Determine if a cryptocurrency exchange is the right choice of business for you in this pandemic season

While many traditional businesses are taking a huge hit in these testing times of the on-going COVID-19 pandemic, the cryptocurrency sector is contrarily witnessing spiked up volumes like never before. The nation-wide lockdown across many countries has pushed people to stay confined to their homes. Therefore, many people across the world are spending more time on their laptops and desktops, which have led to more people interested in crypto trading, thus, more trading volumes. 

A lot of people have lost their jobs, or their jobs are offline due to the imposement of lockdowns which have evoked them to look for new ways to make money online. This has made the crypto market stronger and more bullish than ever and has increased the interest of entrepreneurs to start their own cryptocurrency exchange software to make augmented profits out of this favorable market situation. Here, in this article, we are going to look at some interesting and significant examples that will make it evident to you why cryptocurrency exchange is the right business opportunity to opt during this pandemic. So, let’s get into it. 

Few recent highlights that indicate why a crypto exchange is the most lucrative business at this point

According to an article in CoinDesk, Andryunin, who was a 22-year maths student from Moscow, built his business by boosting trading volumes with crypto tokens during the 2017 ICO boom period. In an interview with CoinDesk before eleven months, he had mentioned his view that exchanges are surviving based on artificial volumes by paid market makers. And he also said that he thought his business would decline, with ICOs facing stumbling blocks and the new regulatory attention and confusion revolving around the cryptosphere. 

But today, he says that he was mistaken about his opinion. He added that his business is growing again as many token promoters are paying him to pump their projects for them in order to be accepted on cryptocurrency exchange platforms. He says that the COVID-19 pandemic has led to more investors looking for a crypto investment opportunity. To quote his recent statement to CoinDesk, 

“ We were about to switch to big data analysis, but we didn't have a moment to start there because the crypto market suddenly turned around to us” 

Andryunin’s business states clearly that even after the ICO craze ended, people around the crypto space are still raising substantial funds from token sales, and the pandemic has once again made this business lucrative for investors.  

Sergey Khitrov, who is the founder of Listing.Help, which is a firm that helps token projects get listed on crypto exchanges, said to CoinDesk that,  

“In the times of pandemic, many businesses took a hit, and the companies shifted to making crypto projects, which increased the demand for listings.” 

Other than these, GotBit, a popular blockchain and crypto project firm, is said to be boasting about 80 customers, 34 token issuers, and 5 new exchanges, and the firm has been witnessing a huge spike in the volume of crypto exchange trading. 

These are some of the most noteworthy examples in recent times that constitute evidence of the fact that there is no better time than NOW to get started with your own crypto exchange development. How to go about creating your exchange? Let’s find out.

How to create your own crypto exchange software? 

To create your own cryptocurrency exchange, there are different ways to go about. The first and the most common one is building the exchange from scratch. This involves a set of procedures you need to undergo, such as 

• Determining the operational location of the exchange and adhering to the regulatory frameworks based on the location 

• Obtaining proper license for the exchange

• Partnering with a bank/payment processor

• Inducing liquidity for the exchange 

• Implementing the best security protocols for the exchange

• Proper testing of the exchange functionalities

• Constant maintenance of the exchange and customer support 

These are some of the important steps to consider, and there are more steps involved in the process. If you’re a novice crypto entrepreneur and do not have a technical background, you needn't worry anymore. You have a choice to opt for a crypto exchange development company that offers comprehensive solutions from exchange development, design, marketing, launch, and post-launch maintenance. This way, the process is easier, quicker, and cost-effective. 

As mentioned earlier, the present crypto market scenario is highly favorable. Therefore, conduct deep research, choose the right company, and get down to business with your own exchange in no time, to relish augmented benefits and profits for your business.

