Disadvantages of Not Starting a Crypto Exchange In 2020
We all are at the end of 2019 and are hopefully waiting for the most expected phenomenal year 2020. Right? By having 2020 as a deadline many businesses, Governments, Organizations, and industries, etc, have initiated progressive plans and projects before 5 or 10 years for their private concerns and growth. This created a huge expectation on the upcoming financial year 2020, and hopefully, this will be the starting point of the world’s digital growth.
Financial elements, Manufacturing industry, government sectors, business startups, education sector, retail industry, local businesses, IT industry and more are expecting a huge surgical strike in 2020. Because the global smart industry plan has been already fired up with the arrival of IoT, AI, Big Data, and Blockchain.
Since we are the cryptocurrency exchange & blockchain development company, we are about to seek for the most promising business ideas in our niche, so that's why we have described a list of cryptocurrency business ideas that you can start in 2020 in our previous article, Cryptocurrency exchange business idea was also one among the list. The reason why we are pointing cryptocurrency exchange business is, Whatever business model arrives by underlying cryptocurrency technology, the Exchange business is always being the diamond of blockchain’s victory crown. So, In this article we are going to describe why starting a bitcoin exchange is still a profitable one?
Why You Should Start Cryptocurrency Exchange Business In 2020?
The cryptocurrency industry is nothing without the existence of cryptocurrency exchanges. During the initial time of cryptocurrency, there were only a few cryptocurrency exchanges like bitfinex, Mt.Gox, and Bitstamp. But, as the industry potential started to attain huge attention, Many started to launch their bitcoin exchange website. As a result, 1000’s of local and international cryptocurrency exchanges, are operating inside the market.
Now, Your entrepreneur's mind may bring some questions to me!!! ,
- There exist a lot of cryptocurrency exchanges in the market so why should I?
- Will it be possible to beat them all?
- How can I make my exchanges as the top one since the competition is high?
Hold on, stop overthinking!
If this thought knocked the team of binance, coinbase, localbitcoins, they may not achieve this growth.
Let me give you an example, binance was started only in 2017 and it was, half the journey of cryptocurrency. During the time of binance launch, there was a huge competition, because of the popular crypto exchanges bitfinex, poloniex, BitTrex, and Kraken. But the binance team never lost their hope, instead, they keep on updating themselves and have equipped them to provide quality and also secured trading services for their customers. Finally, within one and a half years the exchange has been branched into several countries and has collected a huge customer base from all around the world.
Now, Binance becomes the precedent of cryptocurrency exchange industry.
Check out the trading revenue of popular bitcoin exchanges including binance.
source : howmuch.net
So, what I’m trying to say is, If a market is having huge demand, then sure, there will be a huge competition. But, It is up to you, How you are going to tackle the competition. Never think about competition. Instead, work to meet your goals.
Let me give you a popular quote that I saw online,
Confidence Has No Competition
Disadvantages of Not Starting a Crypto Exchange in 2020
If you are failing or neglecting to start a cryptocurrency exchange then you will lose a big pot luck. Now let me explain, are those things you will lose if you fail to start a crypto exchange in 2020.
What Will You Lose If You Don’t Start A Cryptocurrency Exchange In 2020?
- You may lose the chance of becoming an owner of a billion-dollar business
- You may lose the chance of getting Millions Of profit per Minute without even working on daily.
- You may fail to grab potential customer base
- You may lose the opportunity of getting connected with top businesses and entrepreneurs
- And finally, You’ll be failed to become a part of the cryptocurrency industry success in 2020
Reasons to Start a Bitcoin Exchange in 2020
The only rock-solid reason is, cryptocurrency transactions are about to stabilize and can be acquired by government transactions too. So, paying with cryptocurrency will become legal after the acceptance and implementation of blockchain in many countries. Countries like China, Japan, India, UK, USA, UAE, Malta, Singapore, South Korea are initiated to incorporate blockchain technology for industrial also government use cases. So, sure there will be a role for cryptocurrency either as a token or a stable coin. Moreover, the master cryptocurrency “Bitcoin” does not seem to be tired of its bull run. It geeps gearing up in price. Most Experts predict that bitcoin will rise to $20000 and above before the end of 2020.
