Open source Exchange like 'WLOX or Peatio'

avatar_kiyoshi

legendary

Activity: 1106

Merit: 1000

Quote from: Whynot8282 on December 07, 2015, 12:25:56 AM

Hi there~

I am interested in running a bitcoin exchange. Since this is the first time to run a platform with user's money involved I don't want to make it big.

Anyone who can give me the advice on budget and management?

Thanks!

Hi.
this is some tips for people in bitcoin.stackexchange: http://bitcoin.stackexchange.com/questions/17007/what-is-needed-to-make-a-bitcoin-exchange

The important points is has been explained by Snail2.

nwfella

legendary

Activity: 1610

Merit: 1000

Well hello there!

Snail2 raises a number of excellent points. Particularly if your planning on dealing with Fiat on your exchange and if planning on operating within the states your looking at really needing to also have a trusted, legally minded friend on staff as a Compliance Officer. Not to mention having to deal with all of the KYC paperwork/verifications.

Then there is also the question of having sufficient initial liquidity on your exchange to actually drive enough traffic to make the trading fee's marginally profitable (after sometime). You would definitely want to invest heavily in SEO and have a huge initial marketing push as well to try and get established so now your talking about some significant investment (both time and resources).

Now, assuming you can manage all of the aforementioned your entering a market with some pretty established players with tons of volume and liquidity primarily on in-house developed software now offering additional goodies (i.e. Margin Trading/Lending, mining contracts, etc).

Difficulty Level: Extreme

*Would absolutely want a crew of 4-5 talented and highly trusted people to even think about launching something like this.

Snail2

legendary

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No, I'm not. But I've built one in my devlab (based on Peatio) and realized that how much hassle would be running such site. Also assessed the initial costs, the situation on the market and possible ROI. I've found that the initial investment would be manageable (as I can build most things and I have a few front-end developers in the family) but I couldn't run it in a responsible way besides my day-job. In addition because of the saturated market and the low fees just to break even would take at least a couple of months in a nearly optimal case or more than a year in a less optimal (but not the worst case) scenario.

I think the only way to make a new exchange (relative) quickly profitable if the exchange is involved in some rather shady operations, like harassing competition, accepting bribes during altcoin launches, IPO/ICO coins, taking away earnings on PoS coins, and deliberately hosting P&D groups.

Fiat/crypto trade is a lot of hassle and plenty of more money, as you have to comply with tons of rules and regulations otherwise you can easily find yourself in some pretty big trouble.

BTW, I don't want to scare you away from making an exchange, but that's not as easy as it looks, and the hardest part isn't the installation itself.

Whynot8282

newbie

Activity: 28

Merit: 0

Quote from: Snail2 on December 07, 2015, 07:11:51 AM

Quote from: Whynot8282 on December 07, 2015, 12:25:56 AM

Hi there~

I am interested in running a bitcoin exchange. Since this is the first time to run a platform with user's money involved I don't want to make it big.

Anyone who can give me the advice on budget and management?

Thanks!

I'm afraid it's not going to be cheap. Even if you start it in scaled down scope, you will still need high availability, same security features as a big exchange, and some support what is available 7/24. If you are not a professional db admin, web master, sysadmin, marketing manager and first line support guy, in one person then you need to hire "specialists" as well. You even have to "duplicate" yourself as you might want to go to a holiday sometimes I guess, or you can get a flu, etc. So in the beginning you need at least a skeleton crew with really trustworthy members what you can expand later if needed.

Thanks for your advice. are you a developer?

Snail2

legendary

Activity: 1512

Merit: 1000

Quote from: Whynot8282 on December 07, 2015, 12:25:56 AM

Hi there~

I am interested in running a bitcoin exchange. Since this is the first time to run a platform with user's money involved I don't want to make it big.

Anyone who can give me the advice on budget and management?

Thanks!

I'm afraid it's not going to be cheap. Even if you start it in scaled down scope, you will still need high availability, same security features as a big exchange, and some support what is available 7/24. If you are not a professional db admin, web master, sysadmin, marketing manager and first line support guy, in one person then you need to hire "specialists" as well. You even have to "duplicate" yourself as you might want to go to a holiday sometimes I guess, or you can get a flu, etc. So in the beginning you need at least a skeleton crew with really trustworthy members what you can expand later if needed.

Whynot8282

newbie

Activity: 28

Merit: 0

Hi there~

I am interested in running a bitcoin exchange. Since this is the first time to run a platform with user's money involved I don't want to make it big.

Anyone who can give me the advice on budget and management?

Thanks!

Topic: Open source Exchange like 'WLOX or Peatio' (Read 2583 times)