The most interesting trends around the cryptosphere in 2020

The on-going COVID-19 pandemic not only affected our trips and vacations, but has had a major impact on the day-to-day lives of many people around the world, and mainly businesses. Many businesses across various sectors have been deeply affected that it might even take a few years for them to recover from it. But although 2020 and the pandemic calmed the success waves of several industries, one industry that still remains steady, and in fact, further shaping up is the cryptocurrency industry. 

 

While predictions about cryptocurrencies becoming the future currencies have been going around for a while now, 2020 witnessed some interesting proceedings and important developments around the cryptosphere. Here, in this article, we are going to discuss some of the most significant events, trends, developments that are revolving around in 2020, and shaping up the crypto market on the whole. So, let’s dive in. 

 

Noteworthy crypto market trends in 2020

• Bitcoin Halving

Bitcoin halving is one of the most notable and anticipated events around the cryptosphere as it plays a key role in cryptocurrencies’ deflationary nature, and paves way for driving mainstream interest towards cryptocurrencies. The event takes place once in every four years, and the last event took place on May 11th, 2020, which is the third bitcoin halving event so far.  This halving event set forth the reduction of Bitcoin’s issuance rate to 6.25 BTC from 12.5 BTC, for every new block that is mined every 10 minutes. This Bitcoin halving event especially has seen record-breaking media attention, as well as unprecedented interest from institutional investors and volumes compared to the one that happened in 2016. 

 

Also, this Bitcoin halving has revealed a strong bullish sign for the bitcoin and cryptocurrency market and a significant year for institutional investors and cryptocurrency exchanges. 

• Libra and other stablecoins domination

Facebook announced the introduction of a new stablecoin in summer 2020. Libra is said to have the potential of capturing a user base of nearly 170 million in the U.S alone. And even though cryptocurrencies are widely popular, many investors are still uncertain about investing in them due to the price fluctuations. Stablecoins are a perfect solution for this as they are backed by fiat or other traditional assets that prevent price fluctuations. 2020 is expected to be a good year for stablecoins and experts predict that there will be an increase in the adoption of stablecoins. Also, libra could mark the point at which cryptocurrency goes mainstream, and several other technology and financial companies will certainly follow.

• Governments incline towards cryptocurrencies

As discussed earlier, crypto businesses are steady and strong in spite of the unfavorable circumstances of many other businesses, and for this reason, it is getting more and more traction among global potential investors and as well as with governments. Some are said to be even working with central banks to launch their own cryptocurrency. Governments of various countries are adopting crypto, and the list is expected to grow further in 2020. 

• Crypto tie-ups with corporate

Cryptocurrencies have already been adopted by various multinational companies and various companies are launching their own crypto. Facebook announced its own stablecoin crypto which is Libra and JPMorgan Chase announced its own crypto known as JPM Coin in 2020. Apart from these, many experts have also predicted that various other multinational companies might also launch their own cryptocurrencies in 2020.

• Crypto and FinTech 

Many key players from FinTech and the financial sector have adopted crypto into their space in 2020. Various companies and enterprises around the world are included in this. Such companies have shown major interest in cryptocurrencies by initiating Bitcoin futures, custodian services, and other options to institutional investors. This has led institutional investors to invest considerably.  And cryptocurrency exchanges are making substantial profits via such investors.

 

These are the most significant trends so far in the year 2020 in the crypto space. So, what do these trends indicate? What is the best way to make maximum profits out of these favorable crypto market conditions? 

 

Cryptocurrency exchange as a business!

Cryptocurrency exchanges have always been the point of convergence that drives maximum volume and profits for the cryptosphere. They pave the way for entrepreneurs to exchange their cryptocurrencies and boost up profits. Especially with these major trends making rounds in the cryptosphere and market conditions being favorable more than ever, there is no better time to get rolling in the market with your own cryptocurrency exchange software. 

 

With already evolving demand and competition, and with the growing interest of investors towards cryptocurrency exchanges, these above mentioned trends have further enhanced the credibility. Apart from these, there are also other predictions revolving around from market experts such as advancements in regulatory compliance in different countries around the world, further new implementations, use-cases, etc. 

