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Nowadays ,crypto market is in expanding mode and the current numbers of exchanges in the globe is not enough to deal with mass adoption .crypto is already entered in the time of worldwide adoption where the term 'Demand and Supply' fit enough to deal with crypto market needs . The trading in crypto currency is not competing at all among exchanges which turns to charge much trading fees, leverage fees, staking charges, service charges and transaction charges. the market demands to open more trading platform where process of the crypto currency is properly maintained and secured.
There are top and good ranked (on security concerned) exchanges are around 400 numbers which is absolutely not enough to deal with the market cap (expected 10 billion USD) in 2021 . there would be required approximately 5000 Well established exchanges globally which can deal with all the trading needs and easy accessible for every traders.
There are few steps to follow if any individual wants to open their own crypto exchange :
1. 'MONEY- PROGRAMMER-PAYMENT PROCESSOR-SECURITY-CUSTOMER SUPPORT - MARKETING' These are 6 key elements to think before opening crypto exchange .The reason why there are not enough crypto exchange is the market because of all the key elements which is quite complex and challenging .
MONEY: It is most important element when we think about business ,is a key driver for all other elements .as per crypto expertise ,opening your own exchange need minimum 600 k USD for running all the trading.
example : if Mr A is trader and want to buy 1 BTC from your exchange but at that time there are no seller then off course you will let Mr A buy from your inventory which you already bought from your fund and stored at your exchange.
crowd funding or ICO also great solution to raise the fund for your exchange but this need to be done with very careful step otherwise it might be failed because there are lots of government movement also involved regarding taxation , regulation, prevention of money laundering etc.
PROGRAMMER: Hire a well professional developer or experienced programmer who can deal with your expectation and requirement.
PAYMENT PROCESSOR: Payment partnership with banks or card merchant is added value to your exchange which directly bring more traders to your exchange .listing and dealing with all the major crypto wallet and maintaining it 24/7 is also enhance your platform performance and scalability.
SECURITY: customer/traders fund security is vital part of your exchange to build the trust and credibility . there are so many ways to deal with integrating security for your platform by authenticate 2fa , private keys , special password protection, biometric scanning , verification ,locking transaction for wrong password , freezing account or platform in case cyber attack ,bugs , malware etc.
CUSTOMER SUPPORT: without customer support ,trading platform can be operated with full efficiency. 24/7 customer support by email, online chat, contact calls needed to apply to your platform to engage with .
MARKETING: promotion and marketing element helps externally to your platform to recognise and build identity . these element can be achieve by engaging with various news channel , media , advertisements, airdrops , cash back, interact with traders ,feedback.
2. LOCATION & GOVERNANCE : choosing favourable business environment is major aspect for your business concern. nowadays many places are not suitable for exchange opening like china where exchanges and related issues are highly censored and blocked.so before choosing the location to set up exchange licensing , need to go through their government mind set about crypto exchange and their regulation concern towards crypto transaction and payment.
3. CONNECTIONS: exchanges opening for individuals is full of challenge where you need strong connection with experienced and talented investors and Media . you may find good connection in terms of hiring employee from LinkedIn and other social media where you think well manpower can bring your business to next level.
RISK MANAGEMENT: sometimes the exchange went down to deep shit and very hard to overcome in the matter of hacking the funds , attacking the customer wallet , privacy shared , market manipulation and unpredicted crisis in finance, government notice , natural disaster etc .and at this time ,all the exchange should reserve fund to deliver on otherwise its not the least problem to ignore .
for further reading:
https://www.publish0x.com/kavya/the-relation-of-ponzi-scheme-and-hack-with-cryptocurrency-xzkneq
HIVE coins is pumping like nothing left to buy in the market🚀🚀🚀
THE OF 'PONZI SCHEME & HACK' WITH CRYPTOCURRENCY .
https://www.publish0x.com/kavya/corona-vaccine-will-be-available-soon-after-this-month-xwxqno
BITCOIN HALVING ? what is this?
Resources:
https://www.coingecko.com/en/exchanges?page=4
https://empirica.io/blog/liquidity-the-greatest-challenge-for-crypto-exchanges/