How to Start Bitcoin Exchange? - Complete Guide
The world of bitcoin is on boom now. The popularity and usage of bitcoins made a massive impact on the crypto marketplace. If you aren’t aware of bitcoin, then let us have a quick overview. Bitcoin is the first cryptocurrency in this digital era and discovered using blockchain technology. Also, it is one of the most prominent digital currencies in all the trading platforms.
In this current time, many people prefer bitcoin trading because of its beneficial factors. Thus many startups & entrepreneurs showing their interest to start a bitcoin exchange. If you are planning to kick-start your Bitcoin trading business. Then this guide can assist you with the work done as well as a roadway for how to start up a bitcoin exchange easily. If you aren’t aware of bitcoin exchange too, then let us begin this guide with…
What is a Bitcoin Exchange?
A bitcoin exchange is a digital trading platform for buying, selling, and trading bitcoins using fiat currencies or other cryptocurrencies. It acts as an intermediary for the persons who are willing to buy or sell the bitcoins. A bitcoin exchange works like a brokerage. So here you can deposit money through bank transfer, wire, and other common means of deposit.
The bitcoin exchange simplifies your process of purchasing bitcoins through a bank account. As of now, many bitcoin exchanges accept credit/debit cards. So you can purchase bitcoins through credit/debit cards. Here, you can buy bitcoins according to the market rate. Presently, there are some prominent bitcoin exchanges with millions of active users. Such as binance, Coinbase, LocalBitcoins.com, remitano, and paxful. Also, people prefer different types of bitcoin exchanges to purchase bitcoins. Different types of bitcoin exchanges are listed below.
By starting a bitcoin exchange, as an exchange owner, you can earn profitable money in many ways. Like deposit fee, transaction fee, withdrawal fees, and much more. Thus, just by collecting fees, you can earn an enormous amount of profits. So many startups and entrepreneurs are emerging to build a bitcoin exchange.
How to Start up a Bitcoin Exchange website?
If you have the interest or idea to start a bitcoin exchange website. Then there are some essential factors to consider before leaping into the bitcoin exchange business. Here we list some easy steps to follow which guide you to launch a unique bitcoin exchange website.
1) Do Market Research
When you have an idea to start your bitcoin exchange business, then the first thing you need to do is market research. You need to clearly understand how bitcoin impacted the market. Also, you need to analyze the functionalities and the types of tradings that take place in the bitcoin exchange website. Then examine the price fluctuations of bitcoin in the crypto market. Then you need to research the current trend and existing bitcoin exchange services. For some economical reasons, the price of the bitcoin might vary daily. So you need to make the final decision, whether this would be the right time to get into the bitcoin exchange industry.
2) Check out the Jurisdictions
The concept of bitcoin is still not reached to many people and even many aren’t aware of bitcoins. So many governments started to learn more about bitcoins. Also, they are formulating laws to regulate bitcoin. Even though some governments are welcoming bitcoin but others are unfriendly to bitcoins. Understanding the regulations of the country where you plan to create a bitcoin exchange is essential. If you are Failed to comply with these regulations. It might put you in trouble. Thus, make sure to know government policy and regulations before leaping into a bitcoin exchange business.
3) Choose the Location that you are planning to Launch
Identify the location that you are planning to build a bitcoin exchange website. Some major countries like Russia, Bolivia, Algeria, Ecuador, and Macedonia are saying “No” to bitcoin. But some countries are allowing people to trade bitcoins and to create a bitcoin exchange platform. Those bitcoin-friendly countries are mentioned below.
Thus, choose the right location for starting the bitcoin exchange business.
4) Select the type of Bitcoin Exchange
Selecting the type of bitcoin exchange that you want to launch is essential. To make this decision, it is crucial to understand the different types of bitcoin exchanges in the marketplace. Such as
5) Design the Architecture of your Bitcoin exchange website
After choosing the type of exchange, you must design the architecture of your bitcoin exchange. So you must enable four essential components to design an effective architecture.
a) Trade engine
it is the center of any bitcoin exchange. It performs transactions and calculates balances. Also, it has access to order books and to buy/sell orders. So, the trade engine is an essential component of bitcoin exchange software.
b) Bitcoin Wallet
A bitcoin wallet is mostly used to store, receive, and transfer bitcoins and it should be the most secured. Implement hot or cold storage systems to reduce the risk of scams and hacking. In the hot wallet, the user can instantly withdraw bitcoins without the approval of the exchange owner. So it enables real-time transactions in the bitcoin exchange business. Cold storage wallet is completely offline storage. It is advisable to use a cold storage wallet since it is not vulnerable to cyberattacks.
c) Admin Control Panel
It is a type of control center where the admin controls and manages the bitcoin exchange. All the orders, alterations, and other management activities are done in this panel. It includes various tasks such as managing bitcoins, trading fees, customer support, approving user accounts, and much more.
