Bitcoin Forum

After many years of trading, I realized that I should have my own bitcoin exchange. With a volatile bitcoin market investing in a bitcoin exchange is really beneficial. I need more sincere advice? After consulting a number of suppliers. Only $ 10,000 for a bitcoin exchange. Details:bitcoin exchange source code (https://vakafx.com/detail/source-code-of-the-best-cryptocurrency-exchange-platform) . With such an amount, should an bitcoin exchange be invested?

Keep an eye out of this platforms that offers bitcoin exchange source code especially if you do not have a deep background or extensive technical knowledge on this matter since building a cryptocurrency exchange is not as simple as we might think.

Building an exchange should be done deliberately and having the control of people's money, and being the intermediary of their trades needs a well-educated technical team behind a complex project. Secondly, it is a no-brainer that opening an exchange also needs to consider the legal implications as it will serve as the protection for people who uses the platform especially if the source code you will be using is not originally created by you.

In fact, people with no programming background should not use an open source code of a bitcoin exchange because of the possibility that it might have a backdoor written on it which can cause a catastrophic failure of funds being lost.

a bitcoin exchange is not something that you can afford to be cheap about its security. searching the internet and finding random newbies or random not-reviewed source codes is like begging to be hacked on the first day. you'll also need a much bigger budget than $10k to hire competent developers and security experts to both design and maintain a secure platform constantly.

That would basically be throwing away 10.000 USD and asking for legal problems.

Running an exchange is not a one man operation. You need a cyber security team, automated deposit/withdrawel systems, you need marketing (how else will you get people on your exchange?), probably a lot of cash to fund promotions to even get people trading there to get enough volume.

Ask yourself: Why would anyone trade on your platform? It would have to be better then the large and established exchanges or offer more (e.g. lower fees).

It's a bit like saying 'Amazon is doing really well. I think I should start one too.' It seems like a no brainer until you actually think it through.

I remember using somewhere that was clearly working hard to succeed. It wasn't a con, the owner was responsive. As exchanges go it was better than some of the big ones. Out of curiosity I added up all its volumes, which were clearly not faked, and the owner was earning about $10-15 a day. That's after no doubt months or years of work and a lot of outlay in time or labour.

You may not need to care about legality if you start off small, enough places ignore that. If you start to make proper money then you certainly will and that could cost tens or hundreds of thousands or millions of dollars depending on where you are.

The one you cannot ignore no matter what is security. There are thousands upon thousands of people scouring the crypto space looking for ways to drain money from exchanges. You'd better be seriously good at fending them off otherwise you're looking at rapid ruination.

Don't. At best, you'll lose 10k. At worst, you'll lose other people's money as well. So yeah, just don't.

When I read the name of the thread I thought it would be about investing in bankrolls of top crypto exchanges, and that certainly sounds like an opportunity worth considering. A few years ago I had thoughts about investing into casinos, but found out that if you choose a top casino, the yearly returns are very small, especially given the volatility of Bitcoin. I am not sure it's possible with crypto exchanges, however. If it is, perhaps we could discuss that here. As for spending $10k on an exchange of your own, I agree with others that it sounds like a terrible idea. The market is very competitive, reputation is everything (and building one is hard), security has to be on top (otherwise you'll get in a lot of trouble because of hackers), depending on the region you might have serious legal problems.

If you think running a bitcoin exchange is just buying some pre-written code and running it on a server, you're totally wrong. It's going to take a lot of work, a lot of connections, and A LOT OF MONEY assuming you actually want an exchange that works decently and is secure. You're going to barely reach anywhere with just spending $10,000.

Take a look at the previously hacked exchanges. They couldn't even protect themselves even with all their earnings. What makes you think you will be able to do well?

Anyway, I'm not here to bring you down, but just for you to be more realistic here.

If he wants to run the exchange as legit as possible, securing licenses is one of the initial steps that he needs to embark on. And there's a lot more in it not just buying the code. I hope the OP realized what it needs  to run a legit and decent exchange. Even after setting this up, there are a lot of things to do. Or if he wants to run a substandard exchange without any existing license under it, maybe he can. But in the long run, traders will not trust this exchange and so it will just bite the dust of crypto.

I don't think that $10,000 is enough for you to create an exchange.

Remember when Binance is starting, they've launched an ICO and token sale just to fund their project and look where they are right now. I don't know about Kucoin but what I'm trying to say is that amount isn't enough for you to create an exchange and there is also a chance that you're exchange that you will create (in case you will create one) will be just a useless exchange with no traders trading in your exchange. No volume, nothing interested in trading in your exchange. This can happen if you create your own. It would be better if you will just continue trading if you are profiting with it.

