The crypto market is emerging rapidly, and competition is intensifying. Is it bad or good? Quite an ambiguous question, for established companies - both first and second. For new users - this is an advantage because its demand is going to fit.
What is more important, there is still a huge space and opportunity around us for the development and launch of new products. Cryptocurrency exchange platforms are not an exception. To build a crypto exchange from scratch requires a lot of effort, time and investment, as well as a wealth of experience in project management and start-ups industry at all. The price tag starts from $150,000 for a viable system and about $40,000 for an MVP depending on your preferences. An alternative to this is the modern white-label exchange platform. Quick start, rich functionality, and technical assistance. More on this later in this article.
Product launching always accompanied by plans, expectations and, of course, investments and their ROI. If you do not have a business plan ready by now, check out our materials. I ought to mention, this article is relevant to both centralized and decentralized exchange development.
Mistake #1. Do not stay alone with questions. If you do not have enough experience in the cryptocurrency trade, read as much information as possible. Prepare questions, get involved in the community. Otherwise, complete the form on this site, analysts and consultants are going to give free advice.
Contrary to the erroneous opinion, the crypto business and the cryptocurrency developed unequally. Choose your audience carefully. Conditionally it can be divided into several subspecies. For example, for the current day, there are only 40M Ethereum wallets and about 300K on EOS. According to Reuters about a third of countries regulate or perceive cryptocurrencies at the Government level. Almost all African countries are still waiting. But this does not mean that its inhabitants do not know anything about it. In such markets, demand exceeds supply, and people are ready for almost anything to buy precious coins. Unfortunately, to get the information you need:
- to be a citizen of that country and take an active part in the crypto community;
- to read the news, follow trends;
- to have a team of managers and researchers who constantly monitor the markets;
Each of these points has the right to life and success is guaranteed in any case, but the starting position is far different.
Mistake # 2. Ignorance of the audience can be detrimental to your business. Request information from relevant sources, live with Reddit community or read local cryptocurrencies news and the industry's blockchain.
Okay, you say. I decided on the market, I know the target audience. How can I earn $100,000 a month? My answer is to choose the product that suits your audience. Knowledge and sensation of your audience are the most important points, they build an exoskeleton of business. Now the following types are popular:
Exchange. Perfectly fits for users who are not familiar with trading and orders. If the cryptocurrency is still poorly regulated in this country - this is one of the good decisions.
P2P Exchange. The countries that regulate have already shown enough attention to cryptocurrencies and bitcoin in particular. News and community are advanced enough. In this case, it does not matter how the Government treats positively or negatively. The desire to earn money from citizens was born long before the regulation.
Trading systems. Margin trading and leverage are a real investment game. If you are familiar with the boom of the market 10-15 years ago when online forex was gaining peak popularity then forget about it. The crypto exchanges have at least doubled the influx of new people, and even quadrupled. The system for real gamblers, and because of the volatility of the market represents a jewel for the owners. Given that the players are one. For example, it has long been known that Israelis are one of the gamblers, however, in Israel any kind of such platforms are banned. And these only fuels demand and desire.
Escrow or the system of the guarantor. This is something similar to the exchange and p2p exchange. In fact, the owners of the platform do not need to have funds on their accounts and the exchange occurs between users (like the p2p exchange). In addition, the interface of such systems is very simple and understandable even for a beginner. These are localbitcoins and remitano clones. Penetration of such systems is lower, simplicity is higher, and launching is easier.
Mistake # 3. In any incomprehensible situation, look at the mistake #1 - don't remain alone with questions. If you want to see the demo of each of these systems - write us, and I'll be glad to answer and help you.
Let's analyze what is necessary to earn $100,000 and talk a little about the numbers. How can I earn on P2P crypto exchange:
1. Fee for trading with 2 parties (buyer and seller) - 1% .. 3%;
2. Profit from market bots - 3% .. 10%;
3. Withdraw, fixed - $ 5 for each transaction, regardless of the amount.
4. Deposit (undesirable), but for currencies such as USDT (Tether), each exchange puts a fee - $ 5 .. $ 10.
- $2040 at the exchange;
- $ 1190 earnings of bots;
$270 through deposits and withdrawals.
Total, $2040 * 100 * 1.5 = $ 306,000 in daily turnover, generated by only 255 users. Acceptable figures, for a small number of people. Okay, let's continue, because 255 are active users. Having 8 years of experience in marketing and conversion optimization, let's take a look at the following calculations. Nevertheless, we will use the Sherlock Holmes method to determine the initial indicators we are trying to achieve.
The average conversion on the landing page to a registered user is 6% of the total number of users. Experienced marketers know what to work with, and increase conversion to 12%. Usually, about 10% of users are active, the rest appear from time to time on the platform, but triggers are needed to attract them. So, to the numbers.
Mistake #4. Do not invest in marketing. Marketing and advertising are investments that come back a hundred times, and in the crypto industry, this period is literally a month. Plan it.
Here, even the matter is not so much that it is a P2P exchange, in the case of an exchange, the calculations will be approximately the same. The main difference in the target group, and in an important feature, people do not stand still but move from one group to another. Their interests are changing, like the experience too, this process is usually called development. However, but the market is their alternative...
Margin trading with the leverage is what the market has transformed into. Remember, I said that there are different users. Beginners, experienced, and those who have moved from related industries. Trade with the leverage is extremely popular and sharp in the circles of traders on Forex. High-risk and high-profit business. Rather, it is high-risk only for traders, in the case of owners you can not rely on the market, luck or failure. Nevertheless, let's look at the following calculations. How to get $100,000 on margin trading?
In the short term, 80% of players lose, in the long-term 18% remain at the break-even point. And only 2% make a profit. By the way, in the case of binary options, 99.6% of players lose in the medium or early term. Why? The course is affected by about 10,000 factors - the robot will not be able to predict the reaction, and the person will not keep track. So, what does it take to raise $3,400 per day?
With an average order of $1200, this is only 3 users! Of course, the p2p system does not work in margin trading, and here the layouts are different. Average figures are about $50- $100 for the average user. And this is from 34 to 68 users per day. The difference is almost 4 times! To other figures, registered users - 68 * 10 = 680; total traffic of 11,350 or 400 users per day. If you once had a blog or a cryptocurrency topic that you precisely understand how easier to lift the traffic to 2000 users a day. Diversification around the world.
Marginal trading is mathematics and numbers in its pure form. For example, Bitmex is the most famous system of margin trading in the east, and more likely even in the world (coinmarketcap data). It uses its own index (the exchange rate), which is nowhere described as working. It would seem that experienced traders will say that the rate is the ratio of the buy and sell order, but no, in the case of Bitmex this is pure mathematics.
Mistake #5. Ageing in your own thoughts. Besides the most popular p2p system, there are also more profitable ones. Consider both types and choose the right one.