How to set up a crypto exchange

0

Most people who buy and sell cryptocurrency go to one of two places: a centralized exchange (CEX) or a decentralized exchange (DEX).

For newbies looking to buy Bitcoin or Ether, there’s a good chance they’ll open an account at a CEX like Binance or Coinbase – likely due to media-based name recognition, a typical email login process or predefined and predictable fee structures.

A published study by Cryptopedia showed that as of September 2020, 95% of digital asset transactions are executed through CEXs. Those who are more experienced in crypto might prefer DEXs, especially if they are aware of their privacy.

In 2021, non-depository DEXs like Uniswap entered the general public: their trading volume in just January and February exceeded that of all previous years combined.

We can also see from the DEX spot trading volume ratio to CEX that DEX has maintained a stable level popularity.

Let’s say you are building a business on the blockchain. You might think that well-established CEXs and DEXs are the only two options for hosting your digital assets and accessing your future customer base.

But there is actually a third way: to create your own crypto exchange.

HollaEx, AlphaPoint, and ChainUP offer “white label” solutions, which means you don’t have to be a programmer to set up a crypto exchange. Technical training is often helpful, but it’s no longer a requirement for building the next big thing in the crypto space.

Problems with existing exchanges

For retail investors, it might not be a big deal to rely on conventional big name platforms. But entrepreneurs with exciting ideas in crypto and decentralized finance (DeFi) often find that existing exchanges fail to deliver on their promises of flexibility, accessibility, and autonomy.

Screenshot of the website from AlphaPoint

When you start a project with its token, it can be difficult – not to say expensive enough – to get it listed on a popular exchange.

Not only are exorbitant registration fees a massive barrier to entry for businesses, but the red tape and administrative processes are also relatively tedious.

It is common for large CEXs to take weeks to review an enrollment request, and you may not get a response from them.

Or, when you run a games business with digital products, you might want a market tailored to your needs, so these CEX offerings are limited in that sense.

It’s a common misconception that DeFi only encapsulates financial products, but its principles extend to other facets of blockchain applications as well. The benefit of DeFi is that anyone, anywhere, can regain control of the financial tools they use instead of being crippled by a middleman.

Setting up a crypto exchange

Building your exchange seems like hard work, but nowadays an exchange platform can be launched in minutes as businesses and individuals can use out-of-the-box software solutions.

cryptography
DIY swap kits are now available for free for those with tech skills or prebuilt cloud solutions that need little help

Starting a crypto exchange today is also an ideal way capitalize tomorrow on a multi-billion dollar industry. Crypto billionaires like Sam Bankman-Fried and Brian Armstrong have built their wealth on exchanges, and more will surely follow in their footsteps.

White label solutions for crypto exchanges help businesses enter the blockchain and digital asset space, providing them with an efficient way to configure their platform with precise control.

One example is the bitHolla company, which introduced the HollaEx Kit, an open source platform with a set of protocols described as “the exchange infrastructure in a box”. It aims to be a one-stop-shop where users can configure the domain, digital assets, and pricing structures of an exchange.

Holla Ex Kit
“Exchange infrastructure in a box” – A video screenshot from YouTube of the HollaEX crypto exchange software

AlphaPoint is another option. It has a closed-source platform touting “guaranteed liquidity availability” and a long list of potential system integrations.

Last year he was ranked 34th in the The Financial Times list of America’s fastest growing companies. It served as a back-end for various exchanges in Southeast Asia and Latin America, including an innovative project aimed at tokenize real estate.

A similar provider is ChainUP, which recently celebrated its fourth birthday. It promotes an exchange that extends to financial products beyond spot trading, such as derivatives, options and ETFs.

Last year, he announced integration of credit card payment systems.

Chain
ChainUP, one of the countless suppliers of ‘Made in China’ factory-made software can supply local branches to specific target markets

Cost comparisons

It boils down to whether it’s more cost effective to set up your exchange or use existing CEXs and DEXs.

The price of white label exchange solutions may vary depending on the specifics of the business you want to create. Some estimates estimated the budget to be around US $ 20,000, but this figure could easily exceed US $ 100,000 due to technology costs.

One exception is HollaEx, which lets you try its feature-rich toolkit for free until you’re ready to market. free download on GitHub.

It is also essential that the exchange solution fits into the evolving DeFi landscape. For example, the HollaEx network operates its exchanges using its native token, $ XHT, and it activates new coins and markets and enables staking.

Each exchange built using the HollaEx kit will have an $ XHT / $ USDT marketplace and a built-in staking interface that includes $ XHT. In the long run, building your trade with these toolkits will likely pay off more.

You can skip the costly process of building a development team, as the platform is suitable for non-developers and users without technical training. Built-in security and technical support provide further cost savings.

In summary

Naturally, most crypto entrepreneurs don’t immediately see themselves as someone who can handle their exchange. It may seem like a daunting task that requires a great deal of technical expertise and upfront costs.

But with the introduction of the “exchange infrastructure in a box” toolkits, the barrier to entry has been significantly lowered. Reliable white label solutions with a good track record can help entrepreneurs minimize risk while capitalizing on the incredible potential of crypto.

global
Ultimately, good crypto software is about global value transfer, market accessibility, and affordability regardless of location.

The best kind of white label crypto exchange solution strikes a balance between simplicity and functionality, with plenty of customization options.

Whether you’re launching an exciting cryptocurrency project, running a fintech company looking for blockchain compatibility, or operating a traditional exchange looking for an upgrade, now you can build and deploy your trade in literally minutes.


Source link

Share.

Leave A Reply