Yeah, that's right. Don't risk your money for a bitcoin exchange which is not that safe and secured enough. I want you to think critically before engaging to that. Bitcoin exchange is not the only thing you can do, there are a lot of coins that you can try in the exchange. You need a lot of maintenance and effort in order for your bitcoin exchange to become worth it and successful.

Are you aware about those exchange that failed?

Try to seek more information about bitcoin exchange, by that, you will have some idea about the advantages and disadvantages of bitcoin exchange in your asset. You need to learn a lot of details in an exchange that's why you need to do some research.

Investing is not that easy. In investing you need a high amount of money for your capital. It may take time for your money to grow. Of course you will less the amount of your capital to the amount that you would get as your retun on investment. Legal permits are needed in exchanges and it costs a lot for you to be able to operate.

Many people are using bitcoin in their investment because it is the top performing coin currency. Investing in bitcoin is the most popular one. Bitcoin value varies it goes up and down so you better buy bitcoin when the price is low.

In nvesting, you can't be sure if it is beneficial or not. You can win or lose in here depending on the market of the coins.

Technically, yes. But in the case of OP, it looks like he/she is going to need more experience in how startups work, rather than just-buy-the-code-and-run-the-exchange. I'm not saying that OP should give up on this goal, I'm just saying that he/she should calm down and start slow. Probably getting a job on a fintech company would give him/her a lot of knowledge on how things work in a company, rather than just going in blind.

The thing isn't about investing in bitcoin and any well performing altcoin. There's much bigger point of what op is trying to do and that's to have an idea that having and making his exchange is quite easy.

It's not just about the return and growing his money but about managing the exchange and making it useful for most crypto traders. From the reaction of op, he seemed to be looking on it an easier outlook but little did he know, it's a complex thing to start.

You can have your own exchange, but you need to have a lot of money as a start because you need to buy or create the source code, hire some people to manage your exchange, and set everything. That will not be easy if you don't have a basic knowledge about programming or don't know much about the website. But you can buy the source code from the third party, so you only need to install the source code in your server, and test it before you launch your exchange.

But I don't suggest you buy the exchange source code from that website because you don't know if they give the right source code. It's better to research from the other similar website so you can get more information about the source code, and who knows, you can get the recommended website that selling the exchange source code.

How? You won't be making any money from volatility. As an exchange owner, your source of income will be trading fees that you will charge on every trade. As far as I know, trading fees is charged as a constant percentage on orders. So no matter how much bitcoin fluctuates, you only gonna get fixed percentage on every order. Rather than volatility, as an exchange owner your target should be to get more users and trades on your Exchange.

Any how, having sole experience as a trader won't make you a good Exchange owner. Starting exchange is a business and need different area of expertise than the trading. About cost, well it took multi-millions for Gemini to be created and launched. Crypto-2-Crypto Exchange could be done within $10K but marketing will take much more money and without traders there is no fun! Fiat-Crypto Exchange will be comparatively expensive due to regulations and all.

I would say, it would not be a one time investment since an exchange requires continuous maintenance and upgrades over the period of time.
Also, it requires trusted team members to manage the whole exchange and you can't compromise on anything for security.
Though you think that it will be a good investment but it will also bring in more responsibilities since you are directly investing into a business.
And business requires skill, experience, time and efforts without which your investment would be at stake.

I am impressed with your desire to have your own Bitcoin exchange.
building a bitcoin exchange is not as easy and simple as one might imagine. You must have a background that is able to overcome all kinds of technical problems in the exchange. Not only with capital of $ 10,000 and using the source code of exchange provided by others.

$ 10,000 dollars is still very little to build a good exchange and in accordance with current exchange standards.
Moreover, what is most needed by the exchange is a server that is used to accommodate all transactions carried out.

Building an Exchange is not that simple. Much has to be done and there will be many problems faced.

Its a can of worms, stay away from that. Exchanges are nightmares; legal, security, financial, etc etc etc.

And it takes only one mistake for the whole thing to break down. There is a long history of failed exchanges out there, that should teach something. Even established exchanges are very dangerous and can collapse at any moment without warning, as it has happened before and will happen again.

Opening a bank is probably easier, or a casino for that matter, and safer.

Make a perfect exchange and the simple lack of volume kills it. I don't think you could successfully make a new exchange without having some sort of large company already invested in something else backing it up. And even with that, its no guarantee.

If you spend that amount in bitcoin, and look at it next year, or in the next three years, you'd probably have made more, even if not by much.

I don't thing that's the goal of OP. At least it doesn't sound like that, he literally said that

So obviously he was thinking of quick profits only.

Only 10,000 for an exchange will get you a platform that could probably handle about 100 customers max. To open up and create a legitimate exchange that could drive in business, maybe even compete with the other exchanges..you're going to need millions and millions of dollars.  You need millions alone just to advertise these days.

