Analysis & Opinions

Launch a Cryptocurrency Exchange Business Quickly and Cost-Effectively

Turnkey solutions offer a number of advantages for businesses who want to launch their own cryptocurrency exchange quickly, without substantial capital outlay.

Since cryptocurrencies emerged over a decade ago, the industry has observed and anticipated how this new segment in the financial industry would unfold, bringing with it blockchain technology and a new way of conducting transactions. Moving on to the present day, cryptocurrencies are not only a fixture in today’s society, they are an important part of the financial industry, having made their mark in the world of trading.

In parallel with these developments, there is clear evidence of the massive growth in the cryptocurrency exchange business. And with some of the top cryptocurrency exchanges reporting millions of dollars in revenue, many have sought to capitalise on this trend.

Setting Up A Cryptocurrency Exchange

But just how easy is it to set up a cryptocurrency exchange? There’s no doubt that setting up this kind of operation requires a range of expertise, and there is a long list of tasks that need to be undertaken in order to build a successful cryptocurrency exchange. 

It begins with the selection of an appropriate jurisdiction and setting up company structure with a corporate bank account for business transactions. Then, developments must begin to create a cryptocurrency exchange platform, including the components of a trading platform, matching engine, wallet, etc. 

Other steps involve documenting compliance procedures such as Know Your Customer (KYC) and Anti-Money Laundering (AML) are accomplished by hiring specialised staff. Setting up a cryptocurrency payment system and opening a bank account in order to receive client funds and convert fiat to crypto and vice versa are other aspects that need to be addressed.

Setting up a cryptocurrency exchange from scratch requires at least $500,000 in capital – this figure is for a turnkey solution. Carrying out this task independently is a different ball-game, which can set a company back into millions of dollars, as well as potentially bringing several hurdles along the way, such as the amount of time involved. 

With this sizeable price difference in mind, it’s not surprising that many companies looking to start their own cryptocurrency exchanges have opted for a turnkey solution. These kind of solutions are available from a few blockchain technology providers who possess the technical expertise and know-how to create a cryptocurrency exchange platform at a greatly reduced time while incurring lower costs. One such company is B2Broker.

B2Broker is one of the leading experts in the industry and is a recognised provider of turnkey cryptocurrency brokerage solutions. With its technology and liquidity services, B2Broker provides a bespoke service which allows businesses to offer their clients a range of services for trading, exchange and cryptocurrency investment via advanced trading platforms. 

Clients who work with B2Broker are delivered a viable business in around four weeks, comprising of a cutting-edge trading solution that provides a vast range of features that go beyond what startup cryptocurrency exchanges are able to provide. B2Broker can now launch four types of crypto exchange-related businesses for its clients:

1. Crypto Exchange Turnkey

Our crypto exchange turnkey solution comprises of a Web Trading User Interface and Trader’s Room modules, along with a dedicated Matching Engine with hosting at Amazon Servers, with no matching fee. 

(a) Web Trading User Interface

This fully customisable user interface, along with all necessary functionalities, tailored for both professional and novice traders, is included with
Market Watch, Charts, Order Book Flow, Market Depth, Time of Sale, Account Balances, Loyalty Token Application, and Design Customisation. Other widgets are available on request.

(b) Trader’s Room

The Trader’s Room is a ready-made functional solution for brokerages which allows you to manage your customers, admins and affiliates in one place is included with a host of features:

  • Virtual Web-wallet/s are already integrated with marginal trading platforms such as Meta Trader 4/5 and cTrader. Virtual Web-wallet include (USD, EUR, JPY etc.)
  • 2 types of 2FA: Google authenticator and SMS confirmation
  • KYC Module: API integration with any external KYC provider. (IdentityMind, iSignthis, etc.)
  • Reporting on all exchange transactions, such as Buy and Sell orders monthly or per transaction
  • Integration with any fiat PSP company including the top 15 PSPs (e.g. PayPal, Neteller, Skrill, B2BinPay, etc.) 
  • Administrative panel for employees to manage clients, verification documents and cashflow
  • Exchanger allows clients to receive exchange transactions quickly and simply via Crypto to Crypto or Crypto to Fiat conversions directly to their wallets
  • Users can access internal transfers from wallet to wallet, wallet to platform, and platform to wallet
  • Brokers take control of their interface by hosting their own User Interface via our Angular Interface to manage and change existing layouts
  • IB/Referral module (IB accounts can be nominated in any fiat/crypto currency)

(c) Matching Engine

Our powerful matching engine enables you to list unlimited tradable assets including digital assets, fiat currencies, forex and equities etc. As well as our user interface, our matching engine is customisable. Further features include:

