The world we are living in is becoming digital day by day as new technologies evolve across the globe every now and then. And so the scope for earning money is no longer typically associated with a nine-to-five-o-clock job, especially after the tremendous growth of cryptocurrency.
Now that we can see people talking about bitcoins and cryptocurrencies everywhere, let’s see precisely about starting a cryptocurrency business.
Cryptocurrency Exchange and Brokerage
Akin to Stock Exchange Trading, in a Cryptocurrency exchange a user can buy or sell based on the current market price of cryptocurrency. Some traders also exchange FIAT currency (like USD or EUR) in place of Cryptocurrency.
For each exchange/trade, the exchange acts as a facilitator and charges a minimal fee. In a Crypto brokerage, a broker’s network will be involved to exchange your funds where sellers/buyers with an outsized pool of cryptocurrency are enabled for the trade.
Albeit your decisions to opt for either cryptocurrency exchange or crypto brokerage, read further to know more about your business.
10 things you need to know before you start your business:
1. Picking your regions where you plan to work is crucial. Because it is important to understand the laws in each region which will help in acquiring the necessary licenses. Most countries are yet to figure out the idea of cryptocurrency. Since they have their own set of restrictions, it will be wise to have a legal expert for counsel.
2. Either for cryptocurrency or brokerage, having an efficient CRM is the spine of the business. Also, having a back-office as well as a trader’s room provides more efficiency for managing the trade accounts.
3. If you’re keen on gaining the faith of potential customers, you must display sufficient liquidity. For starters, associating with a crypto liquidity provider will be wise as they can offer a deep liquidity pool. Though they would charge a fixed fee, it is certainly not based on trade volumes.
4. Launching an ICO platform to create your own coins by partnering up with appropriate technology providers. Though not mandate this could draw you more investors who can buy your offerings.
5. Find your perfect technology provider who can provide you with turnkey cryptocurrency solutions and White label crypto solutions. Especially the expert ones in developing custom cryptocurrency exchange solutions which can save you both your time and money.
6. Explore each and every aspect of your site to ensure it is flawless before you welcome your first customer aboard.
Enable Top-notch security
7. Secure your business by ensuring the best security practices and technology. Cryptocurrency is now a major target of hackers with a steady increase in cyber-attacks and data breaches.
8. Establish institutional relationships with trustworthy payment service providers who can support the speed of transactions and settlement of funds. Implementing payment solutions with a low transaction rate also would draw you more traders.
9. Apart from regular social media approach, it will be useful to do some digital marketing. So that you can create yourself some reputation as a brand. Also, hiring Public Relation experts would be a valuable addition.
10. Once you go live into the business, it is vital to keep and apply your strategic approaches. More importantly, stick to the policies both in the jurisdictions you work as well as where your traders are located.
If you’re determined to start your own cryptocurrency exchange/brokerage business, then you must check LaunchFXM, a crypto brokerage solution provider who can provide you end-to-end support in all the above criteria.