Topics related to the Bitcoin exchanges and the tools behind it

Hey there, check out my favorite articles of this month which you'll find useful about bitcoin exchange software and technologies around it.

https://coinjoker.wordpress.com/2018/12/24/cryptocurrency-exchange-business%e2%80%8a-%e2%80%8aa-lucrative-business-opportunity/
https://makandracards.com/scarlet-emilye/61157-bitcoin-exchange-software-by-coinjoker-is-a-boon-for-entrepreneurs
https://fastlisting.org/p/cryptocurrency-exchange-development-company-announcing-their-next-venture/
https://seowarriors185223383.wordpress.com/2018/12/06/you-can-build-crypto-exchange-clone-website/

Read these articles and let me know your comments.

How to start a bitcoin exchange

Bitcoin has become a household name. With it’s meteoritic rise in value in 2017, where at its peak, 1 BTC (Bitcoin) equaled 17,900 USD, bitcoin and cryptocurrencies have been in everyone’s radar for the past year. From obscurity to fame; Bitcoin and cryptocurrencies are a regular topic in major news organizations such as CNN, BBC and more while a year back, bitcoin and cryptocurrencies were largely ignored. This meant that except for tech enthusiasts, the large masses were largely unaware of bitcoin, cryptocurrencies and blockchain in general.

Before I tell you how to start a bitcoin exchange, let me first iterate what happens in a bitcoin exchange. We have two separate identities: a buyer who tries to sell bitcoins at the lowest price possible while a seller tries to sell bitcoins the highest price possible. These buy and sell orders are entered into an order book, where if the price dictated by the buyer and seller matches, then the order is automatically executed. The exchange keeps a small percentage of the trade as a commission.
This is where your profit as the one who started the bitcoin exchange. You get to deduct a commission from every transaction that happens on your bitcoin exchange. While this commission is quite low so as to garner more customers, a large enough volume in trading means you can be earning thousands upon thousands just with your commission. So this is the profitability of bitcoin exchanges.


However, starting a bitcoin exchange should be more than just its profitability. Bitcoin and Blockchain (the technology behind Bitcoin and all cryptocurrency) have vast potential behind it. Imagine you are in a foreign country, with blockchain you do not have to pay currency conversion fees, or if you get a loan with minimal interest fees, that would definitely be a better life right? With cryptocurrencies and blockchain technology, this future is within our grasp. This is the reason why governments and banks are so against cryptocurrency and the recent pop-ups of bans all over the world, all in order to curb this growth. Starting a bitcoin exchange helps open the technology up to the public and helps revolutionize the world.

Now, in order to start a bitcoin exchange, of course, you will need to get your hands dirty with the gritty and nitty part of technological and programming part. You will need to build your own codes or acquire an exchange script, have a user interface where your customers can trade (either a trading website or a trading app) and have an extensive marketing strategy to acquire as many consumers as possible.

However, with this article, I wish to explore the correct way to go about starting your own bitcoin exchange.

In case you need more information regarding the coding part of the exchange, you will need a team of programmers or a dedicated development team who will do the heavy lifting for you. You can also purchase white label bitcoin exchanges, or you can download them for free on an open source. You can also visit sites like cryptoexchangescript.com, where you can download their source code for free and additionally you can purchase their numerous modules that can be seamlessly added to a new or existing bitcoin exchange. These modules are great features sure to brighten up your consumer’s day.

Also read, Bitcoin jumps 7% amid massive market sell-off

First and foremost, you will need to do extensive research. Do not limit yourself to just learning about the technicalities of bitcoin and cryptocurrencies, you should also research your competition. Try to analyze why some exchanges are as successful as they are today and what differentiates them from those that are not as successful. However, do not conform to the norms. Bitcoin is the very definition of innovation and currently these very innovations fuel Bitcoin. Be brave and be bold.

Secondly, you need to find your targets. You cannot cater to everybody, you will need to research and find a niche to fill. When you know your target, you will be able to easily determine the kind of bitcoin exchange you wish to create as well as find the proper marketing strategy to stand king of the hill in your niche. A strong foundation enables future scaling of your business.

Lastly, determine the type of bitcoin exchange you wish to create. Don’t just imagine, visualize your dreams and work out how you want your bitcoin exchange to look like. Aesthetics and designs are important, however, don’t forget that ultimately your bitcoin exchange has to be security.

Which is the most secure cryptocurrency exchanges?

