Crypto exchange: how to open a business on cryptocurrency exchange

With the growing demand for cryptocurrency, the number of people wishing to earn money from transactions with digital coins increases. And at the same time, the demand for crypto exchangers, through which assets can be exchanged, also increases.

 

The one that is secure, transparent, confidential and reliable will be popular. This is the one who will compete in the market, will be able to attract more clients, and therefore earn more. So if you want to build your own cryptocurrency exchange business, consider these criteria to create a competitive digital currency exchange.

What is a crypto exchanger and how does it work?

A cryptocurrency exchanger is a service that offers exchange services for digital and fiat currencies (dollar, euro, hryvnia, etc.). That is, the user can exchange cryptocurrency for other electronic assets or regular money and vice versa. The most popular are Bitcoin, Ethereum, Tether, etc. The site takes a commission from 2 to 10% from each transaction.

All data is updated online, so every visitor sees current offers. In addition to direct exchange, users can monitor the situation and store coins in personal wallets. Therefore, it is important to ensure a high level of security and protection against fraud.

A large number of exchangers and high volatility of cryptocurrencies affect the rate. Often the cost of currencies differs between different services. Mostly the difference is small, but sometimes it is significant. And this allows traders to buy coins cheaper and immediately sell them where the rate is higher, which means they can earn more.

The principle of operation of a crypto exchanger

All transactions with cryptocurrencies are carried out on the Internet. Exchangers work on the principle of banking and offer to buy or sell digital currency, exchange it for national currency, or exchange one cryptocurrency for another. For transactions, you can use those cards and electronic payment systems that do not impose restrictions on working with digital coins.

There are two types of exchangers:

centralized – users exchange coins with the service;

decentralized – users exchange coins among themselves, and the service guarantees the security of transactions.

To exchange, you need to register (to expand the limit for transactions), transfer funds to the service, pay a commission and receive the agreed number of digital coins.

How is a crypto exchanger different from a cryptocurrency exchange?

A crypto exchange is a platform for the sale and exchange of cryptocurrencies and traditional money at established rates between different participants. Users search for an offer that suits them and make deals.

A crypto exchanger is a service that operates like an ATM and exchanges some digital currencies for others or for fiat money.

The main differences between the two platforms are in functionality, transactions, and price formation. While the exchange itself does not participate in transactions, but only shows offers from sellers to potential buyers, the exchanger is directly involved in trading, receiving a percentage from each transaction.

The price of cryptocurrencies on the exchange is set under the influence of proposals from other participants and the characteristics of the market as a whole, and the exchanger determines prices itself, but at the same time focuses on popular exchanges in the world.

The exchanger only exchanges currencies, but on the exchange there are other opportunities for earning money (arbitrage, trading).

There are also differences in sales volume. Thus, the exchange does not set any restrictions, and the exchanger allows only small transactions with a set limit.

At the same time, to work on a crypto exchange, you must undergo registration and verification, and exchangers allow you to carry out operations according to a simplified scheme without entering data and participating in trading. Therefore, crypto exchangers usually have simpler functionality and faster support service.

Why you should open a cryptocurrency exchanger

Digital coins are used as an alternative to traditional money, that is, they can be invested in projects, sold, or used to pay for certain goods and services. You can also build your own business on a cryptocurrency exchange.

Advantages of a cryptocurrency exchanger:

security - transactions are carried out on secure servers, and coins are not stored at their addresses, but are immediately transferred to client wallets;

no registration or simplified registration – not all exchangers require entering personal information and undergoing verification, which saves time;

clear interface – to simplify and speed up transactions, the service has only the necessary buttons;

simple operations - to exchange currencies you need to have an electronic wallet, go through confirmation via e-mail or mobile phone, select and carry out a transaction.

Also, some exchangers offer a currency exchange service upon prior request. That is, if the required amount is not in the reserve, you can leave a request and wait for notification when the full amount of funds will be available for the operation.

In addition, creating a crypto exchanger is a simpler and less expensive process than opening a cryptocurrency exchange, for example. Therefore, if you plan to make money on digital coins, but do not have a large budget, you can start with an online exchanger.

Types of cryptocurrency exchangers

Cryptocurrency exchangers, in their essence, are not very different from regular banking ones, but they can have different operating modes and set different commission percentages.

Based on this, the following main types of exchangers are distinguished:

Manual – all operations are performed by the operator. The user transfers funds to the service, then the employee checks and transfers them to the specified account. In this case, the processing speed depends on the operator’s workload and his work schedule.

Semi-automatic - the user leaves a request with information about the wallet and amount, which is verified by the operator, after which the assets are transferred.

