Create A Cryptocurrency Exchange Platform — 10 Simple Steps
Want to create a cryptocurrency exchange platform?
If you are struggling with this major query, then you have reached the perfect blog.
I am here to explain a comprehensive guide to creating a cryptocurrency exchange platform that reaps huge profits. Apart from profits, the cryptocurrency exchange platform development has become a primary business idea for startups to gain fame and lay a stone for success.
In this guide, I have mentioned the easy and effective 10 steps to create a cryptocurrency exchange.
Before scrolling this blog, have a look at my other posts for more crypto-based business ideas. Without much intro, let’s dive into…
How to create a cryptocurrency exchange platform?
- Market Research
- Location Preference
- Type Of Crypto Exchange
- Exchange Platform Designing
- Approach A Legal Team
- Choice of Exchange Script Provider
- Approach A Payment Processor
- Security Feature Integration
- QA Testing
- Prolonged Support
STEP 1: Market Research
✴️ First, you have to conduct deep crypto market research to identify the latest crypto trends and the outstanding trading features that are attracting crypto users.
✴️ Every crypto startup and entrepreneur knows that the cryptocurrency market is highly volatile due to some social & economic reasons. That’s why as a startup, you need to do an in-depth analysis of whether this would be the right time to create a cryptocurrency exchange or not.
✴️ It is the essential first step to building a cryptocurrency exchange without any errors or outline confusion.
STEP 2: Location Preference
✴️ Choosing the right location will let you create a cryptocurrency exchange platform without any hassles.
✴️ You must note that in some countries or regions where the utilization of cryptocurrencies is more. Those countries are recognized as crypto-friendly countries. Such as The United States of America, Malta, Canada, Slovenia, Portugal, Germany, Luxembourg, the Netherlands, and Estonia.
✴️ Pick the best based on your business convenience, less complex legal aspects, etc.
STEP 3: Type of cryptocurrency exchange
✴️ Deciding the type of crypto trading platform is more important than creating a cryptocurrency exchange.
✴️ To make this decision, you should be aware of the different types of cryptocurrency exchanges that are existing in the crypto sector.
✴️ Centralized crypto exchange, Decentralized crypto exchange, and hybrid exchange are the three different types of exchange platforms. These platforms are differentiated based on their features, security mechanisms, central authority, etc.
✴️ The centralized exchange can be categorized into orders book crypto exchange, p2p ads-based crypto exchange, user-to-admin crypto exchange, OTC crypto exchange, and crypto derivatives exchange. Whereas Decentralized exchange can be divided into DeFi exchange and p2p DEX.
✴️ Choose the perfect one depending on the higher revenue streams, user needs, and your cost estimation for creating a cryptocurrency exchange.
STEP 4: Cryptocurrency Exchange Designing
✴️ After picking up the type for the cryptocurrency exchange building, you need to properly design the architecture.
✴️ To design a perfect cryptocurrency exchange architecture, you need to enable four important components.
✴️ Such as a powerful crypto trading engine, cryptocurrency wallet integration, admin console, and effective UI/UX.
STEP 5: Approach A Legal Team
✴️ If you are interested in creating a cryptocurrency exchange without any regulatory risk, then ensure to consider the imperative regulatory aspects related to cryptos and crypto exchange development.
✴️ The regulations related to crypto exchange platforms vary from country to country. So, it is always advisable to hire a well-experienced legal team.
✴️ They will guide you in creating a cryptocurrency exchange without exploiting the legal policies and norms of a region.
STEP 6: Choice of White-label Software
✴️ After the selection process, you need to decide on the development methodology. You can build a cryptocurrency exchange by acquiring White-label exchange software or creating it from scratch.
✴️ It is better to choose a cryptocurrency exchange white-label software for your exchange platform development. This is because it is one of the cost-effective and time-saving methods.
✴️ There are many white-label software providers in the crypto industry currently but choosing the reliable one is more vital.
✴️ Select the provider based on their technical expertise, experience, advanced-level features, developer team, etc.
STEP 7: Approach A Payment Processor
✴️ In this step, you need to partner with the top-rated payment provider to process payments through fiat currency.
✴️ Picking a trustworthy and highly responsive payment processor with a host of online facilities is an optimal choice.
✴️ In addition to this, if you are partnering with a reputed bank that has fast settlements of funds, then for sure you can provide the finest user experience and convenience to your users.
STEP 8: Security Feature Integration
✴️ Currently, major crypto assets like Bitcoin, BNB, and Solana, as well as cryptocurrency exchanges are the primary targets for anonymous hackers.
✴️ Due to inappropriate security systems and loopholes, many exchanges lost millions worth of cryptocurrencies in the last few years.
✴️ So, create a cryptocurrency exchange with some high-end security systems such as HTTP authentication, Jail login, Data encryption, Registry lock, Two-factor authentication, SQL injection prevention, and more.
STEP 9: QA Testing
✴️ Now, you need to run beta testing to host your exchange on the server without any technical glitches.
✴️ Beta testing will help you identify the errors, issues, and tiny bugs. And you can rectify them instantly.
✴️ After the rigid testing process, you can deploy the crypto exchange with the help of a skilled development team.
STEP 10: Prolonged-Support
✴️ After launching your crypto exchange, you must provide effective customer support and technical support on a 24/7 basis.
✴️ By offering productive customer and technical support, you can attract many users to your trading platform.
How much does it cost to create a cryptocurrency exchange platform?
The average cost to create a cryptocurrency exchange platform will come to around $25,000 to $1,00,000.
Wait there, this is the cost of creating a cryptocurrency exchange from scratch. Yet, the problem is it requires huge cost estimation and takes too long to develop. Hence, I won’t recommend this for newbie startups. There is an alternative method where it is easy to create a cryptocurrency exchange platform. It takes only takes maximum of 7 to 15 days to launch a cryptocurrency exchange platform.
The approximate cost of white-label cryptocurrency exchange software ranges between $15,000 to $25,000.
With the white-label solution, you can also customize your trading platform, implement features, modify the UI/UX design, etc. The cost may slightly vary based on these factors. If you want to be clear on your cost details, then have an extended discussion with your cryptocurrency exchange development company.
Collaborating with them allows you to launch your cryptocurrency exchange without any hassles. They offer you world-class white-label solutions for your exchange platforms.
Choose the world-class cryptocurrency exchange development company based on its portfolio, client testimonials, etc. Pick a crypto exchange software wisely!
Final Words
I hope you have got a well-versed idea in creating a cryptocurrency exchange platform. By considering all these essential steps, you can start a flourishing crypto exchange business without any hassle.
As a startup, all you need to do is acquire the bug-free and customizable cryptocurrency exchange script from a reputed script provider in the crypto sector. So that you can quickly create a cryptocurrency exchange platform as per your business requirements and preferences in a short time at a moderate cost.
Seal the deal as soon as possible!!!!
