With the constantly increasing demand and prominence, it is never too late to start a business with cryptocurrencies. Cryptocurrencies have made an influential impact in recent years, and the number of cryptocurrencies and crypto exchanges are increasing at an accelerating pace. The need for cryptocurrency exchanges has become unavoidable as cryptocurrency transactions have become vital in this digitally evolving sphere. As a consequence, many budding entrepreneurs are aspiring to embark on the crypto exchange business. But, with the already excessive competition, they are often confused about where to begin? How to launch a cryptocurrency exchange software that will stand out and sustain over the existing competitors? This article is to enlighten you on that. Let’s dive into each step involved with creating a crypto exchange software with a strong foundation.
Essential steps involved with developing a crypto exchange software
- Determining the location
The primary step is to decide the location that your exchange business is going to operate. And, you need to decide whether it is going to operate regionally or globally. Laws differ from one country to another, one region to another. So you need to make sure your exchange abides by the law based on your location that you choose and whether your exchange has all the opportunities to prosper in that surrounding. It is a better option to get legal advice from experts in terms of legal compliance for your exchange.
- Obtaining license
Once you decide on your location, the next important step is to obtain a proper license for your exchange. As mentioned earlier, regulations vary from place to place. So, you have to make sure your exchange always stays up to date legally to avoid surprises in the future. It is better if you consult a lawyer so they will guide you on the legal formalities that are to be done before starting your exchange.
It is also important to follow the KYC( Know Your Customer) norms. It is the process of acknowledging and verifying your customers with their IDs, which will help you with authenticated users for your exchange.
- Partnering with a bank/ payment processor
The next step is to partner with an ideal bank or a payment processor to enable payments with fiat currencies for your exchange. You need to carefully analyze and choose a dependable bank that will offer a host of digital services which is absolutely necessary to conduct crypto transactions. This will help customers with quick clearance, withdrawing/ depositing fiat money both via payment gateways within your cryptocurrency exchange software or manually.
- Integrating liquidity into the exchange
Liquidity is one of the must-have features for a crypto exchange. It is one of the major factors a customer will look into while investing in your exchange. So you need to make sure your exchange has high-volume liquidity to operate smoothly. Here’s how you can achieve improved liquidity,
- You can join a network of multiple crypto exchanges from which the liquidity of all the exchanges will be tied together and will help improve yours.
- You can simulate trading activities for your exchange by conducting buying and selling between two artificial accounts.
- Integrating API interface into your cryptocurrency exchange software which will connect your exchange to other external exchanges for boosting liquidity.
- Integrating robust security features
Security threats are a major reason why few investors are still doubtful of investing with cryptocurrencies and crypto exchanges. So, integrating the most robust security features for your exchange should be your top priority. You should make sure to protect your exchange and most importantly, your customer’s KYC and bank details, etc.
- Perform Beta Testing
Make sure you perform beta testing for your exchange, which will help you identify any faults, bugs, etc., and you can rectify it before making your exchange live.
- Ensure proper customer support
Your exchange should have a customer support team that is engaged and active, and available to answer customer queries around the clock. You must quickly respond to customer KYC requests, and process their deposit/ withdrawal requests in a timely manner, which will make them engrossed to your exchange and spread word about it.
What are all the ways to go about developing a cryptocurrency exchange software?
The first one is building your exchange from scratch. When you build an exchange software from scratch, you need to plan, and structure carefully, and follow all the procedures mentioned above. This will consume an ample amount of time and cost you a fortune. Also, to sustain your exchange, in the long run, you need proper technical assistance. This will not be a viable option in the fast-paced business world.
The preferable choice to make is to conduct extensive research and choose the right cryptocurrency exchange software development company.
At CES, We have a team of some of the most experienced developers, and we offer a reliable white label cryptocurrency exchange software for your business. Our white-label solutions are readily-available, integrated with every essential feature, technical, and security integration to make your exchange fully functional. And, as it is ready-made, it deprives you of the development costs and helps with launching your exchange within a wink of an eye.
Build a successful exchange model like Binance
Another important benefit of our Whitelabel solutions is that they are highly scalable and customizable. You can build an exchange software just like Binance, which is one of the significant, successful exchanges currently in the market. You can integrate similar features and functionalities of Binance, for your exchange to improve your profit chances, and customize the exchange however you need. You can choose your desired name, brand, logo, UX/UI for the exchange. The best part is, the solutions are effective, but with cost-effective prices! Get in touch with our experts to know more and build a profitable crypto exchange software.