How to Run Your Own Cryptocurrency Exchange!

Serge Uvarov

newbie

Activity: 25

Merit: 0

Quote from: fasdorcas on April 25, 2019, 02:51:39 PM

Anyone that wishes to run their own exchanges should make sure that they have more than enough capital that it takes to run an exchange, so that they don't end up like most exchanges that couldn't keep up with the competition.

It is not just about creating and having your own exchange, you should also be able to do what it takes to keep the exchanges up and running, cause if you don't, it is still going to end up the same way as others that couldn't make it. And by the way, I believe we already have more than enough crypto exchanges, anyone trying to create more is really wasting their time.

However, imagine if Binance guys thought that. They launched in 2017 and at the end of 2017 it became the largest crypto-exchange, and still is one of the top.

The rest is on point. >90% of businesses fail, and exchange business is not an exception here. But entrepreneurs who do make it look at the glass 10% full part. Cutting corners when dealing with initial costs is part of the strategy here, as having to develop something from scratch is usually the biggest time- and capital-consuming bottleneck in startups. The "not invented here" syndrome.

fasdorcas

hero member

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Anyone that wishes to run their own exchanges should make sure that they have more than enough capital that it takes to run an exchange, so that they don't end up like most exchanges that couldn't keep up with the competition.

It is not just about creating and having your own exchange, you should also be able to do what it takes to keep the exchanges up and running, cause if you don't, it is still going to end up the same way as others that couldn't make it. And by the way, I believe we already have more than enough crypto exchanges, anyone trying to create more is really wasting their time.

Serge Uvarov

newbie

Activity: 25

Merit: 0

Quote from: bitcoin revo on April 24, 2019, 05:46:22 PM

Okay, so I skimmed through the report.

In regards to the concerns on attracting clients as well as the nitty-gritty aspect of the exchange, although I completely understand that the guide is probably meant to be very general and mostly inspire future exchange owners/point them in the right direction, I would argue that it's extremely vague and will likely only really inspire those without enough funds to try and start their own exchange - the ones with the intent and the capital to commit to such a project will have done so without this brief summary over the process.

It's a nice article, don't get me wrong, and it really does hit on some nice points (and this entire thing is free. I can't blame Serge for not spilling his trade secrets on a doc that anyone can download). However, I'd say that it mostly points you to the standoff of "hey, look. Building your own exchange and keeping it up will cost you fortunes, but thankfully I have some prebuilt options for you." It's not inaccurate, but if someone really isn't knowledgeable and serious enough to develop their own project, it's probably just going to crash and burn regardless of where you get a premade script from.

Hey bitcoin revo, thanks! I appreciate the feedback.

Yeah, this is more of an experiment to see if I can interest general public in the idea of doing this. It's not meant to be super technical, but more to introduce the readers who don't know much about the space to at least start having general ideas of how it works on the inside, and then maybe to nudge them to research more and eventually get involved in this space, maybe with a full-fledged team.

I do also plan to create a course for programmers where I code a complete MVP of a cryptocurrency exchange from scratch live, along with the github repo of the complete code (cause why not). Will be more fun for us geeks.

Serge Uvarov

newbie

Activity: 25

Merit: 0

Quote from: examplens on April 24, 2019, 05:20:34 PM

Running an exchange It's not a big deal. Many people sell the script for a few couple bucks and everyone can run his own exchange, but what after start? What when they need an update, any new changes, fork, swap or any change? What about security bugs? if someone does not have enough knowledge or team behind them, they don't need to think about buying exchange script, software or whatever. Good exchange is not only web software where is possible to "trade". there is much more.

Absolutely agree. Buying a script without having someone onboard properly understanding what it does is super dangerous, especially in the business of financial platforms, where users trust exchanges with their money to be safe and secure.

bitcoin revo

legendary

Activity: 1168

Merit: 1049

Okay, so I skimmed through the report.

In regards to the concerns on attracting clients as well as the nitty-gritty aspect of the exchange, although I completely understand that the guide is probably meant to be very general and mostly inspire future exchange owners/point them in the right direction, I would argue that it's extremely vague and will likely only really inspire those without enough funds to try and start their own exchange - the ones with the intent and the capital to commit to such a project will have done so without this brief summary over the process.

It's a nice article, don't get me wrong, and it really does hit on some nice points (and this entire thing is free. I can't blame Serge for not spilling his trade secrets on a doc that anyone can download). However, I'd say that it mostly points you to the standoff of "hey, look. Building your own exchange and keeping it up will cost you fortunes, but thankfully I have some prebuilt options for you." It's not inaccurate, but if someone really isn't knowledgeable and serious enough to develop their own project, it's probably just going to crash and burn regardless of where you get a premade script from.

Serge Uvarov

newbie

Activity: 25

Merit: 0

Quote from: Bitum on April 24, 2019, 02:18:21 PM

Starting an exchange may only be max. 5% of the success. The people to trade on this exchange, these are the most difficult task. Especially today where there are so many competitors with good service

I do agree, although if you don't have anything to get people onto, this is a problem too. I actually share some ideas in "How to Stand Out" chapter, but it's up to the entrepreneur to find creative ways to attract customers.

Normally, however, it's "business as usual": buying leads on Facebook and Google Ads and making sure the cost is less than CLTV (customer lifetime value) or something to that extent.

Serge Uvarov

newbie

Activity: 25

Merit: 0

Quote from: feryjhie on April 24, 2019, 05:30:57 PM

do you have an example about your exchange that you offer to your potential client?

Sure.

Take a look at https://uvarovconsulting.com/portfolio/palmex and https://uvarovconsulting.com/portfolio/venturekingdom

feryjhie

hero member

Activity: 882

Merit: 595

do you have an example about your exchange that you offer to your potential client?

examplens

legendary

Activity: 3472

Merit: 3507

Crypto Swap Exchange

Quote from: Bitum on April 24, 2019, 02:18:21 PM

Starting an exchange may only be max. 5% of the success. The people to trade on this exchange, these are the most difficult task. Especially today where there are so many competitors with good service

Running an exchange It's not a big deal. Many people sell the script for a few couple bucks and everyone can run his own exchange, but what after start? What when they need an update, any new changes, fork, swap or any change? What about security bugs? if someone does not have enough knowledge or team behind them, they don't need to think about buying exchange script, software or whatever. Good exchange is not only web software where is possible to "trade". there is much more.

Bitum

sr. member

Activity: 1414

Merit: 271

bitonator.tangled.com/join

Starting an exchange may only be max. 5% of the success. The people to trade on this exchange, these are the most difficult task. Especially today where there are so many competitors with good service

Serge Uvarov

newbie

Activity: 25

Merit: 0

Topics covered:

Introduction
Exchanges As An Investment Vehicle

Scaling
Revenue Sources

How Exchange Business Works

Departments
Software
Administration

Risk Management
How to Stand Out
Investment Cost
Bonus Chapter: Decentralized Exchanges (DEX)

Serge Uvarov

newbie

Activity: 25

Merit: 0

Hey folks,

Since a few potential clients asked me to distill my experience of working on cryptocurrency exchange development into some written document, I've decided to turn it into a whole website + a 19-page report.

Here it is: https://www.runyourownexchange.com/

If you have been curious how exchanges work from the inside, what goes into building and running one, and what the challenges are, I explain all that in there. Who knows, maybe you'll decide to start one yourself.

You don't have to hire me specifically after you read it, of course. Free information, no strings attached.

Let me know what you think as well, I appreciate all feedback. Cheers!

Topic: How to Run Your Own Cryptocurrency Exchange! (Read 241 times)