The most well-known in the world is Bitcoin, though there are hundreds
of other crypto currencies developed by the business working within.
Being a toddler in the race of crypto business you can still mark the
first move in the space. Cryptocurrency is the bandwagon everyone is
obsessed with whether news, blogs, or big-time financial authorities
are admitting the power of cryptocurrency.
There are abundant ideas showing potential in the crypto business,
from where you can make money in crypto for the foreseeable future.
Before launching your coin in the crypto world you must be aware of
the basics:
What is an ICO?
ICO stands for “initial coin offering,” which is a popular method of
fundraising capital at early-stage of your cryptocurrency projects.
If a company tendering to raise money to create a new coin, service or
app can launch ICO as a way to raise funds for their projects. An ICO
is equivalent to an initial public offering (IPO).
What’s in a coin?
cryptocurrencies or digital cash are a part of blockchain where they
derive utility-based coins that are designed not to replace
traditional forms of currency that exist on a distributed and
decentralized ledger called a blockchain.
A coin is used as a medium of exchange or store of value within a
digital economic network.
Major blockchains work as a decentralized, distributed ledger that
tracks and verifies each transaction, and their original coins can
only be transferred between participants of this particular network.
How to execute your crypto exchange:
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1.
Legal Counselling to ensure the requirements for licensing:
Proper licensing is crucial to be obtained in all jurisdictions in
which the company will lead its operations. Before your plan is
ready to launch you should seek legal counsel to know about the
regulatory demands regarding your new business.
Every country has there own regulations framed by the
government, like in the US bitcoin operators must be licensed Money
Transmitter businesses and must follow SEC and CFTC rules and
regulations among others. The rules in the US have been placed since
2002 as a result of the Patriot Act. Regulations vary from country
to country so be sure to consult with an attorney who is familiar
with the industry.
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2.
Evaluate the cost involved in the execution of a new venture
Before starting the project you must analyze the approximate costs
involved Considering the factors of the cost of technology, hosting,
some initial legal counsel, government registration, and initial
advertising. While all of the funds are not required on the first go
but for a smooth run you must ensure the venture has access to
capital. Researchers claim the major issue by startups is that they
fail to plan for the upcoming future requirements,
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3. Find a technology solution provider.
Research for the providers who help you add value to your project
and have great experience in developing stock exchanges, including
backend technology used by some of the largest stock exchanges in
the world. Figure out the technology that works effectively for your
project.
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4. Connect your exchange with others for added liquidity. To
be successful in any exchange you must add liquidity as being a new
venture potential customers will not trust initially to overcome the
issue you need to simulate activity via dummy accounts within the
new exchange, you can connect your exchange to a network of existing
exchanges, enhancing its liquidity. Remember, the larger the network
of exchanges, the less liquidity will be an issue for your new
exchange.
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5. Pantene a Payment Processor
Look out for the lowest transaction rate to be competitive with
other exchanges. Additionally, some processors build hidden fees
into their contracts, so be sure you understand the contract you're
signing. Not all payment processors are equal check the Fee
structures, among other things, and compare them
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6. Enforce the best security practices.
Figure out the most secured technology for exchange including
utilizing offline cold storage wallets, two-factor authentication,
and encrypted databases. Cryptocurrencies have become an emerging
target for cybercrime and hacking, leaving exchanges scrambling to
differentiate based on security so keep a check and ensure the
technologies which safeguard your project.
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7. Before going live always prefer beta testing.
Now your exchange has been built, already you have set up a contract
with a payment processing firm. And after taking all the measures
and working hard you ensure your exchange is following all rules and
regulations. Ensuring that your venture is protected from cybercrime
you can launch your exchange and test its full range of capabilities
in beta.
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8. Market your Project
After the launch of the exchange, it is time to connect with crypto
marketing agencies as it is adequately important t plan your
marketing activities.
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9. Focus on customer support
The last step in the making of a successful cryptocurrency exchange
is customer support. Be responsive to your consumers fixing up their
issues
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10. Maintain a legal team for ongoing compliance.
To keep your exchange legal in all geographies where you will
conduct business, you must have ongoing legal compliance.
