How do cryptocurrency exchanges work? Creation of exchanges

The popularity of Bitcoin (Bitcoin) has increased significantly in recent years. Digital currency enthusiasts call it the new "gold standard"; financiers predict a rapid growth rate.

Not surprisingly, more and more people want to participate in the development of cryptocurrency before it's too late. But how to do that? There are three most common ways: trading / investing and accepting bitcoins as payments for goods and services.

4 reasons to never invest in bitcoin

It used to be much easier to succeed in bitcoin mining. The requirements for computing power are constantly growing, and today it is almost impossible to mine bitcoins on your own (this would require a multi-million dollar budget and significant areas for equipment placement).

As a result, the last two options are becoming increasingly popular. Enthusiasts either register on exchanges like , to buy bitcoins, or accept cryptocurrency as a means of payment by publishing QR code fragments on their websites or printing them on paper.

The growing demand for bitcoin trading and payments has led many to open their own exchanges. The latter represent an excellent opportunity to earn a good income by charging a commission for conducting transactions (the exchange keeps a small percentage of each transaction and each payment as a reward).

So, what does it take to organize your own bitcoin exchange?

What should you think about first?

1. Need-ho-di-mo decide which market to target your exchange. Will it work on a global scale, or will it be limited by a specific re-gi-o-n or country. In addition, it’s necessary to co-op-t-th-th-th-resolutions and licenses for the company, so that the serv-vis co-from -vet-stvo-val tre-bo-va-ni-yam and norm-ma-ti-you countries, in some-ryh will work.

For-to-us in each state-su-dar-stve from-whether-cha-ut-sya, in this way, it may be necessary to-bo-wa-sya con-sul-ta-tion ex- per-ta. He will tell you how best to co-b-lu-sti tre-bo-va-niya to whether-tsen-zi-ro-va-niyu and de-i-tel-no-sti.

2. Com-pa-nii, for-no-ma-u-schi-e-s about the exchange rate of currencies, we must adhere to the KYC norms. KYC (Know Your Customer) standards oblige a company to verify the identity of its customers, collect pass-port data and other information. The main goal is pro-ti-in-action from-we-to-money. Make sure that you comply with the requirements of your native country. Otherwise, one-on-the-f-dy in front of two-ry-mi of your-she-th office may appear-xia-li-tion.
3. For the pro-ve-de-niya of the payments in the class-si-che-va-lu-tah, it’s tre-bu-et-sya to-go-thief with a bank or payment -noy si-ste-my. A reliable bank with the development of an on-line platform-mine is a good choice. The most-bo-lea ak-tu-al-na this pro-ble-ma is in the de-vi-va-u-s-sh-sh-s-s-nah countries, where most of the banks cannot ini-qi-i -ro-vat trans-zak-tsii online. Some-rye re-re-vo-dy for-no-ma-yut up to two days. A bank with fast-ry-mi and effective-tiv-ny-mi races-che-ta-mi will be convenient for clients of the company. The replenishment and withdrawal of funds can be re-a-li-zo-va-but by creating a payment gateway or even with the help of usual -nyh de-nezh-nyh re-re-vo-dov.

4. For successful work, any exchange needs liquidity. Client-en-you don’t decide to place an or-de-ra or half-account accounts on the sites without an explicit trade-go-howl . The new exchanges naturally became-ki-va-yut-sya with a lack of stat-com face-view-no-sti. There are three races-pro-country-n-nyh ways to-so-ba-you-see-di-muyu face-visibility:

• Simulate trading activity on the stock exchange by conducting transactions between fictitious players;

• Implement an API that connects your trading platform with another exchange;
• Join a network of cryptocurrency exchanges, such as Trust-Deposit. It links the liquidity of all exchanges in the network. The larger the network, the higher the liquidity.

5. Necessary-ho-di-mo ensure safety. The exchange must-to-gar-ran-ti-ro-vat on-reliable for-shchi-that money tre-de-ditch and opera-ra-to-ra, as well as personal information clients. Data leaks from crypto exchanges are a serious problem. So, on the sadly from the West Exchange Mt. Gox hacker attack remained un-me-chan-noy for those many years.