Try to start your own exchange but remember that 10 thousand or 20 thousand to build it is not enough.

You need money in the bank so that when your first client comes and wants to sell his coins you have enough money to buy it from him. You need some startup money or you'll go bust in no time. I'm talking big money like 500 thousand USD at least.

You need secure servers, some trusted people to start a business with because an exchange doesn't run unsupervised and you arren't going to be there 24/7, a physical location for an office and so on.

As you can see most of the answer of the members right now is not to make an investment of leaving your money into a bitcoin exchange because most of them already experience this kind of problem too and also learn from other members or people. Also, I want to give my side and perspective about this kind of storing your funds. If you want to make an investment this is good you mush need to find some wallet that is secured and already have good integrity there are a lot of wallets that are suitable for your needs and wanted all you need is to use those properly. We are highly not recommended storing your money into an exchange because there are a lot of things happen may lose the money that you didn't know, and also it can be unexpectedly they down their system or permanently without notice because they already gained a lot of money that is enough to them to scam.

There are a lot of things that possibly happen to you and lose your funds and as an investor and people who want to earn and saves your money, you don't want that this will happen so avoid storing your money on exchanges.

I think you should investigate more about the source code. I've looked into the source code you sent and maybe it's not a good source after all. The link is not secured:
https://i.imgur.com/UOl3F5F.png

Their contact information is a from free email service:
https://i.imgur.com/SI6vI0E.png

I've checked their social pages as well, they're not really well-known and well-managed.

How'd you come up with that conclusion though? It's not like the volatility of the bitcoin markets(or the cryptocurrency markets) in general isn't going away anytime soon. I'd say it'd still be volatile after another decade.

Making bitcoin exchanges is a good idea for investment, but it is not easy to make bitcoin exchanges, require a lot of capital.
If you make bitcoin exchanges with only $ 10k capital, it will be difficult to compete with other exchanges. As we know the amount
current exchanges are very many, but many are bankrupt. Because it doesn't make good planning, in my opinion it requires a minimum
capital of $ 20k to be able to make good and interested exchanges. Because the biggest allocation of funds makes good exchanges,
is in the security and promotion section. By making exchanges with a good security system, coupled with large promotional costs.
Can make good exchanges that are of interest to many investors and traders.

Invest your money in bitcoin and stay away from running an exchange, have you ever thought of how lots of exchanges close up? Exchange is not an easy thing to build, you've got to have lots of things in place to do it, don't allow some of gullible investors who will invest in your exchange to loose money on your exchange, $10000 is too small to keep an exchange going for a long time

There's no need to invest on bitcoin exchange if you don't have knowledge on it and if you are just using a pre-code to create bitcoin exchange then you are risking too much. Also, you have to consider the volume of exchanges right now which is so hard to compete with and a lot of money that you need before executing it. I'd rather choose to invest directly on a top exchange and simply earn profit, don't complicate things if you don't have knowledge about it. If you really want to create and run your own exchange then you must do everything to make it happen and start building a great foundation with your great teams.

This online source code is the first thing that we should avoid according to my IT professors because people with no technical background will be the biggest victims there might be malwares installed in those source codes if you do not know what you are doing, the best thing would be learning how to program or if not find a trusted programner to create an exchange, online source codes are the biggest cesspool for malicious people so be careful.

Instead of investing directly to have your own exchange, why don't you try to invest to those exchanges that are already been established? In this way, you can eliminate massive problems such as maintenance of the exchange, and competition with other exchanges. Perhaps, you will need a huge budget and a great team that has a very good experience in both cryptocurrency, and network security. Most of the time right now, exchanges serves as a target for hackers, especially those that aren't really having a strong security, and I can say, even those that are established and secured are still hackable.

One example is what happened to binance, though, they have paid the lost through their liquidity pool, it is also one thing to consider when you establish your own exchange. You should have plenty of funds to back your exchange up.

Nope. Getting people to actually use your exchange and securing their funds are just few of the many challenges you're going to face. Sure making the exchange itself might be "easy" if you have low standards and just want an exchange that's technically running but could barely run consistently without problems.

Security always matters in starting an exchange, it has to be your first priority because when you start and you get your exchange hack or information are leak, your exchange is over and you will lose the money you invested.

It's a big market but with a tight competition as big exchanges are already getting big part of the market, so it's a tough challenge for a start-up but it's not impossible to succeed when you are effective in running your own exchange. IMO, exchange business  as long as you have clients/customers is more profitable than running a gambling site, so make your own decision and be realistic all the time to gauge things properly, risk and reward must be carefully evaluated.

@OP, Invest or creating exchange site is a good idea but required alot of research with experienced/expert in block chain and internet security not an organization that provided a source code and later be the same group to hack the site.
I will advise you to read the basic step provided on here (https://www.modulusfe.com/products/data-servers-exchanges/myexchange-exchange-engine/) but i dont recommend their service cause i only want you to know all what you need.

