Bitcoin Forum

I am thinking to start own exchange website like (coinexchange.io) , yes I want to build small exchange.
But before start I want to know something , hope I will get my answer.
Building exchange is profitable?
How much investment it's need?
Where I can promote it?
How I can avoid or put low transaction cost?
How much time I need per day behind this project?

If you want to share any suggestions then most welcome.

I am not sure how much investment you need for exchange, profitable is for sure. But i am pretty sure that there you have lot of hard work behind and it is not job for one man.
And of course, BTCT is best place for promotion begin

If you have to ask such basic questions, you are probably not suited to run an exchange.  Sorry.  :/

you would need bulletproof security, a ton of people to work on customer support, big bandwidth and the time to maintain all the wallets.

rather you than me. even if you get it working you might get hacked to death.

Yes hacking is main problem, I have friends who are good in programming and in computer.

Thanks for your valuable reply.
If I want to start any business then definitely I know something about that business, but I have to gain more knowledge about that business to be success in same.

It takes a large investment and a lot of technical knowledge along with employees. Sure you could put up a cheap exchange run from a home server but who's going to want to use it? After you create a secure site and everything, you then need to spend on advertising and customer acquiring. With your background I think there's better options if you want to make money.

I am curious about this question but more in regards to what is the tech that is used to build an exchange, how much should it cost or how many hours of development should it consist of.  I have contacted a few people to find out and the price varies.

Let me know if someone can provide some guidance here.

Everyone here to earn a profit, you are not? As I said in the previous post I have friends with skill and knowledge, so my side I don't have a problem with employees.
You are joking, why I should use cheap exchange for a big project.

I need advertising , can you suggest any best source of advertising for this project,if i start.?

I have a feeling you're trying to do this on your own. This won't be possible. There are already so many exchanges that I advise you to leave this idea in the drawer.

Seems a good idea, but I guess sooner or later you will be faced by many other similar exchange projects 'cause there is a big competition working on for the same purpose.

Well starting an exchange is no easy task! The problem is if you are on a tight budget you will have to hire freelancers who will code your website, How can you trust them for not leaving behind a backdoor? Beside this, you will have to ensure the users that their coins will be safe in some way or another, Just like coinbase, which offers refunds in case they get hacked in the future. Just like Vod said, from the looks of it you don't have Computer knowledge it will be a huge challenge for you to make it run smooth. Achievable? yes, but i will recommend you to not go down this road. Better Businesses are waiting to be opened.

Maybe later i have to put this idea in drawer but not now, without understanding problems, I should not stop now.

I want to build small exchange website, with very low fees people will get attract because of low fees, i think they may attract with it.

Currently, I don't recommend starting an exchange website unless you can offer something very unique. Coin to coin exchanges you have. shapeshift, 0x, Changelly and Blocktrades.

Where 0x really take the crown by making something unique. What we are seeking for is a good decentralized exchange where we can also trade with margins.

Lately with the real exchanges every time there is something going on when one exchange gets too many users. Scaling is the biggest issue right now. If you can fix that and make it properly decentralized everyone would be using your exchange tomorrow. That's how it works. What customers like that's where they stay. To many deposit problems? Customers leave to new exchange that has no problems.

for starting a exchange the basic thing what you need is a big budget in your pocket.  Because you are creating an exchange you need to hire programmers.  ok may be your friend can do that. But it's your duty to cross check the codes of the script or test the script with the help of another programmer because you are going to handle others money. you will also need money for advertising your site like signature campaign etc to attract visitors in your site. so if you dont have enough money please dont step into this business.

There are few services out there which offers creating a brand new exchange platform for you, you can search for them in google.

Just tell them what features you want in your exchange, they will give you quote.

Depends upon how you will run it.

ask the one who will build it and add around $2000 on that which you might have to spend on initial advertising.

----------------?

Depend upon how successful your project will be in future. You might have to spend more than 8 hours a day in early days because you might have to handle lots of advertising campaigns.

