How can you build a bitcoin exchange?
Chad The world of Bitcoins & Cryptocurrency is in a big Boom now. Nearly everyone out there is in a rush to invest in Bitcoins and cryptocurrency. No better time to start your own Exchange. In this post, let's look at how to start a bitcoin exchange business.
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Step 1: The right country to start.
Yes Sir. This is the most important step. Governments across the globe are scared of this new type of alternate economy taking over. And for obvious reasons, many governments are making the rules difficult to run a Bitcoin exchange business. On the other side, there are countries that see this as an opportunity and help entrepreneurs to start a cryptocurrency business easily.
Step 2: The right Audience for your Exchange.
This point may sound weird but can make all the difference. There are now like 70+ exchanges around the globe and a majority of these exchanges accept only customers from developed nations. All the investors from other African, Asian, and middle east countries are rejected. Even the exchanges that are started in these countries have closed registrations due to the flood of applications that have come in the past couple of months ( a small exchange that I know of has started getting 20,000 registrations per day and have closed new registrations ). So, you have millions of people out there who can immediately become your customers and transfer money to your Bitcoin exchange.
Step 3: The right Bank to go with.
Please do a bit of research on the right bank you want to associate with. Even banks in developed countries are very cautious of Bitcoin exchange business for reasons they themselves don't know. Have a clear word with your bank and tell them very clearly on the type of money your account will receive ( as believe it or not, as soon as the left-out population knows that your exchange allows them to buy crypto-coins…they will come in huge chunks ). In countries like India etc. banks are continuously banning accounts of Crypto exchange businesses. If your bank bans your account midway, you will be in a sudden bottleneck situation. So choose your bank wisely.
Step 4: The right Bitcoin Exchange Software to use.
The right time is Now. You need to hit the road running now. Find for a ready-made software that can help you start a bitcoin exchange business instantly. There are many ready-made Bitcoin exchange scripts being sold by vendors, using which you can instantly set up a bitcoin exchange in no time. If you plan on involving a Bitcoin Software development company and develop your solution from scratch, you may miss the bus. And it may easily cost a fortune to develop it. Not to mention the time.
Step 5: The right Bitcoin Wallet to employ.
Ok. You have chosen the right country, The right Bank, The right Software. Now people have started buying bitcoins on your platform. You need to make sure the bitcoins stored inside your Online Bitcoin exchange is safe. For this, you will need to implement 2 types of Wallets: A Hot Wallet & a Cold Wallet.