Cryptocurrency is popular around the world. Exchangers and exchanges are the ways to buy, sell and transfer different cryptocurrencies. But if you need to create your own exchange platform, we can give some advice.
It is necessary to decide which market your stock is aimed at – whether it will work on a global scale or limited to a specific region or country. In addition, appropriate permits and licenses for the company are required so that the service meets the countries’ requirements and standards in which it will work. The laws in each state are different. Therefore, the consultation of the expert may be required. He will tell you how best to comply with the requirements for impersonation and action.
Currency exchange companies must comply with the KYC standard. The KYC (Know Your Customer) habits oblige the company to check its customers’ personalities and collect free data and other information. The main goal is to prevent money laundering. Make sure you comply with the relevant requirements of your country. Some passages take up to two days. A bank with fast and efficient calculations will be convenient for the clients of the company. Replenishment and withdrawal of funds can be realized by creating a payment gateway or even using the usual money transfers.
3. Liquidity and safety
For successful work, any anonymous crypto exchange needs liquidity. Customers do not dare to place an operator or refill their accounts on the spot without explicit trading activity. New trades are, in a natural manner, faced with a lack of liquidity.
It is necessary to ensure safety. The exchange should guarantee reliable protection of the money of traders and operators, as well as the personal information of clients. Data leaks from cryptocurrency exchanges are a serious problem. So, on the sadly famous Mt. Gox, the hacker attack remained unremarked for many years. As a result, 1% of the total number of bitcoins in circulation was stolen. According to Reuters, in the period from 2009 to 2015, one-third of all existing cryptocurrency exchanges were hacked. In other words, safety should be the main priority. Finally, customer support is another important part of a successful company.
What difficulties can arise when creating a cryptocurrency exchange?
I would like to warn you right away, if you hope that your project’s preparation will take place without overlaps and you will succeed the first time, then this will not be so. At each stage, whatever the preparation, a variety of problems can arise:
If they are not detected and eliminated in time, then subsequently, this can lead to serious damage to the reputation of the exchange and its financial condition. Various software bugs or intentional vulnerabilities can lead to such consequences.
Difficulties can also arise if the legal registration of various papers and permits to conduct activities is incorrect. Therefore, at this stage, close cooperation with qualified lawyers is necessary.
When choosing banks and payment systems, you should also pay attention to their reputation. Indeed, in case of any problems on their part, the main negative of users will be in your direction, even if nothing depends on you.
Be that as it may, when launching a cryptocurrency exchange, the first time, you need to be prepared for any surprises. And only in the course of time, when the main flaws are eliminated, can you afford to relax a little.
Saeed Ashif Ahmed is the founder of SEOChasing Pvt. Ltd., who has a keen interest in how emerging technology can help the world become a more just, equitable, and kind place. He is a car enthusiast, civil engineer, cricket lover, and forever Navodayan (JNV is love ❤️).