A cryptocurrency is a digital currency that is secured with the help of complex encryption. As a result, it is nearly impossible to hack. Furthermore, it is a decentralized version of online currency exchange that removes any central authority like a bank or any kind of government interference.
As predicted by many trade analysts, cryptocurrencies will soon be primarily accepted and regulated in the economy. Knowing that many people are getting build cryptocurrency exchange websites, as that is a profitable business now.
Cryptocurrencies are considered the future of the world economy. Ever wondered why? The answer is straightforward— because this digital currency has the power to eliminate intermediaries. Which indeed can reduce the costs of businesses.
Interesting to know that owning a cryptocurrency exchange website is also a golden opportunity. But beware, building a cryptocurrency exchange website takes a lengthy procedure to follow since they have to create heavy cryptography to guarantee one hundred percent security.
Yet, they are worth making since they are on the rise. As also predicted by Bill Gates, the founder of Microsoft: the ‘Future of money is a digital currency. As simple as that.
Even government authorities all around the world are expected to adopt this blockchain technology soon. Because this new-age technology eliminates the need for dependency and creates separate databases, cryptocurrencies can quickly manage the cash flow in many developed countries like the USA.
So, what are your plans? Are you thinking about building a cryptocurrency exchange website too?
Well, this could be the perfect time to start! At least, all the latest news and trend records are saying the same. You, too, can build a cryptocurrency exchange website by following some steps.
If you are planning to build a cryptocurrency exchange website or even thinking of investing in a bitcoin exchange. A question to you all:
Did you know that Bitcoin wasn’t the first attempt at creating a blockchain technology-based crypto-currency?
Yes! The first time anyone thought of creating a cryptocurrency was as early as 20 years before the creation of bitcoin(as reported by Bitcoin Magazine).
An exciting incident led people to attempt such a thing. In the Netherlands, petrol stations used to suffer from nighttime thieving activities. People would steal money from the petrol pump money boxes. They lacked people to employ as guards. In attempts to save money, a group of individuals invented smart-card payment options. The cards were linked with money, and the drivers had to carry no more paper cash. So, long story short, this is where such digital currency technology started.
But what a significant length of time we have covered till now, haven’t we?
Anyways, coming to the present, currently, we not only have bitcoin exchange websites. But many other cryptocurrency exchange sites as well. And this market is going to thrive for a long time. So, without wasting any time, let’s jump into to creation process:
A Bitcoin exchange website or any other crypto exchange website has a similar website structure. At the same time, Bitcoin is the most popular and oldest form of cryptocurrency. In recent years, so many other cryptocurrencies have arrived in the market. And, many other cryptocurrency exchange websites are also built to regulate them in the online market. You can build your own cryptocurrency exchange website. Usually, cryptocurrency website creation is a tedious process.
Like any coin with two sides, a bitcoin exchange/ cryptocurrency exchange company could be lethal and highly risky if you don’t check the laws. Look over the country’s laws that you’re starting your website business from, and also the ones that you have business with.
The cryptocurrency market is hot and growing at double speed. So naturally, many companies are operating in the market. So, first of all, conduct rigorous market research. Dig out all information about your competitors.
Second of all, even after doing market research, do not fall for the same schemes. Right from Bitcoin to Ethereum, they provided better techniques and methods than their predecessors. That’s the reason they’re still in the market. The qualities could be of different sorts: transaction speed, quality of dashboard, finer UI (User Interface), more security measures and level of transparency, etc.
But if you are specifically wanting to own and run a Bitcoin exchange website, you can refer to this article: https://ideausher.com/blog/how-to-start-your-bitcoin-exchange-app-in-2021/
As we discussed above, as well, every country does not have the same set of laws. It should be an essential part of your strategy, especially if you are just laying the base. There are so many examples where people ended up in jail because of half-knowledge about laws. We don’t want to set another example of it. Any such website, be it a bitcoin exchange website or for any other cryptocurrency.
You ought to check the rules and regulations. You must first need to identify the areas where your business will operate. If you are making plans for the operator globally, you need to hire a professional lawyer. Meeting the requirements of all the local territories ( each country individually) would be expensive.
So, first, make a budget, then plan accordingly. Once the budget is fixed, find s suitable lawyer to commence the legal procedures. Check and recheck that you have acquired local licenses and other documents. Be aware of the changing rules and regulations. Keep yourself updated.
