An Introduction Into the Crypto Exchange: What to Start With?

Cryptocurrencies pretend to become a new financial reality in the near future. Despite the recent market collapse, digital assets are still gaining popularity worldwide. As of June 2021, the overall number of blockchain wallets has surpassed the mark of 73 million users (15.87% growth within 6 months).

 Crypto Exchange

Furthermore, crypto holders prefer exchanges to keep their funds. According to statistics, more than 60% of investors/traders holding digital assets trust their crypto capitals on exchanges. Coinmarketcap informs that the total number of launched crypto exchanges exceeds 380 platforms that are categorized into spot, derivatives, and DEX groups.

This said the market welcomes newer players, and the sector is promising enough. Beginners start their way from an understanding of how does Bitcoin exchange work to dive into the mechanisms and pitfalls.

 What is a crypto exchange: types of trading platforms

Foremost, beginner players should understand what a crypto exchange is, and which functions such platforms include. In simple words, an exchange offers users to buy, sell, and exchange digital currencies.

What are the most widespread types of crypto exchanges?

  1. Bitcoin or altcoin exchanges. Such platforms support digital currencies only, without fiat options.
  2. Exchanges that enable investors and traders to convert digital assets into fiat and vice versa.
  3. Centralized exchanges that have licenses and act in accordance with legislative norms.
  4. Decentralized exchanges that provide an exceptional level of security and anonymity.
  5. Margin platforms where traders get leverage to receive more profits. On the other hand, risks augment as well.

Furthermore, a crypto exchange may combine several characteristics.

 Initial steps to enter the market

The step-by-step guide of how to start crypto exchange includes the following stages:

  • License and legal issues:

The foremost concern includes the necessity to obtain a license and dive into the legal to correspond your platform to the existing regulation. Decentralized exchanges are the exception; meanwhile, the market is moving towards regulation.

  • Liquidity provider:

Liquidity is a key aspect of a successful trading platform. Your order book should immediately execute bid and ask orders; this is why, apply to leading crypto liquidity providers.

  • Appropriate software:

Business owners may purchase custom software that corresponds to personal demands and costs about $100-150 000. The second way offers newer players to leverage WL solutions that are less expensive. Meanwhile, a platform is controlled by a provider company. An exchange is deployed on a provider’s servers

Moreover, the process includes a string of important aspects to keep in mind:

  • Financial (set up deposits and withdrawals, use cold storages, etc.);
  • Marketing (advertising should increase your brand recognition);
  • Technological (connect APIs, matching engines, and other integral components).

The process contains diverse pitfalls; this is why beginners prefer to apply to professional and experienced companies that offer turnkey solutions. B2Broker is a company that incarnates the combination of high quality and cutting-edge technologies. A turnkey crypto exchange is among the suggested options.

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