There is much already existing crypto exchange site but that doesn't mean there's no room for another one since crypto business is a broad industry and whats important the most is offering people some unique features which was one of the reason people seem to acknowledge Binance cause no exchange site should be totally and that include Binance.



 

Investing on long term better use offline wallet and keep away from saving your bitcoin assets in exchange wallet, I think better if you save all your coin in nano ledger wallet because very safety and there are never have offline time, we know many time exchange disable for withdraw and you need waiting when available for cash out your money if saving in exchange wallet.

Why invest in bitcoin exchange if you can invest in bitcoin. Investing to have own bitcoin exchange requires a lot of knowledge and money. In my opinion it is not an easy task to look for since you should know a lot needed requirements to improve the services and you must grow your users and it's safety.

Also the amount had mentioned wont really suffice nor be enough on considering on building up your exchange.Yes, this one would really require lots of works and lots of factors that should be considered first before pursuing on creating your exchange not just because you do saw that this business is profitable but it doesnt mean that it would be simple for someone to take the same step.
From site build up to marketing then that thing alone does already require too much work and if you are the owner with no soo much knowledge on how things works then better
not to pursue out this dream because you are just basically wasting up your time.

Waste of time and resources to be precise.
$10,000 won't be enough, since you'll ba paying for your manpower in a monthly basis, considering new exchanges will struggle to find markets and glitches/bugs are more likely to occur on the first and second phase of running the exchange.
That $10,000 alone isn't enough to market and advertise your newly created exchange.

OP should stick to continue trading, or invest to other platforms. Creating your own exchange isn't advisable.

Having that amount to start, no wonder why your Bitcoin exchange won't grow but probably just get ignored. Think about what happens to many newly created small exchanges, they are going to die the same thing that might happen to you if you push yourself to make it.
You need a lot of things to finally run a business like this, you must be aware of the risk you'll be going to face. But one thing for sure, that $10,000 is enough to make it. I'd rather suggest you to stop pursuing that thing, creating an exchange isn't just a joke.

Just read this...
https://bitcoin.stackexchange.com/questions/17007/what-is-needed-to-make-a-bitcoin-exchange

There is more to having a Bitcoin exchange than just buying the source code. Many exchanges have closed down due to lack of users, high cost of maintaining security, which is paramount and you must have an in-depth in programming language for you to be able to tweak based on your need

Creating your own bitcoin exchange is not that so easy, you have to work hard for it, you need to have first good knowledge and financial as well, you will spend a lot of money with that, you need to have your assistant for creating it, like some technological experts or the professions that will suit for creating it. You may start from studying it first before anything else, I know how hard creating a simple website what more for the bitcoin exchange which can have so many transactions. It needs proper maintenance if it will be implemented.

If everyone creates their own bitcoin exchange then who will be trading there to have volume? If you have capital and enough knowledge about managing bitcoin exchange then sure you can go but buying source code from someone isn't a good choice.Create your own exchange if you have a team to do which involves lot of time and money as well.For me existing exchange is enough for my trading activities.

Well, it is a good idea, but do you think it is that easy, you really need to sit down more and analyse what it take to make it work, I wouldn't want to discourage you become there's  no harm in trying and those who are there today started one day. In order not to end up as a scammer and people will rain curses on you, consult the proffesionals for guidance. More so, $10,000. will not be enough, are you planning to do it all alone.hope your decision is not from Greed.

It's not an easy thing to create a good bitcoin exchange, there are already many fake investment websites so people are very worried of investing, they are only choosing those legit, popular and old websites compared to the new one because of thinking that it may cause bad things for their money. If you want to create your own exchange you have to study first, you should do research or watch some youtube tutorials but it is not enough you have to still read things about it. You need also finances for creating ut, that is one of the important things before creating a website.

You can get a Chinese solution for free, you would have to pay them a commission fee though. I also once got an offering from an Indian company that asked for 100K USD to build an exchange for me. Serious whitelabel exchange providers ask more like 300K USD, but that are those you don´t have to worry about anymore and are usually already established and well connected to KYC and AML, custody and helpdesk providers and have an API ready for all kinds of additional services.
If you want a DEX, you might get it cheaper but you won´t be able to handle large volumes.

