10 Tested Tips to Launch Your Own Bitcoin Exchange Business
The latest version of technology, in form of bitcoin and other cryptocurrencies, are literally trending. Those who dared to invest into it at the initial stages, are now enjoying their fortunes. In fact, more than directly investing into bitcoin, a far safer and smarter way to secure one’s profit is by launching your own, local bitcoin exchange.
If you’re wondering how to start a bitcoin exchange business, just read on. The following paragraphs will discuss hands-on tips on launching your own bitcoin exchange platform.
The entire task involving can be summed up in the following points:
- Secure the necessary legal clearance from the relevant government authorities.
- Generate funds.
- Hire a competent technology solution-provider.
- Get your exchange connected to others to facilitate greater liquidity.
- Get into partnership with a reliable payment processor.
- Implement the best security measures for safe and secured transactions.
- Go live through beta testing.
- Roll out both marketing and PR campaign.
- Provide extensive customer support.
- Maintain a dedicated legal team to sort out compliances.
Now, let’s get into the details of each task mentioned above.
- Securing the necessary legal clearance: There are many regulatory guidelines involved in this business. You need to secure proper licensing, stick to KYC (Know Your Customer) regulations and take care of many such aspects, if you don’t want to brush up with the legal authorities. To be on the safer side, hire a legal team or legal experts, who possess in-depth knowledge in this particular domain.
- Generate the sufficient funding: Before starting your bitcoin exchange development project, you should have a clear idea about the costing. You’ve to invest heavily on technology, secure licensing fee, hosting and advertising. However, you won’t need the entire fund upfront, but there has to be smooth flow of money whenever necessary. Set aside substantial amount of money to ensure smooth cash flow in the business. Avoid shady crypto exchange providers, who eventually try to run your business to ruins.
- Team up with a competent technology solution-provider: It is utmost important to work with a reliable and competent technology solutions-provider. How would you know about the reliability quotient of such service providers? Induji Technologies Private Limited offers custom turnkey exchanges in its role as bitcoin trading platform software development platform. This means, the company charges no ongoing fees. Moreover, here the clients are allowed to host the exchange on their own and have access to the full source code. This helps easier auditing. You should hire a technology provider that has substantial experience in handling such real-life projects.
- Connect with other exchanges to facilitate greater liquidity: The success of any bitcoin exchange is dependent on its liquidity. In absence of any order book or trading activity, your targeted customers are likely to consider your business venture as con. Thus, to boost credibility, get connected to the network of other exchanges. The larger the network of exchanges you can tap into, the better business prospect you’ll enjoy.
- Get into partnership with a payment processor: To run your business successfully, you need the lowest rate of transaction to compete with the other exchanges. Beware, some processors charge hidden fees and you need to understand the contract clearly before signing.
- Rely on the best security measures: Exchanges built by Induji Technologies Pvt Ltd are unquestionably secure; they use offline cold storage wallets, encrypted databases and dual-factor authentication. Moreover, they store only hashes and no password. Thus, cyber criminals find it difficult to break through such exchanges.
- Go live through beta testing: After all the spadework is done, launch the site and parallely test its capabilities using beta testing.
- Launching PR and marketing campaigns: Work on clear-cut marketing and PR plans. You may use the free social media platforms initially and then, after achieving a certain level of success, invest into hardcore marketing effort to boost business.
- Focus on customer support: You ask any cryptocurrency development services and they’ll tell you how crucial it is to focus on customer support to achieve success in this business. Get a dedicated team, who will eagerly provide all kinds of necessary support 24x7. Moreover, customer queries must be replied in a timely manner.
- Legal team for handling compliances and settling disputes: Apart from maintaining legal compliance, a dedicated legal team will help you settling disputes. Make sure, the team is competent in handling cases from foreign jurisdictions as well.
Follow these tips and drive your bitcoin exchange to towering heights of success.