Automatic – the client’s application is processed by a script, and all transactions are carried out automatically in a few minutes, so this method is considered the most profitable.

There are also online and offline cryptocurrency exchangers. In the first case, the user enters wallet details and carries out the transaction in a few clicks, and in the second, it is necessary to fill out an application indicating the transaction amount, and then transfer the money through the terminal. Accordingly, online exchangers are more convenient because they provide for quick transfers.

The rate of digital currencies is formed in real time. And the operation scheme is simple.

How online exchangers work:

You must first fill out a special form to gain access to your personal account, then select the type of operation (exchange of one cryptocurrency for another, for fiat or between wallets) and confirm the transaction. In addition, the user must pay the commission established by the exchanger. Its size and the total amount to be paid are indicated when entering the payment amount in the form.

Creating a crypto exchanger: how to make money on cryptocurrency

To receive income from a crypto exchanger, you must have a good reputation. The better it is, the more trust users have and the higher the chance that they will use the services of the service. To do this, you need to conduct secure operations and quickly process applications. This will help you get positive reviews and earn a high rating.

Since there is strong competition in the industry, it is necessary to constantly monitor the market in order to set a rate that is profitable for users. Yes, such a step will bring less profit, but you will attract regular customers.

You can also make money by expanding your services. For example, accept cash, exchange currencies from cards of any bank, work with a large number of cryptocurrencies, etc., especially if the main competitors do not do this.

To increase income, you should make the cryptocurrency exchanger 24/7 and make transactions automatic.

In addition, it is worth taking care of a clear, simple interface, a bonus program for clients, the availability of sufficient funds for instant transfers, and high-quality technical support.

Users can be attracted by :

favorable rate of cryptocurrencies;

small commission;

a variety of transaction options (to cards, to popular payment systems, money transfers, top cryptocurrencies, etc.);

availability of information;

efficiency of processing applications;

24-hour work schedule;

reputation (transparency, honesty and speed increase trust);

reviews.

Therefore, when creating a cryptocurrency exchanger, it is necessary to think through the functionality, not immediately charge a high commission, and offer participants the optimal exchange rate.

Based on the initial capital, you can either immediately develop a full-fledged effective platform for exchanging digital currencies, or use instant messengers or telegram bots from your home computer when starting a business. And when a base of regular customers has been developed, it will be easy to move on to creating a thematic resource.

For those who are interested in whether it is possible to make money on cryptocurrency using an exchanger, the answer is that the level of income will depend on the number of transactions carried out and the commission percentage. For example, with a commission of 2% and daily transactions amounting to $5,000, the exchanger will earn about $100 per day and $3,000 per month.

How to open your own crypto exchanger

Digital money exchange operations are carried out not only by traders, but also by other users. This is why crypto exchanges are important. They are especially relevant when you need to convert electronic assets into fiat money.

The following methods are suitable for creating a cryptocurrency exchanger :

• a ready-made template - then the service will be standard, with limited functionality, without a unique design (average price - about $5000);

• from scratch - allows you to get a platform tailored to the specifics of your business, which will be distinguished by a stylish modern design, a simple and user-friendly interface, flexible functionality and compliance with user requests (development costs can range from several thousand to several tens of thousands of dollars).

Since exchangers receive income from commissions, it is necessary to analyze competitors before launching and understand in which areas there are fewer of them. After all, the more players there are in a niche, the lower the commission will be, which means it will be more difficult to earn money.

Also, after opening a business, it is important to constantly monitor the market and track any changes on crypto exchanges. This is necessary to set a profitable rate and attract customers.

If you want to learn how to make your own crypto exchanger, we suggest using the mini-instructions.

What you need to consider when creating an exchanger:

Jurisdiction . Each country has its own approaches to working with cryptocurrencies. In some places such operations are legalized, in others they are prohibited. The legal norms and taxation on which profit depends differ. The most profitable places to register a crypto exchanger are Malta, Japan, USA, Australia, Switzerland, Mauritius, and the Cayman Islands.

Laws . In many states, you must have a license to start a crypto business. The specifics of obtaining it and the validity period differ in different countries. For example, in China you cannot open an account when registering a company for a non-resident, but in Estonia this is permissible subject to certain conditions.

Documentation . Each country, again, has different requirements for obtaining permits and other documents, so it is recommended to seek help from local lawyers who know all the intricacies of the law.

Hardware and software . The server can be purchased or rented. The purchase will cost more, but the equipment will be yours, and in the case of renting hosting, the security of transactions remains in question. It is also important to deliver reliable software with a user interface, a powerful engine and a secure wallet.

