Is Mining Profitable? How Else to Earn Money on Bitcoins? How to Start a Bitcoin Exchange? Cryptocurrencies to List 5. Cryptocurrency Exchange Trading Platform 6. Key Features 7. Security and Protection 8. How much does it cost to build cryptocurrency exchange platform? Is Cryptocurrency Volatility Good for You? In this article, we'll dive deep about building and launching own cryptocurrency or bitcoin exchange trading platform.
If you want to know more about P2P exchanges, or margin trading and how to make money through them - welcome. We'll explain everything in depth. Additionally, some countries have increased their attention to it. There bitcoin mining considered as an illegal business, tax evasion and other nonsense. However, the situation may change soon. If you have an online store , a SaaS application, or you work online and accept money — you can allow your customers to pay by bitcoins.
In fact, you invest in bitcoin in this way. We have already heard how the bitcoin rate fluctuated in the summer of , and by the autumn it doubled. Another option for earning money on bitcoins is the online exchange-trading platform. Its opening is not a typical task and it is resource-intensive. A small commission from 0. This is only 13 bitcoins in turnover per day. Not bad? Knowing e-commerce trends this can be an actual alternative option to make some money in What target market are you aiming at?
Depending on the country, states and their laws, your representative office must have certain permissions. The easiest way is to work in those countries that officially allow bitcoin as a means of payment, probably, Estonia or even Malta Binance moved and registered here. Belarus have already legalized cryptocurrency, only time will show us how it affects the industry.
Australia provided an opportunity to pay bills including utility through bitcoin. Iceland and France are well-known countries for the extremely low cost of electricity, therefore, makes the cost of mining incredibly low. Venezuela, and other countries in South America as well as some states in the US are also popular for crypto miners.
So the very first thing is to choose cryptocurrency friendly jurisdiction. Company registration is important for accepting fiat money. The obvious but yet significant point. The more currencies you provide to users, the more audience coverage and more interest to the cryptocurrency exchange platform.
Contrary to the erroneous view, cryptocurrencies are not much more difficult to maintain than 3. But at first, we need to integrate them, and this process takes some time.
Once you have dealt with the previous two points of preparation, here is your next one. But you should keep in mind, that every cryptocurrency such as Ripple, Litecoin, Ethereum, Dash, Dogecoin and other need to be integrated manually. Or you can create your own cryptocurrency and launch ICO.
Companies like Binance, Exmo, and many other exchanges chose this proven way. They provide discount by using their coin as an internal volume. This is a safe strategy. Users get discount and exchange increases volume of coins. Preparing and planning are indeed important web development phases before launching almost anything — whether it is as complex as the exchange platform, the SaaS platform, or the website for your business.
Flexibility to customization and scaling 2. Security 3. Easy management 4. The incredibly low delay time for the user. Moreover, each platform consists of separate modules, the so-called layers. Either of which functions independently relying on received data and the exchange interface. For example, the cash flow engine, the service of user processes, the server side, and integration with the UI user interface.
APIs and requests between layers organize connections. The most important thing is obviously the platform itself, the server side. With this you can easily scale your business to web applications, desktop apps, mobile apps and so on.
However, what to choose first - a mobile app or website? Unauthorized access to the administrator account hacking 2. Access violation to the server 3. The rogue process due to privileges 4. Security issues in external platforms. Personal data security is in the first place, moreover, access to the system must be strictly regulated. Popular tools to protect this layer are:. Using secure and protected libraries and frameworks. Two-factor authentication using Google passcode.
This item mostly related to exchanges with cryptocurrency to FIAT pairs and vice versa. In most cases you need only international passport, driver license or ID; also bank statement or utility bills for level 2 verification.
A cold wallet is optional and highly recommended to be used. Any trading platform requires admins. To secure yourself and the system check the following list:. Distinguish responsibilities and privileges of administrators; create additional groups, and roles. Every person manages only his small part and does not have access to more.
