How to start a Crypto Margin Exchange

Cryptocurrency trading is attracting more individuals than ever as potential profits can exceed those of traditional financial instruments many times over. The trend is on course to continue as the industry evolves and margin trading makes its appearance in this exciting and lucrative sphere.

With clear evidence to support the massive growth in the crypto exchange business and some of the top crypto exchanges continuing to report millions of dollars in revenues, there is no better time than the present to capitalise on this upward trend and many have already done so.

This article focuses on cryptocurrency margin trading, one of the latest trends in the world of crypto. Margin trading, already popular in slower, less volatile markets such as Forex, is becoming very popular in the crypto market. With this new demand comes the requirement for the services of a crypto margin exchange.

The new opportunities presented by margin trading have led to many businesses looking to set up their own crypto margin exchange but in this kind of business, specific know-how and technology is required. Hence, two important aspects need to be considered. Finding the best margin exchange software and the internal architecture of your exchange to ensure that you arrive at the best solution.

How to Get Started

The two main options when it comes to acquiring exchange software are either building your exchange software in-house or purchasing white label software.

Developing your own software involves sourcing a dedicated team of developers to build your exchange. There are many factors that need to be considered, but most importantly, you need to estimate the costs and time associated with developing, maintaining, and continually upgrading the software in-house.

Due to its complex nature, developing exchange software from scratch can be very costly and can take around a year or two to complete. Taking into account the salary of your developers, their experience and the functionality you wish to incorporate into your exchange, this option can set you back around the $500,000 mark.

White Label Exchange

White label exchange software has already been thoroughly tested and proven to work. A big advantage of using a white label is that you save yourself the trouble of dealing with technical requirements, implementation and ongoing maintenance.

With a white label, you save yourself time as customisation takes a much shorter time, as well as a lot of money because you pay significantly less for a licence compared with developing it on your own.

A white label solution, or turnkey solution, is therefore ideal for companies lacking one of these key components like crypto liquidity or the trading engine which might not be feasible options. This route also has the added advantage of allowing companies to customise the software in accordance with individual specifications and to use their own branding.

Cryptocurrency Exchange Turnkey (B2Margin)

B2Broker offers an exceptional cryptocurrency exchange turnkey solution for margin trading which can be set up and operational within a month. B2Margin is a Margin Exchange trading platform with a wide range of functions that includes on-boarding, compliance, risk management, pricing and trading analytics.

Designed for both institutional and retail trading, it supports multiple asset classes, such as FX, CFD, stocks, commodities, funds and cryptocurrencies. B2Margin was developed to specifically cater for the needs of margin traders and to provide clients with the means to set up their own margin exchange. Benefits include integration flexibility, grouped trading instruments by classes, branded customisations, various leverage settings, flexible trading conditions and customisation, various denominations for accounts, secure wallets, watch list, customised price streams and more.

There are also a host of other benefits for clients opting for B2Broker’s Margin Exchange turnkey solution in that B2Broker is in a strong position as a liquidity provider, since it aggregates B2BX and some of the largest exchanges to maintain the liquidity of a few top cryptocurrencies in terms of market capitalisation. Furthermore, the turnkey solution integrates cryptocurrency payment gateway, B2BinPay, which supports unlimited blockchains and tokens such as ERC20, ERC223, and ERC777 standard Ethereum tokens, NEM and NEO based tokens and more.

Launch Your Crypto Margin Exchange

A growing list of companies have chosen B2Broker’s cryptocurrency exchange turnkey to provide a quick, cost-effective solution with a choice of personalised features all geared up towards creating a revenue-generating business. Click here to get started with launching your own Cryptocurrency Margin Exchange turnkey.