How to Start a Cryptocurrency Exchange
Cryptocurrency trading is attracting more individuals and companies than ever before as potential returns can exceed those of traditional financial instruments many times over. The trend is on course to continue as the industry evolves into this exciting and lucrative new sphere.
With clear evidence to support the massive growth in the crypto exchange business and some of the top bitcoin exchanges continuing to report millions of dollars in revenues, there is no better time than the present to capitalise on this upward trend.
If you are looking to set up your own exchange, there two important aspects that first need to be taken into account. Finding the best exchange software and the internal architecture of your exchange should both be considered to ensure you arrive at the best solution.
Where Do I Start?
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.
In general, exchange software should have a combination of components working together including the trading engine, user interface (UI), liquidity, the wallet and admin panel which should form the basis of your exchange.
A white label 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.
B2Broker Cryptocurrency Exchange Turnkey
B2Broker offers a variety of turnkey solutions for brokerage and exchange businesses allowing businesses to set up and operate their own cryptocurrency exchange within a month.
Some of the key services offered by B2Broker besides the white label platform itself are the legal framework, access to various platforms and access to liquidity. In addition, each part of the solution including the user interface is customisable so users can change colour, navigation and buttons, etc, making it an ideal solution for setting up a cryptocurrency exchange.
The key components that make up B2Broker Cryptocurrency Exchange turnkey include:
- Powerful Trading Engine B2Broker puts its experience of running its own successful B2BX exchange platform to use by providing B2Trader, a powerful trading engine as a part of its solution to clients. The platform guarantees optimal performance, supporting advanced types of orders while ensuring a faultless trading experience for a client’s user base. In addition, users also get to benefit from best in-class security features, protecting their transactions on the platform. Users on the platform can buy and sell cryptocurrencies, exchange fiat to crypto and vice versa and even trade between different cryptos.
- Web Wallet B2Broker’s web wallet offers a number of useful features including integration with ticket systems like ZenDesk & Teamwox, integration by API with any electronic wallets including Skrill, Neteller, PayPal, Yandex and more, integration by API with any PSP, integration with Bitcoin, Bitcoin Cash, Litecoin, NEM, Monero, Ripple, Dash, NEO, Ethereum, integration with any tokens based on Ethereum, NEM or NEO protocols, integration with any KYC API providers and a lot more.
- Cryptocurrency Payment Gateway The turnkey solution integrates a Cryptocurrency Payment Gateway which includes implementation of the full nodes for each blockchain. The respective nodes may be hosted on clients’ servers. Clients will also gain access to a detailed report of all transactions happening across the platform. B2Broker’s solution supports unlimited blockchains and tokens such as ERC20, ERC223, and ERC777 standard Ethereum tokens, NEM and NEO based tokens and more. In order to ensure the additional security of funds, the solution enables automatic transfer of customer funds from the hot wallet to cold wallets.
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.
B2Broker is an established cryptocurrency liquidity provider and provider of technology solutions for the crypto and foreign exchange (FX) industry specialising in the sphere of B2B services and products. It’s esteemed client list includes large licensed brokers, Crypto Exchanges, Crypto Brokers, Forex brokers, hedge funds, cryptocurrency hedge funds and professional managers.
Click here to get started with launching your own cryptocurrency exchange turnkey.