P2P cryptocurrency exchanges have always been a great way for traders to make money. It does not involve middlemen, allowing users to interact directly with each other about the price of Bitcoin. This is convenient for users because they do not have to wait for the trading engine to match their buy and sell orders. With more benefits to P2P exchanges, many entrepreneurs are looking forward to launching P2P crypto exchanges soon.
P2P exchanges have more trust among users than other centralized exchanges due to their escrow system features. Users do not need to rely on authorities to regulate their transactions. Instead, the escrow system addresses security purposes by releasing cryptocurrency coins to the buyer only after receiving the equivalent fiat amount.
Therefore, the elements of transparency and security highlight why startups pursue great business ideas. Before we jump right into the different ways on how to get started with peer-to-peer cryptocurrency exchanges, let’s take a look at the earning potential of your business.
Profit potential of P2P cryptocurrency exchanges
Many startups are unaware of the broad potential of launching a peer-to-peer cryptocurrency exchange. Initially, we will focus on the number of users visiting the platform. However, in the long run, the profit potential of starting a P2P cryptocurrency exchange is very promising.
transaction fee
P2P platform administrators charge a small fee for each transaction that occurs. Typically, these fees are lower on P2P exchanges, but the platforms still make money from them. Fees may change depending on attracting more users to the platform. Many entrepreneurs prefer very low transaction fees so that users can surge to their platform.
listing fee
The number of new cryptocurrencies listed on the platform is significant. For each new cryptocurrency listed on a P2P exchange, the platform charges a small fee. This fee is not mandatory and only some exchanges have the option to list new cryptocurrencies.
advertising cost
Most of the revenue from P2P exchanges comes in the form of advertising fees. Users are required to create buy and sell advertisements for transaction purposes, and a small fee is charged for each advertisement created. Sometimes, some exchanges allow free advertising and do not charge for advertising, compensating them through trading fees.
affiliate marketing
Affiliate marketing allows platform managers to earn huge profits. When the number of users on a particular platform skyrockets, managers can earn commissions by promoting other products through affiliate links. This is one of the most common ways to make money on any platform.
After looking at the profit potential of P2P cryptocurrency exchanges, it is important to understand that profits can vary depending on the type of exchange. Below is a brief overview of the types of P2P exchanges based on their features and functionality.
Types of P2P cryptocurrency exchanges
P2P exchanges can be divided into two types depending on the features they offer.
- Purely ad-based exchange
- Ad-based exchange with other options
Purely ad-based exchanges focus on only one feature of the platform. These exchanges focus on generating revenue through advertising-based trading. Platform users create buy ads and sell ads as per their requirements and complete secure transactions through an escrow-based system. LocalBitcoins and LocalCryptos are two popular exchanges that fall into this category.
In the second type of P2P exchange, additional features also help you make money. These exchanges facilitate various trading methods, such as P2P and OTC, and provide various ways to make money. Paxful and Remitano are among them. Best P2P cryptocurrency exchange It falls into the second category.
These two types of exchange have a series of advantages and disadvantages. Choosing the ideal P2P exchange type will help entrepreneurs generate long-term profits. Let’s continue to look at the essential features to start a P2P cryptocurrency exchange.
You must have the capability to start a peer-to-peer crypto exchange.
P2P exchanges provide users with a variety of functions. In fact, P2P exchanges with more features are standing out in the market due to higher user engagement. For startups, the main goal before launching a p2p cryptocurrency exchange is to include the following essential features:
- Escrow Consolidation
- Multi-cryptocurrency wallet integration
- Fast Buy/Sell
- transparency
- Online/Offline Transactions
- social relationship
- Best-in-class security
- remove anonymity
By including these essential features, entrepreneurs can be assured of taking the first step toward success. Next, let’s look at the steps to get started with a P2P exchange platform.
Steps involved in starting a P2P exchange platform
For P2P cryptocurrency exchanges, the development process can be divided into two stages: pre-launch process and post-launch process.
Pre-launch process
In the pre-launch phase, we collect customer requirements and begin research based on the business idea. that much P2P cryptocurrency exchange development company You need to work with experts to plan your layout while creating a robust solution. Once layout and planning are completed, the P2P exchange development process begins with UI/UX design. The design process is followed by development and testing, and finally the exchange is launched on servers.
Post-launch process
During the post-launch process, the developer is responsible for maintenance. Any feedback received from users or reviewers will be recorded and corrected as soon as possible. Regularly checking the functionality of your P2P exchange is essential to keep your customers happy while visiting your platform.
The steps to starting a peer-to-peer cryptocurrency exchange are common, but entrepreneurs can use a variety of methodologies.
Development methodology for starting a P2P cryptocurrency exchange
As far as development methodology is concerned, P2P exchanges can be launched in two ways.
Developed from scratch
By developing a peer-to-peer exchange from scratch, entrepreneurs can provide users with a unique experience. All components of the P2P exchange are designed and developed from scratch. This process takes more time, up to a year, as it requires more focus and energy on the developer’s part. Therefore, this method may only be suitable for entrepreneurs who are willing to invest a lot of money and time in developing a P2P exchange.
Use P2P Crypto Exchange Software
The second method is ideal for startups that have not yet established their potential in the cryptocurrency space. P2P crypto exchange software is off-the-shelf software that helps startups or entrepreneurs get started with P2P exchanges right away. Solutions are pre-built and multi-tested, and exchanges can begin within one to two weeks. Therefore, this software remains an ideal solution for starting a P2P exchange.
For startups who don’t know how much it will cost to launch a P2P exchange, here’s essential information:
How much does it cost to start a P2P cryptocurrency exchange?
The cost of peer-to-peer cryptocurrency exchange largely depends on the development method chosen. For example, if an entrepreneur chooses P2P crypto exchange software, the costs are very budget-friendly. Since it is a pre-built solution, P2P Exchange software costs around $7,000 to $15,000.
On the other hand, startups that prefer to develop from scratch may have to spend more. Due to the various factors involved during development from scratch, the cost can easily go up to $1,00,00 or more depending on the customer’s requirements.
Why choose Coinsclone as your development partner to launch your crypto P2P exchange platform?
Coinclone is one of the leading products. Cryptocurrency exchange development company With a high success rate. Our solutions have top-notch security panels and noteworthy architectural designs and can help you earn millions of dollars. We can ensure your brand growth in a very short time and our expert developers can provide you with advanced solutions. Our experience in the industry is enormous and we have been involved in several cryptocurrency projects.
As blockchain development experts, we provide cryptocurrency exchange-related services at reasonable prices. By working with us, your P2P cryptocurrency exchange can win the hearts of many users in a short period of time. Our demo will be perfect to help you make your decision. So, join hands with Coinsclone as soon as possible and further develop your business aspirations.