Since Bitcoin’s mainstream availability in 2009 ushered in a new age of blockchain technology and decentralized digital currencies, the cryptocurrency exchange has grown to become a worldwide-known business.
You can store the cryptocurrencies in digital wallets, just like cash and cards in a typical wallet. The digital wallet can be a web-based wallet (like a website) or a hardware-based wallet (like a USB Flash drive). You can exchange the crypto for government-issued fiat currency or another form of crypto.
In the crypto exchange business, everyone is searching for that perfect crypto-exchange platform to easily make their cryptocurrency exchange safely, without stress, and at a fair market price.
Starting your crypto exchange business usually revolves around these bullet-points while navigating the highly-competitive crypto exchange market. And with the introduction of well-known titans on the market, like Binance, the competition is real.
So, why should users choose your crypto exchange platform instead of Binance?
1. You run a regulated and legal business
Your exchange platform should be entirely legal in your country so that users won’t have any problems with the deposits and withdrawal of funds. Make it easy for the crypto beginners to navigate your platform, so making deposits and withdrawals of crypto and fiat to your local bank account is quick and painless.
2. Your business has a local currency on-ramp
Make it localized, so the users don’t have to look for a way to buy USD first and head straight in with the local currency.
According to Michael Foster, the co-creator of LocalCryptos.com — “…crypto enables cheap and borderless near-instantaneous transactions. This enables customers all over the world — even those without access to traditional banks, but with access to the Internet — to purchase your company’s services or products.”
However, one of the problems many users face while trading crypto is the inability to exchange if they are not transacting in USD. That is why enabling your users to perform a crypto exchange in your local fiat currency without converting to USD first is a significant marketing advantage.
3. You offer adequate liquidity for your local fiat
Liquidity is the measure of the quickness and the easiness at which cryptocurrency converts into cash without impacting the market price.
Always thrive to offer more exits into additional markets and trading pairs for the currencies most comfortable for your typical customers. If all you can offer is a trading pair for USDT to BTC, you cannot provide anything unique compared to Binance.
4. You have the unique altcoins, which nobody else would list (but they still attract traders)
There are many cryptocurrencies out there, while most crypto exchange platforms only deal in top cryptos, and most of the time, holders of these lesser-known alternative cryptos feel left out.
Having unique trading pairs and token offers from specific ICOs are reasonable offers to attract more traders to your platform.
5. You offer better service fees
People want to trade their cryptos through the exchange platforms they can trust, and through the platforms, they could get the best deals with the minimum service fees possible.
If you cannot beat the Binance-like deals head-on, think about offering more competitive fees and deals.
6. You serve the specific niche
Your service might not even be a typical crypto exchange at all. You can run an alternate online marketplace with innovative offers. That would not even remotely compete with Binance and allow you to form and cover a new market.
For example, check out a cool next-generation Korean music website Wiprex, selling K-pop songs royalty shares for crypto. Very innovative Blockchain market solution, running on OpenDAX open-source crypto exchange stack.
Always look for alternative services you can offer compared to the Blockchain industry giants. Think out of the box and open new marketplaces. Experiment with localized services and local currencies.
We’re always happy to hear about your experience in the competitive crypto business industry – make sure to leave comments!
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.