How to start a Bitcoin exchange
the article was written By Mickael Mosse — Blockchain and Cryptocurrency Expert
Depending on the country, the states, and their laws, your representative office must have certain authorizations. The easiest way to work is in countries that officially allow btw Bitcoin as a means of payment. Probably Estonia or even Malta.
Belarus has already legalized cryptocurrency, only time shows us how it affects the industry. Iceland and France are known for the extremely low cost of electricity, which is why the cost of mining is incredibly low. Venezuela and other South American countries, as well as some US states, are also popular with encryption miners. So the first thing is to choose the jurisdiction of the company.
What cryptocurrencies to allow?
Mickael Mosse points out that, The most obvious point, but the most significant. The more coins you provide to users, the greater the audience coverage, and the greater the interest you will have in the cryptocurrency exchange platform. Contrary to the wrong point of view, 50 cryptocurrencies are not much more difficult to maintain than 3. But in the beginning, we need to integrate them, and this process takes a little time. After you’ve tried the two prep points above, here’s the next one. But keep in mind that all cryptocurrencies like Ripple, Litecoin, Ethereum, Dash, Dogecoin, and others need to be integrated manually. How to create the Exchange Exchange platform for btw Bitcoin online
Cryptocurrency exchange platform
Mickael Mosse points out that, Preparation and planning are indeed important stages of web development before launching almost everything, be it as complex as the exchange platform, SaaS platform, or your company website.
Characteristics that the cryptocurrency exchange platform must have
Flexibility to customize and scale
Security
Easy to handle
Incredibly low lag time for the user, In addition, each platform consists of separate modules, called layers.
Each of them works independently, depending on the data received and the exchange interface. For example, the cash flow engine, the human process service, support, and integration with the user interface (frontend). APIs and cross-tier requests organize connections. Usually, each of them is on a separate machine/server. The most important thing is, obviously, the platform itself, the support. With this, you can easily scale your business to web applications, desktop applications, mobile applications, etc.
How to start a Bitcoin exchange
Protection and security
First, let’s find out what common problems and setbacks you may face in system security.
Unauthorized access to the administrator account (hacking)
Server access violation
The dishonest process due to privileges
Security issues on external platforms
User hosting. The security of personal data comes first; furthermore, access to the system must be strictly regulated. Popular tools to protect this layer:
Use of safe and secure libraries and frameworks
Two-factor authentication (2FA) with Google passcode.
Request user documents (KYC and AML). This item is mainly related to exchanges with cryptocurrencies for FIAT pairs and vice versa. For cryptocurrency pairs, it is not necessary, at this time, to upload documents.
Manual confirmation of the manager of large volumes and / or large amounts of transactions.
Administrator privileges, whether in the cryptocurrency exchange built with lock technology or among other things in mobile application development trends. Any trading platform requires administrators. To protect you and the system, please refer to the following list:
Delimit the responsibilities and privileges of the administrator; create additional groups and roles. Each person only takes care of his small part and does not have access to more.
Equipment solution. Administrators of different groups must confirm especially important characteristics.
Development and production are at least two separate areas. Limited access to each group. Manual transfer of the database, which is controlled by executives, CTO, for example.
Malicious processes Caused by malicious software due to an intruder.
DDoS attacks. Applications must pass through certain servers and be clean for the final project.
Firewall vulnerability. They just solve: have a professional system administrator or excellent hosting. AWS is probably the best solution, at least if your government allows the cloud hosting platform. Otherwise, you should take a look at the load-balanced dedicated server (or servers). says Mickael Mosse
Authorized and secure access.
Notify administrators of suspicious activities.
Technical issues. Sometimes things break down. Problems with corrupted software or hardware. Everything must be monitored and have a Plan B, as well as a backup in a safe place.
Modifications, exchanges, and trade operations are calculated, and if something goes wrong, you get a return on operations.
Sum validation.
Regular backups
User log files available.
Administrative notifications in case of inappropriate activity.
Most importantly, in the event of a breakdown, you respond as soon as possible, and that you are generally notified. Therefore, the cost of supporting such projects monthly ranges from $ 200 to $ 2,000, subject to working with the Eastern European Company. If you work with a company in Central Europe, the UK, or the USA, you can safely multiply this cost 3–5 times, depending on the company. In any case, it is important to know how to choose a web design agency.
How much does it cost to build a cryptocurrency exchange platform?
Mickael Mosse points out that, Currency trading is a complex project, unlike a personal website. The team must be made up of the following people:
Project manager for 3 months. Responsible for teamwork, discussions, communication between the team and the client, and, in fact, the management of the project.
QA engineer for 3 months. Test all possible scenarios and vulnerabilities.
Designer for 2 months. Design an interface and create a relationship between users and the cryptocurrency platform.
UI developer for 3 months.
Developing a cryptocurrency platform requires knowledge and skills. First, it is necessary to take into account the high load and a high level of security. Our company, Merehead, has experience in developing similar projects, if you need advice, please do not hesitate to contact us. We will provide you with personal advice that will help you develop a cryptocurrency platform.
How much does it cost to build a cryptocurrency exchange platform?
According to Mickael Mosse, Expansion: The initial cost of developing a crypto exchange is $ 20,500.00 working with an agency in Eastern Europe. If you prefer to work with Central Europe, the US-based team, or the UK-based team, prepare to pay 3x, roughly $ 320,000 for the same team. Recent news shows how bitcoin rose with an exchange rate of over $ 18,000 per btw bitcoin.
Its capitalization ranks fifth in all world currencies. And it seems to have become one of the most desired currencies by venture capitalists, hedge funds, internet entrepreneurs, and just about everyone else. Bitso got an additional 2.11% traffic and now has strong positions. In almost every country, trading platforms rank in the top 1000 sites. The financial analysis predicts the future growth of btw Bitcoin
article from mickaelmosse.com