Starting your own cryptocurrency exchange or brokerage? Here’s an easy step by step guide. Everything from getting licensing & ICO to technology & crypto liquidity explained in simple terms. Mail us at [email protected]
the interest of many, especially the Millenials. They’re reshaping the entire financial trend because cryptocurrency offers something traditional banks cannot - The heightened transactional security, fraud protection, low fees, growing acceptance, and decentralized systems. In addition, those who don’t have access to banks can rely on cryptocurrency to exchange and cash in almost immediately. Such is the power of Blockchain ensuring growth ahead and dominating our future.
cryptocurrency exchange or become a cryptocurrency broker? Before we get started…. Are you going to launch a Cryptocurrency Exchange? or a Cryptocurrency Brokerage (Trading solutions)? People often confuse the two. Though the process of setting up might be the same, the functionality is not.
is similar to Stock Exchange Trading, where a user can buy or sell based on the current market price of the cryptocurrency. The exchange will act as a middle-man and will charge a small fee for each exchange or trade. Some traders exchange FIAT Currency (like USD or EUR) for Cryptocurrency, while others exchange between two Cryptocurrencies.
funds are traded through a dealer’s network, as opposed to the central exchange and this is also known as Over the Counter (OTC) market. This brokerage finds sellers or buyers who individually hold a large pool of cryptocurrencies and pair them for sale. This is more flexible and more convenient with a settlement period that is generally faster than that of a crypto exchange.
regions you would like to operate in, please ensure that you have understood the regulations in each of those regions and obtained the necessary licenses. • The idea of cryptocurrencies still does not go well with a lot of countries, the list of countries you will have to license yourself in won’t be very long. Regardless, it is imperative that you have a legal expert who has covered this for you.
is the backbone of a business. Be it a cryptocurrency exchange or brokerage, you absolutely must have a robust CRM. One that is designed for your business and allows for seamless communication and integration with various other tools that will be a part of your business. • Similarly, a unified back-office that can communicate with your CRM, crypto trading platforms, and the trader’s room is a must-have. This ensures the entire process, right from customer on-boarding to everyday operations run smoothly.
Cabinet is a platform where customers can manage their trading accounts at ease. • A good client cabinet must have the following features - i) Clean and user-friendly interface ii) Simple onboarding process iii) Payment integration (For withdrawals & deposits) iv) E-Wallets v) CRM integration vi) Trading history and comprehensive reports Step 3
of potential customers in a way that they feel comfortable to engage with your exchange, you must showcase sufficient liquidity. • Partnering with a crypto liquidity provider who is able to offer deep liquidity pool is a good option for starters. • Most importantly, choose a provider who will charge you a flat fee and not based on trade volumes.
Step: Launch an ICO platform to create your own coins. You can have your tokens created on an existing platform such as Bitcoin or Ethereum. Partner with a technology provider who can create the ICO platform as well as the tokens. • This acts as a fundraising platform to attract investors who may be interested to buy into your offering. • Choose a provider who can create a multi-currency ICO platform to ensure your future investors can either pay with fiat currency or with pre-existing digital tokens like ether, bitcoin or altcoin.
technology provider is one that provides you with turnkey cryptocurrency solutions that are designed to your requirement and are pretty much plug & play. • Choose a provider that can offer Whitelabel Crypto Solutions, the ones that specialize in developing custom cryptocurrency exchange solutions. • This will save you a lot of time and money ensuring fast deployment in a fraction of the cost.
institutional relationships with a Payment Service Provider to have the payment gateway integrated into your Crypto Trader’s Room / Client Cabinet. • Therefore, you must use one that is trustworthy and is capable of hosting online payments where the speed of transactions, clearance, and settlement of funds is not compromised. • Also, a payment solution with a low transaction rate will offer more traders to your platform. Some solution providers may have hidden fees that you have to watch out for before you sign a contract with any payment processor.
target for hackers and that the number of cyber-attacks and data breaches are increasing day by day, implementing the best security practices and technology is an integral component of ensuring that your crypto business is safe and secure.
you have found the right technology provider, figured out your payment solutions, and taken care of security, it is time to test your site to its full range and explore every aspect of it to ensure that there are no flaws in the system before you onboard your first customer.
we won’t be covering the regular steps that go into setting up every business, we would like to add a quick note to stress the importance of marketing and PR in a cryptocurrency business. • Though most exchanges might not initially have a marketing budget and use a social media approach, it is advisable that you do some digital marketing outside of social media to be able to build yourself as a brand and put yourself out there with the help of the Public Relation experts in the industry.
and are up and running, it is important to continue having a strategic approach to your day to day activities while maintaining ongoing compliance. • We stress again on the importance of following regulations not only in the jurisdictions that you operate in, but also in all the regions that your traders are based in.
customer journeys, insightful reporting and more. COMPANY INCORPORATION Sanfrix has initiated several exchanges and brokerages from various jurisdictions and can help you too, making the entire set up hassle-free. TECHNOLOGY We offer advanced trading platforms, payment integration services and all the technology you need at an affordable cost. LIQUIDITY We offer deep liquidity with customised pricing and execution analytics to make sure all your liquidity needs are met. CRM & BACK-OFFICE STRATEGIC PARTNERSHIP Continued strategic partnership, free consultation support and 24/6 customer support from our Chief Success Officer.
needs and has helped several crypto exchanges double their profits by simply implementing the right tools. Question is… Will yours be one of them? +65 9860 7215 sales.sanfrix [email protected] t.me/sanfrixltd
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