How to Start a Crypto Exchange Platform in 2024 – Step By Step Process

start a crypto exchange

The biggest entrepreneurs in the current crypto world are looking for the answer to how to start a Crypto exchange. By definition, a cryptocurrency exchange is a blockchain-powered platform that allows any individual to trade major cryptos seamlessly and securely. It is not only a platform for traders but is also considered the finest crypto business idea among startups as it comes with many ROI factors. 

The hidden truth is Crypto never sleeps and the demand for crypto exchange will not come to an end until people like to trade/invest in crypto for making profits. That’s why starting a crypto exchange like the existing one or starting a unique one is an exemplary crypto business idea in 2024. 

Many people created brand new crypto exchanges in the last five years and imprinted their brand names among many people by building a strong crypto community. As a crypto startup, if you want to become one among them by starting a crypto exchange business, and searching for the correct answer on how to start a crypto exchange you have landed in the correct place. 

This article covers 10 simple steps on how to start a crypto exchange business successfully in 2024. Our step-by-step guide will help you with everything that you need to know on how to start a crypto exchange platform successfully

How to Start a Crypto Exchange in 10 Steps?

Below mentioned is the primary steps to focus on while starting a crypto exchange 

  1. Go through market research
  2. Identify the Right Location
  3. Obtain a Crypto License
  4. Choose the Type of Exchange
  5. Choose the Development Method
  6. Design the Architecture
  7. Connect with Development Partners
  8. Project Feasibility
  9. Integrate the Latest Features
  10. Testing & Deployment
  • Go through market research

To start a crypto exchange business, you need to do some market research in the crypto space. First, you must understand the crypto market, like how it functions and what are all the types of crypto trading that take place in exchange platforms. Apart from this, you need to understand the price fluctuation of cryptos in the marketplace. 

The crypto market is highly volatile due to economical reasons, market sentiment, and performance. So you need to make a deep analysis of whether this would be the perfect time to start a crypto exchange business or not. If everything falls into the right place you can proceed to the next step.

  • Identify the Right Location

You need to decide which would be the right and best place for starting a crypto exchange platform. Because, some major countries like Russia, Bolivia, and Nepal are saying “No” to cryptocurrency. Meaning it is considered to be illegal and forbidden in those countries. So you cannot start a crypto exchange business where there is no value and you can’t launch a website against government rules & regulations. 

However, some countries are allowing people to trade cryptos and start a cryptocurrency exchange. Here is the list of top cryptocurrency-friendly countries in 2024. 

  1. The United States of America,
  2. Germany
  3. Japan
  4. Singapore
  5. Malta
  6. South Korea 
  7. El Salvador
  8. European Union countries

You can choose any of these locations or conduct in-depth research to find the right location for creating the crypto exchange website/app.

  • Obtain a Crypto License

The law for cryptocurrency differs in every country, so it is advisable to examine the rules and regulations in the country where you intend to start a crypto exchange business. In addition, proper licensing and registration are needed for operating a crypto exchange website and app in any country.

In many places, crypto trading platforms are operated without significant oversight. However, in the US, digital currency operators must get proper licenses from the government for Money Transmitter businesses. Moreover, they must also follow SEC & CFTC rules and regulations. Hence, consult a legal expert in the crypto field before starting a crypto exchange business in your desired country.

  • Choose the Type of Exchange

Deciding the type of exchange is crucial before starting your crypto exchange business. As of now, there are three different types of cryptocurrency exchanges in the global digital marketplace. They are

Centralized Exchange:

Centralized crypto exchange (CEX) is an admin-controlled platform where users can trade a wide variety of digital currencies in a risk-free manner. There will be an administrator for every crypto transaction. When a user completes their trading, the admin of the exchange will charge a fee as a commission and it helps the owner to generate a lucrative revenue easily. Also, user transactions and crypto wallet balances will be monitored by the admin of the exchange. Order book exchange, ads-based crypto exchange, Crypto derivatives exchange, and a user-to-admin(OTC) exchange are part of the CEX.

Decentralized exchange:

Decentralized crypto exchange(DEX) is a peer-to-peer exchange platform and it functions without the admin or any third parties. In this type of crypto exchange, user privacy is highly protected and users will have full control over their funds. So most crypto traders prefer a decentralized exchange platform rather than a centralized exchange. Besides, this type of exchange has strong security systems when compared to CEX platforms.

Hybrid exchange:

To be precise, a hybrid exchange is a combination of both centralized and decentralized exchanges. This type of exchange includes both the features and security mechanisms of CEX and DEX. Example – Binance.