All of these factors make it evident that 2020 is indeed a lucrative year for institutional investors, cryptocurrency, and crypto exchange owners. So, what are you waiting for? Conduct in-depth research, collaborate with the right company, and get started with your cryptocurrency exchange development already, to get rolling in the market soon and maximize profits for your business.

A quick analysis of cryptocurrency businesses down the line

Cryptocurrencies are decentralized, digital currencies backed by blockchain technology. Ever since their advent, cryptocurrencies have managed to be in the news headlines and are continuing to evolve in their own space. They have shaped up the way people look at money and their expectations surrounding money. It’s been a decade since the first-ever cryptocurrency Bitcoin emerged in the market. Since then thousands of cryptocurrencies have come up, but Bitcoin is the most popular cryptocurrency to date. 

 

Initially, when Bitcoin came into light, most people were not aware of its utility, but today the scenario has changed radically, and investors all around the world have realized the potential of Bitcoin and other cryptocurrencies.  

 

In spite of the fact that cryptocurrencies have always captured the public eye, they have also been equally criticized and considered a risky business. If you are someone fascinated by cryptocurrencies, but uncertain about investing in crypto businesses, this article is for you. Here, we are going to discuss some prominent use cases that prove cryptocurrencies have managed to overcome the criticisms and are worth the investment; also the promising future it assures for your business. 

 

The prosperous and potential use cases of blockchain-based cryptocurrencies

• Crypto and blockchain in the gaming industry

Cryptocurrencies have transformed many industries over the years, but the gaming industry might be the most significant one. The pervasiveness of microtransactions in video games is what drives the industry towards the adoption of crypto. Blockchain-based crypto helps developers to create their online currencies, and not depend on external mechanisms for payment, which the players can use for purchasing essential gaming accessories both from the developers, as well as between themselves. Gamers spend an average of each on the (free-to-play) game Fortnite, generating 0 million a month for the game creators, which evokes cryptocurrency experts looking hungrily for a way to get them to use their tech.

 

Blockchain and crypto together enhance the industry and solves the existing crisis by facilitating more streamlined, decentralized payments, securing the ownership of the user, safe trading, cross-game compatibility, etc. Some of the most popular crypto and blockchain games in 2020 are Spells of Genesis, Gods Unchained, Mythereum, My Crypto Heroes, Altcoin Fantasy, etc. And some of the popular cryptocurrencies in the gaming sector are FunFair (FUN), Enjin (ENJ), GameCredits (Game), Decentraland (MANA), RevolutionVR (RVR), etc. 

 

• Cryptocurrencies as a store of value

One of the most advantageous use cases of cryptocurrencies is their use as a store of value and the protection they offer against inflation. Especially, stablecoins uses algorithms and pegging to sustain the value of a coin. The main aim of the emergence of stablecoins underpinned by blockchain is to help defend wealth against inflation. This solves one of the major crises existing in the market, which is why the adoption of cryptocurrencies is considerably growing. 

 

• Cryptocurrency exchanges - The Main Force of business 

Cryptocurrency plays the most important role in driving revenue and increasing the market value of the cryptosphere. Most of the crypto enthusiasts today are marching towards creating a cryptocurrency exchange software to drive in potential customers to trade in their platform and earn exponential profits. Crypto exchanges act as the medium where investors can trade their valuable cryptocurrencies for other cryptocurrencies, digital assets, or fiat money globally, in the most convenient, speedy, secure, and seamless manner. There are a multitude of benefits that blockchain-based cryptocurrency exchanges offer which is why investors are inclined more towards exchanges, and the continuing growth is evident. 