Edit: I just got the link to this one, but I´m not sure if it´s a good solution: https://bitholla.com/  and their price list https://bitholla.com/pricing/

At the same time I would like to state that there is a very big factor Competition, there are many exchanges out there in the market and I do think which makes it even harder for a person to invest in a particular exchange. With some of the major exchanges going down in the market over the years , I do think you can first buy a share in the exchange you are interested in and then see it's growth over the year , if you do believe that it does have a lot of potential then only you should go forth and make the investment , it is never going to be a safe bet but with an exchange that you would have worked with and looked after from the sidelines, you might know the pros and cons and at the same time you can plan it in a way that you can make use of its full potential.
Your exchange might :
Enable smart contracts
Be available offline which would even make it beneficial for traders
Might require no KYC and private information
Can even work with cash-btc 
There are so many things that you can do , you can ever start a poll and ask people what would they require from an amazing exchange platform and then filter out things and see for yourself that what might be beneficial for both the users and the company.
Its a lot of hardwork.

If it's that easy to run a crypto exchange, everyone that has enough funds will gonna make their own crypto exchange and you will gonna see that the numbers of crypto exchange will reach up to thousands. But as you can see, it's not that easy to run. in fact for every single crypto exchanges required some special teams to do their own duty in the exchanges. we're not counting other staff like those people who are specialized in security and preventative measures against hackers. In other words, it's not an easy job to have one and also you really need to have some huge amount of capital to actually run a real crypto exchanges.

I can't imagine if I have a dream to make an exchange because that is the hard thing to do and it is not about money or acapital to start but it is just how I can safe other people's money that I can access anytime and know all of them. Seem like I will not ever have such dream, I'll not imagine profit that I get but I just imagine how the risk that I'll be face later. I just hope that I can master all trading strategy so I can make money even it is more safe, I have no burden to keep and make other people comfortable to my service. But it is depend on you, if you know all risk that you will be face you can start it now and be sure you are a trustworthy person.

You have two ways to do this, start using codes and start testing, these two things are undetermined and may take years, but the worst comes promotion and real capital investment.

Case 2:
Get an expert company in the field and buy or rent the license, these exchanges can come in the color, shape and even the buttons you choose, in fact some may even offer you initial working capital or purchase and sale volumes, etc. .

But on average you need an "initial" investment of about $ 300,000 (or +++)


As I guess and without offense, it must be in case 1, because someone who is in case 2 would be very rare to see him around here, asking that question, I must tell him that this type of business, like bitcoin mining, has Specialized a lot, and that the romance of a programmer raising an exchange at code point and step, I finish, will not return.

Those that you believe exist under scheme one (via 1), arise because there is capital investment and partners.

Other people will trade in various exchanges, but to create their own bitcoin exchange, they will need to have a large amount of the money.
I don't know how much money will be needed to create bitcoin exchange, but I am sure that will be a big amount.
Besides money, you will need skills to manage and communicate with your team because you can not work alone to manage the exchange.
You need to spend much time to build the exchange, and sometimes, you will need to think about something new that will be different than the other exchanges.
We already have so many exchanges to trade, so I think we better use that exchange, which we already used.

First, you should be updated with Bitcoin news and aware of its volatile situation. You know that it is not an easy job to make an exchange you should be kept in mind different factors like KYC, and securities. You took a great initiative. There are several Bitcoin exchanges even we didn't remember all the names of exchanges. Do hard work and promote your exchange on different platforms. It is a tough job but keep it on & Cheer Up!!   ;)

It would be awesome to have a decentralized exchange coded of our own and set x amount of fee per trade to an address which can further be used to promote that exchange, in this case there won't be any problem for the users to initiate an exchange as the funds won't be deposited on the centralized server so there won't be any fear of a hack, also no KYC will be required because we won't be processing any funds the code or decentralized exchange will be acting as a mediator between 2 parties taking a small percentage of fee. So this is a win win situation.
I know a lot of decentralized exchanges are out there but also are the centralized ones, so it will be better to go for innovation rather than following the herd.

First of all are you sure you could really trust those people and the team that you would create.
It isn't easy as you think it is maintaining it would cost a lot and of course you would also work on promotions for publicity to gain some customer.
I think it would cost more than $10K for all of it and it is also a huge risk because nobody would easily trust a new trading site.

Apart from the capital they also need extensive knowledge related to website development, they can hire someone to do this but the owner must have some knowledge to ensure there is nothing shady going from the hired members.Crypto exchange is one of the profitable business but not every crypto exchange are in profits.

Building an exchange is hard. Many sources say 6 months to a year when all is said and done. You will need to have experienced team including back/front end developers, designer, product manager and etc. I suppose having only $10K won't be enough.

I want to believe that no matter the business, the key to make it successful goes beyond just the setup costs and more importantly running the business goes beyond some form of fondness for trading as Op has mentioned. Currently, the trading space is saturated to the extent that only exchange sites with large funds to spend on various advertisement and publicity that could even have a chance to survive for as long as 2 years couple with various regulatory compliances that are continually stifling the free entry and exits that was witnessed in the market years back.

