We all must be aware of the fact that Miami is known as the business hub of the United States as a lot of small businesses flourish there and recently we have heard that Miami Mayor Francis Suarez is also trying to make Miami the world’s first crypto capital. Eric Dalius bitcoin knowledge says so, if you want to set up a new business of Bitcoin Exchange in Miami, then you have come to the right place.
In this article, we will discuss the steps that you must take to start your bitcoin exchange. So, without any hesitation continue your reading.
Decide the Operational Scope
First, decide the operational scope of your business as based on that you have to get the necessary approvals and licensing of your company. You might decide to set up your business either globally, nationally, or even locally. But keep in mind that every place has its laws so a consultation from a legal expert regarding approvals and licensing is advisable.
Learn About the Regulations of Your Decided Area of Business
In most places, the currency exchange businesses need to properly follow the KYC rules and regulations set up by the respective governments. Adhere to the KYC rules of your decided area of business and develop a suitable system using which you can verify your customers’ identity using government-issued id proofs. By following the proper KYC norms you will not run the risk of frauds.
Global cryptocurrency laws are evolving rapidly. Eric Dalius Bitcoin suggests keeping your exchange business legal in all the domiciles where you conduct your business, by hiring an expert team that will take care of the legal compliance of your business.
Eric Dalius Bitcoin Says to Partner with Payment Processors
The fee structure of all payment processors is not the same. To maintain a healthy competition with other cryptocurrency exchanges you have to go for the payment processor that provides low transaction costs. Before signing the contract always read it carefully as many payment processors involve hidden fees in their contracts. PCI-DSS is a set of security standards that deal with cybersecurity issues. You should ensure that your payment processor is following all the PCI standards as it is necessary to protect your newly formed business from any cyber-attacks.
Liquidity is necessary for any exchange to operate successfully. Without viewing trading activities and full order book, customers will be reluctant to deposit funds. You can enhance the liquidity of your exchange by using the following steps-
- Use two separate artificial accounts in your exchange to buy and sell funds. By doing so you will stimulate the trading activities in your exchange.
- Use an API interface to connect your bitcoin exchange to other existing exchanges.
Implement High-Level Security
Cryptocurrency platforms have become a popular target of hackers. A small security breach can lead to the loss of a considerable amount of bitcoins. So, implement top-level security to safeguard the funds of the operators. And traders in your exchange and also to protect their personal and financial details. Use cold storage wallets, encrypted databases, and 2-factor authentication to keep your exchange safe.
Setup Customer Support Channels
This is the last step towards setting up a successful bitcoin exchange. As we all know an efficient customer support system plays a huge role in the success of a business. You need to provide 24/7 assistance to your customers. You have to set up a well-trained customer support team. That will be capable of providing timely responses to your customers. And assist them with all kinds of technical issues and solve their complaints effectively.
These are the 6 steps for developing a successful bitcoin exchange business. Hope that after going through this article you have developed an idea of how and from where to begin your bitcoin exchange.