From this title, it’s easy to guess the subject points. Let us not delay and take an exhaustive glimpse into the development life cycle of a crypto exchange business. The Crypto market as a whole is a trillion-dollar industry.
This Crypto Exchange is definitely a billion-dollar business opportunity for all budding startups and solo entrepreneurs. Bear market or not, the rage of cryptocurrencies is extending as more and more users are entering the market every day. I bet you definitely heard the saying that – It is always to be a Bookie person: then to be a gambler.
If cryptos are the new gold rush, the businesses created around them to simplify it are the best options to make money.
That’s why it is always better to execute an exchange than to be a trader.
But before you make money, you must invest it. Right! Let’s now see the investment part of it. Here, the meaning of investment is the cost it takes to start a crypto exchange like Binance.
Development of Crypto Exchange life cycle steps
- Must have a license with both local and federal governments for your business
- Secure the funding required to initiate your business venture.
- Specify the crypto exchange for your platform
- Connect your crypto exchange with Blockchain
- Beta test and stress test your exchange
- Market your platform online
- Launch your exchange platform
All this is considered the lifecycle to start a crypto exchange like Binance. And all these processes incur a cost; that is what we’ll discuss in this article.
Start your Crypto Exchange platform
Now is the perfect time to take a closer look at all the necessary steps mentioned above!
Business License
A Crypto Trading platform is the crypto equivalent of a digital asset brokerage. Like any brokerage selling securities, the US Securities and Exchange Commission (SEC) takes curiosity in the inner workings and subjects the business to regulations.
So, first, acquiring a license is the prior milestone, and it is not something you can avoid. Unfortunately, this represents the cost that it arrives with is also unavoidable. In 2022, the cost of registering a crypto exchange license is initially around $150K, with an added annual fee of $120K. (Licensing fees may vary based on the regulations of the country and region.)
Funding
The Second most noteworthy marker is Funding. Either you have your own money held up that you will be investing, or you have to find investors to fund your venture. This step would not cost you anything, honestly saying, this step will be as complex as getting a license, perhaps even more so.
Most startups and entrepreneurs constantly secure a loan, which is the flawless route. But it is smart to ensure a small loan during an intermediate stage of development instead of a big one at the start.
Building Software
I think this step is going to be the most time-consuming and expensive part of the process. Start a Crypto Exchange like Binance from scratch requires, various stuff such as specialized personnel, time, hardware, material, and much more., And this is the part of development where startups often get at a standstill because the process typically takes more than 18 months.
And it gets cost more than $100K to $500K. Whether the cost is at the lower to higher end eventually relies on the quality of the developers and the resources they have at hand.
Blockchain Integration
It is more effortless to integrate a Blockchain; than people think they are. All Blockchains have their own standard of instructions, and the source code is usually public. But remember that you will need innovators on your team who know the language to solve the code. Each Blockchain use various kind of programming languages.
Say, for example, Cardano Blockchain uses the Haskell language. Same as Solana Blockchain using Rust, and not all Blockchains depend on Solidity. The Blockchain might also need you to pay them a fee or at least require you to stake an amount into the blockchain in their native coin as insurance, so this amount is variable.
Testnet
The next step of the platform is Stress-test. After all, once the exchange gets ventured, no one can’t yield to lose functionality in any case. Exchange deals in the user’s funds, so businesses can’t afford to make a mistake. Because the bugs you clear during this stage will protect the platform from potential future hacks. So ensure to take your time with this step.
Marketing
Like marketing a movie, one must need to list the exchange on the most popularized sites like Cointelegraph, CoinGecko, and Coinmarketcap and create ad campaigns to entice potential users to the business. The initial hit you see from your ad campaign will decide the future of the crypto exchange business. Many startups undervalue this step, and they expend on it.
Launch
It is the final step to launch your crypto exchange like Binance. The launch of the crypto exchange has two steps:
-> Soft Release Launch
-> Official Launch
A Soft opening is constantly done with limited processes to get in hesitant users and to reel them in with the promise of the complete product. And this could be a part of the Social Media Marketing campaign.
Once the platform gets launched, it is officially a fully-fledged business. And this will not cost you anything. So adding up all the costs stated, we can evaluate developing a binance-like crypto exchange platform in the United States in 2022. This will at best, cost up to $850K in initial investment.
How can we reduce the cost of Crypto exchange Development?
Firstly, one must wonder if it is possible; to lower costs during the life cycle of crypto exchange development. Yes, it is possible. As the title of this post indicates, White label solution is the key to cracking the crisis. It will not end all solvency issues, but it will ease the stress significantly.
What is White Label Crypto Exchange solution?
White Label Crypto Exchange software solution is a pre-deployed and tested, readily-available crypto exchange platform sold to entrepreneurs who want to start their own crypto exchange instantly. White Label solution is a customizable product or service, that is flexible enough to be tailored to fit any design choice. Likewise, these white label solutions arrive with their in-built payment gateway and wallet.
Importantly, the cost of the white label solution can range from $8K to $15K. That is comparatively better when considering the $100 – 500K development cost. Right!
- Beta Tested (Bug-Free)
- Readymade
- Customizable
- Secure Encryption
- In-built Payment Gateway & Wallet
The cost of the business license from the SEC is required. Although the marketing price is quite variable, it is not wise to skimp on marketing, specifically for a startup. That exits the white label cryptocurrency exchange software as the only lane to save finances.
Summing up
As we discussed above, the White label solution is a much more cost-effective solution; to start a business than creating one from scratch. However, it is crucial to approach the best White Label Binance Clone script providers for developing your own Crypto exchange. Proficient Blockchain solution providers have the personnel and the resources to provide guidance, technical support, and assistance in the long run. Approach experienced software services right now!!!