If I understand you well, you want to invest in bitcoin exchange because it is very beneficial but not stating categorically what will make you bitcoin exchange better. I will advice you to go through some of the exchange platforms that have shutdown and try understand what make them stop operating. exchange platform involve alot of money to keep it running not just the startup cost. Also, there are many exchange platforms out there. How will you want to cope with the competition ?. My advice is that you should consider another project except you have any meaningful contribution that is lacking in all the present exchange platforms

If you don't have enough knowledge on putting up your own bitcoin exchange much better to think other investment so that you will not lose your $10,000.Bitcoin exchange is very confusing which need a lot of knowledge about programming and website developing. This is not so easy as what you think. Why not invest your money on bitcoin for long and short term in Binance platform or do trading. Or find other business that you can operate very well.

investing requires a thorough study. Yes one can invest in bitcoin exchange. However we know that when it comes cryptocurrency, it is relevant to high risk. High risk meaning high potential losses and it make worst due to its volatility. This is the main reason when one ask for invest usually you will get an answer from most of the users here  to do your own research and invest money you can afford to lose. Aside from that there are other users will going to tell you to invest in variety of crypto or by not putting your money in one basket.

I don't think it would be good for you to take on this idea. It may not be possible for an individual to conduct an exchange. Moreover, it needs a special security team to secure it who have enough knowledge about this. Moreover, other ancillary functions require manpower to manage them. Managing your own exchange is expensive and you can be lost your money.

That is what they should have and know.
Even if they can hire someone to do the job, but I think the owner should know everything about his business, so if his employee is doing the wrong thing, that owner will know and will warn them.
Crypto exchange now grows become a large scale, which makes many rich people who have a large amount of money want to create their own exchange to attract their people.
That will makes each exchange compete with the other to give the best services to their members.
And if they can not do that, their exchange will not have a chance to survive among the other exchanges.

If you read some rules regarding some exchanges, they are displaying that do not place too much tokens or coins that is held there for a long time. This means that exchanges are made for exchanging. You only use them for a small amount of time and not that long because those wallets are not specifically made for holding them for too long. Exchanges can encounter problems and you can avoid them by only using them when you need to.

More exchanges are becoming smart by offering interests to customers in order to secure their funds.

Investing in exchange is completely different from holding your funds on the exchange. When you invest an X amount of money then they pay you dividend or intrest based on their growth and profit, some exchanges require the users to hold the exchange issued token and I like the holding tokens method more than just investing in the exchange because if the exchange becomes more popular then the token will also increase in price have a look at Binance and you will understand.
As for having your funds stored in the exchange account, then it is a very risky option for parking your money cuz the exchanges are vulnerable to exploits if there is any left in the code and then you can lose your money in case the exchange faces a hack.

I am in this job like 2.5 or 3 years and i started to buy my first bitcoin at my first year.

And i never seen losing person who have bitcoin. Bitcoin always lets you make profit if you can wait for  appropriate time.


 

It all depends on how much you know about running an exchange. You need to know everything from starting an exchange to the end. I don't think you can do very well here without prior experience. If you do not know the A 2 Z of an exchange, it would be better for you not to invest here. So you should follow the Bitcoin exchange rules then it's good idea for us.

If you have enough knowledge about everything in order to put up your own exchange and if you have enough capital then why not?! But if you just entrust your bitcoin exchange to others that have knowledge on it and you just put a capital for it ,then i think that is a bad idea because scammers may arise and stole the money or funds of the people who wants to use your exchange. Much better to do more research before jumping into a business like exchange.

Bitcoin exchange is one of the most profitable business in the crypto space, you need a decent capital with this, so make sure you'll do everything to succeed. The problem is, the biggest exchanges in the market are already dominating, like the Binance, Coinbased, and Huobi, and people are looking at these exchange as good exchanges so most likely you will have a hard time to find traders using your site, I mean the volume of traders that will make your operation profitable.

I don't want to judge early, but I'm telling you, it's a big challenge for investors to start this kind of business.

Be careful. Many will use 0X protocol or some prebuild engine to build you an exchange.

Investing in a bitcoin exchange should be studied first before you do some actions regarding this.

In making an exchange, you need to have a huge budget because it is not a cheap investment than you think. There are a lot of things to consider before you do it, the market, the people, the prices, and etc.

But if you really want to create one, you should hire someone that is knowledgeable about programming, the market, or people who are professional when it comes to this platforms. And that will be included to your expenses, earning reputation is easy once you are giving good service to your customers but still you need to take care of their money because that's your priority to prevent bad reputation.

     You know what op, I really think that that is a really great idea. It has also crossed my mind a couple of times. The only problem for me is the funding. Lol. But seriously though, I really think you should give it a shot yourself. Start off with the famous ones. Also, it would he nice if you can encounter an exchange that is just starting out but has great people behind it. This is quite risky so you should do it a bit later when you are more confident about your skills on investing on exchanges like background checking of the developers, the investors, and so on.. I hope you make the best decisions. Good luck :))

It is not really recommended to invest in exchanges for the long term investment as many exchanges end up closing because it is a risky business as the market price of a lot of cryptocurrencies is going up and down.

