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Saturday, November 27, 2021

How to Start Cryptocurrency Exchange Business in 2021?

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The market capitalization of virtual currencies is a whopping $1.94 trillion as per CoinMarketCap. The journey from January 2009 till now from the inception of Bitcoin has been incredible. Investors have plenty of choices now since there are around 12165 digital currencies in the world. Therefore, it is the perfect time to launch a Cryptocurrency exchange platform

The Next-Gen financial asset – Crypto

  • The daily trading volume of virtual currencies is $113.75 billion. There are more than 413 exchanges for buying and selling cryptocurrencies across the whole world. 
  • Bitcoin (BTC) and Ethereum (ETH) continue to lead the circulating supply across the globe. Their respective percentages are 42.4% and 18.7% respectively. 
  • Social media giants continue to bet big on Bitcoin. Twitter has added a Bitcoin tipping future. It will soon allow netizens to send and receive tips for their insightful content via Bitcoin. 

The factors to consider before creating a Crypto exchange Platform

Fixing the type of crypto exchange

Generally, there are 4 kinds of crypto buying and selling platforms. Techpreneurs to set up digital trading platforms like Centralized, Decentralized, Hybrid, and Peer-to-Peer (P2P) exchanges. In a centralized trading platform, authorities have full control over the funds of investors. Users have more freedom on a decentralized exchange as there is no control by any organization. All the buying and selling operations take place via smart contracts.  Peer-to-Peer (P2P) trading is another alternative as buyers and sellers can directly exchange cryptos. The deals occur based on an over-the-counter (OTC) trading mechanism.  Hybrid exchanges are a perfect mix of both Centralized and Decentralized exchanges. Both institutional and retail investors get advantages like low transaction processing fees and sufficient liquidity. 

Complying with different laws

As governments keep changing guidelines and regulations, digipreneurs must follow them. With the fintech era booming, entrepreneurs ought to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) guidelines. Further, following the data protection guidelines and privacy regulations issued by authorities is also essential. This ensures the uninterrupted functioning of buying and selling operations without any glitches. 

Integrating numerous security measures

Both crypto buyers and sellers need a safe trading experience. Therefore, security steps like anti-virus software, DDoS protection, digital signature, end-to-end encryption, firewall protection, and two-factor authentication (2FA) must be added to a crypto trading platform. This reduces the chance of risks immensely. 

The core features of a Cryptocurrency Exchange Software

Instant Trading option – Seamless buying and selling of digital currencies is ensured on a Cryptocurrency trading platform. Users can also convert their existing fiat holdings into the virtual currency of their choice. They do this by using credit and debit cards along with mobile wallets. 

Integrated Affiliate Program – Members can refer a new person to crypto exchange and earn a certain percentage as commission. Techpreneurs can launch a lucrative affiliate program and expand their revenue and user base significantly. Traders will also receive incentives like discounts on transaction processing fees and exclusive access to new tokens. 

Margin Trading – Crypto enthusiasts can maximize their income by using the leverage strategy. Based on the market conditions, they can take short or long positions on their assets. The higher the leverage percentage they take,  the more the rewards they will earn. 

Real-time sharing of stats – Crypto enthusiasts can check out the top-performing assets by seeing interactive graphs and charts. They will know the performance of digital trading pairs, the market capitalization of each digital currency,  previous prices, and trading volume, 

24×7 technical assistance – Entrepreneurs must offer round-the-clock support to all registered traders. They must hire trained executives for handling customer queries. Users can resolve issues concerning account recovery, key management, order placement, payment processing, privacy, and security accordingly. 

Wrapping Up

Undoubtedly, the returns offered by virtual currencies are higher than conventional financial assets. With institutional interest in digital currencies growing, it is an apt time for entrepreneurs to buy Cryptocurrency exchange software. They can approach a leading service provider and magnify their wealth.




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