If you rarely exchange cryptocurrencies, you do not need to register such resources. Ordinary exchangers are enough. The most important thing is to choose reliable services. But if you want to buy and sell your digital assets often, then you can't have such an indispensable assistant as a cryptocurrency exchange. Which standards should they choose and which exchanges are among the most reliable and popular TOP among experienced traders?

Binance:

• Reliability level – high.
• Daily trading volume – approximately $1.5 billion.
• Indented commission (one transaction) - 0.1%.
• Output – no more than 100 BTC per 24 hours.
• Replenishment – cryptocurrency wallet.
• The number of trading pairs exceeds 200.

Bittrex:

• Reliability level – high.
• Daily trading volume – approximately $145 million.
• Indented commission (one transaction) - 0.25%.
• Output – no more than 100 BTC per 24 hours; Replenishment – cryptocurrency wallet. 
• The number of trading pairs is 906.

Kraken:

• Reliability level – high;
• Daily trading volume – approximately $237 million;
• Indented commission (one transaction) - 0.26%,
• Output – no more than $50,000 in 24 hours;
• Replenishment – cryptocurrency wallet, bank transfer;
• The number of trading pairs is 59.

Poloniex:

• Reliability rating – medium;
• Daily trading volume – approximately $65 million;
• Indented commission (one transaction) - 0.25%,
• Output – no more than $25,000 for 24 hours;
• Replenishment – cryptocurrency wallet;
• The number of trading pairs is 365.

Bitfinex:

• Reliability rating – medium.
• Daily trading volume – approximately $890 million.
• Indented commission (one transaction) - 0.2%.
• Output – no limit.
• Replenishment – cryptocurrency wallet, bank transfer.
• The number of trading pairs is 35.

Meanwhile, if you are triggered by the revenue model of these exchanges and want to start own exchange, make use of this crypto/bitcoin exchange software. 

Are crypto exchanges are really safe? Is there anything else to protect yourself

If you’ve been watching the news for Bitcoin- and cryptocurrency-related stories, you’ve likely heard about the massive heists robbing exchanges of millions—and sometimes hundreds of millions of dollars. Back in January, the well-known crypto exchangeCoincheck was victim to a cyber attack, costing its investors more than $530 million in cryptocurrency. That news broke just a month after the popular exchange NiceHash fell prey to a similar $60 million cryptocurrency hack. Crypto exchanges are common platforms for crypto investors, so all these stories beg the question—are crypto exchanges really safe?

The short answer is that they can be, but there are some important security measures you’ll need to take to protect yourself.

How Crypto Exchanges Work

First, let’s go over what crypto exchanges are, and how they operate. Exchanges are websites or apps that allow individual users to exchange traditional currency (like US dollars or Euro) and cryptocurrency. For example, there are:

• Crypto brokers. Crypto brokers have access to cryptocurrency and will sell it to you in exchange for traditional currency. They set their own prices.
• Trading platforms. Trading platforms enable exchanges between buyers and sellers, while the exchange takes a small fee for each transaction.
• Direct trading platforms. Direct trading platforms allow exchanges between individual users, where each user sets their own exchange rate.
• Hybrid platforms. Hybrid platforms offer multiple types of functionality at once.

Most exchanges require you to deposit money first, much like a bank account or a brokerage platform. From there, you can buy or sell currency, and withdraw the money when you want/need to. The cryptocurrency exchange software available at different tech specifications can help you to start a hybrid crypto exchange.

Points of Vulnerability

There are several potential security risks when using a crypto exchange, some of which are the same as any online platform or service involving money, and some of which are unique to crypto exchanges:

• Fraud and user exploitation. In some cases, a crypto exchange might be fake or fraudulent, though this is rare. In these cases, the crypto exchange façade is a ruse, intended to swindle consumers out of traditional currency in exchange for nothing.
• Forceful cyberattacks. Crypto exchanges are becoming popular targets for hackers due to the enormous potential payout and the anonymity provided by cryptocurrency, with new attack methods like TrickBot attempting to exploit exchanges specifically. These attacks intentionally try to get past crypto exchange security measures in an effort to steal cryptocurrency.
• In-exchange security holes. Exchanges may also fall victim to exploitation or theft if an internal error makes them vulnerable. For example, an employee who accidentally makes their password public information might have their account compromised, leading to a vulnerability throughout the exchange.
• Device and network attacks. Don’t forget, the devices and networks you’re using to access the crypto exchange are also vulnerable to attacks. Smart devices are notoriously easy to spy on and hack (that is if you haven’t taken the time to improve your security). And if you’re using a public network or an otherwise unsecured one, it becomes easy for cybercriminals to gain access to your account.
• User errors. Your crypto exchange account can also be compromised if you make a mistake with your own security measures. For example, if your password is easy to guess, or if you stay logged in on a public computer, a cybercriminal or opportunist could easily exploit your account for the money.

