How do start cryptocurrency exchange business?

The cryptocurrency exchanges have become very popular recently. The founders of such exchanges earn thousands of dollars every day. The cryptocurrency exchange business is profitable nowadays, that’s why if you are thinking to open such exchange this article will give you the idea of what steps should be taken into account.

The first step is to choose the right jurisdiction. Every country has its own attitude to cryptocurrency, that’s why the procedure of opening cryptocurrency exchange differ from country to country. Some jurisdictions require the obtaining of a license, which can take several months. Such licenses cost the solid amount of money and the founder should be ready to pay for it. The existence of license enhances the confidence of users to the exchange. The offshore jurisdictions require the annual fixed amount of money and the registration process can take the only month. Also, you can open cryptocurrency exchange in the jurisdictions which don’t form any attitude to cryptocurrency yet. This variant is the cheapest but you must be ready that sooner or later the regulatory norms will be created and they can be not very comfortable for you.

The next step is to decide if you want to buy your own server or lease it. Your own server requires several thousands of dollars, but this way is more save as the only founder will have access to the server. Hosting costs up to 100 dollars each month, but in this case, the owner of the server is the provider and you should be confident of it.

The third step is the software for your cryptocurrency exchange. This step has two different options. The first option is to hire the programmer or team of programmers who develop the software by themselves. This will cost tens of thousands of dollars but you can add the complicated functionality that is the most important for you. The second option is to buy a box solution. This variant is quicker than the development of the software from scratch. There are a number of reliable providers in the market who can offer well-developed complicated solutions. The only thing that in both options it is very important to hire experienced testers who will check the software on bugs to avoid hacker attacks in the future.

The next step is to decide the market of your cryptocurrency exchange. The exchange can be international or can target the local market only. The audience of cryptocurrency exchange determines the currencies that should be tied. If your aim is a local market the exchange should be available for local currency. If the cryptocurrency exchange is international the dollar and euro should be available for exchange.

Also, you need to conclude the agreement with the bank. You require the cooperation with the bank or processing to process payments via fiat currency. It is very important what bank to choose as the transaction sometimes can take up to 2 days. That’ s why partnership with a bank that has fast clearing and settlement of funds will provide convenience for the client. Adding and withdrawing funds can be automated through a payment gateway or made by manual transfer. If the cryptocurrency exchange allows exchanging the fiat money this step is necessary. If there is no such option you can avoid this action.

Almost every business requires marketing and cryptocurrency exchange as well. Of course, the main aspect is the quality of the platform, but nobody knows about it without advertising. There are many ways of advertising your exchange. They are forums, social networks, mass media. Also, one more option to start the cryptocurrency exchange is to run the ICO. In such a way the awareness of your platform among the potential users will be created during ICO stages.

According to the above-described steps, you should be ready for the difficulties that can arise. To our mind, the most important is to find reliable professionals who can fix any aspect in the sphere of their activities. Let’s take a look at some possible problems.

The safety of the cryptocurrency exchange is very important. Each cryptocurrency exchange has its own safety system and there are no universal instruments for the moment. Nevertheless, no one is proof against hacker attacks. That’s why you should hire a high-level team of programmers who will constantly maintain the security of your platform.

As the situation regarding regulating of cryptocurrency in different countries is changing rapidly you should also be confident about the professionalism of your lawyer. Difficulties may arise in case of incorrect legal registration of various papers and permits for conducting activities and can lead to very unpleasant consequences.

The reputation of the chosen bank or payment service provider is very important as well. You should check correctly the methods of work of the bank or payment processor before concluding the agreement. If any problems with transactions of fiat money arise you should be answerable to your users for such difficulties. So you should be confident that your partner will solve them in an appropriate way.

To sum up, taking into consideration all the necessary steps allows you to open the successful cryptocurrency exchange that will bring you a constant income. The main point is acting responsibly and to be ready for the number of expenses. If your aim is to create a reliable and complicated platform you will for sure gain the success.