How Can I Create My Own Cryptocurrency Exchange In 2020
In the world of digital marketing, cryptocurrencies play an important role. It is because of the technology of crypto coins that people are now able to trade online without the need for intermediaries. Some people foresee cryptos as the only currency in the mere future. With the increasing demand of cryptocurrencies, the demand for cryptocurrency exchanges is also increasing at an exponential rate. Hence, to lead in the digital market individuals are now focusing more on how to create my own cryptocurrency exchange. So, this blog is going to give you a lot of ideas regarding this.
Why Cryptocurrency Exchange Is Needed?
Since the invention of cryptocurrencies, they are witnessing a period of growth. People have started to consider cryptocurrencies as digital gold. Some even claim that this digital currency worth more than gold. Just like in previous years, the demand for cryptocurrency is increasing in 2020 as well. It is important to realize that cryptocurrencies require a platform to complete the process of trading digitally. Instead of looking for a crypto exchange developer, ways to create my cryptocurrency exchange is a better idea.
With the passage of time, the amount of crypto exchange developers in the market is increasing. People are developing their own exchanges to enable trading of different digital currencies. Developing a crypto exchange of your own is like creating a firm. The process is time taking. Moreover, the development of these resources requires a large number of resources. But once done it will be fruitful beyond imagination.
Every person has his own needs and benefits from certain exchanges. So is the case with cryptocurrency exchanges and this cryptocurrency exchange software. These exchanges are essential because they give a high performance of the trading, are stable and reliable and may help us gain more profit in future
I plan to create my own cryptocurrency exchange because I want my exchange to have all the features I require to generate good profit. If you are planning on doing the same, then keep reading the blog to know different ways to create your own cryptocurrency exchange.
How To Start A Cryptocurrency Exchange?
It is important to know what points are necessary to know before getting into the depth of how to create my own cryptocurrency exchange. This part of the blog is going to discuss the points of the things that are to be considered before setting up your own exchange.
Select The Type Of Future Platform:
The type of platform you choose for your exchange is going to determine the popularity of your exchange among users. If a platform is well known, then resultantly it will help in increasing traffic on the site and help in generating greater profits.
There are different sites to choose from as a platform for setting up your exchange. Some of them are:
• Decentralized Exchange
In such exchanges, the market does not depend on a third-party to keep the customer's funds. There is no central authority in decentralized exchanges. Mostly crypto exchange software help in developing such exchanges.
• Administrator-User Exchange
These exchanges are simple with a simple interface. These are mainly for those who are new to the crypto market and do not have much experience in the field. The exchange is directly between administrator and user. The greater the margin of exchange is, the more profit you will earn.
• Margin Trading Exchanges
These include no direct trading of cryptocurrency. Instead of these, the traders sell contracts. They help traders to access greater capital, allowing them to leverage their positions in the market.
• Peer To Peer Exchange
In such sites, the exchange is basically a link between the users. It is used for bidding between buyers and sellers. These two individuals interact directly with each other without the inclusion of the third party. The exchange fee is profit.
Fulfill The Legal Requirements:
To create my own cryptocurrency exchange, legal requirements are important. The legal requirements of every country are different. Fulfilling these legal requirements is not compulsory but is a plus point for your exchange. Some of the best countries under whose jurisdiction exchange platforms can be created are Mexico, Chile, Cayman Islands, Estonia, and Malta.
Build A Team:
It is impossible to start an exchange without a strong team. Hence, a good team is another requirement when finding ways to create my own cryptocurrency exchange. The team must include skilled people. Having a team does not mean to have a large number of people but few skilled members to build the exchange with proper planning and execution.
A team must consist of:
• A Developer
A skilled developer is essential to build an exchange. Hence, to run the exchange smoothly, the developers will help in making a high-quality platform engine.
• A Web Designer
It is important to realize that a web designer will design the exchange including the graphics and fonts. Hence, plays an important role in the team.
• A Manager
A manager is important to keep a check on the team. Additionally, he will manage the whole development process of your exchange.
• A Public Relation Officer
It is equally important to build good relations with companies in order to get important information, software or hardware. Therefore, a PRO will perform all the marketing and PR duties.
