How to Launch an Institutional Crypto Exchange

7 easy steps to launch your very own crypto exchange platform

The 7 Basic Steps to Starting Your Own Crypto Exchange

Cryptocurrency is one of the world’s fastest-growing markets, and adoption only keeps climbing. One of the best ways to get into the cryptocurrency market and benefit from this explosive growth is to start your own crypto exchange and offer users the ability to trade, buy, and sell crypto.

There are several ways you can go about launching your own cryptocurrency exchange, but there are two main paths. You can either build-your-own or use white-label software in order to create a crypto exchange platform. This article will walk you through the differences between using Shift Markets’ white-label software vs building your own exchange.

1. Select a location and jurisdiction that works for you

The first task in building an exchange is to select your jurisdiction of operation. Where do you want to incorporate your business? Under which laws and regulations do you want to operate?

Shift Markets has a robust network to connect you with experts around the globe and can help walk you through where to start your exchange.

2. Establish KYC & Compliance Protocols

You will need to establish appropriate KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols in accordance with your local laws to operate a cryptocurrency exchange legally.

If you DIY, you will have to research, understand, and build these measures into your platform. Failing to follow your local laws can result in your company being shut down, fines, or even imprisonment in some cases. If you build with Shift, a customer development specialist will be assigned to you to handle the process. They will work with you to understand your business needs through KYC and compliance in the jurisdiction you decide you build in, as well as discuss a customized development work schedule and infrastructure. At this time, we will help you create a scalable project plan and timeline to get you up and running in as little as six weeks.

3. Customize your Front End

It is essential to manage what your users see when they login to your platform to create a good first impression, establish trust, and create a positive trading experience for your users.

If you purchase a Shift exchange, the in-house design team will help to curate a UI/UX that is both easy to use for you and your clients by helping to curate your brand’s visual identity. Additionally, we will design a custom logo, graphics, and brand portfolio and mock-up your website and trading platform.

If you intend to build your exchange from scratch, it is advisable to hire a team of graphic design and UX specialists to format your UI and make it look appealing.

4. Develop the Trading Software

If you are launching an exchange, you will need an accurate and reliable trading engine, a functional admin panel, secure wallets, and a workable user interface.

Shift Market’s turnkey exchanges all come fully loaded with these tools that have been developed and refined over our years of trading and the launching of 80+ exchanges. We continually make improvements to our system based on user feedback, industry standards, and developments in technology.

For Shift clients, a dedicated customer development specialist will also liaise with our development team on your behalf to create all of these, taking the pressure off having to find a way to do it yourself.

For Do-It-Yourselfers, we recommend finding and vetting a team of development professionals with who you are comfortable having a long-term relationship. Your system will require maintenance and updates to keep running. Make sure to budget these ongoing costs into your fiscal plans.

5. Set The Rules of Your Exchange

Once you have built your software, you will need to establish the trading rules of your exchange. You will want to add the cryptocurrencies, tokens, fiat pairs, and financial products that best suit your users, as well as determine what fees and commissions you want to set.

We have launched over 80 exchanges around the world and can provide data-driven insight on which currencies would be best for you to stock and advise you on what fees will make your exchange the most attractive to users in your target base.

6. Find a Liquidity Source

Liquidity is what powers your exchange and allows your users to keep trading, so it is essential that you find a deep and reliable liquidity provider. At Shift Markets, we offer liquidity sourcing from our liquidity provider Nexus.trade, a LP with deep order books, a global network, and a wide range of fiats and cryptos. We can easily connect Nexus.trade to your exchange during the building process with no additional hassle or work on your end.

If you are building your own exchange from the ground up, you will want to research and thoroughly vet any liquidity source to not only ensure it meets your specific currency needs but also is reliable and not susceptible to outages or security issues.

7. Launch Your Exchange!

Launching your exchange is an important moment, so it’s crucial to run in beta to ensure you have the chance to smooth out any wrinkles. We will start by running the software for a beta period to ensure that everything will run as intended, and meticulously review any areas we can improve. After that, your exchange will be live! Shift Markets will continue to provide you with 24/7 support throughout.

If you have chosen to build your own software, this period is especially important and may take some time as a new software build will inevitably have some hiccups. Remember to be patient, and flexible with your launch date if you can.

Our goal at Shift Markets is to provide you with a seemingly effortless transition from start to finish to get your exchange running. It is possible to build an exchange by yourself but comes with several disadvantages such as a longer lead time, longer time to develop software, KYC and compliance hiccups, and more. With our turnkey solution, you can take out the doubt and concern that comes with building your own exchange. Our industry experts and 24/7 support will ensure that your exchange meets all legal requirements, and is customized to stand out in this ever-growing market.

For more information on Shift Markets and our solutions, please visit our website. You can also ask any questions you may have in our Telegram channel and a team member will get in touch.