International exchange laws are extremely important to consider while deciding your TA (target audience). Once you have steered clear of the rules of your own country, consider the rules of foreign nations. If your target market is also overseas, decide and work according to the market you have to launch your exchange website. Find out the age group that invests maximum in cryptocurrencies. For instance, Bitcoin exchange websites supposedly have a larger demographic of between 25-35 age group. But, of course, this varies for each cryptocurrency and also the website.
Another vital step to take is to ensure security. Why are we pressuring on this again and again? Because there have been more than a dozen high-profile cryptocurrency exchange website hacks in the past. Bithumb is a South Korean crypto exchange that lost about 31.5 million dollars to a hacking attempt.
Maintain high speed for page loading and transactions happening on your website. People could get frustrated because of delays in any of the above two tasks. So, this is another criteria to pay attention to when you are creating your website.
Every potential customer would love the ease of access to your website on their phones as an application as well. Developing an exchange app could frantically surge up the number of searches on your website. Suppose you want to create a Bitcoin exchange app, as they are in trend. Do that as well. Still, keep the points mentioned above in mind.
Deciding on the information distribution channel for your website is yet another pivotal step. Because choosing the right communication type will attract the customers more. There are two channels — Synchronous and Asynchronous distributed systems; you can select the best one depending on the need of your website:
The best example of an asynchronous distribution method is providing a calling number 24*7. Another could be tracking the order option that is offered to you whenever you make an online purchase.
So, synchronous communication happens when you have devised specific technology like API, etc., to remain in contact with your customers in real-time.
Therefore, in the synchronous method, there is no gap between the data.
An easy example would be— connecting with your customers via email messages. Here the provider and the customer are both not expected to be in constant contact. As a result, there is a gap between message delivery and receiving time—each computer connected with the other processes the information independently.
You should study the methods, determine your need, and choose between synchronous, asynchronous distribution systems.
As Bitcoin is the most famous cryptocurrency, many people try to copy it. However, don’t forget that building a Bitcoin exchange website isn’t enough for your original cryptocurrency website. Except when you are going with the classic Bitcoin exchange website. Coding assembles all your ideas in one place. It holds them together. So, keep your mind open while selecting the software type for your website, as there are three broad types to choose from:
White label software is another popular choice. And that too for a very valid reason— they are pre-existing sets but can also be customized to suit your needs. This way, it takes less development time and can be modified a little.
However, not all white label software offers that much coding freedom. They use the SaaS service model and are generally used on a rent or subscription basis. They are considered much more secure than open-source software.
Open-source software is readily available on platforms such as GitHub etc. There is pre-prepared open source software for online cryptocurrency exchange websites. And in huge numbers for a Bitcoin exchange website. Until and unless you have a unique idea that needs all newly built software. Go with the pre-existing software. These are free of cost and also save a lot of development time. If you don’t want to utilize your money for the whole software development process, this is the most cost-efficient method.
It is a lengthy process. Nonetheless, if the idea requires all in-house software, then it must be done. For this, you have to conjure up a large development team. Also, this is the most expensive method out of the three. It takes almost a year-round to complete all the coding, testing, etc. This is, though, as much beneficial as costly.
As a result, a whole online cryptocurrency exchange website right from scratch will give you an upper hand. Moreover, you can take time to closely observe and improve the back-end and the front-end coding, etc.
Finding a bank or any other payment processor is not an easy task. Many banking institutions are skeptical of any cryptocurrency. Therefore, you need to start your payment processor-hunting a tad bit earlier.
Most importantly, do not open a personal bank account. That could get shut down immediately because the bit transactions require immediate transactions of high amounts. This will not work if you open a personal account with a bank. So, the frequency and speed of transactions are two essential factors to consider while choosing a bank.
So, choose the favorable bank or any other payment processing system like the cryptocurrency payment apps. If you are selling goods or services and want to use your cryptocurrency for that purpose, many such payment apps are available online.
Now that everything is set. The software has been developed. Launching a website should also be strategized. Prepare a well-set plan to promote and market your presence. Creating an inside network is the first step. Next, think of outside promotions. So many currently working online cryptocurrency exchange websites use digital marketing as the best source of attracting potential customers.
Promote the unique facilities and features of your website and create ‘hype’ around your brand. Start promoting your cryptocurrency exchange website on various online channels of communication. Create posts, write articles, blog posts, etc., to inform people about the launch of your website.
Cryptocurrency exchange websites have broadened the visibility of digital currency. It has also reduced online frauds by keeping a record of online transactions in a public ledger. The smart transaction blockchain keeps track of transactions. Therefore, the chances of creating a false identity to steal money are almost nil.