Safety . Transactions with money and personal data of clients must be reliably protected.

Banks and payment systems . Not all financial companies are ready to work with cryptocurrency, so only those that support the free circulation of coins and guarantee the speed of transfers are suitable for cooperation.

Customer support . To attract and retain customers, it is necessary to quickly answer user questions, promptly resolve problems with the site, respond to operation failures, and combat illegal transfers.

To start a cryptocurrency exchange business, it is better to consult with an experienced lawyer to competently resolve all issues and set up processes in accordance with the legislation of the country in which you will register.

Documents required to open a crypto exchanger

The list of required documents is formed depending on the country in which you want to open a cryptocurrency exchanger. Since different states put forward their own conditions and requirements, including in the issue of issuing a license (not required in all countries), you should carefully study the legislation and nuances of taxation.

To work, you mainly need the following documents :

• official permission to operate;

• registration certificate;

• perpetual loan agreement.

Some countries require information about the entrepreneur, a certificate of good conduct, evidence of legal business, etc. Therefore, before starting an activity, choose the country that offers more favorable conditions.

How much does it cost to open a crypto exchanger?

The cost of creating a cryptocurrency exchanger depends on the features, functionality and design of the platform. Ready-made solutions will cost less – about $5,000, while individual ones will cost more – from $10,000.

In addition to creating a platform, you should also consider the costs of promoting the resource and the costs of purchasing cryptocurrency. Advertising and promotion of the exchanger will cost an average of $300-500 per month, and providing the required volume of digital currencies to start will cost from $5,000.

That is, the starting capital can be $15,000 or more.

Where is the best place to open a cryptocurrency exchanger?

Why does it matter in which country to open a crypto exchange? Because cryptocurrencies are not allowed everywhere. This means that in order to avoid problems with the law and government agencies, you need to register where there are more suitable conditions for this.

Countries loyal to digital currency are the USA, China, and Switzerland. But besides them, there are other, more accessible states that encourage such investments and allow the use of cryptocurrencies with certain restrictions or without them at all.

Countries that are suitable for cryptocurrency business:

Estonia

This country allows the use of digital assets and tokens, launched its own ICO and offers favorable conditions for cryptocurrency business. Digital currencies are not regulated, which encourages the emergence of new exchanges and exchangers that guarantee privacy, fast transfers and data protection.

At the same time, the procedure for obtaining a license when registering a company has become somewhat more complicated. Thus, among the requirements there are: the need to register an LLC, the appointment of a resident as director, the presence of an equipped office for work, a business plan, a certificate of no criminal record, etc. Despite this, Estonia is popular among those who want to start their own business in this niche.

Lithuania

It is one of the few EU countries where digital currency transactions are allowed. They are regulated at the national level, and to get started you must obtain a license, which is a simple permit. And since the requirements for service providers are not that complicated, many companies, especially start-ups, register here.

Malta

The state has adopted a number of laws and acts that regulate the use of cryptocurrencies and transactions with them, and to start a business you also need a license. Control is carried out by the Financial Services Authority of the MFSA.

To obtain permission, you must open an office in the country, have sufficient capital to carry out transactions, confirm a responsible and conscientious approach to business (show how the company fights money laundering and illegal transactions), and provide annual audit reports.

Cyprus

On the island, cryptocurrencies are completely legal and there are no restrictions on transactions with them. For investors and businessmen, the advantage will be that there is no income tax here. Since cryptocurrency is classified as securities, and securities are not taxed in the country, this attracts those who want to open their own business.

Portugal

There are no laws here that would regulate the activities of cryptocurrency companies, but to operate you must obtain permission. And all service providers must ensure risk management, customer verification, and monitoring of illegal and suspicious transfers.

USA

In this country, digital coins are decentralized and work on the principle of a national currency. Therefore, exchangers must register, obtain a license and inform the police about suspicious transactions.

Australia

The authorities have recognized Bitcoin and other digital currencies as legal tender, removed double taxation, so the exchange of coins for alternative currencies or fiat can be carried out without restrictions if you have a license.

To obtain a permit, you must write an application, provide information about the business and its owner, obtain a police certificate and pay all fees. The license is valid for three years.

Also, Japan, the Philippines, the Czech Republic, the Cayman Islands, Singapore and other countries offer favorable conditions for creating a crypto exchanger.

To open a business, you need to choose a suitable country, study its legislation and working conditions, and even better, seek help from an experienced lawyer who will help draw up all the necessary documents and advise on the specifics of using cryptocurrencies.

