With the new stage of the growth of cryptocurrencies, the topic of exchanges is becoming very relevant. Despite the fact that centralized exchanges offer users convenient interfaces and a healthy ecosystem, instant crypto exchanges, more familiar to veterans of the market, still maintain their popularity. In this article, we will consider the essence of instant cryptocurrency exchanges as a business, their working principle, models, as well as the advantages of opening your own instant cryptocurrency exchange.
What is an Instant Crypto Exchange and How Does it Work?
An instant crypto exchange is an online platform that provides services for exchanging cryptocurrency for other cryptocurrencies or fiat money and vice versa. The basic principle of it is that users can quickly and safely convert their assets. The user creates a request, specifying the currency pair and exchange direction, enters their details to receive cryptocurrency or fiat money, and receives the payment details.
Business Model of Instant Crypto Exchanges
The business model of instant crypto-exchanges can vary depending on the specifics of the platform, but most of them earn commissions for conducting exchange operations. Many instant exchanges also offer additional services, such as exchange without commissions when using the internal cryptocurrency of the platform or providing an API for integrating the exchange into other services.
Regulation and Security
The field of cryptocurrency exchanges is subject to strict regulation in many countries. To work in this industry, it is often necessary to obtain appropriate crypto licenses. According to the law.gov portal, more than 50 countries issue corresponding crypto licenses. In the spaces of the post-Soviet countries, most exchanges register a legal entity in Estonia, Latvia, and other Eastern European countries, using local business licenses.
How Does Instant Crypto Exchange Differ from a Cryptocurrency Exchange?
An instant crypto exchange and a cryptocurrency exchange provide different services. Unlike traditional exchanges, an instant exchange does not offer asset trading but only the exchange of one currency for another.
The exchange itself on the traditional exchanges is often an additional function, while instant crypto exchanges are designed specifically for exchange operations. If in the mid-2010s, most crypto exchanges were platforms for futures and spot trading, now most of them are a whole ecosystem with built-in staking functions, NFT marketplaces, copy trading, own launchpads, and DeFi platforms.
At the same time, instant crypto exchanges, despite offering additional functionality, remain platforms focused on the rapid exchange of cryptocurrencies.
Types of Cryptocurrency Exchanges
There are several types of cryptocurrency exchanges.
According to the model, they are divided into:
– Decentralized
– Centralized
– P2P exchanges
On the mechanics of exchange operations:
– Automatic
– Manual
Why Should You Open an Instant Cryptocurrency Exchange?
Cryptocurrencies continue to gain popularity, and the demand for asset exchange and conversion services is constantly growing. Opening an instant crypto exchange allows you not only to enter the dynamically developing market but also to provide users with a convenient and safe way to exchange their assets.
Most cryptocurrency businesses are associated with high risks and are very dependent on the market, while infrastructure tools, such as exchanges, bridges, or crypto exchanges, are much less subject to fluctuations. Most instant crypto exchanges have a client base that generates regular income. Usually, these are miners, OTC traders, people who receive income in cryptocurrency, and other categories of clients who prefer not to use exchanges due to one factor or another. Such clients receive personalized service and more flexible terms, and instant exchanges receive clients who perform exchange operations regardless of the exchange rate of cryptocurrencies and the market situation.
An important factor is the fact that the instant crypto exchanges have a much lower entry threshold compared to other crypto businesses.
Opening your own cryptocurrency exchange can be a profitable business project. Among the main advantages, it is possible to highlight the high demand for cryptocurrency exchange services, the possibility of receiving “semi-passive” income through commissions, as well as the potential for the development of additional services and functionality.
How to Open Your Crypto Exchange
If you describe the main stages of creating a crypto exchange, they will look like this:
– Registration of the company and obtaining a license
– Software development or purchase
– Purchase or lease of server equipment
– Ensuring liquidity
– Promotion and creation of a client base
Buying a Ready-Made Instant Crypto Exchange
For those who do not want to create an exchange from scratch, there is an opportunity to purchase a ready-made solution that can be adapted to unique needs. It allows you to save time and resources on developing your platform, as well as get a ready-made solution with already configured functions and integrations.
If development “from scratch” can easily take up to two years, thanks to ready-made solutions, you can open your instant crypto exchange in just two weeks.
The choice of ready-made solutions is also quite wide, and everyone will be able to choose the right one for them. Some companies, provide you with their API and charge you, while others, like WhiteFlo, charge a one-time fee for access to the code, installation of the software on your server, and additional modules.
With the right approach, instant cryptocurrency exchange can become a successful business with almost passive income or the first step on the way to your cryptocurrency ecosystem, and white-label solutions allow you to start this business as quickly and cheaply as possible.