Yes, it is profitable, mostly from charge fees for customers transactions

Consider how much you want to invest into an exchange, domain, web servers, SSL and have to hire some pro about IT or programmers which mean; at least you need more than $7,500.


You can promote it in this forum by using your own signature and make an ANN thread about your exchange, or through every social media such as telegram, facebook, twitter, etc.


You can't avoid transaction cost, but you still could apply low transaction, BTC0.005 for withdraw bitcoin and 1% for withdraw fiat currency are convenient and fair in my opinion.

In the beginning, you need 24 hours a day, 7 days a week, keep an eye to your web and maintain it.
Yes, you need to sacrifice your time and effort to build an exchange.
But, for small exchange, maybe 15 hours per day is enough.

I can only offer low transaction fees as for unique  :D
Small exchange so definitely low views, i don't want a huge crowd.

I have enough budget to start own "small " exchange website and it not cost more as i have programmer friends. and sure i will cross check if i will start .

Can you please suggest any site which provide dcript or help to do it?
My budget is around it.

NO MORE WORTH exchange site in this day too many scammers

You had better cover your ass if you try to make an exchange. This guy tried to buy and sell bitcoin, fincen loses his paperwork as a money transmitter, his idiot attorney told him to plead guilty to operating an unlicensed money transmitter business, now he is going to prison for over four years.
https://www.youtube.com/watch?v=9pX7IQ6UOVM

I'm a developer on Peatio the open source Bitcoin exchange, trying to make it more usable and working. The project has been forked, dont know what happened to the original Chinese developers anyway here it is at the moment https://github.com/muhammednagy/peatio . Good progress is being made so consider a donation we want to make it easier to add new cryptocurrencies other than that its working (for Bitcoin) and integrates with Bitgo and AWS. I'm formulating a security tutorial and looking for people to help me with this allot of which is reliant on AWS.

It's not so easy...you need a good security expert first. You need time to profit

This is the answer for what i am looking. Thanks mate. My budget is around 2K$ so it's not worth to create own exchange for me

Good thing for you that you did realize as of now. Creating an exchange isn't easy as it sounds and those question you do ask are really just basic things and as an investor or owner you would really seek out information related into these matter. Speaking on the amount needed I don't have much idea on how much would it be but the main thing should be focused on is on security on which most people would really seek on this thing before trusting a new exchange.

Glad you got your answer.

Still I noticed quite a few people want to start their own exchange, because they think it's easy and are attracted to the potential gains. To them I would say they should lower their expectations, unless you have a strong team of people your trust and some substantial initial investment.

Building is not the hardest part.

You also have to:

- maintain it
- support your customers
- follow the law
- mitigate hacks and monitor suspect activities
- be prepared to collaborate with your government

Not to mention there is already quite a few exchanges already pretty well implemented in the business and with a strong user-base. You're stepping in kinda late in the game, and unless you have a few things that distinguish you a lot from your concurrents, there is no point for people to use your service.

I'm gonna finish by saying that trust is the hardest thing to build, but also the easiest to loose.

I am dropping an idea of creating own exchange "FOR NOW" Maybe I will come back with sufficient funds to start and also the good team.

welcome for your suggestion, it's benefited for others and me also.

Have u ever run any site before? If not such big project could be to hard for u.

Seriously, you want to open a cryptocurrency exchange with a $2k budget? It won't even cover your advertising budget, even if you want yo make a "small" exchange.I don't want to discourage you but better you invest those $2k in another project more realistic with a budget like your.

Can you please tell me which project will most profitable with my budget? Gambling site? Or any Else?

I think that's up to you and how much you want to put into a project. I'd recommend spending the $2K or just your time into learning how to develop websites. Learning PHP or Python, maybe an MVC framework (such as Laravel for PHP or Django for Python respectively) and HTML/CSS/Javascript. You can cut out a large budget requirement for setting up / developing websites if you learn how to create / develop the websites yourself. If you become a seasoned-enough developer, you can begin to charge for website development, or build these types of websites yourself for profit.

