In this blog, we will understand how to make a bitcoin exchange marketplace.
With the growing popularity of Bitcoin and cryptocurrencies and companies like Tesla investing in them, the general public has piqued interest. It was already a gold mine for the tech-savvy lot. But, the new thoughts and plans to integrate the currency into daily lives have birthed a new industry.
Now, more than ever, it is becoming an entrepreneurial venture. Many investors are flocking and looking at ways to build their own Bitcoin Exchange Marketplace. Everyone wants to have a share of the revenue this industry is generating. To know how you can build your exchange, read further and know more. By the end of this read, you will learn how to build a cryptocurrency exchange website.
A bitcoin exchange marketplace is a digital platform for users to buy and sell Bitcoin in exchange for fiat currencies or altcoins. It acts as an intermediary between traders, like a brokerage, where you can buy a cryptocurrency via bank transfers or other means of deposit. There are transactional fees for that exchange (more on that later). Like at the brokerage, the Buyer places an order for the cryptocurrency with a market order to trade the coins for the best available price. Or the trader can set a limit order to change currencies under the current ask or over the presented bid.
To transact and trade, the user must register and go through a verification process to trade on the exchange. Once the customer is verified, they can maintain a wallet and store funds before trading on the exchange.
Trading and transacting money at a bitcoin exchange comes with a price. It depends on a users’ choice of payment gateway. The fee is higher where there is a risk of chargeback, like with PayPal and credit card. Apart from transaction fees and fund transfer fees, there can be a currency conversion fee depending on the currencies accepted by your exchange.
A wallet lets a user send or receive the bitcoin without national barriers. There are various types of wallet options. Though it may suggest that your wallet stores the bitcoin, it’s far from true. Blockchain stores the coins. It is a universal ledger distributed across the entire network of computers using said technology. It records the information in a way that makes it infeasible to change or hack. Your wallet essentially has a private key, a secret number identifying the wallet’s address, which facilitates the selling and being of the cryptocurrency.
A Seller and Buyer need to match before a transaction can be successful. The order gets fulfilled when a seller receives an asking price, and a buyer has set the same limit price he is willing to offer to buy a coin.
Mining is like a cryptocurrency creation platform, which helps new bitcoin enter into circulation. It is also crucial for the maintenance of the global blockchain ledger. High and sophisticated computing power to solve mathematical problems to verify blockchain transactions is important. Whoever mines it first gets a reward in the form of the bitcoin. Miners do it to own a share of currency without having to put any money down for it.
Deciding where you would want to do your business, whether operate globally or limit yourself to a region, is essential. The location lets you sort the legal requirement of licensing and regulations.
Once the location to do the business is sorted, you comply with the rules and regulations of that region. Most governments make KYC (Know Your Customer) a critical requisite. Ensuring that you incorporate an efficient verification process into your exchange is vital and will keep you out of trouble in the long run.
For the successful trading and buying of cryptocurrency, you need customers to exchange them for fiat currencies. To establish a channel for that, you need to partner with a bank that hosts the online facilities well. No one wants to trade money where the server causes more frustration than excitement for trade. Partnering with a bank that can provide the most service to facilitate a smooth exchange will establish the success of your exchange.
It’s challenging for new users to trust new platforms when there are not many clients and exchanges to show their reliability. Stimulating trading activity with artificial or acquaintance accounts within your exchange can help the flow of liquidity and instill trust in new users.
Security of transactions to ensure the safety of your client’s funds is a top priority. The trading system must verify all accounts with customers’ personal and bank data to avoid breaches. Establishing a customer support channel to verify clients and maintain the smooth running of your exchange is what can cause revenue for you.
A developer, also known as a software architect, is responsible for creating the code to develop the application to aid the customer. The developer evaluates the interaction of the user with the software and ensures a smoothly navigating platform.
UI and UX stand for “user Interface” and “User Experience” distinctively. These designers are responsible for users’ interaction with the machine and software. UI designer creates the interface which lets you navigate through an app or a website. In comparison, the User experience designer holds the responsibility for making that experience as smooth as it can be. Adobe takes a deeper dive into the need for UI/UX designers on your team.
A website, software, or app is up and running, but how to make sure that it works as intended? A tester ascertains and evaluates the smooth functioning of a software application. The tester tries to engage as much software functionality as possible to achieve satisfaction. They are primarily testing the parts and navigating the areas that users would interact with the most.
Overlooking, planning, and organizing a project is vital to reach the desired outcome, as is working on the project. The project manager is responsible for planning as well as monitoring and controlling the project. Estimating the cost, the time to complete, and the effort required for a project relies on the manager. Manager’s efficiencies reflect in invisible duties as nudging the team forward to more apparent responsibilities of presentations to customers. A project manager on a team can lead to significant success.
IdeaUsher houses a team of all these professionals to transform your dream to build a cryptocurrency exchange website into a stark reality.
Linkedin marks the cost to develop your cryptocurrency exchange in the range of $50K to $500K, which includes the fee of legal counsel, hosting, and registration. Some vital expenditures constitute licensing, building a network with various exchanges, and partnering with payment processing services.
IdeaUsher has a range of lucrative custom and economical packages that gives you a bang for your buck. Reach out for a quote.
You can create a bitcoin exchange application keeping in mind the requisites and essentials mentioned above. There is a variety of bitcoin open-source exchange toolkits to help you get started. However, given the complexity of the process with more facets than just technology, it is always best to seek professional help. We hope you understand from this blog how to make a bitcoin exchange marketplace.
Especially if you plan to take a deeper venture into this new gold rush, the proper planning and assistance can take you places.
Yes. Idea Usher team can help you with custom development.
A few examples are Polkadot and Uniswap.
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.