Features of creating a cryptocurrency exchanger

In order for the service to be able to process many requests throughout the day, it is necessary to have a powerful engine, and it must be clear to people what to do and what button/link to click to get the information they need.

A simple accessible interface, wide functionality that allows you to carry out various operations, a secure wallet and a stylish design - these are the key components of a good online exchanger.

What should a crypto exchanger contain:

registration – you need a simple form to enter the user’s email address, login and password in order to link a specific person with payment card data;

verification – not all exchangers perform such verification, but to protect user data and minimize suspicious transactions, it is better to introduce an identity verification procedure, especially if transaction amounts exceed $1,500;

electronic wallet – can be received by everyone after registration;

P2P exchanger – allows you to exchange cryptocurrency for fiat and withdraw funds to a card or bank account;

payment systems – there must be integration with various services, for example PayPal, Alipay, QIWI, etc.;

client chat – allows users to receive answers to their questions in real time at any time of the day or night;

reviews and ratings – increases user confidence;

technical support – needed to quickly resolve problems and failures, information support;

transaction list – displays available transactions and displays all transfers of a specific user.

In addition, the crypto exchanger should allow you to view statistics to understand the picture of what is happening and develop a development strategy. You can also add discounts and affiliate programs to your site to attract an audience and convert one-time customers into regular ones.

Cryptocurrency exchanger success factors:

reliability – it is important that users trust you;

relevance – proposals must be competitive;

benefit - the rate and commission should be made attractive to clients.

If the crypto exchanger meets these criteria, it will be possible to build a business that brings profit to you and benefits your customers.

To receive income from a crypto exchanger, it is necessary to set a commission on purchase and sale transactions and deposits and withdrawals of funds or a fixed fee for conducting transactions. This should be a small amount so that participants do not feel a loss. Money for exchange services can be taken immediately or charged after the transaction.

If you want to open a platform for exchanging cryptocurrencies without commission, then you need to understand how online exchangers work. Such services live precisely on a percentage of transactions, so in order to receive income, you need to set at least a small commission or sell coins at a higher price than they were purchased. Therefore, competitors’ promises to change currencies without commission are most often just a trick, a ploy for users.

Creating a cryptocurrency exchange website is an important part of starting a business. But this is not enough for successful activities. It is important to ensure the security and smooth functioning of the platform.

Therefore, it is necessary to take measures:

• restrict access to the admin panel;

• introduce two-factor authentication;

• implement an anti-fraud system to protect against counterfeit currencies;

• connect several trade counters to avoid failures;

• provide DDoS protection;

• create automated monitoring of cryptocurrency rates.

And to improve the quality of service and increase customer loyalty, you should take care of a user-friendly interface, availability of information and transactions in different languages, the ability to make transactions around the clock, a transparent commission calculation system, and fast transfers.

You should also take care of the design of the platform. The website design for a crypto exchanger can be template or unique. The first option will be simple, no different from competitors. And the second allows you to implement any ideas to attract attention, increase trust and loyalty of the audience.

A template solution, of course, will cost less (from $1000), but it will be a vulnerable service with weak functionality. And website development from scratch + original design allows you to get an effective, powerful platform that works without errors, which stands out from competitors, is well remembered and simplifies operations for users. For such a solution you will have to allocate from 15-20 thousand dollars.

Promotion of a cryptocurrency exchanger

Every cryptocurrency exchange needs users. To attract them, various tools and promotion channels are used. Not only the rate of digital currencies is important, but also the functionality of the platform, ease of use and speed of transactions. After all, the target audience is usually technically savvy, which means they pay attention to this part.

Promoting a resource must begin with SEO optimization. To do this, you need to identify currency pairs (for example, Bitcoin private), prepare separate pages for them with headings on the topic. Based on these pairs, you should collect a semantic core, write texts with key queries and optimize the site. This is done to promote the web resource in organic search.

Methods for promoting a crypto exchanger:

contextual advertising - will be effective if the rate does not differ much from competitive exchangers, the landing page has a relevant headline, the ad indicates limit restrictions, and the site itself has simple navigation;

media advertising – consists of articles and short notes about the work of a crypto exchanger on various online resources;

cooperation with bloggers – mentioning your exchanger in posts of advanced traders and famous crypto bloggers will help expand your customer base;

affiliate programs – you can agree with exchanges and other cryptocurrency companies to publish information about the exchanger;

blog – regular posting of useful and interesting articles on the topic will attract users.

In general, promoting a cryptocurrency exchanger is a difficult task. But with the development of a competent strategy and effective internal website optimization, it will be easier to bring it to the top of search results, improve rankings and increase traffic.