  • Dedicated matching engine with the opportunity to choose a hosting location
  • Token Loyalty function for utility tokens
  • 9 types of trading orders
  • Creation and addition of any instrument onto your exchange
  • One dedicated matching engine capacity is 1,000,000 transactions per second which can be easily scaled

(d) Wallets

Our blockchain wallet infrastructure includes:

  • Integration with ticket systems (ZenDesk, Teamwox)
  • Integration by API with any electronic wallets (Skrill, Neteller, PayPal, Yandex Money, Qiwi and so on)
  • Integration by API with any PSP
  • Integration with Bitcoin; Bitcoin Cash; Bitcoin Gold; Litecoin; NEM; Monero; Ripple; Dash; NEO; Ethereum, ZCash, EOS, Stellar
  • Integration with any tokens based on Ethereum, NEM, NEO
  • Hundreds, and even thousands, of digital currencies can be enabled
  • Integration with any KYC providers of your choice via API
  • Administrative module for company employees
  • Automatic deposits and payments to customers
  • Affiliate system to reward traders for referrals

(e) Liquidity 

With B2Broker liquidity, you are connected to the B2BX aggregated liquidity pool or other exchanges and liquidity providers. With our solution you receive direct access to prime broker services:

  • Liquidity for 39 crypto pairs
  • Non-stop 24/7 trading
  • 24-hour technical support with response time within 5 minutes 24/7
  • Competitive spread (Bitcoin spread less than $10 usd)
  • Competitive commissions
  • Fast execution
  • Convenience of connection: WebSocket API, REST API, FIX API
  • Instant order book flow when connect

2. Crypto Exchange (Cloud Solution)

Another version of our crypto exchange turnkey is our Cloud Solution. B2Broker has deployed the cloud network infrastructure on the super fast Azure and Amazon servers and configured GEO DNS around the world, allowing you to instantly load your services from anywhere in the world. 

This option encompasses the Web Trading User Interface, Trader’s Room and Wallets modules outlined above. The key difference with this solution is that it is specifically for market order only, hence there is no matching engine. Once again, this solution can be implemented in 4 weeks and liquidity can be provided with no setup fee and no minimum margin.

In addition, our Crypto Exchange Turnkey, including Cloud solutions come with the following bonuses:

✔Website widget with trading instruments and price feed
✔Personal account manager
✔24/7 technical support in multiple languages
✔Full employee training conducted by our in-house specialists 

3. Converter

This is a basic package which comprises our Trader’s Room, Wallets and Liquidity modules and is essentially a crypto wallet solution for brokers and exchanges, etc. For this solution, a one-time setup fee for Trader’s Room will be incurred together with a monthly fee. An ideal entry package, B2Broker can have your Converter up and running in just 3 weeks.

4. Multi-Asset Broker

B2Broker can also set up a multi-asset (FX/Crypto/CFD) brokerage turnkey, allowing you to provide professional trading services for customers. MT5 is a very popular platform supported by the professional trading community, hence is another good option for starting a brokerage business efficiently, and without substantial costs. This option includes an MT5 trading platform, Trader’s Room, Wallets and Liquidity modules with Forex, CFD, Cryptocurrency, Metals, Indices, Commodities and ETFs all on one platform. Included are:

1. White Label MT5 (Uses the 8-symbols feature, which displays prices accurately, up to 8 decimal places)

2. Liquidity for 7 asset classes (Forex, Metals, Cryptos, Indices, Commodities, CFD Shares & CFD ETFs)

  • Single marginal account
  • Several connectivity methods: PrimeXM, OneZero, AMTS and FIX API

3. Trader’s Room – Operations Management Software for your customers, admins and affiliates in one place.

4. Investment Platform for launching PAMM/MAM/Social Trading/Copy Trading

5. Crypto payment system

6. Landing page

7. 24/7 responsive support

8. Cost-effective pricing (No revenue share model – just a software fee)

In addition, with our solid industry experience, we are positioned to advise you on all legal aspects, connecting to a reliable fiat PSP, opening a bank account, marketing strategy and education on all technical issues.

Getting Started

With our turnkey solutions, you do not have to enter into separate agreements with an exchange, bank, prime broker or liquidity provider. One single agreement with us is all that is required for you to gain access to our global network coverage from the world’s largest financial ecosystem within all Equinix centers worldwide. 

Besides a multitude of features designed to set up a successful brokerage, one of the key benefits of working with us is our deep liquidity pool. B2Broker offers single and direct market access to all Crypto, Forex & CFD liquidity venues, empowering your business with incomparable levels of technology, depths of liquidity, speed of execution and professional support at ultra-competitive trading costs.

If you are interested in setting up a high probability ROI business, contact B2Broker and get started with your cryptocurrency business today.

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