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. 

Starting Your Own Cryptocurrency Exchange - Everything You Need To Know

The cryptocurrency landscape is constantly evolving and gaining more and more strength and market value each year. The constant advancements in crypto trading technology and market trends are capturing potential investors' eyes towards the business. The diverse advantages and profitable opportunities involved with the business is making budding entrepreneurs aspire to create their own cryptocurrency exchange software. If you are one of them, but you are confused about where to begin, then this article is for you. We are going to discuss how to go with your exchange development step by step, which will help you build a solid base for your business. So, without further ado, let’s dive in!

Essential steps to undergo for cryptocurrency exchange software development

• Adhering to legal requirements and obtaining a license

Before you even bring your exchange development process into play, the first and foremost step is to thoroughly analyze the regulatory requirements based on your operational location and adhering to them. And you need to obtain a proper legal license for your exchange to operate, to avoid future distortions. Another important factor is the KYC. You must adhere to KYC norms for your exchange for accredited investors and transactions. The regulatory framework might differ with each location, so it is better if you consult with an expert on legal advice before commencing your business.

• Generating Funding for your exchange business

The next step is to determine and generate approximate required costs for your exchange development. The costs involve technology, legal formalities, registration, hosting, and initial promotional services. Now, the most important point here is, when you evaluate costs, you should keep the future of your exchange in mind, and save some to rectify any error, hassle-free. Make sure you do not miss out on any aspect while computing the cost for your exchange to avoid future surprises.

• Partnering with a bank or payment processor

Analyze carefully and choose the right bank or payment processor for your exchange, allowing customers to open an account and efficiently deposit funds. It is important that you choose a bank with the lowest interest rate to gain credibility among investors over your competitors.

• Connect with external exchanges to boost liquidity

Liquidity is a crucial factor for any exchange platform. You can boost liquidity for your exchange by connecting it with a network of external exchanges. By doing this, the liquidity of the exchanges will be tied together, which will eventually increase your volume.

• Implementing robust security features

The security of your exchange must be your topmost priority. You should make sure to integrate advanced, quality security features, including encrypted databases, escrow system, two-factor authentication, etc., for a seamless business experience for both the users and the exchange owner.

• Live Testing and Debugging

You need to ensure your exchange is tested adequately, and any bug issue is identified and rectified before making it live to run glitch-free and gain trust from potential investors.

• Constant Maintenance and customer support

The legal laws for crypto exchanges evolve rapidly on a global scale. So, if you plan to expand your exchange business, it is important to hire a legal team to constantly verify and make sure your exchange complies with relevant laws. Also, you need to have a maintenance team to upgrade your exchange based on latest market trends. And a support team to answer customer queries, help them quickly to deposit or withdraw funds.

These are some of the most crucial steps that you shouldn’t miss while executing your cryptocurrency exchange development. Other than this, there are also other processes involved, such as marketing, launch campaigns, etc., to gain traction from the customers towards your exchange. If you develop your exchange from scratch, you will have to give in a lot of time, money and you need quality technical assistance for a solid exchange software. This option is not feasible with the constantly growing demand and competition.

What if you can save ample time and money, and attain ready-made reliable solutions from market experts? That is what whitelabel solutions are all about. If you conduct extensive research and choose the right company to purchase a whitelabel cryptocurrency exchange software, they will offer everything you need from quality features, technical and security integrations at cost-effective prices. Whitelabel solution is quick to launch, and you can customize it based on your personal preferences.

CES is one of the recognized crypto-exchange software development companies with seasoned experts who will offer 100% reliable, fully-featured whitelabel exchange solutions for your business that will turn around massive profits. To know more, get in touch with their team. 

How to build a secure cryptocurrency exchange?- Guide for starters

Cryptocurrencies have drastically evolved over the years and have become the currency of choice for many leading business industries that have transformed digitally. And the best way to make profits through cryptocurrencies is by trading them. With the volatile nature of cryptocurrencies, and with constantly increasing value, for example, Bitcoin’s value is now 10000% more than its embryonic stage; Trading cryptocurrencies is definitely a profitable opportunity!