 

Currently, there are more than 5,000 cryptocurrencies revolving in the market and, there are many more to come into existence in the near future. This constant emergence and an increase in the price of cryptocurrencies will stimulate investors looking for more cryptocurrency exchanges, to trade their cryptos and make use of favorable market conditions, diversify their portfolios and amplify their profit numbers. This makes cryptocurrency exchanges, a lucrative choice for entrepreneurs. Experts say cryptocurrency exchanges will have a great impact in the coming years, in the growth of the industry. 

 

• The Promising Future ahead for cryptocurrency businesses

What we discussed above is just a drop in the ocean, and there are many many more interesting factors and use cases of cryptocurrencies influencing the growth of major industries operating today. Even though cryptocurrency-based businesses face some challenges such as hack threats, security breaches, etc, experts believe it could all be resolved with the rapidly growing technological advancements. 

 

Cryptocurrencies are slowly becoming the mainstream financial system and crypto ventures are on a rise. Their numbers are accelerating every single day, and the wide-spread adoption is continuing with many countries extending their regulatory acceptance for cryptocurrencies. You could also see many companies expanding cryptocurrency and cryptocurrency exchange development services for the betterment of their business, as well as the investors who aspire to be a part of this revolutionary industry. The future is near and is highly promising. So, If you are one of those aspiring entrepreneurs in the crypto space, conduct extensive research, choose your company, acquire your crypto services to assure yourself a profitable venture.

Best Cryptocurrency Exchange Marketing Strategies from CES

Marketing is what transforms the performance of a good company. It boosts demand, improves reputation, and grabs the attention of the target audience. Every product needs to be marketed effectively to gain an edge over competitors. 

As digitization gathers strength, the emergence of Cryptocurrency exchange software needs to be taken note of. Powered by blockchain technology, it helps buyers and sellers to trade in virtual currencies. With intense competition in the industry, it is important to devise creative marketing tactics to survive in the long run. 

Some of the unique services offered by experts from CES, a Cryptocurrency Exchange Marketing company are 

• Substantial market analysis and consultation -  Our team will analyze what facilities are being offered by the rival firms. This will enable you to improve your marketing campaigns by focusing on the current requirements of your audience. Tailor-made solutions can be created and implemented based on feedback received.

• Developing a marketing strategy - A flexible marketing plan is the key to the expansion of business operations. Every project’s features must drive the customers towards it. Similarly, efforts must be made to attract potential investors to improve the financial position of the firm. 

• Content marketing - Good content in the form of articles, blogs, promotional videos, infographics, and captions for campaigns will go a long way in developing a good rapport with the audience. The content should balance the objectives of different categories of users. It should give an idea of the firm’s vision by being informative as well as entertaining. Investing in a good team that can flexibly handle different channels is needed for successful content marketing. The ultimate aim must be to improve audience engagement.

• Social media marketing -  As the world spends most of its time online, companies must make optimum use of different social media channels. Separate plans can be developed for different mediums such as Facebook, Twitter, Reddit, Telegram, and Linkedin. A variety of content must be posted regularly on all platforms. Premium tools, such as paid advertising, can improve access to a more interesting target audience. Additionally, metrics related to social media must be monitored for improving overall marketing efforts. 

• Public relations - Collaboration with well-known PR agencies will help in improving the brand image of the firm. Press releases and media statements can be generated by participating in different events. This will create a strong global identity for the firm among the traders and investors, and help stay ahead of the competition.

• Marketing done by influencers - There will be certain people who are famous for their work on a particular platform. They can be hired for acting as the voice of your brand on a specific channel. It can include bloggers, popular social media personalities, and vloggers. Influencers play a vital role in expanding the reach of the business.

• E-mail marketing - Through effective opt-in, sign-up campaigns, E-mail can be used as a powerful tool to gather professional clients. Creating newsletters and blogs is helpful in getting new users. At the same time, too many emails with repetitive content should not be sent as it can upset users. The performance of campaigns can be analyzed with tools such as open rate, Click-Through rates, and other engagement statistics.

