primarily meant for Investors who are planning to start a crypto exchange for the year 2024!
Now let us see how starting a crypto exchange makes you earn incredible revenue.
How to Generate Revenue with Crypto Exchanges?
As you know crypto exchanges are known as the lucrative business model of the crypto sector. This is because of the revenue-generating capability of crypto exchanges. As a startup meeting the financial goals is also one of your business objectives. So here let us explore the revenue potential when you start a crypto exchange platform.
Revenue through fees
The major source of crypto exchange revenue is the fees collected by the platform. That includes trading fees, listing fees, and withdrawal fees. Other than that, you can collect fees for transactions made through additional services like lending, staking, and many more.
Additional revenue
Nowadays many crypto exchanges offer premium service offerings and subscription services. Furthermore, they drive more user contributions through referral programs, paid promotions, and advertising. This increases the platform transactions resulting in increased revenue.
So overall, when you start a crypto exchange, revenue is no shortfall at any stage. However, be aware that efficient crypto exchange architecture only brings you Full-fledged benefits.
So now, let us have an overview of 10 instant steps to start a crypto Exchange.
How to Start a Crypto Exchange in 10 Steps?
Creating a crypto exchange might be a challenging task if proper development does not happen. This is also the key to reap better outcomes from crypto exchanges. In this sense, the below series of steps may help you.
1. Determine the type of Crypto Trading Platform
Initially, it is crucial to know what kind of crypto exchange you are planning to launch. In addition to this, know the popularity and the type of exchanges that traders are expecting. Since the target audience is the person who would provide you with profits, it is important to decide on the trading platform type. You can choose any of the below lists of exchanges.
Centralized Exchanges
Centralized Exchanges are traditional crypto exchanges. This type of exchange involves a middleman or a third party to facilitate the transactions. Hence, the traders put their trust in these exchanges to perform trading. This kind of exchange will charge around 0.1-1.5% of the fee for trading. They are the most popular crypto exchanges and hence there are a plethora of users who approach these platforms. This has enhanced liquidity. However, security can still be a concern here.
Decentralized Exchanges
On the other hand, Decentralized Exchanges facilitate transactions without an intermediary. Hence, the exchanges don’t hold the funds or other information here. However, DEX platforms aren’t much prevalent. Hence, these exchanges lack liquidity. While security is completely enhanced in Decentralized Exchange platforms.
Know the pros and cons of Centralized Exchanges Vs Decentralized Exchanges before you decide to launch one!
2. Do Deep Market Research
To start a crypto exchange, you should initially make extensive industry research. In the year 2024, what can be the price of cryptocurrencies? Which country can be the best to set up a crypto exchange in 2024? What features do traders expect in a crypto exchange for 2024?
You need to find the relevant solutions and draft the requirements accordingly! You can view the Expert views in this case for a more relevant answer! Crypto calendars like Coindesk, Cointelegraph, Coinidol, Wikipedia, etc can be helpful as well!
3. Where have you Planned to Start a Crypto Exchange?
So now you have an idea and a business requirement. Now, you should know the desired place to launch your crypto exchange. As you all know, most countries have legalized cryptocurrencies and 2024 will be the year of cryptocurrency exchange entrepreneurs.
Here are some of the Crypto friendly countries where you can launch and start a crypto exchange:
- Malta
- Switzerland
- Gibraltar
- The United States
- The United Kingdom
- Japan
- Singapore
- Luxembourg
- Bermuda
- Estonia
Some of Asian countries have also legalized the initiation of cryptocurrency exchange platforms with certain restrictions. Middle eastern countries are also not an exception.
Once you have decided on the location, you should figure out the crypto exchanges which are operating there. Find out the features, reviews, and processes of trading on those platforms, and make sure you stand out from the crowd.
Here are certain expectations that traders would expect in 2024
- Social Trading
- Multiple Charts in a Single Window
- 24*7 Customer Support
- Easy Withdrawal and Deposits
- Up-To-Date Dashboard
- Ease of Use Website
- High-Level Security
- High- Liquidity.
You can consider these features when you start a crypto exchange to gain the user’s attention instantly!
4. Check the Jurisdictions of the Country
Now you would have decided on the respective country. As each country has separate regulations, you should know about them before you launch a crypto exchange. As I have mentioned earlier, you can start a crypto exchange in any of these desired locations.
Remember, if you fail to follow these regulations, you may be put up in trouble. So, it is important to note down the jurisdictions of the country.
5. Hiring a Legal Team of Counselors
To check out the regulations, you need to have a separate set of team to direct you on the right path. Another suggestion is to integrate a KYC module in your exchange to be on the safer side.
