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// Cryptocurrency

CRYPTOCURRENCY &
BITCOIN EXCHANGE
STARTUP BUSINESS PLAN

Alex Boiko Write to Alex 

November 13, 2019

MEREHEAD / BLOG / CRYPTOCURRENCY / Cryptocurrency & Bitcoin Exchange Startup Business Plan

Are you looking to do the Cryptocurrency exchange platform?

Alex Boiko
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Merehead is a leading cryptocurrency development company

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10/12/21, 12:22 AM Cryptocurrency & Bitcoin Exchange Startup Business Plan - Merehead

Modern times require modern

Solutions Hire usapproaches to the Case
Blockchain business and money
Contact making.
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Starting up abusiness is  
hard, but who doesn’t take the risk, he us
doesn’t win. But, what
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is the most important is there are ways to develop a really successful business plan.
You should follow the rules and the procedures and the results won’t trail.

Bitcoin business is a modern gold mine, you only have to dig as deep as possible.
What is more, Bitcoin exchange platforms became really popular in the last period.
What we suggest is exactly that. Try building your Bitcoin exchange business. In this
article, you will find useful information and advice on how to do this startup.

Even if it existed from 2009, Bitcoin hit a serious price of 333$ in 2015, and that is
when the mania started. As you probably already know, Bitcoin is held only
electronically. Bitcoin exchange is a field of buying or selling Bitcoins using different
currencies. You can change Bitcoins to dollars, Euros (fiat currencies) and altcoins.

Types of Bitcoin businesses

Here are some of the new forms of Bitcoin businesses. This will only continue to grow
in the next period.

Wallet services – Wallets purpose is to store Bitcoins in one place. But, the plain
wallet services already exist. Companies are now developing it into a technology
perfections( there is a cold and hot kind of wallets ). The service is improved by the
functions such as HD security, BIPs32, and optimization to use it in the large
organizations. In some time, this type of service will only get better. They will allow
the users to relax a little bit, as everything would be automatized.

Mining – This is an extremely popular activity when we talk about Bitcoins. Biggest
exchange companies are opening mining pools and work on the advanced solutions.

Smart contracts – This innovative idea is based on the excluding the third parties
when it comes to agreements and contracts. Old-fashioned ways of signing a
contract on the paper are about to get replaced by this technology.

Working with Bitcoins takes time and a lot of patience. Earned money has to be
generated in one places and after some time, and that is the main thing. On the other
side, the Bitcoin exchange platform works differently. It can give you a daily basis
income, depending on the traffic on your site. When we say traffic, it means
transactions done by the visitors. Bitcoin exchange sites have a purpose of
connecting the sellers and the buyers.

When you are starting up a business, you must take into considerations its
reproducibility. You need to make sure that the plan has something in it that will spark
the interest within the traders. Sometimes it is good to check what the concurrency is
doing. By learning about the others’ mistakes, you can avoid making it yourself. And
the good sides can be applied partially to your site also. Let them give you some
inspiration.

Those concurrency sites already have many clients/traders and do business really
well. Don’t let this disappoint or discourages you. They operate a lot longer than you,
and it is somehow logical. Make baby steps, but move in the direction of success.

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Build that exchange

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Here you can find a list of the best Bitcoin exchange sites or create your own
Bitcoin/Cryptocurrency trading exchange platform. This can be very useful as an
example of what does your site need to become.

When launching an exchange business plan here are some crucial things to know.

1. Security – Sites made for these purposes and based on Bitcoin are very often a
target of the hackers or bans. The system should be very strong and resistant, so you
would keep the Bitcoins and money on it. If you skip the step about the
cryptocurrency security, your startup can be driven into a really endangered zone.
This is something you want to escape.

2. Adaptability – This is an important feature of the Bitcoin business functioning. As

we said earlier, it varies quickly. So the thing is, you have to put an accent on
versatility. Everyday fluctuations require the fast changes. Traders will appreciate it.

3. Software – Having the good exchange software is also on the list of priorities.

4. Anonymity – The traders appreciate the anonymity, or in other words privacy, so

be sure to ensure it for them. Also, provide a customer support option. There will
always be some questions, about the exchange, withdrawal and similar topics.

Regulations
Before even starting with the business, you have to check all the regulations and
law and government requirements. Regulations in this area exist but are different in
different countries. For example, in the USA there is a whole package of regulations
that are written for a Bitcoin startup business. For example, Bitcoins and
cryptocurrencies are a highly discouraged type of business in Jordan. Bitcoin is
considered as an illegal activity, but still, some of the small companies work with it.

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After makingSolutions
the exchange
Hirebusiness
us plan you willCase
Blockchain focus on turning it into reality. Now
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you probably ask yourself how much

time does it Studies us
take to start Bitcoin exchange
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business. Believe it or now, it will take an average of about 45 days. Sometimes this
will look like a nightmare to you, sometimes you will eagerly start the day with new
ideas. However, Merehead exchange ready to be deployed in almost 15 days.

What else do you need? You just can’t start the business illegally. The whole process
is a lot more complex. It is not only about the idea and the plan. You need many
certifications and licenses before even getting started. The state you are living in will
investigate every detail of your business in order to stop any criminal activity.

For example, the US government promulgated an official page about the Bitcoin.

And even more, this falls under the regulation of cyberspace. There are, of course,
bodies that influence worldwide activities in Bitcoin exchange business. They are
literally all over the globe and many things depend on their judgment. But if you
follow the rules and procedures, there won’t be any problem.

Softwares
For the Bitcoin exchange business, you ought to have the exchange software. Here
you can have two options. First one is to gather a team of developers and
programmers who will make you a software. It is important to know all the
components should be harmonized with the payment and safety processes. The
software has to be maintained and up-graded pretty often. Costs of the maintenance
can go up to 462,000$, which is, you must admit, a lot. But, on the other side,
earnings made with the Bitcoin exchange system can reach much more.

