If your a startup and looking to start a crypto exchange business, then you have landed in a correct place. This article covers 10 simple steps to follow before starting a cryptocurrency exchange business. It will help you with everything you need to know for starting a crypto exchange.
So, let us begin this informative article with…
What is a Cryptocurrency Exchange & How to Start?
A cryptocurrency exchange, is a business app or a website that allows peoples to trade cryptocurrencies or any other digital currencies for other assets, such as fiat money or other digital currencies
Currently, the Clone Script of Popular Exchanges has great demand and prominence in the market. So many business people used crypto exchange clone script to start their own secured trading platform. Basically, it is a ready-made software to create and start a feature-packed crypto exchange instantly. Our crypto exchange software has all the essential features and security systems like reputed exchange websites.
With this script, you can customize your desired modules as per your business needs. Buying one such clone script will make anyone build their crypto exchange in a flash with a resemblance to their desired crypto trading platform.
In the crypto industry, Crypto is prevailing across the world which has become everything. Now you may think of starting a brand-new crypto exchange business that will lead you to become an investor giant. So you will have a question in your mind like…
Steps To Starting a Cryptocurrency Exchange?
Here we list the essential steps involved in starting a crypto exchange platform.
- Go through market research
- Analyze your business requirements
- Identify the Right Location for your exchange business
- Review the laws and compliance requirements
- Select the right type of crypto exchange to launch
- Design the Architecture of your trading platform
- Project feasibility
- Find the outstanding cryptocurrency exchange script provider
- Integrate latest features
- Implement high-level security features
- Perform beta testing
- Deployment
- maintenance
We will assist you with a detailed explanation of every single step involved in the process of starting a crypto exchange business.
Step 1:- Market Research
When you have thoughts to start your own crypto exchange business, you need to do some market research in the crypto space. First, you need to 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 cryptocurrencies in the marketplace. As we know that the crypto market is highly volatile and for some social & economical reasons, the price of digital currencies may fluctuate. 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.
Step 2:- Analyze Your Business Requirements
As an owner, you need to know the requirements of your exchange. Never fail to document your requirements as a Business Requirement Specification document. This will help you to track what your exchange will hold with. The solution providers will take your Business Requirement Specification (BRS) document and they will analyze the feasibility of the project.
Step 3:- Identify the Right Location to start a crypto exchange business
You need to decide which would be the right and best place for starting a crypto business. Because, some major countries like Russia, Bolivia, Ecuador, and Nepal are saying “No” to cryptocurrency. Which means it is considered to be illegal and forbidden in those countries. So you cannot build a crypto exchange website there to make lucrative money. But some countries are allowing people to trade cryptos and to start a cryptocurrency exchange. Those cryptocurrency-friendly countries are listed below. Such as
- The United States of America,
- Canada
- Japan
- Singapore
- Malta
- Australia
- European Union countries
So you need to analyze which would be the right location for starting the crypto exchange website and plan accordingly.
Step 4:- Review the Laws and Compliance Requirements
The whole idea of cryptocurrency still does not reach well to many major countries except a few. The law differs in every country so check the laws in the country that you are planning to start a crypto exchange business. Thus, Proper licensing is needed on which your exchange plans to operate. In many places, trading platforms operate without significant oversight. In the US, digital currency operators must get proper licenses from the government for Money Transmitter businesses. Also, they must follow SEC & CFTC rules and regulations. Thus, consult a legal and professional expert in the crypto business field before starting a crypto exchange business.
Step 5 :- Select the Right Type of crypto exchange to Start
Deciding the type of exchange platform is more crucial before leaping into the exchange business. There are three different types of cryptocurrency trading platforms in the crypto industry. They are
- Centralized exchange
- Decentralized exchange
- Hybrid exchange
Centralized exchange
Centralized crypto exchange (CEX) is a traditional exchange. Here users can trade a wide variety of digital currencies in a risk-free manner. But there will be an admin or middlemen for every transaction. When a user completes their trading, the admin of the exchange will charge fees as a commission. It helps to generate revenue easily. Here users do not have control over their funds. Also, user transactions and crypto wallet balance will be monitored by the admin of the exchange. Order book exchange, binary trading options, and a user to admin exchange are part of the CEX.
