The process to implement for establishing a Cryptocurrency exchange company modelled like Binance
Blockchain technology has disrupted the functioning of several industries and is poised for huge growth in the years to come. Its application is hugely seen in cryptocurrency which has witnessed an increased adoption over the past decade. Let us understand how to develop a cryptocurrency exchange, the features to implement, and the obstacles to face.
It is a publicly accessible database that gives priority to decentralization. Immutability is ensured as no one can erase information once it has been added. It ensures top-notch security as the records of users are distributed all over the world. Anyone can create their own blockchain network as it is open-source software.
A huge requirement of computing power would be needed. Security is highly important in the blockchain network as it can lead to a loss in the value of the cryptocurrency if it is compromised.
While Bitcoin gained a huge advantage of being the first-mover, other cryptocurrencies have kept up the pace by being quickly developed. Though their popularity has increased, cryptocurrencies are deemed to be illegal in many countries.
Though many exchanges have emerged, they have significant differences in the number of currencies supported, commission charged, and other features offered.
Launched in 2017 with Chinese origins, Binance is led by its founder and CEO, Changpeng Zhao. While being one of the top cryptocurrency exchanges, handling billions of trading volumes, it has also gone for an ICO (Initial Coin Offering) recently to consolidate its presence in the market. Its ICO had more than 40,000 token holders.
Though the Chinese government issued a blanket ban on token fundraising, it had already raised a huge amount of funds from plenty of venture capitalists.
The company also launched its own customized coin, Binance Coin (BNB), providing lucrative benefits to investors. It can be used for internal service purchases by users.
Its valuation is a whopping $2 billion currently. Their success can be attributed to their solid team behind product development with immense experience in exchange trading. They offer high-quality services at very low trading fees compared to the other competitors in the industry. Its primary source of revenue is through trading fees and withdrawal charges.
While high trading volumes, a huge number of new users, and availability of a large number of digital currencies have contributed to its growth, they have provided out-of-the-box solutions through virtual gifting (Gifto) and an exclusive launchpad token sale program. They also provide expert guidance for startups working in the cryptocurrency space along with funding assistance and listing services.
Owning a cryptocurrency exchange has become a profitable business today. Despite the number of platforms available currently, there exists a stark difference in the quality of services provided. While volatility is a normal phenomenon in the market as the rates cannot be solely controlled by any authority, upswings and downswings are quite common.
As the market continues to break records, it gains more trust from interested users. Some of the steps to implement are,
Developing a Cryptocurrency exchange company in the current market scenario provides rich opportunities for traders as well as for entrepreneurs. It has immense growth potential in the days to come.
Hence, make sure you follow the above guidelines before indulging in the development process.
