Updated: Dec 27, 2019
The idea of starting a business sounds interesting to everyone. The freedom, comfort and the prospect of working when ideal, is quite appealing. However, starting a business and establishing it as a steady source of income can be draining. Many people have no clue where to start. In modern times, however, the possibilities of opening a business of your own has become a bit easier than before due to the internet and its reach. As a result, many people have started their own Cryptocurrency exchange. Tracking the trends, evaluating the USD to Bitcoin rates and implementing effective trading strategies can ensure the success of any Cryptocurrency business.
Here is a step by step guide that can help anyone who wishes to start a Bitcoin Exchange.
Managing Legal and licensing requirements:
Before starting with the grand plan, one should seek legal counsel and understand the demands of this business. The first task is obtaining licenses in all areas where you plan on operating the company. In some places, governments have not yet imposed heavy regulations on such businesses as they’ve not yet caught up with technologies. Whereas in the US being a licensed Money Transmitter, is mandatory. Once all the legalities are completed one can move on to the next step.
During some periods, the USD to Bitcoin rates might be favorable, but it is important to acquire sufficient funds, in order to develop and launch a cryptocurrency exchange. Many start-ups make the major mistake of not having sufficient funds when starting. It is important to acquire enough funds not just for the initial phases, but also in case the business goes stagnant in the future. This can avoid breakdown.
Obtaining a Technology Solution Provider:
Many vendors provide one-time license fee without any additional commissions. This would allow you to host the exchange yourself and receive the full source code, which is required during the audit. You can also partner with existing exchanges to enhance liquidity. The lack of active orders and trading activity can make visitors suspicious of the business. Connecting with existing networks can avoid having to make dummy orders and can enhance liquidity.
Partnering with the best IT Security providers will ensure that the customers can have a reliable platform to trade. Cryptocurrency exchanges have become an easy target for hackers and people who access the internet with malicious intent. Having a reliable structure would diminish the possibilities of any security breach and improve the customer experience greatly.
Marketing and PR Campaign:
Similar to any other business venture, just analyzing the USD to Bitcoin rates, and making smart investments isn’t enough to ensure the success of the venture. Starting a strong marketing and public relations campaign would help with spreading the word and increase the customer base exponentially. It is imperative to plan your marketing activities and their costs so as to not exceed the budget set out for the program.
Adhering to the guidelines above, and pacing through the unavoidable roadblocks would ensure the success of any cryptocurrency business.