As a result, 1% of the total number of bits-to-and-news in the community was stolen. According to Reuters, in the period from 2009 to 2015, a third of all existing crypto exchanges were hacked. In other words, safety should be the main thing with-o-ri-te-that.

6. Finally, customer support is another important component of a successful company. Per-so-nal is necessary for collecting personal data, from-ve-tov to questions from clients, about-ra-bot-ki de-po-zi-tov , you-vo-yes funds in class-si-che-va-lu-tah, etc. en-you can tor-go-vat and bring-no-sit com-pa-nii profit from mo-men-ta re-gi-stra-tion.

Bitcoin exchange software architecture

Any software for the organization of the ra-bo-you of the exchange must, but combine in itself four-you-re different com-po-nen-ta:

1. Trading core

The trading core is the basis of any exchange. It for-mi-ru-et the book or-de-ditch, owl-me-scha-et or-de-ra for buy-ku / sell-da-zhu, pro-vo-dit trans-zak-tion and under-count-you-va-et ba-lan-sy. Without a th-th-th-core, the exchange will not be able to work. Therefore, one should pay special attention to its function and reliability, otherwise after all efforts together one hundred exchanges you are like an empty shell.

2. User Interface

Inter-face pol-zo-va-te-la (how you-look tor-go-va-plat-form-ma and the site) should be convenient and in-tu-and- tiv-but in an understandable way. It may seem banal, but the main task of the exchange is to provide the client with the maximum convenience of work (hint: the simpler the better). In addition, the design should be suitable for working on mobile devices, because the use of plans and smart photos new in a hundred-yan-but ras-tet.

A special application for mobile devices will make the exchange more accessible and higher-sit in-te-res user te-ley. Ideally, the inter-face should provide the client-en-that opportunity:

• Register and get access to a trading account;
• Deposit and withdraw classic currencies and cryptocurrencies;
• View the order book, past transactions, track balance, statistics, etc.;
• view charts;
• Place buy and sell orders;
• Access user support.

3. Wallet

Ko-she-lek is a background process, a hundred-yan-but active in the pa-my-ti ser-ve-ra of the exchange. He provides-pe-chi-va-et storage of bit-to-and-new (opera-to-ra and tray-de-ditch) and needs-yes-is-sya in mak-si- small for-shi-those. Each exchange is obligated to implement so on-zy-va-e-muyu hot-smoke / cold-lo-d-s-ste-mu ko-shel-kov to reduce rice -kov.

Hot-ho-ko-she-lek is a special program about me on the stock exchange re-al-nom time-me-no you-to-dit bit-to-and-us to an external wallet without the approval of the exchange operator. Hot-che-ko-she-lek should have a lo-zhi-tel-ny balance (its ve-li-chi-on for-wi-sit from the ob-ro-ta exchange).

In the cold wallet, the rest of the bits are stored. He is completely ot-klu-chen from inter-ter-no-ta, that’s why no-one will-cheat-access to bit-to-and-us if there is a hack-man-go -rya-chi-ko-she-lek (re-ko-men-du-et-sya the main part of the crypt-that-va-lu-you keep the thread of names, but in the cold-nom-ko- shell-ke). The simplest cold ko-she-lek is a USB-on-to-pi-tel with personal keys, or even just stop - stock of boo-ma-gi with races-pe-cha-tan-noy in-for-ma-qi-ey.

Raz-de-le-nie on a hot and cold ko-shel-ki provides-pe-chi-wa-et an ideal balance between safety and the convenience of instant-vein-no-go you-in-yes funds.

4. Administration panel

Pa-nel ad-mi-ni-stri-ro-va-nia - eq-vi-va-tapes Software for business-ana-li-ti-ki and management. She is able to operate the opera-ra-to-ru con-tro-li-ro-vat and manage the stock exchange. Pa-nel ad-mi-ni-stri-ro-va-niya should provide-ne-chi-vat:

• Liquidity management;
• Spread and commission management;
• Approval of user accounts for trading after verification of personal data and fulfillment of other requirements;
• Management of currencies and currency pairs;
• Withdrawal and crediting of funds in classical currencies at the request of clients;
• Resolving issues and troubleshooting user requests.

