The revolution of cryptocurrency has totally changed the financial world. With its transparent, immutable, and decentralized nature, cryptocurrency has slowly and steadily set its path to replace traditional currency. And to be honest, it is undeniable we’ll eventually reach there, especially with prominent businesses showing strong interest in launching their own crypto exchanges. And if you want to start your own business, you should know that it can be disastrous to enter the cryptocurrency market without a solid understanding of cryptocurrencies. Therefore, to ease your journey, here are 9 facts about cryptocurrency you must know.
In this blog, let’s explore the important facts about cryptocurrencies you should know about to start your own crypto business.
9 Facts About Cryptocurrency You Must Know
1. Know about Blockchain
- Before you look into cryptocurrency, it is important that you understand how the blockchain works. Think of cryptocurrency as the Ferrari and blockchain as that solid asphalt road. To ensure a smooth ride for your crypto business journey, you need to understand the road.
- A blockchain is like a digital notebook that records all transactions and is stored on a network of computers. This network is decentralized, making it transparent and hard to change any transaction after it is recorded.
- Knowing about blockchain can elevate your crypto journey, so start studying!
2. The essential regulatory compliance
- You should keep in mind that cryptocurrency is still a gray area in several parts of the world. Some countries welcome it with an open hand, some downright ban it, and in some countries, the rules aren’t specified yet. So, before starting your platform, you should make sure to thoroughly research and understand the rules in your location, or your target region.
- Though there are some countries that approve of cryptocurrency, the regulatory requirements and licenses required are different for different countries. So you might need the correct license, registration, KYC, and AML protocols, and set up strong security to protect your user data.
3. The largest crypto theft in history might be worth billions of dollars now
- It’s no secret that hackers are always looking for easy cryptocurrency. And just because of that, security is the biggest concern in the crypto world. Since cryptocurrencies are digital and are more valuable than gold, you need to offer ironclad security for your users. The Mt. Gox Hack that happened in 2014 holds testimony to what happens if you fail to do so.
- Strong security features like 2FA, encryption, cold storage, and DDoS protection should be implemented on your platform. And in case of a data breach, always have a backup plan to quickly resolve the problem.
- Remember, protecting your platform from outside threats is just one component of a broader security approach. To guard against internal threats, you keep an eye on your platform at all times.
4. There are a lot of cryptocurrencies
- With over 5,000 cryptocurrencies to choose from in the crypto market, you cannot possibly offer your users every single one of them on your platform. But you should try to offer the popular ones and those that are in demand. And for that, you need high liquidity in your platform.
- Liquidity means you can offer your users a lot of choices in cryptocurrency to buy or sell from without drastically changing the price. Finding liquidity for new exchanges might be tough. That’s why, if you partner with a reputable crypto exchange development company like us, we’ll help you connect with external liquidity providers and ensure a smooth trading experience for your users.
5. Cryptocurrency is extremely volatile
- Because cryptocurrencies are not tied to any traditional assets, they are extremely volatile. This means that one moment the price of a cryptocurrency can fall, and the next instant it might skyrocket. I know it can be quite a rollercoaster for investors. And that’s why you should offer them a simple user interface.
- Just imagine that during peak trading hours, your users are busy looking at the price changes of their desired crypto, and at the exact moment it hits their target price, they’re excited to buy or sell, but they are unable to find the button to buy or sell. See, how did the scenario sound? It’s like a nightmare, isn’t it?
- That’s why you should offer a simple yet interactive interface to your users and make it easy for them to create accounts and trade on your platform. Because crypto trading is already complicated itself.
6. No borders for cryptocurrency
- Yup! It is true that cryptocurrencies aren’t bound to any geological location. This may not come as a surprise given the list of “9 Facts About Cryptocurrency You Must Know.”
- But what might surprise you will be the opportunity it offers. The lack of borders allows you to expand your crypto business and tap into the global market easily.
- Having more trading options can help you build a loyal user following, but remember, if you include too many cryptocurrencies with low trading activity, there is a chance it might affect your platform’s performance.
- So, be careful when choosing which cryptocurrency to list on your crypto trading platform.
7. Bitcoin is the first cryptocurrency ever created
- Bitcoin was the first cryptocurrency ever established and is still the most popular among crypto enthusiasts.
- Bitcoin has gained major stardom because of its loyal fan following, and that’s exactly what your platform needs, trust. For your cryptocurrency exchange platform to stand out from the rest and gain a following of its own, you need a strong marketing strategy, so you can have a wider reach and build trust among your users.
8. Binance and Coinbase handle around 75% of crypto transactions
- You didn’t expect to see this fact in the list of “ 9 facts about cryptocurrency you must know,” did you? Well, it is the truth. And why do you think they perform better than the others? Now that’s the million-dollar question.
- Binance and Coinbase did everything right from the start by offering a user-friendly interface, a secure trading environment, and advanced trading tools, but the one place they excelled was in their customer support. And that’s what you need to include in your platform—dependable customer support for your users.
9. Ethereum is transitioning to 2.0 for scalability
- One constant thing about the cryptocurrency world is its changing nature. For example, Ethereum is transitioning to Ethereum 2.0 through a multi-phased process for scalability.
- And that’s what you need to do for your platform to be successful in the long run, keep on innovating and keep it flexible to easily accommodate new users.
Conclusion
And there you have it! The top “9 facts about cryptocurrency you must know” before starting your exchange platform. Oh! I forgot to mention another important thing, the cryptocurrency exchange script.
Yes, if you want to launch your platform into the market instantly, cost-effectively, and securely, the script solution is the correct answer. There are a lot of good ones, like us.
So, give us a call, and let’s do this!
