Entering the world of running an exchange can seem intimidating but through the use of white label solutions, such as HollaEx, this process can be assisted with these 10 easy steps.
Effectively bringing together the many individual pieces, required in the puzzle of exchange management, will help ease the path to success. But what are these elements? This guide seeks to break down 10 of the primary steps to ensure that you are aware of, and can act on them for the benefit of you, your exchange, and your users.
Exchange Setup 👷
If the eventual success of your exchange is the destination, this point is the first step out the door. Without the initial groundwork, all the benefits hence are not possible. But the coding of a fully-fledged exchange is not for the faint of heart, entire teams and vast resources are surely required to get to this point? Fortunately, this is no longer the case.
Through the use of white label solutions like HollaEx. Your exchange could be set up within the hour of you reading this sentence, without having to write a single line of code, with the quality assurance that comes with a dedicated team, and established track record.
With the setup done, now it's time to open your exchange to the world. When registering your domain, ensure to put thought into this name, something short and catchy will stick in the mind of your users far better than a long, forgettable one.
This is the beating heart of your exchange, where assets are stored, deposited, and withdrawn. Again this aspect requires expertise and knowledge to ensure your users can rest easy knowing their assets are safe and secure.
Fortunately, again it is possible to outsource this work to tried and tested solutions, and often a wallet system will be included within white-label solutions, without requiring any additional setup. HollaEx exchanges come bundled with ‘Vault’ wallets, allowing your users to generate multiple addresses, and know that the technology as been tried and tested.
Trading Engine 📈
The constant activity of buying and selling is what makes crypto markets so engaging to be a part of, and create profitable opportunities. These markets engines need to walk a fine line between presenting adequate, up-to-date information, whilst being easy for users of all skills levels to understand and interact with.
An important aspect of these engines is ‘price discovery’, the process of dynamically obtaining the value of a given asset in real-time, something that is vital for users to know, and understand where this price has come from.
Liquidity, the total amounts of assets accessible by your exchange, can be very tricky for new exchanges to generate. The ‘chicken or the egg’ problem can arise, where users are hesitant to store their assets, as they can’t trade, and thus nothing is deposited further perpetuating the problem.
One method to solve this issue is by new exchanges linking together their assets in a shared pool, this is the method that the HollaEx network uses, ensuring that all exchanges have the access to the shared resources they need to succeed.
This can be among the most tricky aspects to approach as a new exchange owner, creating an eye-catching, appealing brand and interface is not a simple task, requiring coding knowledge alongside a small amount of artistic flair, to create the aesthetic that will attract, and keep, users on your exchange.
White label exchanges that can provide a variety of means to customize your exchange ensure that any exchange owner can create the environment they desire. HollaEx, for example, allows for various levels of control, from simple, menu-based controls over colors and graphics, right down to directly affecting the source code of the exchange itself.
A party is no fun without guests and exchange is no fun without users. The issue remains that in the modern web space, potential users expect ease of use throughout their experience. Again this is an issue that can be overcome by allowing others to do the hard parts of developing efficient onboarding and security measures, such as Know-Your-Customer tools.
Another important aspect is letting your users know what is occurring with their account, on your exchange, as well as in the wider crypto world. Communication is key to this whole process, through notifications, emails, SMS, and so on. In particular, users will appreciate being notified of deposits and withdrawals, letting them know the progress of their trades.
The ability to monitor and affect your exchange is vital to its success. Better tools will allow for more productive administration, imparting the knowledge of what is happening, and what needs to be tweaked.
As the exchange grows this task can become too large for a single person to deal with effectively. For this reason, the delegation of these tasks to trusted individuals becomes essential.
Problems are inevitable, and within the tech world, this is particularly prominent. Helping users is a key element in building up trust, and satisfaction with your exchange.
Assisting users can be carried out in a variety of ways, from hands-on customer service to more general static assistance such as emails or announcements. It is possible to outsource these concerns to third-party services such as Zendesk or Freshdesk, again minimizing time spent on these aspects, and thus more on building your exchanges profitability.
These 10 steps are by no means exhaustive, but hopefully, with them, you will be able to lay down the foundations of your exchange, ensuring it is built upon a solid base and can be built up to even greater heights. 🚀
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