Localbitcoins Clone Script - How to Make Cryptocurrency Exchange Like Localbitcoins
LocalBitcoins is the most famous peer-to-peer cryptocurrency exchange. Its users can conduct the purchase and sale operations of bitcoins and other cryptocurrencies using any payment method - from bank cards to money on a SIM card. Today we’ll talk about how this trading platform works and how to create your own cryptocurrency exchange like LocalBitcoins. We also recommend reading - CRYPTOCURENCY PRICE PREDICTION IN 2022: THE FUTURE OF BITCOIN.
The LocalBitcoins business model is an intermediary website where cryptocurrency buyers and sellers can meet and agree on the terms of the exchange. The transaction can be conducted on the site using the built-in automatic exchange tools, or in any other way (except for cash settlement). The platform does not establish a single exchange rate, does not limit the choice of payment method or transaction time. Parties can agree on all this privately.
Anyone can buy and sell cryptocurrency on the site, having passed the verification procedure. Identity verification conditions depend on trading volumes:
The target audience of the site is people who want to buy or sell bitcoins as profitably as possible. Although it is a European startup (headquartered in Helsinki, Finland), it does not have a geographical and niche location. Only those who want to use cash are not included in the target audience of the site. This feature was removed in July 2019.
Thus, in order to create a peer-to-peer cryptocurrency exchange like LocalBitcoins, you need to develop a site where cryptocurrency buyers and sellers can meet, agree on the terms of the transaction and conduct the transaction using the built-in tools.
Trading engine. The software that is responsible for the order book, the match system (compares orders for the purchase / sale of currency) and automatic exchange tools on the site or other services connected via API.
In addition, an exchanger like LocalBitcoins will also need:
There are two ways to implement a wallet on a site:
Admin panel. Needed for site management, process tracking, business analytics, dispute resolution and user support. The appearance of the admin panel is not as important as for the user panel. Bet on functionality and convenience.
Admin Panel Functionality:
How security is implemented on LocalBitcoins:
Advertisements. The site can introduce the function of paid promotion of ads: put them at the beginning of the listing, highlight them with a special design, be the first to offer recommendations, put them on the main page, etc. In addition, you can allocate space on the screen for banners and contextual advertising.
Web mining (browser mining). Using the computing resources of visitors' devices for cryptocurrency mining. The effectiveness of such mining is low, but if the site is popular, then the profit will be large. But, users do not like this method of monetization, and authorities may consider it illegal (Tidbit precedent in the USA).
Natural search results. Using SEO-optimized content to get the site to the first positions in the search results of Google, Bing, Baidu, Yandex and Yahoo with the introduction of keywords such as “buy bitcoins”, “sell bitcoins”, “cryptocurrency exchange”, etc. Such a promotion costs from 100 to several thousand dollars a month.
Bitcointalk and other profile sites. Reviews, recommendations, comments and links on cryptocurrency and blockchain web platforms: Bitcointalk, Fork Log, CryptMarketCap, Coindesk, CoinWarz, Bitcoin Wisdom, BitInfoCharts and BTC China. Promotion price on thematic forums depends on the scale and accounts used - from $ 50 per month.
Promotion in social networks. Activity and advertising on Facebook, Twitter, Instagram, YouTube, WeChat, Youku and QQ can attract many potential users. Especially if you bet on cryptocurrencies related thematic communities and on well-known media personalities. The cost of promotion on social networks - from $ 200 per month.
Contextual advertising. Promotion with Google Ads and other services is another good way to increase brand awareness and attract people to your site. This is the most expensive form of advertising, but its effectiveness is the best. Cost - from $ 500.
Development from scratch. Gather a development team or hire a company to build your cryptocurrency exchange software. This will require a lot of effort, time and money, but in the end, this approach usually brings maximum profit. In addition, this way you retain the copyright over the created software product and can use it, for example, to launch the White Label solution.
Open source software. If you look at GitHub and other repositories, you can find many script clones of LocalBitcoins and other peer-to-peer cryptocurrency exchanges there. Typically, such software is distributed free of charge without restrictions on changes and / or use in commercial projects. If you decide to use open source software to run a site like LocalBitcoins, remember: