Bitcoin Exchange Business

Starting your own cryptocurrency exchange business is a time-consuming process. However, it doesn’t mean that this task is impossible. For some business owners, cryptocurrency exchange became a good source of income. 

Today, in the era of the cryptocurrency boom, the owners and operators of cryptocurrency exchange can make their jack. However, if you have never heard about this niche before, it is really hard to understand what measures you should take to start your own bitcoin exchange business. In this insightful review, we'll have a look at this question in greater detail. Following these steps, you'll definitely achieve that goal.

Find Legal Counsel

Before you start working, you need to find a legal counsel that will help you understand all the regulatory requirements of your venture. You should keep in mind that you simply can’t start working without proper licensing. So a good and legal counsel is a must.

Determine Your Budget

Before you start working on your project, you should understand how much you will spend. Experts say that a bare minimum is $ 135,000. This sum usually includes the price for the technology involved, the cost of initial legal counsel, hosting, advertising, etc. The most common mistake of startups in this business is the absence of a business plan. Moreover, they also license from dishonorable crypto exchange providers that don’t meet the legal obligations.

Choose a Reliable Technology Solution Provider

Your goal is to find a trusted technology solution provider. Make sure its commission structures are clear and don’t include any additional fees. Make sure your technology provider offers the capability to host the exchange yourself and provides you with the full source code. Check whether your technology provider has a decent experience developing stock exchanges.

What About Liquidity?

Remember that when you don’t have a trading activity, potential clients won’t trust you. To avoid these problems and not to simulate activities through the use of dummy accounts, you need to connect exchange to the network of already existing exchanges. In doing so, you’ll improve liquidity.

Find the Appropriate Payment Processor

Remember that unfortunately, not all payment processors are of the same quality. Not all of them are reliable. Fee structures vary depending on the company. If you want to be competitive on the market, you need to offer the lowest transaction rate. Moreover, some processors offer hidden fees. So when choosing your payment processor, make sure that it is PCI-compliant to safeguard and guarantees cybersecurity.

Care About the Security

Make sure you use a reliable technology that utilizes offline cold storage wallets, encrypted databases and two-factor authentication. Moreover, it shouldn’t store passwords. You should bear in mind that cryptocurrencies aren’t only popular today; they are also vulnerable to hacking. So when choosing a technology, you need to feel certain that it is secure.

Test Your Exchange

After you create your exchange, you need to beta test it. When building, lots of tests were made to make sure the system properly works. Check whether it follows all the rules and regulations, your venture is properly protected and you deal with a reliable payment processing firm. After a full test, you can launch your exchange business.

You Should Have a Reliable Customer Support Team

Yes, this is a final stage, but it doesn’t mean it is not important. Remember that your success in this business depends not only on good technology but timely assistance as well. All employees that work in your team should be very attentive to your clients. 

If any issues occur, they should resolve them asap. Your future reputation is contingent on the work of your support team. Today, there are lots of services that can help you do this work faster. For example, you can use ZenDesk, which is regarded to be a superb and multi-featured ticketing system.

Cryptocurrency trading lasts round-the-clock. So your support team should be available 24/7.

You Should Follow All Current Laws

It is of prime importance for you to follow all the proposed laws and regulations. Cryptocurrency laws are constantly changing. So you need to feel certain that you don’t miss anything. There are two solutions to this problem. You can either hire an in-house compliance team or outsource this task to reliable law companies.