Factors to be kept in mind before building a Cryptocurrency exchange software

Cryptocurrency has set the trend as one of the exciting things in this century. Despite the presence of risks and unpredictability that can affect performance, it offers huge rewards for those who develop a reliable cryptocurrency exchange software. Investors will benefit from large profits and assured value appreciation.

In this article, we will see some must-know things and avoid stumbling blocks before creating a Cryptocurrency exchange software.

Strong legal team - Experts with thorough knowledge of national and international regulations must be available for registration and obtaining licence. Scope of operations will determine the applicability of laws. Many countries order white label cryptocurrency exchanges to implement mandatory Know your Customer (KYC) and Anti-Money laundering (AML) norms.

Create an independent exchange platform - Time and costs are the main factors behind developing an own cryptocurrency exchange platform. Priority should be given to website speed and ease of using wallets. Top-notch security must be given to the data of customers when they deal in cryptocurrency. Experienced blockchain developers have to be hired for getting a professional output. The success of the exchange platform will commensurate with the survival of the cryptocurrency system.

Establish agreements for payment solutions - Services of leading banks and payment providers should be tapped into for managing transactions. A foolproof payment gateway must be created for processing money. Multiple options for settlements would be given preference. However, it varies from nation to nation depending upon their acceptance towards digital payments.

Liquidity management - Liquidity is critical for smooth operations of the cryptocurrency exchange software. It also depends upon market competition and attitude of investors. Additional liquidity can be formed by providing Application Programming Interface and sharing of trade volume information between your platform and another prevalent Bitcoin exchange. This is beneficial as small exchanges can become part of a large cryptocurrency exchange network.

Customer Support - The continuous volatility in the cryptocurrency market can lead to worry and uncertainty among customers. However, a strong and active 24x7 customer support can nullify those fears. Care must be taken to re-impose trust in the white label cryptocurrency exchange. Since fortunes can fluctuate within a few seconds, satisfactory replies in the form of practical solutions must be given to the investors. Facts should be presented clearly to hesitant investors. Crucial aspects like exchange fees must be considered by balancing between user’s expectations and revenue collection.

Availability of mobile application- Since there has been a massive surge in the usage of mobile phones, white label cryptocurrency exchange software must be made adaptable for various gadgets. Care should be given to improve the website’s speed as mobile users want things done at a fast pace. Both the trading platform and transaction facility should be mobile friendly. Separate applications must be developed for Android and iOS users.

Risk Management - With an increase in the usage of virtual currencies, steps must be taken to prevent hacking, data theft, and unauthorized access. Backups must be created in other locations apart from storage in the main server. Encryption of data with a password will ensure additional protection. Since government authorities do not monitor white label cryptocurrency exchange, the risks are higher for traders and investors.

Immanuel Kant is Growth Hacker and Marketing Adviser for Small and Medium Business and Entrepreneurs to Help to Grow Their Business