Lately, everything is going digital. This heavily influences people’s expectations, and quick payments are one of them. As a result, digital currencies have grown much larger than anyone has ever expected, especially since they haven’t necessarily replaced fiat currency just yet. With the strong digital influence happening globally, there’s a chance that we won’t be able to hold or touch money physically in the near future. This means it’s not too late to get started with crypto-related investments, including starting your own crypto exchange platform.
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How Crypto Exchanges Work
When you’re planning on starting a crypto exchange, you’ve got to know how they work. They’re platforms built to buy, sell and exchange the many cryptocurrencies currently existing. The trick is to check how existing exchanges operate and see what they’re lacking. This way, you can ensure that yours stands out by addressing that issue. For instance, some exchanges have integrated a crypto investment bot. This helps traders automatically purchase and sell crypto tokens at the right time.
Everything in crypto happens every second and minute of the day. Investors are located everywhere around the world and exchanges aim to cater for them. It therefore makes sense for crypto exchanges to operate and open around the clock. Besides that, they should have as many digital currencies as they can accommodate. For instance Bitcoin, Ethereum and many other altcoins. To get into this world and start trading, new investors can buy using credit or debit cards.
What Traders Look for in an Exchange Platform
There are many trading platforms available to users worldwide. But you’ll notice that a few are more popular than others. This is because they’ve gained more customers thanks to their advanced features. These include platforms like Binance, Coinbase, and Kraken, to name a few. Here are some of the outstanding elements these top exchanges feature.
Accessibility
The best digital currency exchanges can be accessed anywhere in the world. This of course excludes places where crypto is completely banned. To ensure that yours is available to many regions, you have to check out different licensing procedures. Also, think about where its headquarters will be located because that can also have an impact on where and how it operates.
Secure
Besides being licensed, an exchange platform has to feature robust security technologies to ensure that user data and funds aren’t compromised. Top exchanges have certain features implemented to assure traders that they’re secure. These include insurance on investor accounts, integrated cold wallet storage, two-factor authentication, and SSL encryption.
Excellent Customer Support
Because many crypto trading platforms are accessible globally and regions have different time zones, it makes sense for customer services to operate 24/7. On top of that, they must be friendly, patient, and reliable. Many crypto investors are still unfamiliar with how digital currencies work, so buying, selling, and trading can get confusing.
Digital Currencies Offered
An exchange platform can support many different cryptos. This makes it easier to switch from one crypto to another or invest in multiple currencies. Certain crypto coins are only available on specific platforms. This is usually because they’re native to them. For instance, Binance’s Binance Coin (BNB).
An excellent exchange platform will have hundreds of cryptocurrencies available so that users have a large variety of options to invest in.
Low Fees
Trading sites have fees. These are usually for spread, withdrawal, and other transactions. An exchange with lower fees makes an excellent option. It’s good that new exchanges keep their fees low to attract investors.
10 Steps to Starting an Exchange
Like with any other business, starting a trading platform can be challenging. But following and looking more into the 10 steps below can help make it smoother.
- Seek legal counsel to help understand the regulations required so that they’re all met during the process.
- Research how much you’ll have to spend and attain the necessary funds.
- Find a technology solution provider that charges a one-time fee for a full source code.
- Enhance your exchange’s liquidity by connecting it to other exchanges.
- Find a payment processor to partner with. It must have low fees so that you’re also able to keep your fees low, and you must comply with the necessary regulatory laws.
- Implement strong security technologies. These include a cold wallet, encryption on databases, and two-factor authentication.
- Once you’ve taken the above six steps, you have an existing platform. To check if it’s ready for use, test if it has the capabilities you intended through beta testing.
- When your exchange is ready for users, start marketing it. Target social media platforms and crypto news platforms.
- Implement reliable customer service that’s available 24/7.
- Have a legal team that’ll follow current, proposed, and ongoing laws and regulations in all the jurisdictions your trading platform is licensed to operate.
Our Conclusion
The cryptocurrency market has developed significantly since its introduction. This means that crypto trading platforms are in demand since that’s where you can buy, sell, and exchange crypto tokens. So, if you’ve been thinking about starting your crypto trading platform, the information we’ve laid out above could open your mind to what you’re getting yourself into. Starting a crypto trading platform can be lucrative in the long run once it’s well established.
