Before starting your new cryptocurrency trading business, you must first register and obtain a license. This means that you will need to select a country with crypto-friendly laws. Most countries don’t have the infrastructure to track and control cryptosystems, so they shut it all down instead.
Initially, countries like Malta and Gibraltar were among those targeting crypto traders because their laws were fairer.
Follow the established procedures to register and obtain a license to start your business. It is recommended that you consider having a team of lawyers (either full-time or contracted). This will help with any compliance issues as you get started and your crypto business starts to grow.
Find cryptocurrency exchange software.
You will need to create the right software architecture for the exchange – this is the backbone of your business. You can work with developers to design the architecture, but if you have time constraints, white label cryptocurrency exchange software partnerships are the perfect fallback. Note, however, that White Label partnerships offer minimal customization.
Regardless of which path you choose for the architecture of the exchange software, below are the most basic points to note that crypto exchanges never malfunctioned:
- Sound exchange mechanism.
- Intuitive user interface.
- Secure admin control panel.
Establish a solid security system
Security is not a problem. Your cryptocurrency exchange must be hack-proof. You can use strong security measures by enabling two-factor authentication and complex keys.
You should always be able to protect the privacy of your clients. A breach of security or confidentiality will not only scare customers away, but also cause non-compliance issues.
Join a payment service provider.
At some point, your customers will need to convert their cryptocurrencies into hard fiat currency. You should partner with a bank or any other payment operator that provides credit or debit cards for your customers to make withdrawals and deposits easier.
Everyone is looking at the new venture with great skepticism. The same will happen with your exchange if customers realize that you do not have an existing order history. You cannot create a liquid market because of your initial low volumes. So how do you get liquidity?
We suggest sharing with other changes by following their rules. This is a capital intensive solution as you will need to pay for a specific exchange transaction each time you complete a transaction.
You can also create a liquid market directly on your exchange using a liquidity provider.
Offer 24/7 customer support.
Since cryptocurrency trading occurs continuously throughout the day, you will need 24/7 customer support. Make sure you provide live chat and other communication options to address any issues your customers are facing at any given time. An online support system can be a factor in the success of your new venture.
And in conclusion
After completing these steps, test your platform. You can start beta testing and see what works well and what needs improvement and use LetsExchange for partners.
Plus, like any other business, you’ll need a marketing strategy with PR campaigns to launch a successful exchange. However, follow this guide and you will find that starting and running a cryptocurrency exchange business is not that difficult.