For short term investment or you're just going to exchange some of your token exchanges work really well for some of the users, but still do not put a big amount of funds in exchanges and if you're going to put a big amount you might need to go for a popular exchange that is already trusted by a lot of users.

If you're just going for bitcoin just go for a bitcoin wallet that has a private key and store your bitcoin their for long term investment.

Well, sounds you did not get of what OP wanted. Op did not want to put his bitcoin on an exchange, however, --OP asked sincere advice if the $10k is enough capital to build his own exchange. Indeed right. The Crypto market exchange business is very profitable but if you will succeed in building and establishing on it. Just like gaining trust in the crypto community just like what Binance did. Analytically speaking, I can't compute what is the exact amount will cost but for sure it should be thousands of dollars.

Hundreds of thousands you mean  because establishing nor creating one wont  really just talk tens of thousands if we do base up on creating the platform plus the marketing alone

which wont really be a  small amounts to talk on.Also, if you do consider such business then you should be at least knowledgeable towards it, not  just

trying to dive in just because you have seen others exchange do succeed and make  some real profits.It isnt easy as it sounds!.

Oh, you guys mean it's really hard to build a business especially the biggest one where there's a potential that it could gather more people. But let's just check the fact that not everyone is like that, so does gathering potential clients. People who carelessly think copying business is good while they don't know how to make people choose them is still useless. I think exchange business is kind of a big business especially if you have to deal with people online.

It all depends on dedication and eventually luch will shine your way. Few days ago, someone asked cz_binance on twitter for his advice about people looking to run a successful exchange just like him and his reply was that it is not late to start anything, so far you love and have passion for something and when you give it your best, luck will shine through one day no matter how difficult it might seems

Well, that it matters most "dedication" but also it something to rely on the funds you've been holding and the people around you who give their knowledge to completely work. We can make it alone as we know that, we assume that you have the dedication and optimism but can't assure also that your teammates will work the same as you. You all need their commitment as well and that for sure it works smoothly but I say, we don't need to rush, it would in perfection, timing, and having a concrete plan.

Not because you'll have already the money (enough to start) but look into yourself also and your people if they are ready for this.

I'm happy with your desire to make a Bitcoin exchange, it reminded me a few years ago to make a Bitcoin exchange too. But after I learned
and researched it requires a capital of around $ 100,000 and that too is still likely to fail. So I decided to find another business. While you with
a capital of $ 10,000 are very brave to make a Bitcoin exchange. Better to stop the intention to make Bitcoin exchange, your capital will run
out and you will fail. Because running a Bitcoin exchange isn't easy, it's not enough create a website and buy source code. There are other things
like creating a developer team and also marketing costs that cost a lot of money. My advice is to use the $ 10,000 you have for trading, be more
realistic and the chances of success are quite large.

That actually depends because Exchanges do not solely trade Bitcoin. They can just use Bitcoin as their primary fee for transactions and see in the long run if whether that can be profitable for both the users and the developers of the exchange.

Investing on exchanges are always risky since they have the possibility of closing once they cannot cater enough users to use their platform BUT if they can boast one of their best features and invite a lot of users, then that would surely be profitable.

Over the past few years, a huge number of cryptocurrency exchanges have appeared. There are a lot of small exchanges that lack volatility. I don’t think it makes sense now to create another exchange. It was relevant in 2017-2018. In any case, if you have a great desire, confidence and an extra $ 10,000, then you can take a chance.

This is purely a crypto entrepreneural issue. I will suggest the following which i believe will be of help to you being that you already have knowledge of crypto trading.

1. Form a team which will consist of both technical experts and crypto marketing experts.
2. Have a business model that will surely give you an edge in the industry.
3. Try as much as possible to learn the technicalities of the technology, as you will be protecting the assets of people.
4. Try to retain your team by using the equity strategy.

Many have observed this one that there are many exchanges of cryptocurrency but some did not survived because of low volume, lack of users and some did not meet the expectation of the users. Actuall, it entails a huge of funds to invest in a bitcoin exchange and one must have a unique platform and can be popular that may attract more users. Yes, it is irrelevant these days but if the person has really the guts to do so the best luck for him.

I think this is answered already and I may be repeating this enough, however this question too is highly subjective.

From trader into aspiring owner/founder of bitcoin exchange are two different perspective. The way how to manage an exchange involved a large sum of amount, knowing that it involved developers, experts, advisors and many more; 10 grand could only be wasted like other exhanges with little to nothing, valued right now.