• Pay-per-Click - It is a paid tool available on some networking channels to gather more traffic to your site. Revenue is received by the website whenever a user clicks on the promotional material, which can be in the form of a small video, banner, image, or an advertisement. It helps to increase awareness of the business in a cost-effective way. The performance can be tracked periodically. 

• Bounty Programs -  These cost-effective programs help to improve market penetration. It gives rewards to people for completing certain predefined tasks. It can include campaigns interconnected with social media, blogs, and forums. This increases the potential of a business and also helps in finding out any visible vulnerabilities.

The above services are an important part of our cryptocurrency exchange marketing strategy provided to a variety of clients for fulfilling their goals. Get in touch with our experienced team to make your business go viral in no time.

Elements to keep in mind for building a cryptocurrency exchange

As interest levels in cryptocurrency exchanges soar across the world, it is important to consider the factors that play a major role in developing a successful and long-lasting Cryptocurrency exchange software. 

• Local advertisement and trading - Advertisements are gold dust for any cryptocurrency exchange software. It helps users to be calculative and decide the investment alternatives perfect for them. Every exchange must allow investors to post ads for selling cryptocurrency. Local trading in nearby locations offering essential services must be provided as per the user’s experience.

• Transparency and secrecy - High liquidity, which reflects the ease of selling an asset without any changes in price, will improve user retention and ensure that they stay on for a longer time. They will also be comfortable in executing crypto coin transactions. Options such as interactive AI chat platforms, secure wallet facilities can improve the overall user experience.  High priority should be given towards the safeguarding of user data. Techniques such as encryption, two-factor authentication, and proactive transaction verification must be used. Independent third-party audits can be ordered to know any vulnerabilities on the cryptocurrency exchange software. 

• Security - With the increase in the number of scams, identity thefts, and data breaches, an exchange must devote efforts towards cyber-security. News reports about data leaks can cause huge losses that can be detrimental to the credibility and functioning of the Cryptocurrency exchange software. User’s funds can be protected using options such as cold storage wallets, multi-signature authorization for withdrawal, and transfer of funds to hardware wallets. Investors must also not keep their digital assets on the exchange for long. It is best if they switch between different exchanges for optimum risk management. 

• Availability of cryptocurrencies - Successful cryptocurrency exchanges must offer a variety of crypto coins to trade with, such as Bitcoin, Ethereum, and Ripple. Industry-specific cryptocurrencies must also be offered to cater to the niche market. A user will feel more trusted with different cryptocurrencies on the platform. He/she can alter their investment patterns accordingly. Skeptical users can check details with reputed websites and forums which list out the exchanges and their offerings.

• Trading fees - It is one of the important sources of income for a cryptocurrency exchange. High trading fees can affect the quantity of deposits created. Low trading fees can attract a large number of investors and uplift the trading volume. The final rate must be fixed based on the competition in mind. It must be affordable for  highly frequent daily traders. The rates for spread fees must also be decided during Cryptocurrency exchange development as it plays a crucial role in attracting investments.

• Location - Since cryptocurrencies are yet to be regulated by most countries, more scrutiny by the media and the financial industry is expected regarding its functioning.  Skepticism regarding its use for illegal activities, such as money laundering and drug peddling, must be put to rest through progressive laws by the country. This, in turn, can affect the prices of the exchange and the behaviour of the traders and investors.

• Provision of additional features - Analytical tools during Crypto exchange development that provide deep insights can prove to be an extra benefit for users. A multi-functional trading terminal can be installed for rendering the latest information on margin and leverage trading.  Interactive charts that analyze inflow and outflow of coins, trends in price movement, data-driven research on investment can be presented.

CES possesses all the necessary technical knowledge to develop a successful cryptocurrency exchange. Get in touch with their accomplished developers for availing a range of customizable solutions at competitive prices.

Factors hindering Cryptocurrency Exchange development

Though cryptocurrencies have witnessed substantial growth and frenzied trading levels for the past few years, their value as an investment tool has been affected by several factors.