But imagine if you can make double the profit? And what is the way to do that? To build a cryptocurrency exchange software of your own! Cryptocurrency exchanges have been gaining huge traction and they cover almost 80% to 90% of the total business volume. The tremendous growth crypto exchanges achieved in 2017, and the crypto price volatility in 2018 brought in huge profit returns for crypto investors, which led to increased demand and popularity. And to build one in the most effective way, to sustain, and stand out from this competition, it is essential for you to know the crucial elements. Let’s begin with a quick glance at the concept of crypto exchanges.

What are cryptocurrency exchanges for?

Cryptocurrency exchanges, as the name itself implies, is used for the exchange of cryptocurrencies. It is a platform through which crypto investors can trade their cryptocurrencies, in exchange for other cryptocurrencies or fiat money at a predetermined value based on the market dynamics. Crypto exchanges are underpinned by blockchain technology that controls, secures, and verifies transactions. With the constant evolution of technology, crypto exchanges also evolved into different types. Let’s take a look at them.

Types of cryptocurrency exchanges

• Admin- user exchanges

This exchange is a fitting solution for starters who don't have much experience with trading cryptos. This exchange is integrated with a user-friendly interface and easy-navigable feature set. The exchange acts as a medium between the buyer and the seller. The user funds are controlled by a regulatory body, and the transactions are approved by them.

• P2P Exchanges

Unlike the above-mentioned exchange, p2p exchanges do not involve any regulatory body. The platform connects the buyers and sellers directly and allows them to conduct global peer-to-peer transactions. The exchange works completely based on a blockchain network, and the profit of the exchange lies based on the fees charged for every transaction.

• Leverage/Margin exchanges

This is one of the most popularly trending exchanges currently. This is because, unlike any other exchange, cryptocurrency exchanges with leverage allow traders to borrow a sum LARGER than the initial margin they deposit in the exchange. This will help them expand their market position exponentially as well as their profits.

These are some of the most popular exchanges. Now, let’s dive into the crucial factors you need to consider for building a smooth, secure cryptocurrency exchange software.

Checklist for a secure cryptocurrency exchange software

• Legal frameworks

It is mandatory to ensure that your exchange complies with all the necessary legal frameworks according to the geographical location it is operating in. The regulations might vary from country to country, so you need to analyze and choose your location carefully. Also, it is important to follow the KYC norms for your exchange, for proper verification, and authenticated users.

• Required workforce

1. First of all, for the exchange to be fully functional and operate in a smooth manner, it is essential to integrate the best and the most advanced technical elements. In order to do so, you require a skilled set of developers.
2. A managing authority to oversee if the activities of the exchange are carried out appropriately.
3. A manager of partnerships who is responsible for finding partners and contractors for the exchange.
4. A Marketing team to ensure credible marketing activities for the exchange for gaining maximum exposure.
5. A support team to handle customer responsibilities and queries.

However, the easiest way to implement all the above-mentioned operations at a nominal cost is to hire a cryptocurrency exchange platform development company. Such companies will have a team of qualified experts who will offer all-inclusive solutions for your exchange right from development, marketing, launch, support, and maintenance, etc. This will help you save a lot of time, money, and relieves you of the technical knowledge required. With a multitude of companies offering crypto exchange development services, to choose the right one, look into the following features.

Key features for a crypto exchange software

• An advanced, graphic user interface
• A powerful trade matching engine with high volume TPS( Transaction Per Second)
• A secure cryptocurrency wallet
• High Volume Liquidity
• Multiple payment gateways
• Automated KYC/AML
• Admin Panel
• Advanced blockchain technology and smart contracts

Security features

• HTTPS Authentication
• Jail Login
• CSRF Protection
• SSRF protection
• DDoS protection
• HTTP protection
• Escrow System
• Two Factor Authentication

Summing up!

Cryptocurrencies are slowly becoming the primary mode of transactions and are all set to become future currencies. Many countries have started allowing payments using cryptocurrencies. Taking all of this into account, creating your own cryptocurrency exchange is a great business opportunity and has a great deal of advantages. All you have to do is, conduct extensive research, and choose the right cryptocurrency exchange platform development company to achieve enormous profits!