Hit the crypto market by starting a p2p crypto exchange like Coinbase. As a beacon of global acclaim, Coinbase doesn’t need any introduction; its popularity and milestone success are echoing globally. Coinbase became the inspiration for many entrepreneurs as it overtook its competitors like Binance and Paxful in terms of trade volume.
Being the oldest and dominant company, Coinbase provides various services like Coinbase Index, Coinbase Venture, and it also has its stable coin – USDC.
Coinbase depicts that innovative strategies and consistent hard work will reward victory!
Any budding entrepreneur with innovative strategies can start a p2p crypto exchange like Coinbase.
Here, for your reference, let me share the steps to start a P2P crypto exchange like Coinbase.
Benefits of P2P Exchanges in the Crypto Space
Starting a P2P crypto exchange like Coinbase provides users and the crypto space with numerous benefits. They are.
- Global accessibility
- Multi-lingual support
- No need for central authority
- It incorporates the dispute management system
- Full control over user funds
- User privacy enabled
- Circumventing Regulations
- Censorship Resistance
- Market Liquidity
- Community Engagement
- Lower trading fees
Knowing its benefits, you will be eager to know the revenue potential of starting a P2P crypto exchange.
Revenue Potential in a P2P Crypto Exchange like Coinbase
Many startups don’t know about the revenue potential of starting a p2p cryptocurrency exchange. Here, let me share the most common one.
Trading Fee
The p2p platform charges fees for all the trades taking place on your platform. This is the lowest fee charged by the P2P platform, but it also brings attractive revenue to the platform owner. You can adjust this fee to attract more users to your platform. Generally, users prefer to stick to very low trade fees so if you provide low trade fees then users surge towards your platform.
Listing Fee
The number of new cryptocurrencies listed on your platform will definitely bring revenue to your platform. As a platform owner, you can charge fees for every new cryptocurrency listed on your platform. This fee is not mandatory; if you wish, you can set this fee in your platform.
Advertisement Fee
The majority of the revenue for the P2P exchange comes from advertisement fees. Generally, users create buy-and-sell advertisements for their trading process. The platform owner charges fees from the users for posting ads on your platform. In rare cases, some exchanges provide free advertisements where they compensate this fee with the trading fees.
Affiliate Marketing
Through affiliate marketing, the platform earns a hefty amount of revenue. When a large number of users surge toward your platform, the platform owner earns commission fees by promoting other products via an affiliate link. This is one of the most common ways to make money on any platform.
Having seen the revenue potential of p2p exchanges, it is also important to know that the revenue can vary based on the type of exchange.
Types of P2P Crypto Exchange
P2P crypto exchanges are divided into two types depending on their functionality:
- Purely Ads-based Exchanges
- Ads-based Exchanges with other options
The first type of exchange focuses on only a single feature of the platform. Instead, they focus on generating revenue from ad-based trading. LocalBitcoins is one of the examples in this category.
In the second type, in addition to the advertisement, there are also some features that help in making revenue. Coinbase is one of the examples of this kind of exchange.
Both types of exchanges have their own advantages and disadvantages. It’s up to you to choose the ideal P2P crypto exchange which helps you generate long-term revenue.
Moving on, let’s look into the steps to start a p2p crypto exchange like Coinbase. For this, you need to know the steps involved in start a p2p crypto exchange.
So, here is the…
Steps to Start a P2P Crypto Exchange like Coinbase
Market Research and Analysis
Market research means gathering information about your consumers and target audience. This is the primary step that helps to move your exchange toward success.
This research generally takes between weeks to months. Researching the in-depth market is a vital step to start a business. You have to do more research on current trends, the latest technologies, user-requested features, and the expectations of your target audience.
However, it is better to be aware of the pros and cons of your competitors. So that you overcome your competitor’s cons in your service. A thorough investigation helps you predict the key elements to increase your company’s visibility.
Consult Legal Advisors for Legal Feasibility
Whether you are going to provide services to a particular country or all around the world. You must check their legal formality to start a P2P crypto exchange.
Because not all countries are open to the usage of cryptocurrencies. Before you start a p2p crypto exchange in a region, you must be well-know about the laws and regulations related to crypto exchange in that region.
Consulting a legal advisor or hiring a team of legal advisors will help you in the analysis of the regulatory feasibility of your crypto business in that region. A legal advisor plays a key role whenever you wish to target a global audience, as they help you meet the regulatory requirements in all territories.
Planning and Strategy
In this phase, you have to derive a path for your goals. If you wish to start a p2p crypto exchange like Coinbase, then you have to provide your service on both the web and mobile applications for traders. But in the initial stage, you can choose anyone, either a web or mobile application, to provide service.
Likewise, you have to plan for the features to start a P2P crypto exchange.
- Escrow Integration
- Notification Alerts
- P2P Trading
- Multi-Cryptocurrency Wallet Integration
- Optimal Matching Engine
- Token Support
- Automatic Swap
- Quick BUY/SELL
- Dispute Management
- Online/Offline Trading
- Social Connections
- Best in Class Security
- Eliminate Anonymity
By incorporating all these features, entrepreneurs can be confirmed as the first step to success.
Next, let’s look into the steps involved in the development of a p2p exchange platform.
Design
The design for p2p crypto exchange involves the development of UI (User Interface), and User Experience (UX). Moreover, Prototyping, Wireframing, and User testing are the steps involved in the design process.
A unique technology architecture for your p2p exchange must include all the above-said features. Focusing on reliability, scalability, and security, helps you leave a lasting impression on your users.
Development
The development process covers coding for the development of backend infrastructure, front-end user interface (UI), and APIs (Application program Interface).
Concentrating on intuitive UI helps to grab more users to your platform. Likewise development of a strong backend to handle high trade volumes and also to ensure smooth transactions. Similarly, the implementation of APIs helps to interact with blockchain networks and also helps to integrate features like trade execution, order matching engine, and fund management.
Testing
Before deploying the platform, you must fix the issues and bugs in your software. Confirm that your p2p exchange platform achieves the desired accuracy level before deployment of the product.
Extensively, test your p2p exchange to make sure that everything is working well in a secure manner. Moreover, you have to conduct UAT (User Acceptance Testing) to make sure that your platform is user-friendly and also satisfies the expectations of the users.
Deployment
On successful testing, your exchange is all set for deployment. Now your platform is ready to deliver features to the end users. You can deploy the P2P crypto exchange platform like Coinbase on the main server to avail users of the exchange.
One more thing you have to consider is following a proper marketing strategy that helps you reach your exchange globally after the launch.
Marketing Strategy
To attract more users and develop a vibrant trading community, you have to implement efficient marketing strategies. Develop a comprehensive marketing strategy including content marketing, social media campaigns, influencer partnerships, and targeted advertising. Engage with the crypto community, take part in relevant Quora, Forum, and build strong relationships with industrial influencers to improve credibility and visibility.
Conclusion
To start a p2p crypto exchange like Coinbase, it is a must to have a meticulously crafted plan, strong development & testing. By following the above-listed steps in this guide, you can easily create a secure and user-friendly p2p crypto exchange platform like Coinbase. To make all these processes easy, stay connected with a P2P crypto exchange development company like InnBlockchain to know about the evolving market trends and to satisfy the traders of your exchange.