So, these two factors alone will be enough for a savvy entrepreneur to start a cryptocurrency exchange in 2020.
I hope you now got an idea for why you should start a cryptocurrency exchange in the upcoming year. And, It is my responsibility to explain the risks in starting a cryptocurrency exchange in 2020.
Risk and Challenges In Starting or Operating a Cryptocurrency Exchange in 2020
If the benefit is high, then the risk will also be high. So, that’s why I am going to list out some of the notable risks in starting or running a cryptocurrency exchange in 2020.
Except for the countries like Malta, South Korea, and Japan, Still the regulation of cryptocurrency is under the grey field, That is Neither they are deemed as regulated nor unregulated. As some of the governments are not taken a strong decision on cryptocurrency transactions, there exists the trading of cryptocurrencies locally.
So, you have to choose a country based on the regulations issues and can launch your exchange there.
Just like you, there may be a lot of young entrepreneurs having an idea to start a cryptocurrency exchange. So, hurry up to beat the competition behind you. Also, there is a huge competition before you, that is the existence of top crypto exchanges like binance, coinbase and more. I would like to recommend if you want to become a successful crypto exchange startup, never expect a sudden hike, instead focus to serve the good quality and secured trading services inside your local area or county. Find out the people who are running before you inside your country, and start finding a way to beat them up. We at bitdeal conduct you the personal Risk management consulting services, immediately after signing up a project.
The Sudden Flow of New Traders
This one is unstoppable. The first two are the risk that you will face before starting a cryptocurrency exchange, but this one will rise gradually when you start operating a cryptocurrency exchange. Why I said “ It is unstoppable” is, You can’t stop the sudden flow of international customers to exchange if they found it as the best exchange. At any time the exchange can gain huge liquidity. So you have to equip your exchange website to handle the sudden flow, and you should ensure even if the exchange would operate properly even it gains huge new traders.
Inability to Handle N Number of Transactions Per Second
If you want to mitigate the risk, then you have to face this one too. These two risks are interconnected together. Because, if the arrival of new traders increases, then the number of trading also will be increased. So you have to keep your exchange as much as fast it can. If your exchange is failing to meet this, then it will end up with a lot of transaction failure and traders may experience slow speed while transacting the cryptocurrency. Neglecting to take immediate action, will make a huge number of traders to leave your site and that may cause huge volatility and liquidity.
Keep proper auditing and on your exchange transactions and keep the documents to be true. If it doesn’t, then you may lose the ownership of the exchange or the permanent ban.
How to Mitigate the Risks in Starting a Cryptocurrency Exchange in 2020?
Let me give you an easy way to start a cryptocurrency exchange in 2020, then I would like to recommend, "Acquire a clone script of popular exchange". Don’t Panic, this will not bring any legal issues, Because this kind of clone script or not copied script of the original site, but are having the clone features of the exchange that you would like to start in similar.
For example, if you want to start a cryptocurrency exchange like binance, then there exists a binance clone script in the market, with which you can start your dream exchange with initial features. After deploying the exchange, you can enhance it further and further to keep it as a unique one.
If you choose this method, you will give a chance for your local traders to experience the same trading features that binance can provide. If everything goes in the right direction, you can grab the local and international traders who are falling in binance exchange.
So what I recommend is better starting a cryptocurrency exchange by choosing any clone script. If you don’t want to clone any exchange, then you can choose to develop your exchange from scratch with the help of bitdeal.
We are ready to help you in starting a cryptocurrency exchange in 2020
We as a cryptocurrency exchange development company is ready to encourage the new exchange startups. With proper consulting, development and deployment you can start your cryptocurrency exchange as you dreamed. Again we are repeating, never worry about the competition, instead work on your goals.
Are you ready?