They need freedom in the economy to regulate the funds. But the central funding authorities like banks do not operate all the time. Neither their speed is as fast to match with these trades taking place.The main reason why cryptocurrency becomes a need of the hour is that businesses are growing worldwide. Click To Tweet Owning cryptocurrencies like Bitcoins would eliminate the need to deal with the central authorities for the movement of funds in the economy. However, there was still one issue remaining—
How to exchange different cryptocurrencies?
Each cryptocurrency had its own separate network. They can be sold and bought on those networks.
But what if you want to exchange one cryptocurrency with another or buy a combination of different cryptocurrencies?
That is where cryptocurrency exchange websites come into the picture. Cryptocurrency exchange websites use a Peer-to-Peer( also called P2P) network. Thus, cryptocurrency exchange websites are just a centralized system to compare and deal with different types of cryptocurrencies in one place.
Coinbase is considered one of the most popular cryptocurrency exchange websites. A few months ago, it went public. The valuation of Coinbase turned out to be 100 billion dollars. Coinbase has been around since the year 2012. It is liked and preferred by crypto investors because of its easy registration and fast-speed website interface.
The onboarding process is the easiest. And along with all these features, Coinbase also offers $5 on creating an account on its website. In addition, Coinbase also provides some excellent trading facilities on opening a Coinbase Pro account. Another noteworthy feature of Coinbase that the investors like is its wallet facility.
Wallets have become another brief topic because of their growing popularity. You can know more about it here: https://ideausher.com/blog/how-to-create-cryptocurrency-wallet-app/.
Moving further, Coinbase has a rich line of investment options with as many as 46 different types of cryptocurrencies to choose from.
Robinhood is an app that is more known for stock-trading. Robinhood entered the crypto market in the year 2018. As Robinhood has recently started the cryptocurrency exchange services, it merely offers seven cryptocurrency ranges. The usage is effortless; they have specially designed the app for mobile-first users.
The app assures 100% security, and for that, they also offer cold wallets (that means the users’ crypto funds are safely stored online. Through Robinhood has increased, it is still not as established as its competitors. It does not offer you the choice to select your wallet type or use your coins for making payments. It is still, in some sense— a trading app.
Robinhood could be a safe choice for beginners. Sure it does not offer you as many features. But, so is the risk factor reduced.
Who wouldn’t know the name of Binance? Within just three years, Binance has enjoyed highly favorable reviews. And the company also does not disappoint its customers. With a continuously rising list of crypto coins, this crypto exchange now owns the legal rights to distribute as many as 200 cryptocurrencies on its exchange website. The user page is straightforward. It can be accessed on basic and advanced accounts. Moreover, the registering fee is minimal.
Apart from its trusted name and security assurance, Kraken has one more unique feature to offer. It has as many as 56 crypto coins to offer. That means that any investor would have the maximum number of choices after making an account on Kraken.
Kraken is the perfect example of an in-house application. It offers basic facilities to the new investors. And a Pro account for those who like to take the stakes higher.
Gemini started in 2014 by only reckoning investors interested in buying and selling Bitcoins and Ethereum. But now, it has 26 cryptocurrency options for investors to invest in. As a result, the. The number of investors has considerably increased. Gemini is also now one of the rising crypto exchange websites.
In the beginning, the Bitcoin crypto exchange websites used this method. In this method, the investor has the option to get his/her cryptocurrency cashed out in physical currency ( as in euros, dollars, rupees, etc.). However, these kinds of exchanges aren’t prevalent either with the trader or the investors. Therefore, this has less scope for gaining high profit.
In this method, you can exchange one cryptocurrency for another according to the changing rates of exchange. Online exchanges offer the exchange of cryptocurrencies at specific rates other than the option of fiat money.
A private cloud system is the most preferred as the information saved is sensitive and confidential. Also, use advanced systems like digital signature, firewalls, antivirus software, MFA (multi-factor authentication), etc., to create a full-proof wall between the website and the hackers. These all built-in features are crucial to keep the network secure. Also, keep an entire developing team that is expert in building all security features.
Now that your crypto exchange website has been launched. What next? We can’t just wait for the investors to come running at the drop of a hat. You need to ensure growth by other means as well.
As we have already discussed above, security should always be the top priority. The reason being, that most investors look up your security levels before taking the plunge.
More so because once your cryptocurrency exchange website is built, hackers will try to hack your system one or the other time. So keep a strict eye, regulate and test the security units of your website from time to time.
