In 2019, experts have predicted that the international cryptocurrency market cap will reach a valuation of a whopping $1 trillion. This positive trend is attributed to the growing awareness of cryptocurrencies, its acceptance as a medium of exchange, and the growing importance of crypto-trading.
By removing the need of trusted third-party intermediaries, cryptocurrencies are a positive shift towards a truly global currency. Moreover, they allow users to transact in an anonymous and reliable manner — finally, blockchain technology stores every transaction in an immutable and secure fashion.
Historically, cryptocurrencies have been shown to appreciate in value. Take the Bitcoin for instance. When the coin first began trading in 2011, it was valued at a mere $0.30. Today, the same coin is worth over $8,000! The same can be said about other popular cryptocurrencies such as Ethereum, Ripple, or even Bitcoin Cash. This goes on to show that cryptocurrencies can be viewed as a reliable store of value.
While the long-term goal of any cryptocurrency is to gain stability, they currently suffer from bouts of price fluctuations. This is best represented in Bitcoin’s illustrious history. The cryptocurrency launched by Satoshi Nakamoto has had its fair share of ups and downs. For instance, during the course of 2017, Bitcoin went from $998 to an unbelievable $19,783. But beginning 2018, it crashed to $13,412 before it eventually flatlined at the $3,000 mark. During this period, some spikes allowed users to benefit from volatile prices. This brings us to the concept of crypto-trading and cryptocurrency exchanges.
Just like a stock market or a forex platform, a cryptocurrency exchange facilitates the buying and selling of different cryptocurrencies. By using different trading orders, users are able to execute transactions and earn handsome profits. With the presence of many software solution companies, it is very easy to create your Cryptocurrency Exchange Software. However, there are a few things to watch out for when launching your own platform:
- Understanding The Regulations: Despite its popularity, very few governments recognize cryptocurrencies. There are different taxation policies, regulations, and other red tape that one needs to understand before opening an exchange. If your country does not support cryptocurrencies, not all hope is lost, you can turn to a crypto-friendly nation like Malta, Singapore, and Japan.
- Finding Your Developer: The next step in launching your own cryptocurrency exchange is narrowing down on a competent developer. One should check the credibility of the development company along with the projects they have successfully undertaken. Also, check out if the company offers white-labeled and customizable solutions.
- Integrating the Security: One of the primary priorities of any exchange is to ensure the security of the platform as well as the users’ funds. Protect your exchange using a variety of security features such as two-factor authentication, encrypted databases as well as cold wallet storage facility.
- Focusing on Liquidity: Users prefer exchanges that offer easy withdrawal and deposit of funds. Therefore it is highly recommended to spoil the user with a variety of payment gateways that support credit/debit card, net banking, and even cryptocurrency options. Additionally, ensure that your payment gateways are compliant with PCI-DSS to allow your users to enjoy instant payouts and protection against external threats.
- Marketing and PR: Another key factor that determines the success of your exchange is on how well you publicize your platform. You can do this by using third-party marketing services or employ a host of promotional activities such as airdrops, low transaction fees, and support for multiple cryptocurrencies.
The cryptocurrency market is booming with several experts pointing towards bullish trends. The steady growth in Bitcoin’s value over the past few months is a testament to this fact. Moreover, users are finding a variety of uses for cryptos in their everyday transactions and this is further pushing its popularity as an alternative medium of exchange. In addition to this, the most recent advancement in blockchain, the Initial Exchange Offering, is dependent on cryptocurrency platforms to raise funds. Finally, several other promising cryptocurrencies are not featured in leading exchange services. An entrepreneur can focus on these niche cryptos and launch a dedicated platform that promotes them.