Name and logo for the crypto exchanger

The name and logo of the cryptocurrency exchanger play a significant role in promotion.

The name should be simple, memorable, easy to pronounce, but at the same time reflect the essence of the business and attract the audience.

If it informs users about the specifics of the activity, evokes a feeling of reliability, and reflects success, then the chances that it will be quickly remembered and will become associated with your crypto exchanger will increase.

To create a name, you can use a name generator. This is a program that allows you to enter keywords related to a business, designate the type of activity and get several name options. If the suggested names don't suit you, they may still give you an interesting idea. And if you’re really stuck for ideas, contact WeLoveBrands studio to develop a catchy, dynamic, and memorable name for a crypto exchange.

As for the logo, it is a visual image of the company, so it should be made attractive and informative. The logo of a crypto exchanger should be dynamic, minimalistic, technologically advanced, modern, emphasizing individuality. Then the sign will reflect what the company does and evoke associations with success, prosperity and reliability.

When developing a logo, you can use both the name and thematic symbols, as well as unexpected images to attract the attention of the audience and differentiate it from competitors. For example, while other sites choose font logos or geometry, you can choose an image of an animal that symbolizes strength, power, speed, or play with the text using graphs and diagrams.

If you want to get a stylish logo for a crypto exchanger that evokes associations with the line of business, emphasizes the security of operations and stands out from competitors, order logo development in our studio. Designers will take into account the specifics of your business, study the trademarks of other companies in the industry and create a unique, recognizable logo that will help promote the site.

Examples of successful cryptocurrency exchangers

Crypto exchangers are used to quickly cash out digital coins. They are presented both on popular exchanges and can be separate services with their own offers.

There are dozens of different platforms available for exchanging cryptocurrencies and fiat money.

Popular and reliable services:

1. Bitcoin24

An online exchanger that allows you to exchange bitcoins and withdraw funds through Privatbank. The service works with Privat24 and LiqPay, and also has a calculator for online calculations on the main page.

Advantages of the site :

• favorable rate;

• secure operations;

• withdrawal of bitcoins to bank cards;

• no additional payments;

• 24-hour work;

• confirmation via SMS.

You can exchange digital currency without authorization.

2. Binance

This is the largest crypto exchange in the world in terms of sales of digital coins. Allows you to carry out operations in large volumes. The support service works around the clock, and rare failures are resolved promptly.

Advantages of the site :

• small commissions;

• instant transfers;

• support for more than 150 digital currencies;

• buying cryptocurrency for dollars, euros, hryvnia;

• passive income possible.

The exchange carefully selects assets to ensure security and makes it easy for users to conduct transactions, in particular, the exchange is also available through mobile applications. Suitable for beginners and professionals.

3. 7Money

An exchanger offering transactions with all popular cryptocurrencies. The site also has various currency pairs and new ones are constantly being added based on user requests, so you can easily find what you want here.

Advantages of the exchanger :

• automatic exchange;

• confidentiality;

• safe operations;

• favorable exchange rates;

• loyalty program.

You can exchange currencies without registering on the site. At the same time, creating an account allows you to see all the operations performed and check the status of the transaction.

4. Coin24

Allows you to exchange, buy or sell cryptocurrency. National currencies such as hryvnia, US dollar, euro, and ruble are available for transactions.

Advantages of the site :

• high speed of processing applications;

• Bitcoin can be purchased using a card or real money;

• low commissions;

• convenient interface.

Most transactions are carried out automatically. The service is constantly being improved to simplify translations and make it more convenient for users.

5. Kraken

This is one of the oldest exchanges in the United States, offering a wide range of digital coins and low fees.

Platform advantages :

• good cybersecurity;

• high ratings;

• complex trading functions.

The service is suitable for experienced users and allows you to make money by exchanging cryptocurrencies.

There are a lot of cryptocurrency exchangers. But not all of them are reliable, not all offer a large selection of cryptocurrencies and exchange in hryvnia. Therefore, by studying the strengths and weaknesses of your competitors, you can create your own crypto exchange that offers more options to customers, thus filling the niche and creating competition for existing players in the sector.

To develop a template or unique website for a cryptocurrency exchanger, contact the WeLoveBrands studio . Our specialists take into account the customer’s wishes, study the market, find the strengths of the business and think through an effective strategy. As a result, you will receive a reliable service with a clear, user-friendly interface, the functionality necessary for your tasks and a modern, memorable design. In addition, we will develop an attractive name and an original logo for the crypto exchanger, and will also promote the site to increase the number of clients.

To get advice and clarify the cost of services, call us by phone or write a message in instant messengers.