Gone are the days when cryptocurrency and cryptocurrency trading was considered to be an exotic phenomenon. Even the most conservative governments and regulatory bodies are beginning to perceive that Bitcoin and its descendants will impact the future economy in some way or another. Even the laws concerning blockchain technology and crypto business plan are shrinking and enabling more freedom of application. During this transition, if you are aiming to build a business on a cryptocurrency exchange, it’s undoubtedly a huge idea.
With intensive planning, hard work, and execution, you can reach your desired business objectives no matter how hard are the circumstances. This brings us to the main point of our discussion. Yes, you guessed it right--- the steps involved in creating an effective business plan to launch a successful cryptocurrency exchange.
Developing a business plan for your crypto exchange platform isn’t a big deal if you are acquainted with the dos and don’ts. Let’s explore the steps involved in this affair:
1. Acquire legal counsel to guarantee your licensing requirements are met: Before setting your cryptocurrency business plan template into action, it’s recommended to seek the advice of legal counsel to assess the regulatory demands of your brand new venture. If you want your company to operate, proper licensing is the initial requirement and should be obtained at all costs. Since crypto exchanges fall into the currency exchange formula, you must conform to KYC (Know Your Customer) regulations. These directives are becoming more and more important to combat money laundering instances.
2. Attain funding: Before putting your hands on the project, you must know the approximate costs involved in the entire journey. Generally, to launch a Bitcoin exchange, you need a bare minimum of $135,000. It encompasses the costs of technology, hosting, government registration, and initial advertising. These funds aren’t required right at the beginning, but it’s recommended that you plan them accordingly to ensure that you have enough capital to shine in your venture.
3. Look for a technology solution provider: Now your task is to find a technology service provider. An excellent technology service provider offers personalized cryptocurrency exchanges while charging a one-time license fee. Royalties and commission structures are absent in this case. While crafting a crypto business plan, look for solutions where the clients can host the exchange themselves while receiving the full source code.
4. Connect your Bitcoin exchange with others: The key to any successful exchange is liquidity. Potential customers will be skeptical about your business if you don’t have an order book that highlights the trading activities. If you want to bypass these issues, connect your exchange with the network of existing exchanges and thereby, enhancing its liquidity.
5. Partner with a payment processor: It is another aspect that you should take into account while framing the cryptocurrency business plan template. You should know that different payment processors are different. Generally, fee structures widely vary between companies. You will look for the lowest transaction rate to remain competitive in the market. Some processors have hidden fees into their contracts, so ensure you understand the contract before signing.
6. Use best security practices: Since the software application is storing the personal and sensitive information of its users, it has to be fully secured to combat the instances of data leaks and hacking attacks. According to experts, encrypting the user information can be done in the following ways:
Secure architecture: Obviously, you can’t give a blind eye to the security aspect while creating a crypto business plan. You have to pay attention to creating an encrypted mode of storing and exchanging private data while developing the back-end of the application.
a. The critical components of the exchange are positioned at different servers and interact through staunch channels.
b. The encryption keys are located at the source servers.
Focusing on the popularity of crypto exchanges all over the world right now, it’s important why more and more individuals are engaging themselves in these systems. Digital currency exchange offers huge opportunities for both those who are trying to get acquainted with the market and those with a profound experience in it. However, the market has a few limitations based on the nation or the currency provided, but the growth potential is always there. Your crypto business plan should meet all ends whatever the circumstances.
If you are willing to build a crypto exchange platform, it’s undoubtedly a great idea. All that you need is to follow the steps mentioned above. This way you will create a successful crypto exchange startup that is very much likely to stand the test of time.