Program-mi-sta na-zy-va-yut in an additional ar-hi-tech-tu-ru "si-ste-my mik-ro-ser-vi-owls."

Where can I get software for the exchange?

There are three main ways of co-ba to get the software for working with the crypto-to-exchange:

1. Self development

Special-tsi-al-noe software can be pi-sat sa-mo-sto-i-tel-but, having collected co-man-du times-ra-bot-chi-kov from friends and free lan-se-ditch. Make sure that they don’t-ma-yut the general principles of the operation of the exchange, the special sob-us re-a-li-zo-vat you-she-upo-me-well-tye com-po-nen-you.

The choice of the language of the program-mi-ro-va-niya also depends on how the exchange works with ka-ki-mi va-lu-ta-mi. In addition, you should make sure that the software is compatible with different platform-forms about -ra-bot-ki pay-te-zhey or ban-ka-mi for protection of exchange transactions.

The most important thing is to evaluate the thread for wasting money and time, connected with the development, support, and renewal program-no-go obes-pe-che-niya inside com-pa-nii. Due to the complexity of the exchange of the same software, it can take 1-2 years to develop and debug rum you-stu-pa-et experience times-ra-bot-chi-kov). In za-vi-si-mo-sti from the salary of co-workers and the complexity of the project (supporting different languages) kov, currencies; the creation of a mo-bil-no-go appli- cation , etc.) ras-ho-dy for a raz-ra-bot-ku can be up to 400 thousand rubles. Euro. Keep in mind that this is only an approximate estimate, the final amount depends on a lot of factors.

2. Ready-made scripts/applications with open source code

On GitHub and other sites, there are a lot of stock scripts with open source code. Obviously, their main advantage is free of charge. One-on-one is necessary-ho-di-mo learn-you-vat and risks:

• To tailor the program to specific needs, you will need a person with the appropriate knowledge. Familiarity with the work and modification of the script will require additional time and money;
• There is no guarantee that an open source program is safe and secure. It may contain bugs and vulnerabilities, and in the worst case, malicious code that will slowly and quietly steal bitcoins;
• There is relatively little support for open source systems. The development team will have to figure out how to fix bugs or improve system performance on their own. If the author of the program completely abandons the project, then there will be nowhere to wait for support or help.

3. Third party software

Such software software, like right-vi-lo, is already carefully-but pro-te-sti-ro-va-no and pro-ve-re-but on ra-bo -that. At the same time, it allows you to in-stra-and-vat and change some functions in accordance with in-di-vid-du -al-ny-mi pre-po-che-no-i-mi (for example, to di-zai-nu, bren-ding-gu, languages-kam, wa-lu-tam, gra-fi -kam, etc.).

This software is bav-la-et in-ku-pa-te-la from labor-but-stay with those-no-che-ski-mi as-pek-ta-mi, raz-ra-bot-coy and about-service-va-ni-eat. Since the main components of the nen-you (tor-go-core, purse-ki, inter-face and panel ad-mi-ni-stri-ro- va-nia) already times-ra-bo-ta-na and pro-te-sti-ro-va-na, you just have to set up the software according to your own discretion. This option is significant but eco-no-mit time (it often takes just a couple of months to launch a project) and money (by purchase ka-li-censions for go-th software about-ho-dit-sya go-time-to de-chev-le than its sa-mo-hundred-i-tel-naya time-ra-bot- ka).

Creating an exchange is a long-term and complex undertaking that requires a lot of money and effort.

As a rule, the creation of the exchange begins with the fact that a group of investors gathers, who later establish the exchange and make up the leadership of the new financial institution. It is the members of the board who form the variety and assign the status of the exchange, develop the concept of work and plan the future development and operation of the site. creation of exchanges has the issue of identifying the number and composition of its founders. As already noted, the stock exchange can have a different legal status: be a private enterprise, a closed or open joint stock company, a mixed company, and even a state organization.