White label software is highly recommended. This one is tested and trustful. When we
say tested, it means that this software has UI, admin panel, wallet service already built
in. These are the required components of the software. What is left, is to adapt the
rest to the need of your site. Besides, picking White label software is way less
expensive than making your own software. The price is starting at 12,000$.

Management team
As in every other business, you can’t do all of this on your own. You will need some
help, and you will get it from your management team. Almost 90% of all exchanges
work with less than 10 people. Binance even has about 40 core persons, and the
rest stuff is only support managers who can easily be outsourced. Below the most
common management team required.

Quantitative Strategist – works on derivative pricing, tests the quantitative strategies

and analyses the market structure.

Regulatory Compliance Officer – As mentioned above, all the activity has to be

harmonized with the country’s regulation. This person is in charge of the research of
the laws and regulations in the area, communication with the banks, tracking the
concurrency solutions. The officer is a part of the Legal counsel. You can hire it
remotely.

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Operations Manager
Solutions – coordinates
Hire us the activities Case
Blockchain of the HR, IT etc, ensures the
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expansion ofthe business,
 
supervises the execution of the projects, communicates
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with potential partners.

PR & Marketing Manager – is responsible for writing and sharing posts, press
releases, brochures and many more materials.

From the very beginning, you can start only with PR and Operation managers, and of
course with owner.

How to fundraise money for expanding Bitcoin

business?
This is a pretty common concern. After the initial excitement about this kind of job,
you will eventually realize that you lack some funds for the business. As you saw
above, exchange software is a requirement for starting up an exchange business.
Whatever option you choose, you have to pay for it. The only difference would be the
amount. And there comes the fund problem, as you maybe don’t have enough
money.

Luckily, in this business, unlike with the others, there are many charity
companies/sites. They can help you a little bit, by donating some Bitcoins to you.
Don’t think of this as a desperate move, many people out there are in the same
position as you. But, what we advise, is to have at least some decent fund for starting
up business. Otherwise, you can launch ICO as a fundraising campaign and received
money spend on future developments and marketing.

There are companies like DropDeck that focus on funding the business over the
world. They use tokens. The operations of companies like this are completely
transparent, so your progress will also be under the eye. What we recommend is to
always be careful when it comes to charities like this and make sure everything is
legal.

Return on Investment
And probably the main question would be: How much can you earn?

Month earnings in this business can vary. The value of 1000 Bitcoins in 2009 was
around 1$. Then in 2010, 10000 Bitcoins were worth 30$. Then in 2015, it became to
rise, and in 2017 worth of one Bitcoin was around 6000$. Of course that the value
can vary on a daily basis, but there is almost no possibility that something drastic
would happen.

When we talk about the investments in the business, we already mentioned that you
would need the software. The cost of it would be from 9000 to 460,000$,
depending on what you want. And if you choose the second option, it is harder to
return the investment. Top exchange business sites earn around 3 million per day.
You can’t count on this when you are in the process of developing a business.

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If we compare earnings of
Solutions theusexchange
Hire sites, youCase
Blockchain can see that Contact
Binance earns almost
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4 million perday, and Poloniex
 
around 700 thousands. GDAX isus
a medium level with
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around 400,000 $ per day. Now you see that the investment can be returned
relatively fast. Let’s be optimistic and say, in about 6 months.

If you run the exchange business, each transaction can bring you profit. When you
get into the business, the money will easily come. The main thing is to start and to
gain trust from the traders. Once your site gets permanent traders, the profit will only
get bigger. What is important is that the purchases and sales are low-cost ones and
that will attract new visitors and clients.

Exchange sites have a withdrawal option. Each transaction wears some additional
costs for the user. These transaction costs will bring you profit also. Each one takes
around 0.2-1% of the withdrawal. These costs are in other words said, fees.

So, as you can see, there are many ways to earn by having an exchange site. The
only thing is, no one can guarantee you the monthly or yearly profit. It depends on
many factors. But, what we can say is that it can go to a serious number. The wallet
and storage services, deposits, the transactions, and withdrawals, you can benefit
from it all. If you have a decent number of traders, even small fees gathered in one
place will make a nice sum.

Conclusion
It is clear that the startup of a Bitcoin exchange business would be a tough mission.
On the other side, these 45 days of hard work will pay off if you play the cards right.
The right software and following the regulations are at the top of the list. If you ensure
these two matters, you did the half of the job. Next thing is to attract the traders.

Quality will always find a way for the customers. Make sure you have good
connections with people from the same branch and with serious sites. Some of them
can eventually help you with the ads for your site. Marketing has always been an
important business factor.

Don’t expect an overnight success, but expect it for sure. However it looks right now,
Bitcoins will only continue to grow and their value will be even higher in the future.
And if so, the owners will always want to trade a Bitcoins for money or trade it
between themselves, and that is the exact reason of the exchange platforms.

And a small advice… Even if you know that this type of startup can be profitable, don’t
let it be your only goal. For instance, ignore this completely. It will only distract you
from your main goal, and that is building a trustworthy Bitcoin exchange site.

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Cryptocurrency & Bitcoin Exchange Startup Business Plan key

takeaways:

#1. Types of Bitcoin businesses

#2. Regulations

#3. Softwares

#4. Management team

#5. How to fundraise money for expanding Bitcoin business?

#6. Return on Investment

#7. Conclusion

Merehead does professional development of Cryptocurrency exchange platform. If

you have questions, contact us for a free consultation.

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Alex Boiko
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Merehead is a leading cryptocurrency development company

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