Cryptocurrency is continually gaining traction worldwide, and experts predict that it will continue to grow and earn people more profits.
With more countries embracing cryptocurrency and more businesses accepting some cryptocurrencies like Bitcoin as forms of payment, it shows a lot of potential in cryptocurrency businesses.
If you want to jump on the cryptocurrency train and start a cryptocurrency business, these steps will help make the processes easier and increase the success rate of your business.
Seek legal advice to help you meet all the licensing requirements
Before you start implementing your plan, look for a legal advisor to explain all the regulatory demands of the field. You must obtain the proper licensing in whatever jurisdiction you decide to operate your business.
Since crypto exchanges are under the currency exchange umbrella, you might have to observe Know Your Customer regulations which are in place to help prevent money laundering.
You must determine the approximate costs you will need to establish your business before implementing it. To start a crypto exchange, you need a minimum of $135,000, including initial counsel, hosting, technology, initial advertising, and government costs.
While you will not need all the money upfront, you need to ensure you have access to the funds.
Get a technology solution provider
Find an internet provider who will help host your business. Consider factors like fees and access to source code, which will be necessary for auditing.
Connect with others
When you connect your exchange with existing exchanges, it helps with added liquidity which will increase the success rate of the business. When clients see trading activity on your exchange, they will have confidence in your platform.
Being connected to an existing network means you do not have to use dummy accounts to simulate activity on your exchange.
Find a payment processor
There are many payment processors, and you have to choose the best one to partner with by looking at things like fee structures compliance with PCI DSS, security policies, and settlement time.
You also have to consider the transaction rate and choose the payment processor with the lowest fees for a competitive advantage.
Develop good security practices
Because of how popular and promising cryptocurrency is, cyber attackers and hackers are attracted to stealing the coins or investors’ details.
Some of the security features you should implement include encrypted databases, two-factor authentication, and offline cold storage wallets.
After you have built your exchange, found a good payment processor, taken all the licenses, and implemented security measures, it’s time to take your exchange live and do a beta test to determine its capability range.
Look for crypto news outlets and create online platforms to advertise your exchange.
When putting together the budget for your business, you should set aside a budget for marketing campaigns to ensure that you do not under-advertise or use all the business’ money.
Have an effective customer support
How you serve and treat your customers will determine if your business will grow or not. Put in places things like an email address and customer support number where clients can reach out to you 24/7.
Have a legal team
The laws and regulations around cryptocurrency keep changing as the market is still growing. Therefore, you need a legal team to keep up with any changes and ensure that your business is compliant.
As a cryptocurrency business owner, you need to keep up with the daily prices of different cryptocurrencies through sites like OKX.