Exchanges can be founded by both legal entities and individuals. The more founders an exchange has and the more substantial their financial position, the more support they can provide to the exchange, although a very large number of founders complicates the management of the exchange. But each option for the formation of the exchange has its advantages and disadvantages.

After the composition of the founders is determined, they conclude a founding agreement among themselves, where they clearly define their rights and obligations, the scope and direction of activity, participation in financing the costs of creating the exchange, methods and forms of making membership fees and mutual responsibility.

Of great importance is the preparation of founding documents, the determination of the authorized capital of the exchange, the subscription for shares and the sale of brokerage places. In Ukraine, the minimum authorized capital of a stock exchange is five hundred thousand hryvnia. Its specific value depends on the size and tasks of the exchange, its turnover, the number of participants, etc. Some exchanges determine the authorized capital at the level of the minimum size, others - at tens of hundreds of thousands of hryvnias. A significant role in the organization of the exchange will be played by the determination of the par value of shares and the subscription to them. The exchange has the right to issue shares of different categories and par value. This gives ample opportunity to choose the best subscription option. But as practice shows, most often two types of shares are issued - ordinary and preferred, of the same face value. As a rule, the face value of shares on different exchanges ranges from 50 to 300 UAH, and the owners of each of them are vested with the same rights: participation in management, brokerage and receiving a dividend.

When creating an exchange, it is possible to issue a small number of shares, which is necessary only for the formation of its minimum authorized capital and the normal organization of activities. She can get the main funds from the auction sale of brokerage places.

Many exchanges provide for restrictions on the acquisition of a block of shares. Some of them allow shareholders to buy shares for no more than 20% of the authorized capital, others - no more than 30%.

The form and terms of payment for these shares are different, they can be paid in cash in any currency, fixed assets, securities, granting rights to use land, buildings, equipment, intellectual property, etc.

Most often, the founders of newly formed stock exchanges require payment of half of the face value of the acquired shares during the subscription period, and the other part of them - throughout the year. Some exchanges set more stringent deadlines: payment of half the cost of shares within 2 weeks or a month after subscribing to them.

The crypto world with its digital coins is more and more organically woven into our reality, so it is not surprising that people seek not only to earn bitcoins and other virtual money, but also to play on the difference in their rates. Someone goes to existing sites to make a profitable exchange, while someone seriously thinks about how to create a cryptocurrency exchange so as not to be left out.

What is a cryptocurrency exchange and what processes take place on it

The cryptocurrency exchange is an online platform that acts as an intermediary between sellers and buyers of virtual money. By analogy with a regular exchange, a trader has the right to choose one of two orders:

• market - to conduct an immediate transaction at the optimal cost at the moment;
• limit - when a transaction is made when an offer appears on the market with a price set by the buyer.

At the same time, a commission of 0 to 1% is charged for each transaction in favor of the exchange as an intermediary of trading.

Potential benefit

Cryptocurrency exchange - a potential gold mine

On your own cryptocurrency exchange, after its promotion, you can earn several thousand dollars a day by setting a balance between the possible monetization options:

• trading commission for each exchange operation;
• receiving payment from the owners of their own coins for their inclusion in the general listing;
• resale of trading leverage.

What the future owner of the exchange needs

To open your own cryptocurrency exchange, you will need to provide for the fulfillment of a number of conditions:

• installation of software that can be purchased in a ready-made form or developed completely from scratch;
• determination of the geography of trading (state, region, whole world) and preparation of permits in accordance with the laws of the country;
• compliance with KYC standards for collecting customer passport data to counter illegal circulation of funds;
• conclusion of an agreement with a bank that has a modern online platform for the possibility of withdrawing earned funds in traditional banknotes;
• addressing the issue of liquidity of the new exchange to increase trading activity;
• ensuring the security of the funds accumulated by customers and their personal information;
• availability of a customer support service on a wide range of issues - from processing deposits and collecting information to withdrawing earned funds, etc.

The main steps to open your own cryptocurrency exchange

Without quality software - nowhere

The first step in creating your own cryptocurrency exchange is to develop software that includes the following elements:

• user account with the possibility of identification and input-output of funds;
• gateways, connectors and bridges to connect investors and traders to the trading platform;
• an aggregator capable of processing a large number of requests per unit of time and creating its own currency;
• a trading core that forms an order book, conducts transactions and calculates the balance.

Task number two is to create a simple, user-friendly interface adapted for mobile gadgets. Attractiveness and practicality will add a special application for smartphones.

Here are the most basic steps.

How to promote

Without visitors, the exchange will never become a highly profitable business, so the first thing to do after its opening is to widely highlight this fact:

• place ads on online platforms;
• order paid posts from opinion experts on popular forums and blogs;
• appeal to users with a request to test the exchange;
• adding popular and new digital coins to the listing.

One of the options for attracting new customers is trading activity on the cryptocurrency exchange. For novice stockbrokers, the following options for improving this aspect of activity are possible:

• organization of bidding through nominees;
• implementation of an interface that connects the exchange with another already promoted platform;
• joining the network of cryptocurrency exchanges, the trading activity of which is crossed.

It is important to consider the needs of your audience:

• for fans of analytics, provide for the construction of various interactive charts;
• for those who want to talk about cryptocurrencies, create a chat or forum;
• organize expert support for job-seeking clients, etc.

Among the promising areas of work of the administrator of exchange trading, which allow to quickly and effectively promote a new exchange, the following can be distinguished:

• a professional business plan with detailed options for achieving commercial goals;
• analysis of the prospects for the development of the virtual money market and the timely introduction of innovations;
• taking into account possible risks, including from the increased volatility of digital coins (sharp jumps in value);
• gathering a team of professionals among miners, programmers and student enthusiasts.

Possible problems

Hackers are the main threat of cryptocurrency exchanges

The slightest gap in the information security system of the exchange is fraught with hacking of the base and withdrawal of funds by hackers to third-party accounts. The specialist involved in its creation is required to build an architecture according to banking standards and write high-quality code. Otherwise, attackers will easily penetrate the databases and empty the exchange assets to the last digital coin.

One of the options for countering hacker attacks is to separate the user's wallet into hot and cold. From the first wallet, he has the opportunity to withdraw the earned funds and receive them in the form of the usual paper bills. This operation is not available from the second wallet, because it is disconnected from the network. If a hot wallet is hacked, then the assets will remain in the cold one.

But not only hackers pose a threat to the promotion of the newly created cryptocurrency exchange. Possible problems also include:

• a small number of possible ways to deposit and withdraw funds;
• inconvenient interface;
• lack of prompt response from support services;
• the occurrence of technical problems with an increase in the number of visitors, etc.

Creating your own cryptocurrency exchange is not so difficult if you use a ready-made offer. This will significantly reduce the time for launching and receiving the first income.

• Project "Commodity Exchange", is an Internet service aimed at servicing the sales processes of enterprises and entrepreneurs, producing for them the processes of lead generation and communication, creating new deals and business relationships. Those. the audience of the project is the businesses of other people (enterprises and entrepreneurs). It is planned to launch the following markets: "Agroexchange" "Energy exchange", "Metal exchange". Geography: at first Ukraine, Then: Russia, Belarus, Kazakhstan.
• Imagine, for example Are you an employee of the sales department or a director of a company? which is engaged in wholesale sales or production. You need to quickly find a client and make a deal with him (i.e. sell him a batch of goods). To do this, you select the goods you need on the exchange website (moreover, all the goods you need are in the catalog on the website and an accurate, error-free description has been created for them). After selecting the desired product, you create a request for sale, put in it the price, regions and terms of delivery. Each product is associated with a specific audience of users working with it - these users quickly see and track new applications and can satisfy them if they are interested, or the exchange selects a counter application for you with conditions similar to you. In both cases, you get each other's contacts and hot interest and can make a deal.
• You, as a user, can also be Purchasing or Purchasing Officer, and you need to quickly buy a batch of goods at the best price. In this case, you create a buy order and the exchange connects you to the best counter order, or you can select the best counter order in the order book and satisfy it.
• Who is the project for? Business owners, entrepreneurs, top managers, and sales professionals.
• Goal: Attract 100% of the players in the markets and goods in the categories: "Agricultural products and food products", "Fuel and energy carriers", "Metal rolling" and create a convenient platform for them to make transactions.

