Cryptocurrency has taken the whole world by storm! Everyone wants to purchase cryptocurrency as it is an easier venture than stocks to gain returns. The recent phenomenon with Dogecoin has everyone in wonder about it. Now, with the rising interest in cryptocurrency, crypto exchanges are popping up. These help people handle cryptocurrency efficiently.
There are a few hard and fast rules to what a cryptocurrency exchange platform should have. This has to be taken care of. If this is done, you can set up any cryptocurrency exchange site and make it popular. Now, remember, you would be dealing with money and exchange, so there are a lot of steps you have to take to ensure it is done seamlessly. To understand more about it, click here for more information.
1. You have to get legal counseling for the licensing requirements.
Proper licensing is very important for starting a crypto exchange. This deals with money and trades, so having a valid license to do so is very important. There are many issues still plaguing cryptocurrency as certain governments still haven’t recognized cryptocurrencies. There are SEC and CFTC rules that matter in the dealings concerning cryptocurrency. Even KYC is an important mandate in money exchanges and this is an important step taken to prevent money laundering. So, consulting an attorney is very important before setting up a crypto exchange.
2. Invest in a good software solution provider.
Now, cryptocurrency is an online currency working on blockchain technology. So, specialized software is very important to handle cryptocurrency. Hence, investing in a good software solution provider is very important. People expect seamless transactions on a crypto exchange site. Hence, making sure the processes run smoothly depends on the software solution provider. This is a very crucial step as this determines the traffic on the website.
3. Connect your exchange platforms with others.
Integration of your platform with others is very important. It is hard to integrate all types of cryptocurrency into a single website. Hence, collaborating with other crypto exchange sites to cover what you do not have initially attracts many people to your platform. This generates activity in your website and ensures that people start using it. You can develop it further later. This is mainly done to add liquidity. This also helps create an order book and trading activity. Connecting with various platforms helps increase the liquidity of your exchange platforms.
4. Form a partnership with a payment processor.
This is also an important step, as the smooth and secure payment processing is the need of the hour. Many problems arise when there are issues that arise in payments between the banks and this can often reduce the credibility of your exchange site. The gateways should be secure with all the people’s private data. Concentrate on partnering with the payment processor, as the utilities would be really good. This partnership can go a long way if your exchange clicks.
You would be charged a one-time license fee without royalties or any commission. This would involve them completely and not disappoint them. It would also build trust with the clients. Good payment processors would also give insights into the fee structures of a locality, they would also be compliant with the taxes and other legal payment issues. A good payment processor should be PCI-compliant to defend against cyber threats.
5. Ensure good security measures.
A crypto exchange website often has sensitive information about a person’s bank account details, passwords, and other details. Make sure the Modulus technology is used as it is the most secure technology. It uses cold storage wallets, 2-factor authentication, and encrypted databases. They don’t even store passwords and have safeguards against data breaches.
6. Try beta testing first.
This is very important and helps debug any issues that can arise on your website. A selected group of users can use your exchange platform for a bit and you can provide attractive user incentives. You can ask for reviews and feedback in order to improve your exchange platform even more. Beta testing is an ideal way to find out the strong and weak points of your crypto exchange platform.
7. Invest in marketing and PR campaigns.
This is also important. Social media marketing and engagement are very important to promote your website. Many platform releases have strong ties to the promotion where they use social media, influencers, in order to increase user engagement. PR campaigns help in making people more aware of the presence of your crypto exchange platform and thus increase user traffic. There are crypto new outlets that you can avail of to do this. Initially, you might have to invest, but the internet has a lot of social media platforms that you can use for free. Employing this to build your consumer base would be a very smart step.
8. Ensure prompt customer support.
Apart from launching your crypto well, it is also important to maintain your customers and users well. Having a prompt customer support section is very important. This actually contributes to your long-term success. The customer issues and complaints that can arise should be resolved and good customer relations should be built. People are dealing with money and assets here, hence building a strong relationship is important to generate trust. The responses should be prompt and the issues should be resolved fast. Having a ticketing system, online support, or a 24/7 service system would do wonders for your crypto consumer base.
9. Invest in a good legal team for safety.
This is again a part of the maintenance of your crypto exchange platform. Maintaining a legal team would be very important for understanding the laws of the place, foreign jurisdictions, and trade rules. If you are planning to expand your consumer base too, this would be of good use. Having a full-time, in-house legal compliance group to handle all such affairs would be a huge asset to your exchange.
Cryptocurrency exchanges are slowly becoming extremely popular. Hence, it is a good field to step in at times like these. It is important to have a good strategy before setting up a crypto exchange as this increases the potential of your exchange platform. Taking care of the legal, marketing, and security aspects would give immense credibility to your exchange platform.