How to start a bitcoin exchange in India?
As of now, commerce on the internet relies on financial institutes to process electronic payments as a TTP (trusted third party). Bitcoin brought with it, a new way of transactions that is secure and is free from the yoke of “The Man”. With the usage of cryptography, the need for a central figure for online transaction has been omitted. Perhaps this is the reason why big banks and governments are in a rush to limit its potential.
Start bitcoin exchange problems(100)
One of the best ways for entrepreneurs and startups to profit from bitcoin and cryptocurrency is to start a bitcoin exchange. However, this requires a lot of resources, personals as well as a great infrastructure. Personally, I would list four prerequisites that you must go through before you start a bitcoin exchange platform. These are: Legality, Banking, volume and tech & security.
- Legality
In India, cryptocurrency plays the role of schrodinger’s cat. Schrodinger’s cat is a famous paradox used in quantum physics. It is used to explain the duality of matter, i.e. matter existing both as a particle as well as a wave. In this thought experiment, a cat, poison and a radioactive material are placed inside a box. Physicists agree that unless the box is opened, the cat is both simultaneously dead and alive. Similarly in India, Cryptocurrency is both legal and illegal. While the RBI has not banned cryptocurrency and its trading, they have repeatedly warned everyone to not engage in cryptocurrency. The RBI has yet to take a stand firm for or against cryptocurrency and at this time, the decision can go either way.
- Banking
Since, you are engaging in a cryptocurrency exchange platform, it is vital that you select the best bank for all your transactions. Depending upon whether you plan to operate globally or nationally, it becomes very important that you sit with the bank personal and share every details regarding your financial plans.
Do note that banks do not approve of cryptocurrency, therefore there might be banks that do not cater or provide assistance/service to digital currency (cryptocurrency) exchanges. Now a days, many people are engaging in a cryptocurrency exchange platform.
Also read, Why Bitcoin Could Be More Important Than the Internet: Here’s why
- Volume
The way to earn by starting a bitcoin exchange is by trading a huge amount of volume. Without lots of live volume, all your hard work and dedication to start a bitcoin exchange platform will bear no fruit. You can consider actions such as channelling liquidity, digital marketing to increase your traffic and customers.
Note that there is a lot of differences, both internally and graphically, between cryptocurrency exchanges catered for traders and merchants. Target a niche and start earning big bucks.
- Tech + security
Cryptocurrency being a digital currency, you will be subjected to daily hack attempts as well as DDOS hacks. However, cryptocurrency in itself is secure. It is always from your end that vulnerabilities arise. Therefore, it becomes extremely important that you invest in great security. There are basic security measures that have to be taken.
With relations to tech, you will need a team of blockchain experts who work for months before you can even start. Or you can use the free blockchain script provided by bitexchange.systems.
Bitexchange.systems provide feature such as Atomic swaps, liquidity management, margin trading and most importantly great security. Their free to download script provides 100% source code and follow Ford Knox security. Furthermore, they have an API layer with which you can easily add any new ALT-coins of your choice. They also provide their script in two variants; PHP/MySQL or Node.js/MongoDB such that whichever platform you are proficient in, you can immediately start your bitcoin exchange.
Also read, 5 Blockchain Applications That Are Shaping Your Future
Bitcoin, Blockchain and cryptocurrencies in general are the future of currency. No matter what government or bank tries in their attempt to limit this free currency, the fact is that as more and more people start to understand blockchains, like a tide that cannot be stopped cryptocurrency cannot be stopped. Any businesses or startups associated with cryptocurrency will certainly have a bright future.