Some of the important aspects that can bring about a huge difference in choosing a cryptocurrency exchange software are

• Domination of a few cryptocurrencies - First-mover advantage would hold good for established cryptocurrencies such as Bitcoin. As more and more cryptocurrencies enter the market intensifying the competition, very few offer innovative and differential solutions. This can lead to a situation where only a few cryptos sustain in the long run. With the rise in the number of online scams, people may be skeptical of investing in these platforms. This increase in caution and less appetite for risk-taking can affect the number of Initial Coin Offerings and tokens created through these exchanges.

• Increase in the number of rivals - With the tight rivalry between experienced cryptocurrencies and new startups, healthy competition is good for the industry. However, trust and leadership play important roles to ensure that the decentralized technology flourishes. It depends on the extent to which blockchain technology is used to fix critical issues such as transaction costs and network strength.

• Adoption from the mainstream - No cryptocurrency can truly grab the market without being in good books of the financial system. Players, such as commercial banks, moneylenders, etc., willing to accept Bitcoin as deposits can prove to be a gamechanger. The usage of cryptocurrencies by the public in retail stores and other utility outlets can boost their status. Strong reasons need to be advocated and concerns addressed, for replacing traditional currencies with digital currencies. Innovative offerings through future contracts, debt instruments can play a big role in wealth management and asset allocation.

• Involvement of the Government - Regulatory authorities of each country should be open-minded and friendly towards cryptocurrency exchanges. The full potential of blockchain technology is realized through cryptocurrencies. Banning cryptocurrencies in some countries would narrow down the spread of technology too. Centralized control is not ideal. Timely intervention through laws and clear-cut policy guidelines can play a significant role in the adoption of cryptocurrencies throughout the nation.

• Role of the media - News Feeds spreading negativity can trigger the market by manipulating the minds of investors. Flashy coverage can spread panic and lead to a glut in the market. The media must provide a non-biased view of cryptocurrencies keeping in mind the interests of investors and companies. Too much importance given to the performance of market leaders can also affect the industry, as a majority’s viewpoint takes precedence over independent coverage. The media should not also fall prey to fake news and must do thorough fact-checking before posting their views. Other factors like political tensions and financial instability can also lead to manipulation in the price of cryptocurrencies.

• Security problems and bankruptcy - Hacker attacks, ransomware, and data breach in cryptocurrency exchange development can promote fear in the minds of investors. There are many cases where funds have been withdrawn automatically from investors. Since exchanges, platforms, and wallets are inter-connected, violations in any system can have a huge impact. A market with a large number of exchanges and widespread distribution of funds can manage such a crisis. Cryptocurrency exchange software with a small trade volume will be subject to high speculation.

Get in touch with CES for selecting a cryptocurrency exchange software as per your needs.

Their skillful developers will give your business customized solutions that can withstand the impact of all the above factors in a successful manner. 

Know the ingredients behind a successful cryptocurrency exchange software

Liquidity is one of the critical factors behind the success of every White label cryptocurrency exchange. It holds the glue between traders, investors, and the market. Despite new exchanges emerging from different countries frequently, not all of them have adequate liquidity. With an increase in the number of users, exchanges need to have financial prowess built to settle transactions, meeting demands of buyers and sellers, and effective management of trade. Higher the liquidity, the more substantial would be user engagement.

In this article, we will analyze the importance of Liquidity and the challenges to it in a Cryptocurrency exchange software.

Significance of Liquidity

• Helps in determining fair prices - A system with a large number of cryptocurrency traders and a consistent trading activity will help realize competitive prices. Market stability will be ensured in the form of equilibrium as both buyers and sellers bid at high prices satisfying their respective positions. Consequently, this will lead to the strengthening of the financial system.

• Faster transactions - Speedy transactions will take place through regular demand and supply, leading to the faster settlement of orders. This can lead to the creation of a better trading experience and promote higher user retention.