d) User Interface (UI/IX)
The user interface is one of the essential parts of the bitcoin exchange website. So it must be user-friendly because it helps to provide an amazing trading experience to your users. Ensure that the user-interface is compatible with smartphones, iPad, and tablets. Also, you can improve trading engagements by developing bitcoin trading apps. So it would make the accessibility of bitcoin easier. To satisfy the user, it should enable
6) Choose the way to create a Bitcoin exchange website
I hope you have understood the architecture of the bitcoin exchange. Now, we are looking at the three ways of developing a bitcoin exchange. The choice of a bitcoin exchange is based on compatibility, security, cost of development, customization, and time taken to complete. Below are the ways to create a bitcoin exchange.
a)Develop from scratch
Building a bitcoin exchange platform from scratch is time-consuming and cost-effective. You can hire a team of ambitious developers who are well-experienced in bitcoin exchange, blockchain technology, and digital currencies. Then determine the programming languages to be used based on factors. Such as security, scalability, maintenance, and community support. It is essential to determine the cost and the time that is related to developing, maintaining, and upgrading the exchange. In general, building a bitcoin exchange from scratch is considerably expensive and time-consuming. Also, it takes a vast amount of time to complete the test and debug.
b) Free open source exchange platform
There are many open-source bitcoin exchange platforms available in the market. But it is a kind of risk task. Because there are lots of possibilities in bugs, hack attempts, and malicious lines of codes. It might debit your funds and bitcoins without your notice. Although it is open-source & free, you need to set some budget for its implementation and customization. Thus, hiring a well-experienced developer from the bitcoin trading software development company will be a good idea.
It is a kind of pre-fabricated software that has been possibly well tested and has all functionalities of the exchange. It allows you to make customization and modification based on your business requirements. Such as brand logo, design, themes, fiat currency, languages, charting, and many more. It eliminates the need for dealing with developers and technical requirements. Bitcoin exchange software is feature-packed with all the essential components. Such as trade engine, user interface, bitcoin wallet, and admin control panel. It may cost more or less depending on your business needs. but definitely, it is fast, secure and 100% customizable.
From these three ways, choosing the bitcoin exchange software will be the best option. If you have chosen the software or from scratch, then you need to…
7) Find the Best Bitcoin Exchange software Development company
It is one of the essential factors for your question of how to start a bitcoin exchange?. There are several bitcoin exchange software development companies across the world. But the crucial thing is to identify the best bitcoin exchange development company. Thus, identify the development company that is ideal for delivering the best bitcoin exchange software. Build your bitcoin exchange website with desirable expertise that will leverage impeccable results. So choose the best bitcoin exchange development company to start a bitcoin exchange business.
8) Funding the venture
After choosing the best bitcoin exchange software development company, you must have a good amount of money for certain factors. Like to start, promote, integrate advanced features, and maintain your bitcoin exchange. Thus, you must have enough funds to allocate towards different aspects. Be aware of fees charged by some illiterate bitcoin exchange development companies for licensing. Because they will fail to mention the legal requirements for setting up and maintaining an exchange.
9) Integrate Peculiar Features
If you have potential funds, then you can incorporate peculiar features in your bitcoin exchange. Because features play a vital role to launch a successful bitcoin exchange website. Also, it grabs many bitcoin users from various countries and helps to increase the user base. Here we list some ideal features that you must integrate into your bitcoin exchange website.
10) Implement High-end Security mechanisms
Currently, bitcoin is the target for cyber-attackers and other anonymous hackers. Due to improper security mechanisms, many prominent bitcoin exchanges lost their funds. So, here we list some tightened security features that you must enable in your bitcoin exchange platform.
By conjoining these protective features, you can eliminate cyberattacks and other fraudulent activities.
11) Deployment
In this deployment stage, you will get a ready to go live bitcoin exchange website. Once your exchange gets deployed with the help of the best bitcoin exchange development company, start marketing your exchange.
12) Customer support Channel
It is the final and most important step in the bitcoin exchange development process. The success of the bitcoin exchange business is based on user satisfaction. Thus provide 24/7 customer support to your exchange users. Have an expert team to instantly resolve any issues that your users may have. Also, it will help you in building trust among your potential users and they recommend your exchange to other bitcoin users. As a result, you can earn a lucrative income within a short time.
These are the essential stages involved to build a top-notch bitcoin exchange website without any hassle. So all you need to do is, connect with the best bitcoin exchange software development company in the industry. One such best development company is Zab Technologies.
Why Choose Zab Technologies for Bitcoin Exchange Software Development?
Will you say no, to a bitcoin exchange development company that develops an efficient bitcoin exchange software with peculiar features apart from the basic features. No, right?. One such reputed bitcoin exchange software development company is Zab Technologies.
Zab technologies – leading bitcoin exchange software development company in the industry. We have hands-on experience for years and 60+ happy clients from various countries across the globe. We have efficient and experienced developer experts in the field of cryptocurrency and blockchain. We assist you in all types of bitcoin exchange developments by integrating high-end security features at an affordable cost.
If you still have queries on How to start a bitcoin exchange?. Then you can contact us now!!
I have started my career with Search Engine Optimisation and slowly concentrated on creative part as well. Now I'm working with a leading Blockchain Development Company in India - Zab Technologies