Decentralized exchange
Decentralized crypto exchange(DEX) is a peer to peer exchange platform. Here the exchange functions without the admin and 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, it has strong security systems when compared to CEX platforms.
Hybrid exchange
A hybrid exchange is a combination of both the centralized and decentralized exchange. This type of exchange includes both the features and security mechanisms of CEX and DEX.
So select the best type of cryptocurrency exchange that matches your business needs before building your crypto exchange website.
Step 6:- Design the Architecture of your Crypto Exchange platform
After choosing the type of crypto exchange for your business, you must design the architecture of your exchange platform. For designing the effective architecture, you must enable four essential components. They are
Trade engine
it is the core and first component of any cryptocurrency exchange website. This component helps to perform transactions and calculates balances. Besides these, it also has access to order books and to buy/sell orders. Thus, the trade engine is an important component to develop an exchange platform.
Crypto Wallet
A cryptocurrency wallet is mostly used to store, receive, and transfer a wide range of cryptos in a risk-free manner. Implement hot or cold storage systems to offer a hack-free environment in your exchange. In the hot wallet, the user can instantly withdraw cryptos without the approval of the exchange owner and it is completely online storage. So it enables real-time transactions. Cold storage wallet is completely offline storage and it is advisable to integrate a cold storage wallet since it is not vulnerable to cyberattacks and other malware activities.
Admin Control Panel
It is a type of control center where the admin controls and 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 user interface is one of the important components that you must take into account while building a exchange website. The user interface must be fascinating and friendly because it helps to provide an amazing trading experience to your users. You need to make sure that the user-interface is compatible with multiple devices like smartphones, iPad, and tablets. Also, you can enhance trading engagements by developing crypto trading mobile apps for your users. To satisfy your global users, you must enable some reliable functions.
- Register and access the account at any time in a risk-free manner.
- Deposit, bank, and withdraw user’s digital assets at any time
- Viewing the history of transactions, balances, statistics, and performance charts.
- Allowing your users to buy and sell major digital currencies at any time.
Step 7:- Project Feasibility
The project feasibility will be based on the cost, time, and resources needed for the cryptocurrency exchange development. Apart from this, the deep analysis will be done by the providers like the following essential factors.
ECONOMIC – Whether the project can be completed within the allotted budget
LEGAL – Whether we have the potential to handle this project as cyber law and other regulatory compliance.
OPERATIONAL FEASIBILITY – Whether we can create operations as per the client’s expectations and requirements
TECHNICAL – Need to check whether the current computer system supports the advanced technology that is involved in the project.
SCHEDULE – Decide whether the project can be completed within the given time.
Step 8:- Find the Outstanding Cryptocurrency Exchange Script provider
It is the most essential step of creating a crypto exchange website. Because in this current time, there are lots and lots of exchange script providers in the global marketplace. But everyone doesn’t offer the best-quality clone script products. There are two ways that you can follow to build a bitcoin exchange website. Either from scratch or else by using the premium white-labe software. But the fact is many people prefer ready-made bitcoin exchange Script to create a crypto exchange website rather than developing from scratch. Because it is cheap, fast, and secure with all the customizable options and outstanding trading features. So choose the best cryptocurrency exchange Script provider to start a cryptocurrency exchange business that will leverage top-notch results.
Step 9 :- Integrate Latest Features
Features play a vital role in developing a successful crypto exchange website. The Trading features must be more effective for the users in your exchange. So it may grab many crypto users from various countries and helps to increase the overall user base of your exchange. There are some ideal technical features that you must integrate into your exchange platform. They are
- Margin trading
- Security token exchange
- Cryptocurrency wallet
- Market making
- IEO module
- Referral program
- Admin dashboard
- User dashboard
- Liquidity API
- Multi-lingual
- crypto Payment gateway integration
- Site API
- Trade engine
- Automatic KYC/AML verifications
- Atomic swaps
By incorporating these essential features, both the experienced and the new crypto traders will get the best trading experience.