• Helps in technical analysis - Expected trends in future prices can be determined based on the analysis of past data using graphs and charts. Market movement can be estimated in a better manner using calculative tools. Higher liquidity would ensure better analysis in the volatile world of a cryptocurrency exchange software.

Obstacles to Liquidity

• Trading volume - White label cryptocurrency exchanges with low trading volume due to market fluctuations will have poor liquidity. It also has a bearing on the value of a crypto coin. Liquidity will boost with greater trading volume and busier activity on the exchange.

• Acceptance - Despite widespread coverage of cryptocurrencies across the world, there is still a hesitance to use this speculative tool. More credibility is needed to improve acceptance rates. The acceptance of virtual currencies by leading multinational companies and governments can prove to be a gamechanger. Clear regulations and stipulated guidelines must also accompany acceptance.

• Regulations - Different sets of rules and regulations in different countries can trigger confusion and ambiguity among investors. This will have a direct effect on liquidity. Some countries are playing it safe by banning cryptocurrency, which can have a widespread impact on the industry.

• Listing of cryptocurrencies - New exchanges which do not offer much cryptocurrency options will not attract investors and cannot sustain in the long run. If more cryptocurrencies are listed, it will help in increasing the number of orders.

• Payment options - Cryptocurrency exchanges will have investors from a wide range of fields. Limited payment methods will limit the functioning of your exchange. An increase in the number of users can occur if widespread payment options are offered like a credit card, debit card, Paypal, Worldpay, and crowdfunding.

• Availability of trading features - Interactive trading atmosphere with the latest market knowledge, multiple wallet integration, variety in trading pairs with calculated spreads, and competitor analysis through comparative graphs will go a long way in improving liquidity.

To obtain consistent liquidity for your cryptocurrency exchange, get in touch with the skillful developer team at CES. Their expert advice will help in objectively analyzing the market and improve your business prospects by many notches. 

How To Launch A Bitcoin Exchange Business?

In a world where change is the order of the day, cryptocurrency exchange platforms have emerged as the go-to hub for instant trading and fast settlement based on a real-time basis.

In this article, we will look at a few steps to start a Bitcoin exchange business in no time.

• Creation of a Cryptocurrency exchange -There are three types of exchanges, Centralized, Decentralized, and Hybrid. A simple user-interface with customization according to business needs should be ensured irrespective of the type of system. Separate panels for users and admin with backend support is a must. Admins monitor the flow of transactions and make profits. Priority should be given to companies that offer white label solutions with high-security features like two-factor authentication, cold storage wallets, and encrypted databases. Additional options like atomic swapping, P2P trading, and new coin listing should be updated on the platform.

• Choice of Exchange Script service provider - An experienced Bitcoin Exchange script provider should be chosen for acquiring the bitcoin exchange script. The script will be in the form of a structured code. In addition to basic features, the script must offer exchange plug-ins and add-ons too.

• Cryptocurrency trading - Trading will indicate the level of operations occurring in the platform. Exchanges have to decide the scope of trading that will take place. Financial transactions are settled between two parties who are referred to as maker (gives liquidity) and taker (takes liquidity). Commissions for executing successful transactions are the main source of income for the exchange.

• Margin trading - Margin trading, where a minimum amount will be bid upon to get maximum returns, should be allowed. This benefits small traders to borrow additional funds or leverage from the exchange. Additional features such as Stop limits on trading and the option to work with multiple cryptocurrencies must be given.

• Registration of Business - Not all countries are friendly towards starting a cryptocurrency exchange. Opaque laws and strict regulations can make the process of getting a license from governments very cumbersome. Nations such as Singapore, Hong Kong, and Malta are very friendly towards cryptocurrency exchanges. Care must be taken to ensure that the target countries to commence operations are chosen carefully. Companies must keep in mind that rules can vary between jurisdictions.

