As we look ahead to 2020, many entrepreneurs are considering their options for the coming year. Cryptocurrency is not going anywhere and there are plenty of ways for savvy businesspeople to invest in the industry and reap the rewards. One such way is through starting a cryptocurrency exchange.
There are of course some necessary considerations before you take the leap- here are just a few.
Get professional advice
When starting a cryptocurrency exchange, it is imperative that you ensure you get proper professional advice from Fast Offshore before you start as there are many things you need to take into account such as jurisdiction, licensing, company formation, bank accounts, insurance, and fiscal matters. These are not decisions or processes to be taken lightly and it is best to engage the services of a professional to make sure that you have chosen the right place to launch your exchange and that you are in line with all of the applicable laws and regulations.
Perhaps you have all the capital up front to get your business off the ground, or you have a team of investors backing you. If not however, you need to consider ways of raising the money to get things going. Set up costs as well as developing your platform, hosting it, paying fees and insurance, and of course marketing could set you back hundreds of thousands of dollars. If you do not have this, you need to have a clear idea of how your project will be funded before you start generating revenue. Whether you want to start an ICO or ITO, write up a proposal to present to potential investors, or you have the money already, contact us to find the right way forward.
Get a payment provider
You need to choose a payment processing service that offers competitive rates, enabling you to compete with other exchanges. Ensure that you are clear on all of the fees before you sign on the dotted line, and be aware of factors such as processing times or whether the system is PCI DSS compliant and therefore protected from cyber threats. Fast Offshore can provide you with information and advice on reputable payment providers that are able to service both blockchain, fiat, and cryptocurrency businesses.
Protect your business from cyber crime
There is a huge risk of cyber crime today, especially in the online world and with cryptocurrency. Exchanges are regularly attacked by hackers so it is super important that you don’t scrimp when it comes to security. Your security measures could include multi-factor authentication, encrypted databases, and offline cold storage wallets for client funds.
Market your business effectively
You need to consider how you will market your business and how you will convert visitors into paying customers. Press releases, social media campaigns, blogs, paid advertising, SEO- all of these are factors you need to consider, and of course budget for. You should aim to keep marketing costs on the lower end of the scale whilst ensuring that the marketing you do is as effective as possible. If you want to pick or brains about how to go about marketing any kind of exchange, don’t hesitate to get in touch.
Network with other exchanges
In order to run a successful exchange, you need to ensure you have good relationships with existing exchanges. Liquidity is vital and if you are not trading in some way, potential clients may be suspicious. Consider teaming up with a network of other exchanges to make sure you remain liquid and your reputation in tact.