Analytics Insight seeks easy steps to build a cryptocurrency exchange platform in 2021.
It is expected that the global cryptocurrency, market size will experience a substantial growth to US$39.7 billion by 2025 with a CAGR of 67.3%. There is an immense increase in simplifying business processes for seamless transactions with valuable assets across the world. Thus, the integration of blockchain technology is the driving force of the cryptocurrency market. If anyone is interested in creating a cryptocurrency exchange platform for investors and companies, the person can easily build one without any hindrance. It is possible since there is no central authority controlling the cryptocurrency market and its procedures. That being said, the minimum cost of launching a cryptocurrency exchange platform is US$135,000. Let’s dig deep into some easy steps to build a cryptocurrency exchange platform for higher ROI in the nearby future.
It is essential to keep this in mind— there are two types of cryptocurrency exchanges known as a centralized cryptocurrency exchange, decentralized cryptocurrency exchange, and hybrid cryptocurrency exchange. The role of centralized cryptocurrency exchange is like a third-party between a seller and a buyer and approximately 99% of daily cryptocurrency transactions go through this centralized system. The decentralized cryptocurrency exchange enables investors or companies to exchange valuable assets through peer-to-peer transactions without any intervention from third-party agents. Currently, there a few top cryptocurrency exchange platforms available in the cryptocurrency market— Binance, Coinbase, FTX, Uniswap, TokenIon, Venus, and so on. Hybrid cryptocurrency exchange consists of a combination of all the benefits of both centralized and decentralized exchanges.
Easy steps to build a cryptocurrency exchange platform in 2021
Obtain legal counsel for registration
After making a final decision to build a cryptocurrency exchange platform, one is required to obtain legal counsel for a better understanding of the regulatory demands for proper registration and licensing. Licensing of the business is required in all target locations for proper operation under the government and regulatory bodies of that country. There are many foreign regulatory bodies such as SEC, CFTC, SEBI, FCA, etc. for different countries.
Design of the Platform
It is essential to design a cryptocurrency exchange platform with factors like wireframes and prototypes. Wireframes are needed to implement the key features of the platform and prototypes are required for detailed visualization of the user’s interaction with the platform. This also includes the client-side logic of all the website pages with the help of HTML, CSS, or other programming languages.
Make Plans for Future to Seek Funding
The cost of launching this new venture can be over US$135,000 including costs for technology, hosting, registration, counsel, promotion, and so on. One needs to obtain sufficient capital from funding to enable a proper runway otherwise it will incur a massive loss. One needs to make future plans in order to seek and attract investors for appropriate funding.
Seek a payment processor
One needs to go through extensive research before seeking a payment processor with a PCI-compliant to defend against cyberattacks. There are different transaction rates across the world and one is required to partner with an appropriate payment processor to be in the cut-throat competition.
API is not visible to end-users but it is essential for the server part to perform the application’s internal logic and manage functionalities efficiently such as user authentication and authorization, the server-side function of the admin panel, cryptocurrency bets, and user deals.
Integration of Blockchain Technology
It is essential for the founder to integrate blockchain technology into the cryptocurrency exchange platform for hi-tech cybersecurity and transparency concerns. The emergence of digital payments platforms has increased the hunger of cyber-criminals. The platform should be a safe base for all kinds of transactions with cryptocurrency through digital wallets. Blockchain technology provides utmost security and transparency by acting as a public ledger that can only show the detailed information of transactions to the involved parties and no third party can get access to confidential information.
Organize better customer support
Organizing better customer support is one of the crucial steps in building a successful cryptocurrency exchange platform. There should be a few dedicated employees to take care of the customer support after registering those customers with documents like KYC. These employees should focus on providing prompt solutions to customers’ inquiries efficiently and effectively without any hindrance. This will increase customer engagement and enhance brand loyalty in the cut-throat competitive market.
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