How much will it cost to launch a cryptocurrency exchange? An important requirement will be the startup capital, namely an accurate estimate of the funds to be spent. Calculations can vary from various factors: region, business model of a cryptocurrency exchange, but it is still useful to know the main cost items. That is what this article will focus on.
In order to get a real figure, you need to pick up the software. This is the main expense item. You will need a stable matching engine, a trading platform with extended functionality, a liquidity aggregation module, and so on. There are several options here: a) to buy a ready-made white label solution from a reliable vendor; b) to develop all the functions yourself.
In addition, one of the necessary tools for business support is a CRM software - a customer relationship management system and automation of interaction with customers.
Crypto-exchange licensing is becoming increasingly problematic, so you need to think about licensing along with choosing the right software.
Do not be fooled by the elementary registration procedure and too low rates, because there can be problems with payment service.
The cost of the license depends on the region and the regulatory authority. It can cost from a couple of tens to hundreds of thousands of dollars.
What should the staff that is accepted by regulators in different countries look like?
person responsible for risk management, combating money laundering and terrorist financing, internal control
chief information security officer.
Ideally, the support team should be available 24/7 and be ready to answer different questions: account registration, deposits and withdrawals. as well as more specific professional help.
Trade processing team
This category of costs can affect the cost of launching an exchange. These specialists monitor the trading infrastructure to ensure that customer orders are executed smoothly, handling customer complaints. The team monitors the balance between traders' earnings and liquidity providers, and looks for opportunities to cover risks.
These professionals vet clients and monitor KYC and AML. This can be given to another service, but you can save money and keep track of everything yourself.
Financial transaction processing
You need people who will track and verify withdrawal transactions initiated by customers, as well as monitor the issue of fraud.
These specialists will help with the deployment of internal networks, DNS registration and linking them to IP addresses, with updating the reliability of the technical infrastructure.
If you are counting on internal clients for a pure ECN model, it is recommended that you connect a few external vendors in the first few months to get enough market depth.
If you will be working with external vendors, you will need to keep money in clearing accounts, which will serve as a guarantee of trade order execution.
To attract customers, you need to introduce various fiat payment systems into the business for depositing and withdrawing funds. If you have a license from a popular regulator, you can connect to Skrill or Neteller.
Every business strives to build plans, but marketing is the hardest area to plan for, because it depends on the initial positions and strategy of the exchange. If the exchange will rely on the retail market and competition in the small to mid-sized segment, you need to prepare for serious costs.
The main thing for a potential investor is to relate his business plan to the costs and determine which of them will be critical and which can be saved on. Only after this can you begin the calculations.