• Creation of liquidity - Liquidity is critical for the survival of a cryptocurrency exchange platform. It also helps in raising trust in the minds of the users. With sufficient liquidity, market stability and fair pricing would be ensured. Smaller exchanges can enhance their liquidity by connecting with a network of existing exchanges.

• Currency pairs - Support for multiple fiat currencies would make users more comfortable and give them flexibility. Know your Client (KYC), and Anti-Money Laundering (AML) features should be implemented for higher safety. An efficient trading algorithm is needed for matching one fiat with another in a feasible manner.

• Marketing and customer support - Marketing campaigns must be driven by tying up with leading crypto news outlets. After a full-fledged launch, 24x7 customer support with multiple languages must be provided.

Strategies to maximise profits and broadened business scope through exchange development are available in our platform. Reach out to CES, the finest cryptocurrency exchange development company in the industry. 100% customizable white label cryptocurrency exchange solutions are offered by its knowledgeable developers. 

Role of Margin trading in exchange development

Cryptocurrency has become one of the hottest financial assets in the world today. There are different methods of trading. The most popular method to make profits is through Margin trading.

Meaning of Margin trading

Small traders with a minimum investment can borrow large amounts of capital to get more exposure to specific assets. This will maximize their returns due to increased buying power and greater relative value of the trading position. This tool is also known as leverage trading. Leverage in cryptocurrency is the amount by which a trader multiples his position. It varies from one cryptocurrency exchange to the other.

This concept works wonders as the increase in risk is not proportional to leverage during short-term market movements. Traders can open several positions in cryptocurrency exchange by leveraging small capital, which helps in diversifying their risk.

Prerequisites for Margin trading

Traders must provide an initial deposit to open a position called an initial margin. It will be held as collateral by the exchange. A specific amount of capital must be held in the account to keep the position, called a maintenance margin.

How Margin trading works in exchange development?

Traders can go either short or long. If they go short, profits will be made via falling crypto prices. If the traders go long, they anticipate a rise in the price of a digital asset.

When the position is closed at a profit, the exchange will release the crypto and the profits. Closure of trade and liquidation of the position will occur if traders incur a loss while margin trading. This happens eventually when the price of the asset reaches a specific threshold called a liquidation price.

Understanding margin calls

Margin calls are done by the exchange when the value of assets traded falls below a certain point. The exchange asks for more funds from traders to lower their risk. In rare cases, when the margin level is highly insecure, the position is closed by the exchange to ensure that the capital loss equals the trader’s initial capital deposit.

Factors to be considered for margin trading

Different exchanges offer different leverage rates. Interest rates should be kept in mind while opting for leverage, depending on the length of your position. Variety in order type options can lower the risk of liquidation.

Traders must also do background research of funding and support of different fiats for the exchange. Multiple payment options must also be available. KYC and AML requirements can also hamper margin trading in exchange development.

Strategies to follow for successful margin trading

• Increase trade size after some time - Start with smaller position sizes and lower leverages. Maximize your exposure progressively.

• Give a shot at Demo trading - New traders can practice trade in an artificial trading environment. Real market prices will be displayed, and traders can implement their strategies without loss of capital.

• Know different order types - Various order types such as Stop Loss and Take Profit can be taken to lower risks and automatically close positions when targets are achieved. Traders can spread their position into separate portions.

• Keep track of fees and interest - Interest costs on borrowed capital and other fees incurred during margin trading exchange development can cut into the profits.

• Role of external factors - Price also gets affected due to factors such as the number of active traders, regulatory changes, and major wallet movements.

Such strategies to increase profits and widen the scope of your business are available on our platform. If you are looking out for efficient margin trading exchange development, reach out to CES. We are a leading margin trading exchange development company who offer whitelabel solutions. Our leverage exchange software supports leverage amounts of upto 100x. Our competent developers will guarantee high-performing cryptocurrency exchange solutions.