KYC asks for identity requisition from the users to get qualified. This can reduce potential risks from your end. In addition to this, the AML module is also important. Both these entities require proof IDs like Passports, Licenses, etc.
In the year 2024, regulations can vary from country to country, and hence it is mandatory to have a team of counsellors with you.
6. Make Sure you Have the Required Funds
Remember, you need a great set of funds to start a crypto exchange. The reason is you need to hire a cryptocurrency exchange development company that can bring you the required outcomes you were expecting.
The total price may include the cost of the technology, the cost of government & regulations, cost of the solution providers (design, development, and sometimes even marketing). Ensure you have the funds for these processes.
Hence, you must know the Cost to Start a Crypto Exchange and make sure you have the desired funds for them.
7. Hire a Team of Developers from Best Crypto Exchange Development Company
Now you should get in touch with one of the top-notch cryptocurrency exchange development companies across the globe. Since to have a great product, it is essential to have a great set of team.
On the other hand, if you are well-versed in programming skills, you can do it on your own. But the concern is the time. But if you hire the right team, you can easily reach the destination.
The team should comprise the following set of experts:
- C-level Managers
- Crypto Exchange Designers & Developers
- Cryptocurrency Marketing Specialists
- Financial Advisors
Make sure they can provide you with both White label crypto exchange as well as develop from scratch based on your requirements.
We people at ZAB Technologies, deliver both White label services as well as development from scratch to instantly help you in creating your own exchange platform at a minimal cost.
8. Technical Aspects Required to Start a Crypto Exchange
Now you need to lay out the features of your crypto exchange platform. As the trading platforms are heading towards various dimensions, here are some of the top-notch features which you can integrate into your exchange:
- Integrated IEO Module
- Security Token Exchange
- Mobile Application support for Android, iOS
- Atomic Swaps
- Multi-currency pairing and Multi-lingual support
- Crypto Wallet and payment gateway Integration
- Admin and Issuer Console
- Trading Bot
- Cryptocurrency Price Ticker API and Liquidity API
- Leverage Trading
- Referral Program
- Matching Engine
- Futuristic CMS
These are the latest as well as futuristic trends and features you should have in your trading platform. Make sure your crypto exchange development company is capable of providing all these modules in it.
It is also essential to check and implement security factors in the exchange. Here is the set of mechanisms that your solution provider has to implement:
- HTTPS Authentication
- Data Encryption
- Anti Distributed Denial of Service (DDoS)
- SQL Injection
- Jail Login
- Anti Denial of Service (DoS)
- Cross-Site Request Forgery (CSRF) Protection
- Server-Side Request Forgery (SSRF) Protection
- HTTP Parameter Pollution Protection
9. Market your Crypto Exchange Platform to your Target Audience
Now you readily have your crypto exchange built. It is important to promote your trading platform to your global audience. Your solution providers may have the desired set of Crypto Marketing experts to introduce your product. They can make use of Organic Ads and Paid Ads.
Here are some of the marketing strategies by which your product will be promoted:
- Crypto forums like Bitcointalk, Cryptocurrency Talk
- Social Media Channels like Facebook, LinkedIn, Twitter, Telegram
- Messenger Platforms like Slack, Reddit, etc
- Email Marketing Campaigns
- Content Marketing
- Pay Per Click
- News & PR
- Bounty Programs
- Affiliate Marketing Strategy
- Reputation Handling.
10. Rendering 24*7 Support
This is going to be the most crucial step of all. You should be ready to support your customers in case of any issues or errors and resolve them instantly! This can make you more reliable and successful in the industry.
So now you may be ready to start a crypto exchange platform. Before that, it is vital to know the challenges associated with that. So let us dive into the…
Challenges involved in starting a crypto exchange
Challenges are the blocks that cause your investment plan to be delayed. Crypto exchange development does not have an exception in this. Here are the challenges you should consider while building your own crypto exchange.
- Security concerns
- Regulatory compliances
- Technical innovations
- Platform Liquidity
- Market competition
- Financial sustainability
- User Acquisition and Trust
- Customer Support
- Scalability issues
- Realtime assurance
So as an investor, you might be thinking about how to overcome these challenges. For that, you need a better companion who can support you all the way. In this sense, ZAB Technologies will be your ideal partner. Our tech-friendly approach and expertise help you resolve the obstacles in Crypto exchange development. The experience of our team will lead you to start a crypto exchange conveniently.
Wrapping it Up
The year 2024 will be an economic rejuvenation for entrepreneurs in the crypto industry. Entrepreneurs are focussing on the hot business and to be frank, it is always a sensation to invest in cryptocurrency exchange and Blockchain. I hope these 10 steps will help you with Cryptocurrency Exchange Development instantly! So without any delay, start a crypto exchange and get a huge amount of profits in a very short period of time.
