Starting Your Cryptocurrency Exchange Business

Posted by Manish Mishra on December 5th, 2019

How to Start a Bitcoin Exchange 

1. Obtain proper legal counselling. To ensure licensing requirements are met.
2. Attain funding for the startup.
3. Find a cryptocurrency exchange developmentcompany

4. Connect your exchange with others for added liquidity.
5. Partner with a payment processor.
6. Implement best security practices.
7. Go live via beta testing.
8. Start marketing & PR campaigns.
9. Offer customer support.
10. Maintain a legal team for ongoing compliance.

1. Obtain proper legal counseling. To ensure licensing requirements are met..

Cryptocurrency operators must be licensed Money Transmitter businesses and must follow SEC and CFTC rules and regulations among others. Proper legal counsel is a must. It is typical that exchanges, because they fall into the currency exchange umbrella, must adhere to Know Your Customer (KYC) regulations, which have become more and more prevalent to combat money laundering. .

2. Attain funding for the startup.

 Startups also often make the mistake of licensing from unscrupulous crypto exchange providers that charge ongoing fees and fail to mention the legal obligations and costs required for setting up and maintaining an exchange.

3. Find a technology solution provider.

 White label exchange software with full source code allows all the customization of a custom-build exchange while decreasing time to market and overall cost significantly.

4. Connect your exchange with others for added liquidity.

 The larger the network of exchanges, the less liquidity will be an issue for your new exchange.

5. Partner with a payment processor.

Be sure your payment processor is PCI-compliant to safeguard your new enterprise against cyber threats. .

6. Implement best security practices.

Cryptocurrencies have become a ripe target for cybercrime and hacking, leaving exchanges scrambling to differentiate based on security.

7. Go live via beta testing.

 Launch your exchange and test its full range of capabilities in beta.

8. Start a marketing  campaign.

Often, exchanges do not include a marketing budget, instead of focusing on free social media marketing until a critical mass of customers is reached.

9. Take care in providing customer support.

 With knowledgeable and helpful representatives who are available 24/7, since cryptocurrencies never stop trading.

10. Maintain a legal team for ongoing compliance.

 Cryptocurrency laws are rapidly evolving globally, so it is very important to either hire a full-time, in-house legal compliance team.