P2P Crypto exchanges have always been a great way for traders to make money. Since no intermediary is involved here, users can interact directly with each other on Bitcoin prices. It is convenient for users as they do not have to wait for a trading engine to match buy and sell orders. With more benefits around P2P exchanges, many entrepreneurs look forward to starting a P2P crypto exchange one shortly.
P2P Exchanges have more trust among the users than other Centralized exchanges due to the Escrow system functionality. Users will not have to depend on an authority to regulate transactions. Instead, the Escrow system here takes care of the security purpose by releasing Crypto coins to the buyer only after the equivalent fiat amount is received.
Thus, the transparency and security factors underline the reasons why startups are looking towards prominent business ideas. Before we straightaway reveal the different methods on how to start a P2P Crypto exchange, let us look at the revenue potential in the business.
Revenue Potential in a P2P Crypto Exchange
Many startups do not realize the wide potential of starting a P2P Crypto exchange. At first, the main focus will be on the number of users visiting the platform. However, on a long-term note, the revenue potential in starting a P2P Crypto exchange is quite promising.
The P2P platform admin charges a small commission for each trade that takes place. Usually, this fee is on the lower side in P2P exchanges however, platforms still make revenue out of it. The fee can be altered based on attracting more users to the platform. Many entrepreneurs prefer to stick with very low trade fees so that users surge towards their platform.
The number of new Cryptocurrencies listed on the platform is also significant. For each new Cryptocurrency that is listed in the P2P exchange, the platform charges a small fee. This fee is not mandatory and only some exchanges have the option of listing new Cryptocurrencies.
The major portion of the revenue for P2P Exchanges is generated in the form of advertisement fees. The users will have to create buy and sell advertisements for trading purposes and for Ads created, a small fee is charged. At times, some exchanges allow free advertisements and do not charge for them for which they compensate through trade fees.
Through affiliate marketing, the platform admin can earn a hefty revenue. When the number of users surges towards a platform, the admin can earn a commission fee by promoting other products through an affiliate link. This is one of the most common ways to make money on any platform.
Having seen the revenue potential in P2P Crypto exchanges, it’s important to understand the revenue can differ based on the type of exchange. Here is a small overview of the types of P2P Exchanges according to their features and functionalities.
Types of P2P Crypto Exchange
P2P Exchanges can be segregated into two types based on the functionality they provide.
- Purely Ads-based Exchanges
- Ads-based Exchanges with other options
Purely Ads-based exchanges focus on just one feature of the platform. These exchanges concentrate on making revenue out of Advertisement-based trading. The platform users create buy Ads and sell Ads based on the requirement and complete secured trading through the escrow-based system. LocalBitcoins and LocalCryptos are two popular exchanges that come under this category.
In the second type of P2P Exchange, the additional features also help in making revenue. These exchanges facilitate several trading ways including P2P, OTC, etc, and have different ways to earn. Paxful and Remitano are two of the top P2P crypto exchanges that come under the second category.
Both these types of exchange have a set of benefits and demerits. Choosing the ideal P2P exchange type helps in long-term revenue-making for entrepreneurs. Moving on, let’s look into the must-have features to start a P2P Crypto exchange.
Must have Features to Start a P2P Crypto Exchange
P2P Exchanges offer a wide variety of features for the users. In fact, the P2P exchange with more features stands out in the market due to the high engagement factor for users. For startups, the primary objective before starting a p2p crypto exchange should be to include the must-have features which are
- Escrow Integration
- Multi-Cryptocurrency Wallet Integration
- Quick BUY/SELL
- Online/Offline Trading
- Social Connections
- Best in Class Security
- Eliminate Anonymity
By including these must-have features, entrepreneurs can be assured of the first step to success. Next, let’s look into the steps involved in starting a P2P exchange platform.
Steps Involved in Starting a P2P Exchange Platform
As far as P2P Crypto Exchanges are concerned, the development process can be divided into two phases, the pre-launch process and the post-launch process.
In the pre-launch process, the requirements from the client are gathered, and research work starts based on the business idea. The P2P Crypto Exchange development company needs to plan the layout with their experts while they also have to produce a strong solution. Once the layout and planning are complete, the P2P exchange development process starts with UI/UX design. The design process is followed by development and testing, and finally, the exchange gets launched into the server.
In the post-launch process, the development company takes care of maintenance. Any feedback received from users or reviewers will be noted and rectified as soon as possible. Regular checking of the functionalities in the P2P Exchange is mandatory to ensure the customers remain satisfied while visiting the platform.
Although the steps involved in starting a P2P crypto exchange are common, different methodologies are available for entrepreneurs.
Development Methodologies to Start a P2P Crypto Exchange
As far as development methodologies are concerned, a P2P exchange can be started in two different ways.
Development from Scratch
By developing a P2P exchange from scratch, entrepreneurs can provide a unique experience to the users. Every component of the P2P exchange is designed and developed from the ground. This process does take more time up to a year as more focus, and energy are required from the developer side. Hence, this method could only be suitable for entrepreneurs who wish to invest a lot of money and time into the P2P exchange development.
Using a P2P Crypto Exchange Software
The second method is ideal for startups who are yet to establish their potential in the Crypto space. A P2P Crypto exchange software is ready-made software that helps startups or entrepreneurs to launch a P2P exchange instantly. The solution is pre-built and multi-tested, and an exchange can be launched within a week or two. Hence, this software remains the ideal solution to start a P2P exchange.
For startups who aren’t aware of the cost of starting a P2P exchange, here is the much-needed information on it.
How Much Does it Cost to Start a P2P Crypto Exchange?
The P2P Crypto exchange cost mainly depends on the development method chosen. For instance, if an entrepreneur chooses to go for the P2P Crypto Exchange Software, the cost is quite budget-friendly. Since it is a pre-made solution, the P2P Exchange software comes around $7,000 to $15,000.
On the other hand, startups who prefer to develop from scratch might have to spend more. Due to different factors involved while developing from scratch, the cost could easily rise above $1,00,00 depending on the Clientele’s requirements.
Why Choose Coinsclone as a Development Partner to Start a Crypto P2P Exchange Platform?
Coinsclone is one of the leading Crypto Exchange Development Company with a high success rate. Our solution comes with a top-security panel, and noteworthy architectural design and can help you make millions. We can assure brand growth at a very quick time and our expert developers can provide you with high-grade solutions. Our experience in the industry is immense and we have been involved with several Crypto projects.
As experts in blockchain development, we offer other Crypto exchange-related services at affordable rates. By partnering with us, your P2P Crypto exchange can win many users’ hearts in a short span. Our demo would be perfect to make a decision. So, join hands with Coinsclone as soon as possible to take your business aspirations further.