In other words this is very risky, however it doesn't mean this is nothing. If you're committed to do it right, you need to work hard on it.

And this kind of goal does need other members to push thru this project. Very hard to run solo in this big endeavour. If the OP is thinking that it is easy peasy, it's not. Each member of the team should have their own skills and experience in order to be successful. Running a legit and decent bitcoin exchange needs more than 10grand. Unless, you want to run a substandard unlicensed exchange. But you will not go anywhere in this business. I hope by now the OP already came into his senses that running a decent exchange takes a lot of resources and hard work. Better stay in trading and do where you're good at.

It's about how you can take the risk, there are already too many small exchange and success rate is not that good, though you can
still try your fate and see if how good and lucky you are from this field.
Taking the risk is all that matter, if you are really interested and you have the desire to fulfil there's  always opportunities out there.

Why not try and consult an expert regarding Trading exchanges or joining Webinars to educate yourself with the fundamentals and the pros and cons.
Because building it is easy the problem is, how would you rank it against to many competitors in Crypto space. How are you gonna profit and how much is the risk.

I think there is a misconception, if you are planning to make investment in bitcoin for a long time then do not use an exchange because of the risk. There are now a lot of exchanges that been hacked before so it is a proof that we should not keep our bitcoin for a long period of time. It is more good if we will just open an offline wallet then we should place it there. But if you are planning to do short term trading then reliable exchanges can help you.

Better make research first over internet and Read the answers here before finalizing your decisions in creating your own exchange.

Recently there are Multiple exchanges that had been closed,they even closed after years of operation .

You Know why?because Competition in Exchange business is not that easy and you can just lose everything once you become the target of hackers.

The question is "Is it effective as a cryptocurrency exchange?".
Although there are a lot of cryptocurrency exchange that existed, but how about its service to its customers?

Maybe he just to create and become one of those most popular cryptocurrency exchange, and as long as there is an opportunity he should grab it. Investing on bitcoin exchange is probably expensive as you need to consider the salary of those programmers that you are going to hire to make your platform work. Also studies should be made so that you know how to run a crypto exchange without technical issues and you also troubleshoot issues immediately.

That is an ideia, but be aware it's not so simple. However if you really want to start your own exchange and doesn't have much money to invest or the right contacts to make, you can start as a local crypto exchange focused in providing your country or a smaller community of people, offering less options of crypto currencies on your platform. Then you can grow your business slowly if it really works for you.

its not something that you can easily implemented it. it requires you different thing to have working exchanges, you can't just spend money on any exchanges source code out there where the security and other stuff are still questionable. 10k dollars are not even enough to have a good exchange

There is more to setting up a bitcoin exchange than just the exchange source code itself. The security of exchangers are paramount. we have heard of cases where excahngers got hit even with the security measures put in place. it would take more than just ten thousand dollars to setup a proper bitcoin exchange apart from the source code. and after that you start considering liquidity also.

Trading is a whole different game from exchange operations. Exchanges make money by charging a small transaction fee on each trade, regardless of the direction. So their whole business model is securing volume (i.e. number of traders), which requires domain expertise in marketing, security, partnerships, and technology. Whereas a trader's only interest is making a winning bet, so the only domain expertise required is market analysis.

There's a reason white-label exchange source code is only $10k. Requires millions more to actually make an exchange a successful business.

Indeed, there are lots of things to consider before you can decide to put up this types of business.


You need to make sure to focus with securities, hackers are circling around and always looking for possible victims.


If aiming for decent and reliable exchange, it take higher amount of capital in order to meet everything that are needed from this business.

It is possible after all but make sure that you are aware on what is really your goal, If you want to actively buying and selling bitcoin then exchange is suitable for you because there fees are much lower than wallets that have exchange rates but if you will gonna hold it for a then try to just use bitcoin wallet. But still it is just a merely opinion, you can still follow what you want and I'm just saying that you should have risk management in order to handle your fund easily.

Among the common cryptocurrency users there is good opinion about the exchange backed cryptocurrencies. It is also true that most of the cryptocurrencies (exchange backed) listed on coinmarketcap have got good volume and have gained the trust. This is all because of the exchanges serving to be the backbone to the entire cryptocurrency network.

From my personal experience all the investment made over exchange backed cryptocurrencies have got good profit. Few of which were XUC, XET, BNB.

Lol, so you’re one of those that thinks that running a cryptocurrency exchange is easy ::).
Don’t get yourself involved in what you can’t do. And you seeking for all these people offering source codes?
I think you should relax, spend some time and gain in-depth knowledge on cryptocurrency exchange and how the Business works.

Even if the link you left here is legit, it just doesn’t end with paying $10,000 and then all of a sudden the whole world is trading on your exchange and you’re making money just yourself, lol. It doesn’t work that way.