Good luck!

You could add a few 0s to your budget and still fall short of being able to start an exchange.

I hope you have some legal friends too if you plan on operating in the US, furthermore in NYC.

This is right op should add more 0's as seen above 2000 usd budget would just like be a dust and would only sufficient just on website creation templates and etc. I dont know how much would be the script though. Experience is really a must on this kind of big projects because running an exchange isnt really an easy job or thing to do.If you dont have experience then better to skip on this one.

It can be quiet complex, please keep in mind you're dealing with other peoples value so a portion of your money should go to auditing your code, there are consulting companies out there that are respected already who can provide you with a great audit of your final code but I think they cost 25 Eth per audit. However, developing an exchange I definitely profitable, the market volume will only increase with time and this will affect you as well if you develop the project properly the first time and it gains traction.

I believe that to create something profitable you need to create something new and different from the current resources. Otherwise it will be difficult to attract many users. I think that ICO tracker is the best place to develope projects like this

Don't let this type of comments put you back! A motivated person can do anything and he will make it!

You are right dear, almost all comments are negative for me (even if they are right). I am planned many things before creating thread here but reading reply here is killing me.

Yeah it is not easy to build an exchange and make it trustable.. There are a lot of competitors for our niche at the moment, and why would anyone stop using bittrex, poloniex or any other main exchanger for using yours? That is the first question you might ask to yourself.
But sure you can do it, but you need too much money for developing it, and most of your money should go for advertising and marketing, that is the best source of trustable you will find out.

What do mean by ICO tracker? Can we develop a project with their help?
I visited their site it was ICO update site

For trust no one is trusted from the birth, so hope people will trust me when they use my site. We will launch not for any competetion i am just thinking to launch small exchange site, nothing else. Users may not leave old and trusted exchang site but they may join my site because of low fee and attractive design.
No need of "big" advertising we are sufficient to attract more people(small community).

my question here might be slightly offtopic, but still related to exchange
to which point we start drawing a line between established exchanger business and
a regular person that pofitted from buy/sell btc by peer to peer method
is there a pre determined volume as to where a person started to be called as an exchanger business
and will be exposed/subjected to follow local fincen rules

if I start peer-to-peer manually-processed exchange transaction with tx volume ~20,000 USD/month
could I "get away" with saying I am not running a business (not complying as established business)
and only am just profiting from buy/sell BTC, then pay taxes on my profit/gain?
I know different country would have different rules, but please share what works in your country

The truth is sometimes painful, but do not let their comments take your spirit.
I'm glad you want to develop your idea with more funds and assemble a good team.
The biggest costs to create an exchange is to establish web security, which your team should be able to do it.
Yes, no need to compete with other bigger exchanges but create an exchange that offers good service, faster and low fees will attract more people to use your site. Even $4000 will be enough to start a small exchange in the beginning, at least you could gain the trust from customers. May I ask, where do you live, which country to build this exchange site? Only accept bitcoin or people could trade altcoins as well? And the last thing is; you should have a plan to deal with legal authority obviously.

Well I am from India, and Thanks for your kind words.
The sure will tradable so users can trade alt to bit or vice versa.

starting exchange websites similar like you build new company.
you need some people to hire
daily project planning
target region
how to promotes?
media social its good promoting method
else you can open signature campaign here to promotes your exchanges

What's going on here with exchange website. I see there is a lot of thread where people want to open your own exchange. so many offers like - open your own exchange in less than hour...
Is it only profitable bitcoin business? Probably we will have a lot of scammed people in next six months or year.
we need more exchanges!