Team solution. Administrators from different groups must confirm especially important features. Development and production are at least two separate areas. Limited access to each group. Manual database transfer, which is controlled by executives, CTO for example. Malicious processes. Caused by malicious software either due to an intruder. DDoS attacks. Requests must pass through certain servers and be cleaned for the end project.
Firewall vulnerability. They are solved quite easy — by professional system administrator, or an awesome hosting. AWS is probably the best solution at least if your Government allows hosting platform in the cloud.
Otherwise, you have to take a closer look at the dedicated servers with load-balancing. Authorized and protected access. If you decide to build decentralized cryptocurrency exchange you can forgot about this item. Notification of administrators about suspicious activity. Well, you and your team have to be informed and up-to-date with current stage. Technical issues. Sometimes things break down. Software issues or damaged hardware.
Everything should be monitored and have Plan B, as well as a backup in a safe place. Changes, exchange, and trading transactions are calculated, and if something is wrong — there is a return of operations.
Validation of sum. Regular backups. Available user log files. Administrative notifications in case of inadequate activity. Most importantly, in the event of a malfunction respond as quickly as possible; and be generally notified about it. If you work with a company from central Europe, the UK or the US — you can safely multiply this cost by times , depending on the company.
Complete Crypto Exchange Solution
He has been working as a project manager for more than 6 years. Kirill has managed a wide range of projects from various business segments and understands the processes that will drive the product to success. He started from managing small teams, and now he assembles an expert team of more than 40 software developers. His expertise and knowledge of the latest technical innovations have brought Jelvix to the ranks of the most distinguished custom software development companies. Modern cryptocurrency mining has become more difficult and even illegal in some countries.
List of Crypto Exchanges Currently Supported by #trailingcrypto— TrailingCrypto (@trailingcrypto) October 16, 2019
- Binance, #Binance
- Binance Us, #binanceus
- Bittrex, #Bittrex
- Bitmex, #BitMEX
- Binance Jersey
Table of Contents
Could my Business use an ICO? How does an ICO work? White paper 5. Due Diligence for ICOs 6. Team 7. Creating your Own Cryptocurrency or Token 9. ICO Marketing Localization and Translation Pre-ICO Stage Crowd Sale Stage What to do After the ICO How to List your Cryptocurrency on an Exchange? A touchy question, which we discussed in our other articles. Many experts do not give an unambiguous answer, so the Merehead team offers its. An ICO is suitable for companies, entrepreneurs, enthusiasts, and ideologists who believe that their project is able to influence, if not the whole world, then at least a particular country.
Simply put, an ICO is an international and open means of fundraising and launching your project through alternative means than an IPO on a national stock exchange. It fits both digital projects and offline projects equally. In turn, how to setup your own cryptocurrency exchange ICO process can be divided into several logical stages. We'll talk more about this later in the article. Therefore, smart contracts are the starting point, the core, and the foundation of the entire ICO.
Once you have decided on your idea and have conducted research on competitors, you are ready for the first active steps. It is possible to rely just on yourself and your team at this stage, but if you wish to avoid some time consuming and beginner's costly errors, use an expert crypto and blockchain agency like us, Merehead, and we'll be with you at every step of the way!
Perhaps the most powerful and effective tool of your ICO. It includes a detailed description of the team and the biography of each team member. Particular attention should be paid to education and previous relevant experience. If you run an ICO for the food market, or concerts, how to setup your own cryptocurrency exchange will hardly succeed if your key team members worked only in the field of cinema.
Relevance and expertise are key points. If after reading these lines you understand that none of your team members have relevant experience, do not worry - there is a solution. We will talk about it later. Please note that this should be both in the document and on the landing page. The fact is that the white paper is only the focus of a subset of investors. Looking further into the future, quarterly roadmap updates will be sufficient.
If you can add past victories and achievements to your timeline, then go for it! The fact is that every investor wants to make money on your project, and they use this section to estimate how much money they can earn and. Investors want to see a return that is 10 or 20 times higher than the initial investment over a certain period of time. Do not expect that every passer-by reveres your white paper, but this does not negate the fact that your white paper needs to be done.
