If you own a small business and keen to get involved in Bitcoin trading you can do so easily. To launch an exchange for trading Bitcoins you will have to understand the way cryptocurrencies work. By getting into trading crypto coins you can get a commission for each transaction. However, it is not easy to come up with such a platform; it demands ample resources and funds. Yet, it is definitely an option worth considering.
Steps to get into Bitcoin trading:
To start with, you must decide the kind of platform that you wish to develop. Projects can be crypto trading, crypto exchanges, and crypto marginal trading.
- First-timers can start dabbling in crypto exchanges because the interface is the simplest to use. While the blockchain technology is not very easy to grasp, those involved in exchanges could spread this around faster. Usually, exchanges have their money reserves. Payments will be made to users by administrators. Such businesses will earn revenues on exchange rates of crypto coins. Buying Bitcoins in exchangers will be much more than if you were to buy these at crypto exchanges.
- When you own a small business that wants to step into the crypto world you can get into trading. This is similar to online stores earlier that eventually converted into marketplaces such as Amazon. The crypto trade market is big and here you do not need to have funds for starting operations. All monetary transactions take place between users directly. Here, instead of buyers and sellers, there are takers and makers. Such platforms will charge commissions for all successfully-completed transactions. The interesting thing is that commissions will be paid by both and this becomes the key income source.
- The third way to get engaged in Bitcoin trading is by marginal trading. Marginal trading is what professional traders opt for. People with insider information will do better at marginal trading. Platforms like BitMEX have users that are investors providing micro-credits to the traders. Marginal trading offers great opportunities for traders. Now using the automated bitcoin trading bots, you can trade bitcoin autonomously by updating the settings in advance. Read this bitcoin revolution review to learn how automated trading bots work.
- Not every country has clear, well-defined rules about cryptocurrency environments. However, things are expected to change soon as efforts are made by countries to regulate this. The process of registration for your business and getting a license is not the same everywhere. Finding a license in countries like Hong Kong and Singapore is easy.
- To have a business plan for your small business you need to focus on what the operating activities are. So, you must decide how many employees you need to start and run a business to exchange Bitcoins. Incidentally, more than half of the exchanges have a very small workforce. So, starting an exchange may not be so difficult after all.
- When you have decided on the platform you want to build you have to decide on choices of currency pairs. Some states have a bigger need but this means keep a track of all crypto activities on the platform. This also means that you have to know your customers well. Documents like utility bills, passport scans, bank statements, and driver’s licenses are needed as basic verification proof for most countries.
- Finally, you can start trading between crypto coins. This is an attractive option because here companies may not submit KYC. The only downside to this method is that the need is low when compared to fiat trades. So, you have to come up with a rather unique product offer or an extremely smart marketing campaign to survive.