How to Start a Bitcoin Exchange Business
Start Your Bitcoin Exchange
Now that you have seen the simple steps necessary to start your own bitcoin exchange, let’s read them in more details.
1. Have a proper legal counsel to establish licensing requirements
Before you set up your business plan into action, it is important to seek legal counsel to understand the regulative demands of your new business project. Proper licensing will require to be accessed in all authority in which the company plans to operate. So Proper legal counsel is a must and it is typical that exchanges because they fall into the digital exchange world, must follow to Know Your Customer (KYC) regulations, which have become most prevalent to action money laundering.
2. Obtain funding for the venture
Before starting on your project, you should know the approximate costs involved. In order to develop and launch a bitcoin exchange and it includes the cost of technology, hosting, some initial legal service, government registration and initial marketing. While all funds are not required up front, it is most important to assure the enterprise has access to enough capital to allow a proper runway.
3. Find the latest technology solution provider
Pulsehyip provides development components and resources for custom exchanges, charging a one-time license fee without royalties or commission structures. We provide White label exchange software is software that has already been thoroughly tested and proven to work (particularly the cryptocurrency trade engine!),at the same time allowing you to customize and modify the software to match your individual business requirements (e.g. layout designs, brand placement, Various languages, digital /fiat currencies, charting etc.)
4. Connect your bitcoin exchange with others for added liquidity
The keystone of any successful bitcoin exchange is liquidity. Without an order book and trading activity, potential and valuable customers will look your new startup with lots of doubts. In order to ignore these problems, without facing the need to the fake activity via duplicate accounts within the new bitcoin exchange, we can connect your bitcoin exchange into a network of current exchanges, add to its liquidity.
5. Obtain Partner with a Payment Processor
Every payment processors are not equal. Fee structures, among other things, will differ widely between companies. You will require the lowest transaction fee in order to be competitive with other exchanges platform. Additionally, some payment processor builds hidden and extra fees into their contracts, so be sure you understand the contracts you’re signing.
6. Implement High-end security practices
Exchanges built with the latest technology are among the most secure in the world, using offline storage wallets, two key factor verification, and encrypted databases. Also, our high-end technology, secure your exchange business from hackers and protect your business at any time & anywhere.
7. Go live via beta testing
You have built your bitcoin exchange. You have created a contract with a payment processing business industry. And, you’ve assured your exchange is following all rules and regulations and you have ensured that your company is protected from cyber. Now, it’s time it to launch your bitcoin exchange and test its full wide range of efficiency in the beta site.
8. Implement marketing Plans & PR campaigns
Once your bitcoin exchange business has launched, it is time to connect with crypto news channels like social media & PR Campaigns because it will help to spread your business to your target audience. To implement new business plans & attract your target audience from various platforms.
9. Provide Customer Service & Support
While customer support is the final step in the making of a successful bitcoin exchange, your ability to shine in this area will define your long-term business success. Those dealing with users must be aware of and satisfactorily resolve user complaints and technical issues. Customers should be responded to in a timely manner on daily basis so plan on executing a ticketing system or team it with knowledgeable and helpful representatives who are available 24/7, as bitcoins never stop trading.
10. Maintain a legal team for ongoing & future compliance
It is extremely important to maintain legal compliance and follow all current and proposed law rules not only in the authority in which your exchange resides but also in all foreign authorities in which your exchange users or traders will be domiciled or conduct trading from. Cryptocurrency laws are rapidly evolving all over the world, so it is very important to either hire a full-time legal compliance team to well-known law firms in order to keep your exchange legal in all records where you will handling business.
That’s it. This is our beginner’s step-by-step guide on “how to start your own bitcoin exchange”.
We hope that this article has clarified your doubts and will help you better understand the structure behind a bitcoin exchange.
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