Low-quality documents can bring irreparable how to setup your own cryptocurrency exchange to your ICO and brand. If you need consulting, advice or help in writing an effective white paper, please contact us, and Merehead experts will immediately be there to help you.
The volume of the white paper should not be larger than pages. Pay attention to details, and do what suits your project best.
Research on your company and analysis of its ICO plans is extremely important for investors. In almost every podcast, conference, and event, speakers advise investors to pay special attention to the proper due diligence of ICO. This is in addition to an analysis of social attraction, the white paper, the involvement of the team in your project, project quality, readiness, and many other factors.
You must be prepared before the battlefield, and be aware of both your weaknesses and strengths. Contact your agency how to setup your own cryptocurrency exchange Merehead for a deep due diligence review. Identify the pitfalls as early as possible, and fix. In the end, give your project the due attention it deserves. As mentioned earlier, the team must have relevant experience, which is extremely important. This does not mean that you cannot launch a successful ICO without it.
The ICO team can be divided into several groups. This includes your customer support team, public relations managers. On the question of how many people you should specify as team members on the site and the white paper, there is no definite answer.
If you have more than 50 participants, clearly the most important ones should be presented. We'd also like to share a few important details about how to build a team for an ICO and properly manage it. At each stage, all of them encountered certain difficulties in managing. Fortunately, you can find the right candidates from other countries on the IT market, including those with experience in building cryptocurrencies.
If you cannot find the right person in your country, ask for help in nearby countries, or those with a common language and lower costs. For example, if the ICO is from Russia, it is worthwhile to look closely at candidates from Ukraine and Belarus, as there will be a common language to make cooperation run smoothly.
For Germany, this is Switzerland and Austria. For the English-speaking audience, you can look out to the Philippines. There is always a solution. But it's worth remembering the mentality and approach to work.
The devil is in the details. Time zones provide another separation, since it will be impossible to work with a common language. Alternatively, you can contact a specialized company like Merehead who will solve your headaches and help you to succeed. Advisors are a significant part of the team, who strongly influence the project. It's not difficult to find the right advisers, which are the same as a mentor.
They either believe in your project or ignore you until you impress them with significant results. Their role in your ICO is to advance the road ahead with a subtle niche.
The answer is advisors. If they have experience in the area of your project, your road becomes much easier. Relationships with advisers are rarely paid. Providing them with a share in your project is a typical situation.
They are definitely worth publishing on your ICO landing page because they are influencers in this industry. Leveraging their experiences will help get you to the top. Determined in your idea, technical documentation, and white paper, it is time to choose and create your own cryptocurrency or token.
Which one should I choose? What blockchain to choose for creating the cryptocurrency or token? Let us look at a few options:. In due time, many cryptocurrencies appeared, such as Litecoin a Bitcoin fork and Bitcoin cash, also Bitcoin fork. Just a bit of core customization, new packaging, and you are ready to work. You can read more about these tokens and how to create them via our article on creating an ERC20 token based upon Ethereum. To date, there are about 7 ERC standards, the most popular among them is ERC20, with the option of numerous settings and additional functions.
Fortunately, other blockchains also have the capabilities and functionality of smart contracts - the basis of cryptocurrencies and tokens. Pros and cons vary individually from blockchain to blockchain. For example, Waves tokens can handle more transactions compared with Ethereum. On the other hand, you have to consider opportunities and functionality. Often the creation of a cryptocurrency on NXT is more expensive, longer and less efficient.
If you are not sure which type of cryptocurrency you should choose, contact the consulting agency or our managers. Why reinvent something from scratch if there is a ready rich functionality on the Hyperledger Fabric?
In addition, on each of them, you can create a cryptocurrency. There are dozens of marketing and PR channels. However, within the ICO, we are interested in which is most effective. There are forums and social networks, ads on Facebook, Google, Bing; there are conferences and of course your own landing page.
The point here is that marketing includes both internal and external. You have to work for the brand. Lead generation, investor relations, and even marketing to potential team members and advisors are all important tasks to conduct. Your investor base is much more important than your user base. This is marketing's assistant and servant.