How to Build Cryptocurrency Exchange: Useful Tips
How to build cryptocurrency exchange: useful tips
The crypto market undergoes unbelievable growth, despite its recent downs; this is why the sector is still open for new businesses. As for crypto exchanges, the competition level is extremely high, and newer players should take a string of useful tips into account to avoid losses. According to Coinmarketcap, the total number of launched crypto trading platforms (exchanges) is close to 400, and many new attempts have failed due to inappropriate market analysis.
Legal issues: why is it important to correspond with the regulation?
A crypto exchange includes many other important aspects from the viewpoint of its functionality and services but experts recommend newer players to start with legal issues. Why is such an aspect of much account?
The crypto market is on the threshold of a new era, moving from an uncertain industry with a blurred future to the class of assets that are officially adopted in the vast majority of countries. Such a tendency attracts more users to join the trend. For instance, within the last year, the number of blockchain wallet holders has increased from 50.8 million to 74.2 million.
Meanwhile, newcomers prefer to get some proof that their rights are protected enough. Obtain a crypto exchange license to convince newer players your platform acts in full compliance with legal norms and standards. Furthermore, get licenses in jurisdictions appreciated the most among the crypto community (Estonia, Japan, Malta, the UK, the USA, etc.).
Available crypto pairs: does the more mean the best?
Crypto exchanges are trading platforms where users may sell one crypto asset for another, and the number of listed digital assets can be among the crucial factors.
Take the two important factors into account: the number of markets and the number of listed coins available for trading. For instance, when an exchange has listed 5 cryptocurrencies (BTC, ETH, XRP, LTC, and EOS), the maximum possible number of markets is 10.
If we glance over the ranking of crypto exchanges, the highest number of markets and coins is not interconnected with trading volumes. For instance, the exchange AEX with 119 listed coins and 221 markets occupies the 302nd position. The experts recommend business owners list liquid assets only, protecting traders and investors from scam projects. When a cryptocurrency’s liquidity is low (e.g., PTI), don’t carry risks.
Security measures: mandatory and optional features
While talking about finances, security is among the most important criteria. Newer players dive deeper into the security measures an exchange provides for traders and investors.
Such measures are categorized into two key groups:
Mandatory security options. A crypto currency exchange license empowers users with a set of rights; meanwhile, exchanges should convince holders their funds are protected from hacker attacks. Cold storage for traders’ crypto funds is the best solution.
- Optional security features. Reliable crypto exchanges enable users to activate two-factor authentication. Furthermore, holders may create a list of white addresses allowed to transfer crypto funds.
The more security measures are implemented, the better, especially from the viewpoint of newer traders who are somehow afraid of this innovative market.
The best way to launch a crypto trading platform
When a business owner is going to conquer the crypto market, he (she) needs to resolve a dilemma: either to complete every step on their own or to get turnkey solutions. B2Broker is a company that knows how to build cryptocurrency exchange that will catch crowds of traders and investors. Professional experts take into account the smallest important details to offer you a platform ready for bringing profit.
What’s even more important: B2Broker specialists are ready to discuss every step, sharing the outcomes of long-term experience and innovative solutions.