These are the major types of exchanges. Select the best type of crypto exchange that matches your business needs before crafting your crypto exchange website or app.

  • Choose the Development Method

Cryptocurrency exchange platform development is a complex process and requires a lot of technical expertise. There are two main ways to start an exchange – from scratch or by using a premium white label software.

In general, starting a crypto exchange from scratch requires more time, adequate funds, and resources, but it gives you the flexibility to customize your platform according to your needs. On the other hand, we have a cryptocurrency exchange script that helps to start a crypto exchange cost-effectively and instantly. It is easy to implement when compared to starting from scratch. Besides, it also gives you access to all the features of an advanced trading platform without having to build it yourself.

No matter which method you choose, both have their pros. It’s important to understand them before deciding on which one is right for your project.

  • Design the Architecture

After choosing the method to start an exchange for your business, you can move on to the designing process of the cryptocurrency exchange architecture. For designing an effective exchange architecture, enabling four essential components is mandatory. They are

Trading engine:

It is the core component of any cryptocurrency exchange website. This component helps to perform transactions and has access to order books. Thus, the trading engine is an important component of starting an exchange platform.

Crypto Wallet:

A cryptocurrency wallet is a primary component in the exchange as it is used to store, receive, and transfer a wide range of cryptos securely. Without crypto wallet integration, you can’t build a crypto exchange website or app. So, implement a hot or cold storage type crypto wallet to offer a hack-free environment in your trading platform. 

Admin Control Panel:

The admin panel is a type of control center where the admin manages the whole trading platform. All the orders, alterations, user management, transaction management, and other essential activities are done in this panel. It includes various tasks such as managing crypto trading pairs, trading fees, customer support, approving and verifying user accounts, transaction pending requests, new updates, and even more.

User Interface & Experience (UI / UX):

The UI/UX is also an important component that you must take into account while building a crypto exchange website or app. The UI/UX must be fascinating and friendly because it helps to provide an amazing trading experience to your users. You need to make sure that the UI/UX is compatible with multiple devices like smartphones(Android/IOS), iPad, tablets, and all browsers. To satisfy your global users and target audience, you must enable the following reliable functions.

  1. Register and access the account at any time easily.
  2. Deposit and withdraw virtual currencies at any time
  3. View the history of transactions, balances, statistics, and performance charts.
  4. Allow users to buy and sell major digital currencies at any time.
  5. keep these vital components in mind while designing the cryptocurrency exchange architecture. 
  • Connect with Development Partners

It is the most essential step in starting a cryptocurrency exchange business. Because currently, lots and lots of software firms are available in the global marketplace. But everyone doesn’t offer quality services. Only a few offer the best services for starting an exchange. 

Among the few, Coinsclone is the top company in the blockchain industry. We offer world-class crypto exchange software services for all blooming startups, enterprises, and business owners. Connecting with us will help you to start and deploy a tech-friendly crypto exchange website/app at an affordable cost. 

  • Project Feasibility

In this step, you need to examine the project’s feasibility. The project feasibility will be based on the cost, time, and resources needed to start an exchange. On the flip side, a deep analysis will be done by the technical partner that you choose for your project. And it would be based on the following crucial factors.

  1. ECONOMIC – Whether the project can be completed within the allotted budget or not.
  2. LEGAL – Whether we have the potential to handle this project as per the cyber law and other regulatory compliance.
  3. OPERATIONAL FEASIBILITY – Whether we can create operations as per the client’s expectations and requirements
  4. TECHNICAL – Need to check whether the current system supports the advanced technology that is involved in the project.
  5. SCHEDULE – Whether we can complete the whole project within the given time.
  • Integrate the Latest Features

Features play a vital role in starting a successful crypto exchange website. The Trading features must be more effective for the users in your exchange. Integrating such features will help you to grab many crypto users from various countries and increase the overall user base of your exchange. Here we list ideal technical features that you must integrate into your exchange website and app. 

  1. Margin trading
  2. Order book 
  3. P2p trading 
  4. Market making 
  5. IEO module
  6. Referral program
  7. Effective User dashboard
  8. Liquidity API
  9. Multi-lingual assistance
  10. Crypto Payment gateway integration
  11. Automatic KYC/AML verifications
  12. Staking and more 

By incorporating these trading features, both the experienced and the newbies will get the best trading experience. Next, you need to implement high-level security features. Here we list some high-level security mechanisms that you must enable on your crypto trading website.

