White label website script with 100% source code encrypted with advanced security features that replicates the functionalities of any leading exchange will help an entrepreneur to instantly start a P2P Cryptocurrency Exchange. By making use of this raw ready-made clone script, any business person can kick start their own bitcoin exchange quickly.
Along with the technology, the geographic spread of the
exchange should also be considered very carefully. Countries that are favorable
for cryptocurrencies are US, Canada, Japan, Singapore, Malta, Australia, and
European Union countries. Legal opinion should be sought regarding the laws
that are guiding crypto currency in these countries. Countries that are adverse
to crypto should be avoided as they can bring in laws which can make crypto
exchanges illegal and therefore the entire time and investment will go waste.
There are different ways in which crypto exchanges make money. Some of these are as below-
Connecting with the right payment processor will be very important because the charges that are deducted for a transaction can differ widely. You need to connect with a processor that has moderate charges, excellent data security and follows the law of the land. Also the processor should support international transfers to support your international clients. Here again the exchange rates offered should be better than others. The processor should also not deduct any commission on your international transfers.
Crypto exchanges should be very liquid so that users can buy and sell crypto quickly. This helps users to add and withdraw funds quickly. If you have been noticing instances wherein your withdrawals are not being credited to your account on time it may be a liquidity issue with the exchange. There are multiple ways to increase the liquidity of exchanges. One of them is tying up with the network of other exchanges so that buying and selling or (demand and supply can be in equilibrium). This will prevent bigger players to manipulate prices of coins. It will also help high trading volumes in both the margin trading and cash segments.
The security features of exchanges are of utmost priority. The top security feature should be to store customer funds in cold storage that isn’t connected to the Internet. This will stop hackers from accessing those funds and exiting with them from the exchange. Second is to restrict 3rd party integrations to a minimum. Some of the other security features that needs to be built into the platform include HTTPs authentication, Jail login, Data encryption, Registry lock, Two-factor authentication and SQL injection prevention. Once you are convinced that the site is secure then it is time to launch it for Beta testing.
Marketing the platform and making it known to traders is the next step. We have seen large exchanges spending millions of dollars on digital and TV advertisements. However, to bring in these large amount of marketing capital there has to be a lineup of marquee investors who can back-up your project. In recent times we have seen the interest in crypto investment has increased manifold. It is supported by large advertisement spends wherein leading influencers such as filmstars promoting crypto exchanges.
However, in countries like India the situation is still very fluid with Government still deliberating on the crypto bill. This causes a bit of concern for going all out on the marketing activities. However, in many countries in the West, crypto is considered as an asset class that can be traded on the exchanges. Other strategies that are being adopted include gifts in the form of cryptos once you complete your KYC or refer friends to the platform. Youtube has become one of the most popular channels for crypto marketing. Using Youtube crypto exchanges can publish necessary tutorials, developments, analysis, etc for use by traders of all levels of experience. This reliability of the platform and its influencers can be leveraged at all stages to develop trust and attraction among potential users. Twitter is also becoming a very popular channel for crypto marketers. Twitter has a simplicity that makes it much more targeted for crypto marketing. Having a dedicated Twitter support channel and using it to build a community of loyal users should also be helpful to build your user base. Other channels like Telegram and Whattsapp can also be effective in building up your user base.
Customer support helps to build credibility among the user community. Therefore any crypto exchange platform should build a robust customer support system that should comprise of channels like Whattsapp, Telegram, email and chat support.
The points that we have mentioned are some of the common factors that go in building an exchange. However, when creating your business and operational plan you need to create a detailed business and financial model that you help you launch a profitable and successful exchange.
If you are looking for a professionally written Crypto Currency Exchange Business plan drop in a line at info@intelligentq.co.in
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