If you are looking to start a bitcoin exchange business then you are probably at the right place, this article is the perfect guide for one to start a business. Before taking you to the process of starting a exchange business, let me tell what actually is a bitcoin and if you already know what it is then having a glance would not cause no harm. Bitcoin is the first of crypto currencies and which came into existence in 2009.
It works without the interference of a bank or an administrator. The creator of this crypto currency still happens to be unknown and some say that it might also be group of people who go by the name Satoshi Nakamoto.
Bitcoin was initially released as an Open Source software and were later given as a reward when mining. Meanwhile you can also create a bitcoin exchange business with the help of this bitcoin exchange software called BitExchange.systems.
Here is a guide to start a bitcoin exchange.
- Decide the location
The first step is to understand the geographical location you want the exchange business to start from. Selecting a country plays a major role as the documents that need to be provided differ from country to country. Brush up on the laws regarding this particular business and it would be wise to hire a legal expert to help you with the legal matters.
- Legal Requirements of a country
Get to know more about the legal documents require to start a business something like this as there are a few countries opposing this payment method. Know Your Customer(KYC) is one such process that verifies the customers identity that government requires. Documents that are issued by the government like passports and license are taken into consideration.
KYC allows a business to prevent criminal activities like money laundering which might land a business into trouble.
- Associate with a Bank
If you are done choosing a location and understanding the legal requirements of a country, then this step will tell why a bank plays an important role.
Associating with a bank will enable you to process payments with the means of fiat currency. Here a trustworthy bank which offers substantial online benefits is the best option to route for, a bank like this will allow the smooth flow of business in developed and underdeveloped regions. A bank that offers fast clearance and quick settlement of funds will attract more customers into the business.
Also read, Why Bitcoin Could Be More Important Than the Internet: Here’s why
An exchange business that operates without liquidity cannot run successfully. A customer can stay with your bitcoin exchange only if there is an order book maintained and the trading activities taking place.
A trading activity works when buying and selling between artificial accounts done on your exchange. An API interface that connects to another bitcoin exchange can be enforced.
- Security for the exchange
The crucial factor to consider when starting a bitcoin exchange is to provide the maximum security for operator and for the trader’s fund. There have been instances where the security breach and bitcoins being stolen. A high grade security will allow the transactions safely and making sure that no such activities take place.
- Customer Support
The last step is to build a customer support to make your exchange business run for a longer time. There are various facets to consider when giving the best support for the customers from email to call, there needs to be a well trained and an experienced staff.
The staff you hire should help the customers with queries such as KYC, processing the deposits and withdrawals of fiat currency.
Choose staff that has grasp in multiple languages, is good with the technology and has knowledge about cryptocurrencies. Finding it hard to develop the right Bitcoin exchange script? Take help from BitExchange.systems, the most secure script in the market.
Also read, What is Bitcoin Mining? A Step-by-Step Guide
Here, have a look at some of the features they provide:
- Atomic Swaps using Escrow methodology
- Liquidity Management
- Margin Trading
- Peer to Peer exchange option
- Admin Panel to control your Cryptocurrency exchange
- Hot & Cold Wallet
- Buy-Sell anytime effortlessly
- Order Book that lets you keep track of your transaction history.