How does one start a cryptocurrency exchange? - 2 minutes read
The Crypto-based business model is booming and research shows that it’s been growing 3X faster than other business models. If you’re looking to step your foot into crypto-based business, it’s the right time to create a cryptocurrency for your business purpose.
It requires expertise in a wide variety of subjects:
1) you manage money, so…
you need to deal with a lot of legal requirements
you need to care about security in the technical level; think 2FA, API access, security from own employees
you’ll be under attack 24/7
2) you’ll be routinely DDoS’d just for kicks
3) you’ll need to scale horizontally because…
you need to stay online 24/7; gracefully handle server faults, with automatic failover, transparently to the customers
you need to be able to scale up with demand, but also scale down to save money
4) you need to provide customer service
you need to handle backups, make sure they actually work, and can be restored in a timely manner; time is literally money here
you’ll need to interface a number of different cryptocurrency networks, handle payments and withdrawals, the moving of funds to and from cold store, etc
if you handle fiat currencies, then you’ll need to interface other payment providers as well, and deal with, or outsource, a bunch of checks (“know your customer”)
I put this list together in ten minutes. Guess how much of the actual mess it covers…