Step 10:- Implement High-level Security Features
As of now, bitcoins and crypto exchanges are the main targets for anonymous hackers. Many bitcoin exchange platforms have lost millions worth of crypto assets due to improper security systems and loopholes. So, here we list some high-level security mechanisms that you must enable into your cryptocurrency exchange website.
- HTTPs authentication
- Jail login
- Data encryption
- Registry lock
- Two-factor authentication
- SQL injection prevention
- Anti Denial of Service(DoS)
- Cross-Site Request Forgery(CSRF) protection
- Server-Side Request Forgery(SSRF) protection
- Escrow services
- Anti Distributed Denial of Service
By integrating these protective systems, your exchange can eliminate hacking and other fraudulent activities.
Step 11:- Perform Beta Testing
After integrating all the essential features and security features, you can run a beta test for your exchange. By performing the beta testing, you can collect the errors, bugs, issues, and feedback. If unfortunately, your platform faces any issues in testing, then you can easily rectify them instantly.
Step 12:- Deployment
After 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. Once your exchange gets deployed with the help of a professional crypto exchange script provider, you need to market your exchange through promotions.
Step 13:- Maintenance
The process of creating your crypto exchange does not stop with the deployment. Maintenance has to be done periodically for your platform. Because 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, make sure whether your exchange platform is maintained with upgraded security modules or not.
These are the stages involved in launching a secure and successful exchange. By considering all these vital steps you can create your bitcoin exchange platform within 7 days. The only part that lies in your hand is preparing your required business documents and approaching a genuine clone script provider.
Now, let us see…
Benefits of Starting a Crypto Exchange Using Clone Script
- If you are an admin in the exchange, you can charge fees for every successful crypto trading
- If you are integrating the IEO module in the exchange script. Then you can earn separate lucrative money through listing fees.
- Bitcoin exchange script has high customization scope. So you can easily customize the theme, logo, name, and other front-end designs as per your business needs
- You can expand your business and enhance your brand visibility in the market quickly
- You can gain an ample amount of profits in a short time.
- Your global crypto users can get instant and safe crypto transactions.
- You can neglect to spend more money & time on creating a superfine bitcoin exchange platform.
- Deploying the pre-developed script will be easy and simple
- You can get productive 24*7 technical and customer support from the service provider.
These are the advantages of starting a bitcoin exchange business using a premium cryptocurrency exchange script. All you need to do is, choose the ideal and professional crypto trading script provider in the industry. One such ideal provider sustaining with a great name in the crypto industry is Coinsclone.
Why Choose Coinsclone To Start a Crypto Exchange Business?
Coinsclone is the leading and fast-growing cryptocurrency exchange script provider in the crypto space. Being a leading crypto exchange solutions provider, we excel in providing all sorts of exchange services. Such as white label crypto exchange, decentralized exchange script, security token exchange, and more. We have well-skilled programmers who have a lot of experience in developing and delivering exchange products. We have so far delivered 60+ premium clone scripts to our reputed clients. Our team of experts will guide you to build your own bitcoin exchange website with ideal features and security modules. We have a team of experts to provide customer support through the internet.
If you are the person looking to start a cryptocurrency exchange business, then use our ultra-modern bug-free exchange clone script. So that you can launch your bitcoin trading platform within a few days at the best price in the market. Besides this, Coinsclone also offers some exclusive bitcoin exchange clone scripts that are prevailing in the marketplace. Such as
- Binance clone script
- Paxful clone script
- LocalBitcoins clone script
- Coinbase clone script
- Remitano clone script and more clone scripts
Get a live demo of our Cryptocurrency Exchange Script now….!
