Everyone in the world knows that Cryptocurrencies have captured us by surprise. Possibly, with only a few preparing for it well in advancement. Hence these Blockchain-permitted tokens have been in existence for more than a decade. And their true potential has been revealed only after the world-locked moment with a viral pandemic – Coronavirus.
However, based on seasoned experts in the industry, crypto exchange platforms could create a feasible business in 2023. If you ask me should believe it, you can read this article to get an answer.
Cryptocurrency Exchange: First and Foremost Crypto Business
A Crypto Exchange is an application & platform where one can buy & sell exchange cryptocurrencies using fiat or other crypto tokens. The first crypto exchange was the now-extinct bitcoinmarket.com – proposed and created by “dwdollar” – a member of the popular cryptocurrency forum – Bitcointalk in 2010.
Although the usage of Bitcoin (BTC) was still being examined at the time, exchanging became a favored choice from then on leading to the rise of countless popular platforms that rose and fell at various times. A fact to note is that these platforms serve as a source for new adopters to buy cryptocurrency, the other source being tokens or staking.
Various Types of Crypto Exchanges Live and Kicking in 2022
Centralized Exchanges (CEXs)
It is the most popular model used in 2022. However, the decentralization movement getting momentum. These models use the web3-powered trading system with a venture helping transactions take place, albeit much quicker than fiat transactions.
Notable examples of Centralized Exchanges are Binance, Coinbase, and Kraken.
Decentralized Exchanges (DEXs)
It is growing in popularity in recent times as calls for decentralization grew strong. These platforms allow users to instantly conduct exchange transactions via automated smart contracts and matching engines without any intermediates.
Notable examples of Decentralized Exchanges are Uniswap, AAVE, and PancakeSwap.
It is one of the platforms that include all the advantageous features of both Centralized and Decentralized Crypto Exchanges. While liquidity and usability are embraced by centralized Exchanges, security, and anonymity are assumed from their decentralized counterparts. That makes them havens from crypto traders.
Popular Hybrid Crypto Exchange are – Eidoo, Querrex, and Legolas
Potential Ways to Create A Crypto Exchange in 2023
A Crypto Exchange Platform can be made from scratch using a well-determined development plan. A typical campaign here includes consulting, documenting, prototyping, planning, developing, testing, and deploying.
While the process enables business owners to stretch beyond limitations to have all features they would like, the cost & time will be high.
- Software for exchanging cryptos that also be launched from a ready-made white-label solution that has been developed and tested earlier. Using such a platform, one can easily alter and add features and launch it for public use without expansive steps.
- Generally, the time and cost involved here will be lower. These solutions can be custom-made white-label platforms or those similar to popularized crypto exchanges.
Absolute Proof that Crypto Exchanges are Booming in Recent Times
However, the extended crypto world and most promoted news items do not show a good image of the crypto space. It is succeeding clearly. Many popularized crypto exchanges have recorded significant figures that show no signs of running the crypto world. Let’s see some examples:
- Binance – Most popularized crypto exchange generated $20 Billion US in revenue in 2021, and the figure has been evaluated to grow a fraction more in 2022. The volume of the crypto exchange platform is close to $34 Billion US as of June 2022 – based on the firm’s CEO.
- Coinbase – A powerful competitor of Binance earned $7.8 Billion in 2021, a 550% increase from 2020. The volume of transactions reached $1.65 Trillion in 2021, this was massive based on industry experts.
- Famous Decentralized Exchange – Uniswap earned $1 Billion as revenue in 2021, becoming the first DeFi Decentralized Application to do so. The platform also recorded $681 billion in trades around the year, showing the world the power of the DeFi model.
Conclusion – Is Crypto Exchange a Good Enterprise Option in 2023?
To sum up, the answer to the above question will be a huge “YES!”. But why? Crypto Exchanges have always existed in the world, irrespective of what occurs in the market. Those platforms had novel concepts and working ethics that succeeded to live elongate. If you are a crypto entrepreneur with a plan in mind, you might have gotten a glance at how this model will be essential for the full transition to Web3 and some confidence to go ahead with the platform of your business.
You never need to confuse yourself with fully-fledged design and development, as there are proficient firms in formulating a such platform that can offer a helping hand in launching your new crypto venture with the Binance Clone script. Let 2023 be your year to thrive in the crypto ecosystem!