Bitcoin Exchange: How to create one?
Bitcoin marked the beginning something of great; a currency that works without any government regulations.
If you want to create your Bitcoin exchange, but have no idea where to start? Then this article of ours will help you in creating one.
In the year 2017, Bitcoin took the whole world by storm by witnessing a surge in its value. It was in this year that saw the prices of Bitcoin rise to whopping 1800%.
Before we begin our article on how to create a bitcoin exchange, here is how bitcoin exchange works and why you should start one?
Bitcoin is a peer-to-peer currency system; a decentralized system that works without any intermediaries such as banks or governments.
A bitcoin exchange is a place where it allows individuals to buy and sell bitcoin and other cryptocurrencies on a platform. To put it simply, it is a place where people from the globe can buy and sell bitcoins and other altcoins.
An exchange that you are about to create must always be up-to-date and operational to succeed.
To use and attain the overall success of bitcoin and other currencies, bitcoin exchanges are necessary. Although cryptocurrencies are relatively new and hardly accepted by vendors, the number of transactions are heavy through exchanges.
Why is there a need to open a Bitcoin Exchange?
Setting up or creating a bitcoin exchange can be daunting of a task, but then creating one can leave you with massive financial rewards, also be a part of the technology that is on the process of changing the world.
While this industry is in the development stage, there is a specific need of these exchanges to keep the cutting-edge technology alive.
Now, let us look at the process of creating a bitcoin exchange, launch your bitcoin/cryptocurrency exchange.
As you are about to create your bitcoin exchange platform, you can take help from cryptocurrency exchange software to develop an exchange site. If you do this all by yourself, it might consume plenty of time.
Steps to create a bitcoin exchange:
Check on the competition
The perfect place to start with the exchange platform is to do a little bit of research on the existing cryptocurrency exchanges.
It is quite important to do a wealth of research to exactly know how these exchanges operate; this will help you know the reason for their success and failure. This will serve as interesting pieces of information and give you a plethora of ideas on how to build your own bitcoin exchange and also how to market it for some success.
Innovation is the thing that drives cryptocurrency industry forward and with the blend of new ideas out there, this new technology is just proving its worth.
Reviewing the country’s regulations
As the cryptocurrency is facing an abundance of fraudulent activities, the government requires the exchange businesses to adhere to the Know Your Customer(KYC) norms. For a business to verify the authenticity of every individual, you have to follow the KYC process by validating their government-issued ID cards or even passports.
The sole purpose of KYC is to eradicate the money laundering and false transactions taking place on the exchange platform.
It is crucial for a cryptocurrency business to adhere to the country’s regulations and accommodate a reliable customer verification process into the exchange platform.
This is an essential part of setting up a crypto exchange business, the audience. Understanding about the target market will help you in creating both the product and the market strategy and allow your website to grow.
It may be hard for you to believe but, people of all ages and from distinct of backgrounds are engrossed about bitcoin; wanting to invest in it and other digital assets.
You should also consider making the exchange platform available in multiple languages; competitors around the globe operate in several countries offering support in various languages.
Irrespective of the fact that bitcoin exchange is somewhat new, it is soon going to blossom as more and more users will adopt this technology in the near future.
That’s it for the creating part. Once you are up and running in the business, you’ll need a team to manage the site and the business.