• A Support Manager
Someone who will manage all other duties like maintaining contacts, responding to support questions, etc.
Elements Of Cryptocurrency Exchange:
To build an exchange, you need to decide the type of framework of the crypto exchange. There are three basic types of structure:
These different modules can be independently created, modified, replaced or exchanged on separate servers. Hence, they have high speed.
They have all the features on a single server. Such systems have less efficiency. Thereby, they cannot handle a large number of users.
They are costly but best for large projects as well as have independent modules along with different sub-modules. One module can be located at several other servers at one single time.
Key Elements Of Cryptocurrency Exchange:
The key elements of the blog “how to create my own cryptocurrency exchange in 2020” are:
By all means trading engine is the main component of any Cryptocurrency Exchange. Cryptocurrency exchange software is used as a link between sellers and buyers. These exchanges are used to perform necessary functions. They assist in the maintenance of wallets, managing transactions, etc. In short, it runs the whole exchange. The trading engine is one important element in any exchange software. To run all the processes of the software like maintaining transactions, wallets, etc a strong trading engine is a must.
Another key point is the User Interface. The cryptocurrency user interface helps in attracting people to the exchange. Also, it is the first thing that a user looks at an exchange. Thus, the interface should be simple. As a result, it will help to gain the user's attention. It also will take less time to create orders.
The wallet is what runs the whole processing of exchange software. For this reason, without wallets, the exchange is impossible to run. This wallet is divided into two parts, the cryptocurrency, and the fiat. The wallet provides maximum options for input and output. Moreover, the wallet makes sure that the transactions are done on time. It also allows safe transactions without risks in this case. It is the wallets that measure the speed and quality of transactions. In fact, they manage the trading pairs. It is important to realize that the wallet should be in association with any bank. To deposit money in your bank, one can use Debit Cards or involve direct transfers.
Surprisingly, the essential feature of any exchange is liquidity. Liquidity consists of an order book that represents how famous a stock exchange is, be it traditional or modern. For this module, one can choose a liquidity provider to use bots within the exchange.
Proper Administration System:
A proper Administration System is another key point to keep in mind. This is the module that is built for the owner of the site and not the user. Frequently, some developers don’t take this seriously. This feature affects the speed of the exchange. Also, helps you to manage the entire system easily. Furthermore, it controls the transactions and withdrawal requests; it has databases to manage accounts and activity of the users. As a result, it controls the working of the whole exchange, sets up the wallets, and manages the whole accounting process.
Securing Your Exchange:
Dealing with huge amounts of money can be very challenging and in such cases, security measurements are of prime importance. Often online hackers and cyber-terrorists try to come up with ways through which they can break the security systems. A few of them are:
• Administration Panel’s Hacking
By hacking the administration panel the hacker gets full access to the system. To get rid of any security issues, a multi-factor authentication feature is the most suitable solution. To make your exchange more secure, you can add hot and cold storage wallets in your crypto exchange.
• Hacking Of A Specific User
Hacking into a specific user's account can't be as precarious as the hacking of the administration panel but if the hacker has information regarding the amount of money the target has, then this case is of great concern.
• Phishing - Social Engineering
Out of so many threats to exchange, one is social engineering. It is getting access to the personal information that you put online. If any site which is not real gets the access, your security can be at stake. Therefore, it is important to avoid giving you important information on any site. Know the site before giving information.
• Hacking Of The Server
A most beneficial method for hackers to gain access to a large amount of money is by hacking the server. Investing in a good provider like Amazon services can save you from this peril.
Once everything is done and your setup is ready, the final and the ultimate goal is to promote the site as much as you can. The best way to promote your exchange is to make a partnership with already famous companies. This way the news can spread all around the world as quickly as possible. You can even get ready-made crypto exchange software for the setup of the exchange. These come with white label solutions.
As cryptocurrency exchange and cryptocurrency exchange software’s demand is increasing day by day it is better to make your own cryptocurrency exchange rather than depending on other companies and people to help you with it. By following the steps given above, I could easily create my own cryptocurrency exchange and I believe so can you.