The 5 Points You Need to Know to Become A Cryptocurrency Broker in 2021
If you are trying to launch a cryptocurrency brokerage or platform, you are not the only one.
We mention this because the global cryptocurrency industry is expected to hit USD 4.5 billion within the next few years.
The world of cryptocurrency is fast, fluid, not simple! Though it is a big explosion, it is not rocket science. Through a good view of the industry and thorough analysis, you will pave the way for growth.
The blockchain system on which cryptocurrency is based has aroused the interest of many, particularly the Millennials.
They are reshaping the entire financial sector because cryptocurrency offers something conventional banks cannot—increased transaction stability, fraud prevention, low fees, increased acceptance, and decentralized platforms.
Many that do not have exposure to banks will also rely on cryptocurrencies to trade and cash almost instantly. This is the strength of Blockchain to secure exponential progress and to dominate our future.
What is a Cryptocurrency Brokerage?
With the Crypto Brokerage, your funds are traded through a dealer's network instead of the central exchange, known as the Over the Counter (OTC) market. This brokerage finds sellers or buyers who individually hold a large pool of cryptocurrencies and pair them for sale. This is more flexible and more convenient with a settlement period that is generally faster than that of a crypto exchange.
We are not including the basics of setting up any business, like having a plan or attaining funding. We would like to believe that you have that covered.
Getting a license – self-regulated
Once you have finalized the regions you would like to operate in; please ensure that you have understood the regulations in each of those regions and obtained the necessary licenses. Since the idea of cryptocurrencies still does not go well with a lot of countries, the list of countries you will have to license yourself in will not be exceedingly long. Regardless, you must have a legal expert who has covered this for you.
Crypto CRM & Back-Office
Similarly, a single back office can connect with the CRM, crypto trading sites, and a trader's space is a must-have. This means that the whole procedure runs seamlessly, from client onboard to day-to-day activities. Popcorn Technology offers one of the most respected CRM and back-office systems in today's financial markets. The Popcorn CRM was developed exclusively for cryptocurrency and forex providers.
If you have not existed under a rock in the last few years, you will know that successful CRM is the backbone of most companies, more so in this sector. If it is a cryptocurrency exchange or brokerage, you must have a robust CRM. One that is optimized for your company and allows for seamless collaboration and incorporation with a range of other resources that would be part of your business.
A Client Account Space
A Client Cabinet is a platform where customers can manage their trading accounts at ease. A good client cabinet must have the following features:
- A user-friendly personalized interface
- Simple onboarding process
- Payment integration (For withdrawals & deposits)
- CRM integration
- Trading history and customizable reports
To win potential buyers' trust so that they feel secure dealing with your exchange, you must demonstrate ample liquidity. Partnering with a crypto liquidity supplier that can deliver a deep liquidity pool is a successful start-up choice. Most notably, pick a company that can charge you a fixed rate, not contingent on trade amounts.
Finding the Right Technology Provider
Your preferred technology provider is one that offers you cryptocurrency turnkey applications that are tailored to suit your needs and are pretty much plug & play. Everything from Popcorn is easy to integrate, including the addition of 3rd party service providers.
Choose a vendor who can deliver crypto solutions to white label providers who specialize in designing personalized cryptocurrency trading solutions. This will save you a lot of time and resources, guaranteeing quick deployment at a fraction of the cost.
It would help if you established institutional relationships with a Payment Service Provider to have the payment gateway integrated into your Crypto Trader's Room / Client Cabinet. Therefore, you must use trustworthy and capable of hosting online payments where the speed of transactions, clearance, and settlement of funds is not compromised.
A payment solution with a low transaction rate will offer more traders to your platform. Some solution providers may have hidden fees that you have to watch out for before you sign a contract with any payment processor.
Safety Security & Transparency
Given that cryptocurrency is an essential goal for hackers and that the number of cyber-attacks and data breaches is rising daily, integrating best protection techniques and technology is an integral part of ensuring that your crypto business is secure and healthy.
Marketing & PR:
While we mentioned that we would not discuss the typical steps taken to set up any company, we would like to include a brief note to emphasize the importance of marketing and PR in the cryptocurrency business. While most exchanges do not initially have a marketing budget and use a social media strategy, you can do some digital marketing outside of social media to build yourself up as a brand to get out there with the support of the industry's public relations experts.
Once you have successfully launched and are up and running, it is essential to continue having a strategic approach to your day-to-day activities while maintaining ongoing compliance. We stress the importance of following regulations in the jurisdictions you operate in and in all the regions that your traders are located.
A crypto brokerage service provider like Popcorn will provide all of the required specifications for you and do more! You will get end to end help to launch your crypto brokerage and platform.Back to blog