Where have you seen serious exchanger which was build by one man? Of course you need professional team here despite the fact you know or don't know many programming language. Technical team, support team and etc teams, the most valuable for you is security, usually people have much bitcoin in exchangers and security is what you have to care the most. It seems like you won't open exchanger but still remember, if owner sets low fees or no fees for some months with great promoting and security (and template of course, it plays big role), he/she will achieve success with his/her team.
If you can't do that, don't think about your own exchanger.

You are free to create an exchange site, however there's a lot of exchange are already opened in crypto currency society. If you want to compete them you should go and build new exchange site. But make sure that your exchange site are different from the others. I have a good idea why did you try to open the a exchange of newly coins and altcoins. I'm pretty sure that you can encourage a lot of people. Also invites a lot of investors to join in your project you want to build.

Setting up that business might be easy but getting it running profitably would be the challenge. You would be competing with big players with huge funds and a big client base. For you to take a slice of the exchange pie would mean having to find innovative ways to attract potential clients. Also, try not be to a business that deals solely with exchanging. Add other services that people are looking for just so you would have an edge over your competitors. Once you've figure things out, promos and giveaways every now and then wouldn't hurt your chances of making it a profitable business that can run for a long time.

I think it is hard to find people who are reliable if you don't have the know-how yourself to be able to do it even if they don't exist

You can always give it a shot but you've got to remember that the competition is fierce. And even if you get a solid exchange running you have to attract loads of volume and that's easier said than done.

You can make your own exchange site because a lot of Bitcoin users are looking for reliable and more secure transaction but if you're getting huge amount of fee then you're not different from other exchange sites.

Yes there are many new exchanges in market and many people want sto start own exchange like me. Some of them for profit and some of them for work. Yes Bitcoin is profitable business. I don't think people will get scammed if they follow correct site.

People feel that bitcoin will be the next future if their country does approve it or already approved it. So they want to build business around btc and one of them is the exchanges where people can directly buy and sell bitcoin and other cypto currencies and get the fees as their commission. Thus many are trying their hand on this business to see if this could be success if done with right intentions.

Setting up an exchange website in the crypto-currencies world is even harder than setting up a casino website, because exchanges would normally handle millions or even billion of dollars with all the customers funds on the site, so the top priority is to create a safe and secure environment to prevent hackers from accessing customer funds, and building a reputation for an exchange site is not easy, you won't find many users using an exchange that have no reputation.

To answer this question, you should look at the return on capital (well, if it is more than 5%). And to do this, u need to understand what is the average margin on the client, how much is it to attract the client, etc. In general, this is a very competitive market and you really need to give something unique to users other than low fee. For example, interesting UI (!!!), good support and strong security ...

Reasonable. business is business. I have the same thoughts

There's a lot of competition in this type of business and if you want it to be successful, you need to make it huge and not a small one. You are not going to get any profit if you are not going to step up. You need to exceed others and you better need a big investment for this.

Jist get the security right

not too but if anyone wants to create an exchange website should create a group that has the expertise of each that can be used to build exchange websites. For example capital providers, website creators and website security, your office address should be clear so that many consumers who want to exchange on your website be sure and you must be diligent promotion.

Before security I would say unless your country has approved bitcoin do not start at this point because its in dilemma for countries which has not approved as they can ban it in coming time if China does it. So it would be a huge loss as you would have invested the money in security , exchange maintenance and promotion. So instead wait and see how govt treats it and if they approve then check the competition which you may have in your country.

a single person cant build successfully a successful big exchange maybe a cheap unlicensed one that can be popular more is unlikely you better look for teammates or join existing teams

what are your skills regarding webdesign webdevelopment? and coding?

regards

Maybe sport betting exchange dedicated to horse racing,it is incredible profitable niche.Horse racing betting is manipulated by bookies

You can read here how it is done http://www.igamingbusiness.com/news/igb-diary-breon-s-parting-shot-times-scoop-cfg-biting-hand-crusader-pumpkin-watch

You can do that on eth smart contracts with hero token.If you open link in my sig,you can read that with hero you will have smart contracts done for you and you will be in Hero family.Check Hero is great for devs