What to Look for in an Exchange Platform

Some exchanges are going to protect you better than others. So what should you look for in the “ideal” crypto exchange?

• Reputation within the community.

  Integrate yourself into the crypto community. Forums like Crypto Compare, news sites, and social media are all promising opportunities you can use to be a part of the conversation. Pay attention to which exchanges other people are using and which ones they’re staying away from. Chances are if an exchange has a good reputation, there’s a reason.

• Fee transparency.

  What kind of fees does this exchange charge you? This is important to know for managing your own financials, but the exchange platform’s openness and transparency can also tell you a lot about the brand. If it’s hard to find clear information on the site, consider it a red flag.

• Available payment methods.

  What types of payment methods does the site accept? Most crypto exchanges will take PayPal, credit cards, and most conventional forms of payment. If the exchange in question demands wire transfers only or is suspiciously picky about how you can send payments, it’s a sign to stay away.

• Authentication and verification standards.

  Look for an exchange with high standards for authentication and verification. A rigorous onboarding process that requires you to verify your identity multiple times is a sign of an exchange with good security. Similarly, high-security measures like two-factor authentication can reduce your risk.

• History of operation.

  How long has the exchange been running? This isn’t the best way to gauge the reliability of a platform, but in general, newer platforms come with higher risk because they’ve had less time to prove themselves.

• Exchange rates.

  Shop around and look at the exchange rates offered by different exchange platforms. While most of the major players will offer similar rates, you may find a better deal somewhere else—or you might find an exchange rate that’s suspiciously lower than market value.

• Commitment to security.

  Finally, look at the brand and the people running the company. How committed are they to maintaining high levels of security? Do they clearly explain what measures they take to keep their platform secure? Are there new updates on an ongoing basis? Is there a refund policy for users whose crypto funds are stolen?

Other Measures to Protect Yourself

Beyond that, you’ll want to take the following personal security measures to protect yourself (and your account):

• Choose a strong password.

  Strong passwords are much harder to guess and will make your accounts more secure. Choose sequences of upper-case letters, lower-case letters, numbers, and symbols, and try not to include any decipherable patterns (like common words).

• Change that password regularly.

  It’s not enough to pick one password and be done with it. If you’re going to use this crypto exchange for months or years in the future, you’ll need to be prepared to change that password regularly.

• Avoid going all-in.

  It’s a bad idea to go all-in on any one exchange (or any one type of cryptocurrency). Spreading your funds across multiple investments and locations will help you stay even more secure. This is good advice even if you’re using the most secure crypto exchange in the world; cryptocurrency is still a volatile commodity with unpredictable price swings.

• Never give your personal information away.

  Never give away your username and password for any site, even if it appears that someone from the exchange is asking you. Phishing attempts are still a major cybersecurity concern, and they’re one of the easiest schemes to avoid.

• Always use secure, encrypted connections.

  Whenever you access your account, make sure you’re using a secure, encrypted connection. Don’t rely on public Wi-Fi hotspots to do your crypto trading.

Final Thoughts

Crypto exchanges aren’t perfect, but neither is any other online platform. It’s on you to do your research and find a reputable exchange, then commit to best practices in your own life and investments to double down on that protection. Do your due diligence and you won’t be any more at risk using a crypto exchange than a comparable brokerage platform for securities.

You can build bitcoin exchange clone website!

When using the crypto exchange clone script, anyone can build the exchange and trading platform instantly. But before that, they should keep the following things in mind.

The primary factors needed for this platform development is to use secure registration for all the users who sign up on the platform. The KYC verification should be done in order to verify the customer’s eligibility criteria and to avoid anti-money laundering. Payments gateway is the way the users are going to deposit their money in form of digital assets, so it should be very secure. Also, the fund deposit module is mandatory for the exchange platform to avoid the mishandling of bitcoins. In order to streamline your exchange with tons of users, the transaction history is wanted by the users to check their transaction details frequently.

Still, there are much more important things have to be implemented for running the best bitcoin exchange and trading platform on the planet. Local bitcoin clone script can help you to apply any functional modules in exchange platform. It is an expertise clone script development company in India giving the secured solutions for 4 years.

Wrapping up this that cloning the crypto exchange is easy, but it needs technical specifications to meet. Leave us your feedback below.