Goal Accomplishment Criteria

There is an active site on the Internet.

personal resources

1. Understanding what information people need to improve their sales. Since my main business is information services to enterprises and the sale of databases, for a long time my services have been aimed at helping entrepreneurs and businessmen to improve sales and customer acquisition.

2. Possession of all the necessary up-to-date databases in the required markets: "Agricultural products and foodstuffs", "Fuel and energy carriers", "Metal rolling".

3. Understanding how a similar stock exchange works - since I myself have trading experience. By analogy, I want to create a commodity exchange, but with my own chips and differences.

4. I myself am a creative person, I like to come up with ideas and I like this process. According to the psychotype - "Initiator". There is a great desire to change the world for the better and find your purpose in this.

5. Free time from 3 hours daily, and you can build up.

Goal ecological compatibility

I catch myself thinking that after I have provided my optimal needs and income is enough to cover their normal level, just making money with my routine business has become boring and uninteresting. I want to create something significant, something that will change, if not the world as a whole, then the corporate world and the world of wholesale sales - for sure! There is a great desire to be creative, creating something new and useful for society, and of course there is a desire to create a big IT company. The business idea of ​​creating an Internet portal that helps to sell, in principle, was tormented by changes for a long time, but it was only this year that it took shape in today's concept.

Probably my path to myself lies through the creation of something big and great. In order for the goal to be "measurable" and "grounded". As the first figure, I put myself an estimate of the company at 1 million dollars for 3 years, but no later than 2019.

This goal is entirely up to me. From my idea, from its presentation, from the ability to assemble a team of like-minded people.

02.08

Do you want to earn income from operations with bitcoins without risk? The blog site will tell you how to create your own platform for trading cryptocurrencies.

Start with competitor analysis and user reviews. What do customers like and dislike about existing cryptocurrency exchanges? What problems do such sites face? Based on the information received, try to create a unique offer for future customers, and then work out a plan for its practical implementation, paying special attention to the balance of income and costs.

How to create an exchange of bitcoins and other forks without investments? Of course, this is a utopia. Initial capital is required, but projects that are somehow related to blockchain and cryptocurrencies, unlike ordinary online businesses, have an important advantage: the ability to raise money through an ICO. The bottom line is that along the way you will have to learn how to create your own bitcoin, or rather, its analogue. Coins are sold to everyone on your company's website or another exchange. This allows you to raise money for the project without loans and complex IPO procedures.

Gather a team

How to open a cryptocurrency exchange alone? This is hardly a good solution. Still, one intelligent programmer is not enough to solve such a problem. You will need: a manager (preferably with experience in running an IT startup), a marketer, a public relations specialist, finance specialist, etc. Creating a quality service requires solving a variety of problems, and one person cannot cope with all of them equally well. How to assemble a team? To create it, use professional communities, make connections with like-minded people, try to get to know people who have already worked with this kind of tasks.

Take care of security and consider tariffs

In search of an answer to the question of how to create your own cryptocurrency exchange, pay special attention to protecting the service from hacker attacks. The stability of the functioning of the site and the trust in it by users will depend on this. Each of the cryptocurrency exchanges has its own security systems, so there is no universal solution. However, you definitely need to have a specialist in this field in your team, otherwise, after the first attack by hackers, the flow of customers may sharply become scarce.

When creating a cryptocurrency exchange, you need to carefully calculate future costs and form tariffs based on these data. Some platforms take a fixed commission from each concluded transaction, most often in the amount of about 0.02%. This option, however, does not suit all traders.

Players with relatively large assets and a large volume of transactions will prefer a different option: changing the cost of services depending on the size of the transaction amount. The higher it is, the lower the commission. It is definitely not worth being greedy when setting tariffs. The more attractive the cost of the exchange service, the sooner you will collect customers, which will help ensure the liquidity of the site and increase turnover.