Exchange is still very much profitable but it now depends on the platform and basis on how to run it. If I am to do set it up, I will only concentrate on my country by choosing only the top coins and some successful coins to be added later. The most is ensuring its convertible to Fiat and vice versa with that I won't need to compete with the likes of bittrex or poloniex and other big  names which would be waste of time after all.

yes it is very profitable but it will cost a lot of time and hardwork. You need a team to run this exchange, this cant be manage by only one people. You need a security against threat and hackers. It need much money to run an exchange

There is high competition in this area already, so I think it is not going to be so easy to realize.
I suppose other commentators won't suggest you something concrete, unfortunately not I. But I get an idea - you can create an ICO (if only you are not from China) to come true all of your ideas about the exchanger ;)

What's your main reason why you want to start your own exchange? You need to have deep reason for it and you need to be dedicated on it.

---

Yes, if your exchange became popular.

---

I don't have an idea but maybe 20 bitcoin will be enough.

---

Here in forum, try to start out with signature campaign or hire some writers where they make an article for your start up.

---

You have to set it, you can adjust it.

---

You have to dedicate a lot of time with it, no certain amount of time.

Bitcoin exchange surely profitable, as your exchange rate should be slightly different with other exchanges or else, you should apply withdrawal fees.
For the first time I got into bitcoin, learned how to convert bitcoin and mostly through personal exchange, sell bitcoin to someone based on trust, and he charged like $2 for every transaction. You may want to try it before build a larger bitcoin exchnages which require many resource and professional people to be hired. If you want to build a small exchange web, $2000 is enough to cover initial expenses to establish a legit site, but you will need more to cover maintaining costs.

Creating an ICO without having a any ideas on what you are going to build is useless unless if you build up reputable devs into your team which would somehow assure that the funding would be success but still it would depend on the interest of the community. Starting your own exchange site would really be hard knowing that this thing do really require huge fund and a good team to develop a unique,secured exchanger. If you do have already an idea on what you are going to then you should proceed as long you do know on what you are doing.

I think that will require more time, than profits :( And yeah, exchange is a very hard and stressful work, don't do it, if you aren't sure >:(

Building exchange is profitable?  -Its Profitable if you bring a lot of customers on your exchange (for that you need to have great features which other exchanges don't have)
How much investment it's need? - Probably $100k to cover the development and server costs initially.
Where I can promote it? - Telegram, youtube, bitcointalk, coinmarketcap, chatrooms, steemit,etc
How I can avoid or put low transaction cost? - You need to study Binance exchange for this
How much time I need per day behind this project? - All day. Probably will take a whole team to monitor the exchange 24x7.

Yes starting an exchange is profitable . However need to acquire required knowledge for how the process works.
A minimum of 3-4 bitcoin shall be sufficient to run in small scale. Need to have a support for software development and upgradation. One man show is practically impossible to run the exchange. Customer satisfaction is the key to success.

You definately Need a lot of time and Manpower. Also, you Need to know what makes your Exchange unique. Something no other Exchange has so far.

You cannot make an exchange website by yourself, in order to do so you have to gather a good team before anything else, there will be a big workload in order to start an coin exchange business. If ever you have gather a good team, they can answer your questions for you actually since for sure they know how it should be done, and better to do research with them.

yeah definitely. but it takes more more time and need man power. you need to know what changes you want to do in that web site and first find out what requirements you need in your site. and most important parameter is security it is very necessary.once try to search before previous web sites which requirements are need and how to make. we want to give correct address and good fields and customer satisfy information. next you have to prorate web site in internet.

Better to find more original idea, than just exchange site

sorry ,I  dont  know  it .but  I now   that   many  people  are doing  it .U  can  find them  and   learn  from  them.At  last  U  can  ico  to  start  your
 exchange  website

Definitely, yes.
Though it is already too late.
I already did https://coinrate.com/

please let me know what you think.