The cryptocurrency industry is gradually going mainstream with leading cryptocurrencies like Bitcoin, XRP, Ethereum and TRX gaining massive popularity all around the world. More companies are willing to adopt blockchain technology and implement new models of payments, cryptocurrencies are selling like hotcakes in major exchanges in the world, with trade hitting billions of dollars every month.
More people are joining the cryptocurrency trend in a daily basis, some as investors while others are joining as traders (which is all investments if you ask me). The number of cryptocurrency exchanges are also increasing as the number of users also increase.
This creates a new opportunity for creating your cryptocurrency exchange and Africa is perfectly poised for this opportunity.
It is a known fact that Africa is the next frontier for mainstream cryptocurrency adoption. This is partially because many African countries are experiencing inflation and investors are looking for new opportunities to barricade themselves from economic motivated risks – cryptocurrency look like a beautiful way out.
In this article we will provide you an in-depth guide on how to start your own cryptocurrency exchange.
How to start your own cryptocurrency exchange in Africa
1. Seek legal aid: It doesn’t matter if your opening a manufacturing plant or a cryptocurrency exchange, you’ll need prior legal planning. You should have knowledge of the laws and regulations surrounding the type of business you’re venturing into, and in this case the laws surrounding the cryptocurrency industry.
African leaders mostly adopt a wait and see policy for cryptocurrency since it’s a new terrain for them, but it wouldn’t be a bad idea to seek legal aid before you set up your own exchange.
2. Get initial funding: Running a cryptocurrency exchange is not an easy task, you’ll need a lot of money. That’s why you will need some level of financial backing. The initial investment for a cryptocurrency exchange would not be lesser than $100,000 and this doesn’t cover website development, security and it tools needed for the exchange to become operational.
You also need funding for legal counseling and covering logistics. Draft a good financial plan and look for adequate funding to start up your exchange.
3. Find the needed technology: There are some platforms that offer software for you to run a cryptocurrency exchange. Building a cryptocurrency exchange from scratch is extremely difficult and time consuming, but you can get a platform like dragnet or modulus to run on, all you’ll need is to pay a license or some form of subscription fee.
Consider what services you want your exchange to offer, then explore different options to find out the on that offers such services then go with it.
4. Incorporate an online payment system: Every cryptocurrency exchange is built with a system for making deposit and also withdrawal, that’s the major deal for any exchange. Having a high quality payment processor will improve the quality of service on your exchange, get one.
5. Take care of security: You don’t want be the one of a cryptocurrency that got hacked and user lose their hard earned money. Users also want to assurance that their money is safe with you. Card details and personal information are on your database and they need to be kept safe, that’s why you should invest heavily on having a heavily guarded cryptocurrency exchange.
6. Research the cryptocurrency market: Before you start a cryptocurrency you should have complete understanding of the business you’re venturing into. Look at the existing African based cryptocurrency exchange; their community, mode of
operation and everything needed that makes them tick. Look at what they don’t offer or what they do and be better.
7. Test your exchange: Before launching your exchange for public use it is important you beta test your platform or bugs, security breaches and any other lapses that might damage your exchange and make it dead on arrival. Check out how it works, any possible problems and solve them before launching the exchange.
8. Promote your exchange: Promotion and marketing is the lifeblood of a successful business. Promote your exchange using different marketing tactics. Just make sure people are aware of your exchange Before and even after launching the platform.
9. Hire an effective customer service team: The top quality of any cryptocurrency exchange platform is good customer support. Customer service helps users who might encounter problems navigating your site.
10. Monitor your progress: When you launch your cryptocurrency exchange platform you have to make sure it is working properly. That’s why you have to always monitor progress on the site and if the progress is inadequate, you apply new techniques to make it work.
From the list above it is clear launching a cryptocurrency exchange platform isn’t an easy process, but if you follow the steps we have listed above it will make your journey to owning a cryptocurrency exchange less stressful.