  1. HTTPs authentication
  2. Jail login
  3. Data encryption
  4. Two-factor authentication
  5. SQL injection prevention
  6. Anti Denial of Service(DoS)
  7. Cross-Site Request Forgery(CSRF) protection
  8. Server-Side Request Forgery(SSRF) protection
  9. Anti-Distributed Denial of Service

By integrating these protective systems, you can eliminate hacking and other fraudulent activities in your exchange platform.

  • Testing & Deployment

After integrating all the important trading functionalities and security features, you can run a beta test. By performing the beta testing, you can collect the errors, bugs, and issues in the exchange. If unfortunately, your platform faces any issues in testing, you can easily rectify them instantly.

Once the beta testing is over, your exchange is ready for the deployment phase. In this phase, you will get your fully functional and ready-to-go live trading platform. After your exchange gets deployed with the help of professionals, you need to market your exchange through promotions.

The process of creating your crypto exchange does not stop with the deployment. Maintenance has to be done periodically for your platform as there will be some anonymous attackers who will look for some security hole to inject threats. This is not to threaten you, this is just a word of caution from our side. Thus, ensure whether your exchange platform is maintained with upgraded security modules or not after deployment.

These are the steps involved in launching a successful crypto exchange platform in 2023.

Why Choose Coinsclone to Start an Exchange?

Coinsclone is a well-established cryptocurrency exchange development company in the crypto space. Being a leading crypto firm, we excel in providing all sorts of crypto exchange services. Such as white-label crypto exchange, decentralized exchange script, and more. We have seasoned blockchain coders who have a lot of experience in delivering exchange products. Our team of experts will guide you to start your crypto exchange website with ideal features and security modules.

Related Articles

  1. Benefits of starting a cryptocurrency exchange
  2. How to Start a P2P Crypto Exchange
  3. How Long Does It Takes to Build a Crypto Exchange
  4. Fintech Business Ideas for Entrepreneurs To Explore In 2024
  5. How Much Does It Cost to Start a Crypto Exchange
  6. How to Design a Cryptocurrency Exchange Architecture
  7. How to start a Decentralized autonomous organization
  8. How to Create a Crypto Token

FAQ On Starting a Crypto Exchange

Next, let us move with a most asked question about starting a crypto exchange..

1) Can anyone start a crypto exchange?

Yes, anyone with basic knowledge of cryptocurrencies and their growth in the market can start a crypto exchange business liberally. 

The Best cryptocurrency exchange business has now come to normal for all people. Mostly many startups and entrepreneurs have a desired plan to start a cryptocurrency exchange. Starting a crypto exchange is not crucial until you find the right development company. 

You no need to be familiar with blockchain to start a crypto exchange. The development partner you prefer will guide you with all the technical processes and support you with all the transaction details.

2) Is the process of starting a cryptocurrency exchange easy?

Yes, the process of starting a cryptocurrency exchange is easy, but you should be careful with the method you choose. Most startups are stuck in the beginning stages of starting an exchange and are complicating their business. To avoid this unwanted lag in your business, you must have a clear understanding of the types of methods to start an exchange.

3) How long does it take to start a cryptocurrency exchange? 

The entire time duration to start and deploy a cryptocurrency exchange will take approximately 15 to 45 days. It may vary a bit depending on the method you choose to start your platform.

4) What are the popular methods to start a crypto exchange?

Starting from scratch

Starting a Crypto exchange from scratch is a ground-up level process where it requires several experts to plan the structure of the platform features, design, modules, etc. It requires technical things like coding, IDE, major programming languages, etc. It takes a minimum of a year to complete the entire process. 

Using white-label software

The white-label crypto exchange software is a readymade solution for entrepreneurs looking to start an exchange instantly. It has all the functionalities to run a profitable crypto exchange. It can also be highly customized according to your business needs. By using the white label software you can build your crypto exchange platform within a week. Its cost is also low when compared with the other methods. 

5) How Much Does It Cost to Develop a Cryptocurrency Exchange Platform?

The cost of developing a cryptocurrency exchange platform ranges between $15,000 to $45,000 and it totally depends on the size and complexity of the project. Other factors that can impact the cost are the number of features to be included, such as security measures, margin trading, crypto derivatives trading options, crypto wallet, trading engine, payment gateway integration, and more. 

To be precise, starting an exchange using white-label software ranges from $7,000 to $15,000. In case you want to start the exchange platform from scratch, the overall cost would be around $100,000 – $150,000. 

Hope we have given sufficient information regarding your query – how to start a crypto exchange in 2023.