Blockchain technology made a significant impact across the internet. Many companies now work towards ways to integrate this technology into their operations. The technology first emerged in 2008 by an individual or group of people operating under Satoshi
Nakamoto. Blockchain led to the development of Bitcoin, and it is the world's first cryptocurrency. Following this creation, the technology can work for other industries too. One notable example of the effectiveness of blockchain technology is the cryptocurrency
exchange. Many businesses now want to launch their profitable crypto exchange and benefit from the technology's many uses.
This article teaches you how to launch a crypto exchange, the core features required for
the platform and the future of crypto exchanges.
Key features in a profitable crypto exchange
The right approach can result in a highly profitable crypto exchange platform. There are various platforms available online, but the resources they provide is up for debate. The more the market develops, the more it improves its relationship with users.
This development leads to the platform providing more benefits for the users.
Hence, creating a robust cryptocurrency trading platform is a great idea. Let us now take a look at the essential services required to build the app.
This feature is the first thing a user sees when they load up the app or head to the website. There should be a focus on simplicity here. Firstly, make the registration process simple and hassle-free. Include a two-factor authentication protocol and provide
additional security for the users. Though many sites do not have a 2FA protocol, you should consider one as it deters any hacking attempts or other manipulations to the platform.
One of the many reasons users trust the crypto exchange market is that every user undergoes a thorough verification process. The verification process they go through can vary and provide these users with additional responsibilities. For example, verified
users have a significantly higher withdrawal limit than non-verified users. Also, the verification feature increases trading transparency on the site and reduces the chances of a scam.
This feature allows the users to deposit money into their internal wallets. Additionally, they can withdraw money from the wallet into their account. The site can set the withdrawal limit for the users.
Any profitable crypto exchange should allow users to buy and sell cryptocurrency to other users. Trades occurring on the platform must happen rapidly and without any errors. The system must have several possibilities for order creation. These features allow
the user to decide which one is convenient for them at the time.
This feature provides users with various graphs and stats and helps them understand the market trends.
The admin panel enables the exchange owner to monitor trade and manage actions made on the exchange.
These are the significant features required to launch a crypto exchange. There are several additional features you can add down the line and improve the quality of life. However, these features provide the building blocks upon which the rest of the platform
Steps to building a profitable crypto exchange
It should not surprise anyone to know that cryptocurrency exchange development is on the rise. More companies see the benefits of the platform and want to profit from this technology. The process of developing this platform comprises several aspects or steps.
cryptocurrency exchange platform undergoes the following development process.
Step 1- Research the Competition
The cryptocurrency market is hot, and every day, there is a new development taking place. Naturally, companies are flocking to this space and establishing themselves as the best. First, conduct market research and dig out the information about your competitors.
See what they provide and consider if you can do better. Else, consider introducing a feature no one thought of and improve your visibility.
Step 2- Decide Operational Limits
Crypto is a relatively new technology, and not every country is open to accepting it. Though there are few laws around cryptocurrency, there are several laws relating to exchange software. It is essential to check the rules and regulations for the areas
where your business will operate. If you plan to work globally, then it is critical to contact a lawyer. The lawyer ensures you meet the requirements of every local territory.
Ensure to regularly update your licenses, legal documents and be aware of any changes to existing laws.
Step 3- Define your Target Audience
Study, analyze and ensure your exchange complies with existing international exchange laws. These laws are crucial when you decide the platform's target audience. Please find out the age group that invests in cryptocurrencies and learn about their preferences.
For example, Bitcoin exchange websites are said to have a target audience from 25 to 35. Each website has a different target audience, and it is beneficial for you to find your audience during this stage.
Step 4- Coding Process
This phase assembles your ideas into a single place. IT holds everything together, so keep that in mind when developing the software for the website. You can create the site based on white label software, open-source software or build the software in-house.
Also, take time to ensure the front-end and back-end processes for the site operate as intended. That way, users will not encounter any bugs or glitches when they use the site.
Step 5- Marketing Plan
Launching the website is a strategic process. Think of and consider a carefully constructed plan to promote and market the site's presence. Having an inside network in various forums and social media platforms is a beneficial move. Many existing cryptocurrency
exchanges use digital marketing as a means to attract a broader audience. Digital marketing gives you access to a broader audience and has more significant benefits than traditional marketing.
Promote the unique facilities and features your platform provides and generate hype around the brand. Now is the time to start promoting the profitable crypto exchange on several online channels and platforms. Here, you can create blogs, write articles,
generate posts, etc. and inform the audience about your upcoming launch. Higher visibility leads to a greater audience coming to the site.
The popularity of crypto exchanges, their features, and their decentralized nature means that more people will learn about these systems. Digital currency exchange is an opportunity for people to know the market and people with a solid grasp of the industry.
Creating a profitable crypto exchange can bring you lots of profit in a short time.