The whole process of online currency is risky. Be it building and owning a bitcoin exchange website or any other cryptocurrency exchange website. The following two must be taken care of:
We have discussed this point a little too much. But the reinforcement and reminders are essential. Your whole business depends on the safety of your site. So, keep testing the codes, etc. to
This exchange platform is fully digital commerce and, therefore, has the highest possibility of scam occurrences. To make sure that every participant in the network is a genuine investor with no foul intentions,
KYC( Know Your Customer) is needed. The KYC details would include your local identity proof or passport proof if you deal with the overseas website.
Extreme buffering could cost your loyal customers their hard-earned money and, to you, their trust. So, always check the loading time it takes because just mere seconds and a lot can change that much time. The flailing rates of cryptocurrencies could change any minute. And the investors need the full advantage of a high-speed website.
The people engaged with your website would have some praises, remarks, or queries regarding your website. To tend to all of them, you must ensure a customer-friendly staff attending to all that these people need to confirm.
Listening to your customer’s requests and working on them would give you a large chunk of a trusted customer base.
Innovative ideas are scalable in the following areas:
The fend UI (user interface) should be designed so that the customer could effortlessly find all that he/she comes looking for. Mainly the rates of the cryptocurrencies, tabs allowing deposit of crypto or fiat money.
The electronic wallet options differ from site to site. E-wallets are provided to each user of the website. They are given this storing place to keep Bitcoins and all the other cryptocurrencies that they have bought. Many offers are also provided, and several firms also offer wallet updating services. You can know in detail about the wallet, how they are created and how it works; you can know it here.
It is a dashboard created to let the administration staff control and manage the transactions. It should have strong coding and proper functioning to maintain the transaction processing, create the needed liquidity, etc. The smooth functioning of the customer support system also depends on this dashboard.
The API(Application programming interfaces) are the pillars of the exchange website—any API providing the interfacing services. Thus, the users and developers can interact with the exchange website, know the trade updates, pull, and receive data in real-time.
Whether you want to own a Bitcoin exchange or another type of crypto exchange, it must have the best cloud services to keep the data safe and working. The cloud-hosting system is considered better than on-site hosting because setting up the whole infrastructure on the cloud system is much faster. For example, uploading the entire setup on hardware will take many weeks. But, on the other hand, doing the same on a cloud system will only take a couple of hours.
The Crypto industry is a developing one. The market trends keep shifting. So, owning a crypto exchange website is the same as going on a roller coaster ride— every turn has some surprises in store. Cloud services can be beneficial in this case. So, choose a provider that is always ready, and the system is adaptable to quick customizations.
Latency is the measure of time that any data or action takes to reach its final destination on the network. Low latency means higher speed and less time are taken. Opt for a network that has low latency and an efficient rate of transfer.
Any technological development that is good for the progress of your exchange should happen. While on-site hosting needs many expenses incurred for the changes, the cloud system manages it quickly. Therefore, choose the cloud services which provide freedom to make more technological changes without hindering the website work.
Building a cryptocurrency exchange website can take time. But that is an exciting journey. Collaborate with a trusted website building firm and get it done. Some qualities are to be checked when choosing the company to build a cryptocurrency exchange website.
First, check all their earlier projects and determine whether the websites have: high page loading speed, smooth API, attractive UI, upgraded technology stacks, and good coding practices. Then, review the company and its working, review Idea Usher’s portfolio of experience. And once the team is ready, the legal formalities are done, the company is prepared too, you are ready to run the website and steal the show!
The basic building costs are incurred on building a development team that will keep your website running. Make a whole team initially: project manager, platform developer, UI/UX designer, Customer Support, and UI developer. If the group is chosen carefully, you can cover the total costs by gaining as much profit back as you have invested.
Many times the transactions per second exceed the limit, and they line up. This will affect the performance of the website. To keep the speed of loading fast, keep regulating the block size according to the website traffic. In many ways, centralized blockchain improves the functioning of websites and is preferred more over the decentralized blockchain system.
The legal document requirement could change depending on the area of operation. However, commonly, the website’s licensing and the business areas required, tax regulation, etc. But, if the country considers cryptocurrency illegal, then you cannot run the business in that country, even if online. So, keep note of the changing rules regarding cryptocurrency in your country.
To create your cryptocurrency exchange website, you can follow all the above steps. According to that, review the company profile before choosing them for the project. In addition, you can check our stronghold on blockchain development technology, which is the foundation of any crypto exchange website.
Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.