How to make a cryptocurrency exchanger: personal experience

The task is to create a legal cryptocurrency exchanger

, through which you can receive crypto from an individual and pay him funds in rubles to a card/account in a Russian bank. At the same time, it is necessary to have legal grounds for this, provide supporting documents and not withhold personal income tax.

Potentially, the project may be of interest to operators of exchangers from the “gray” zone, projects for settlements with freelancers, international companies for implementing salary projects in Russia, financial consultants (including managers of premium banking), traders - any individuals and teams, who needs to partially or fully legalize income in cryptocurrency. Technically, it is possible to implement the project now; the scheme is working despite possible gaps and risks. In fact, nothing will change with the adoption of the law on the regulation of digital assets, which may be adopted in the near future. In the draft law available at the moment, the cryptocurrency market remains virtually unregulated; all exchange requirements apply only to tokens with a single issuer. Therefore, in light of the adoption of this law, we are likely to see changes in the tax, administrative and criminal codes, as well as some other laws and regulations, which will be designed to limit cryptocurrency transactions as much as possible. However, this is not yet a tangible prospect.

Disclaimer

. The project should not be considered as a business plan or a guide to action. This is a study in which the authors are interested in a possible legal framework for the interaction of participants.

Why a Bitcoin exchanger?

Attention! Important addition !!!

In those days, the issue of converting real money into digital and vice versa was especially acute. My friend and I chose a small cozy room in the city center. For greater security, the place was equipped with a panic button, security cameras, bars on the windows and heavy steel doors. As a result, our mini-office looked like a miniature military bunker.

Word of mouth worked great. There were more and more clients, and the number of transactions increased exponentially. The hour came when we realized that the number of exchanges of small amounts exceeded all reasonable limits. A colossal amount of useful time was wasted. On average, the translation took almost a day, or even more. As a result, both the sender and the recipient of the cryptocurrency were nervous. Automating the process would be a simple and convenient solution for everyone. The online exchanger has become a kind of lifesaver.

Before starting any active activity, I consulted with familiar experts in the field of digital currency. After talking with professionals in their field, I realized that, in principle, there is nothing supernatural about this. To make it easier for you to perceive a large amount of information, I will divide it into several main areas:

Technical aspects of an online cryptocurrency exchanger. Here we will talk about transaction security, scripts, anonymity of operations, speed, protection against spam, fraud and stealing, external and internal design, automation, as well as preventing intrusive DDoS attacks.
Financial component and legal features. This applies to digital wallets, cards, accounts, coin storage, available exchanges, counting and balance management.
Marketing part. By this point I mean attracting a constant flow of clients, the popularity and reputation of the exchanger, and the development of user support.

Only compliance with all established rules and elaboration of the above sections helped create an efficient and high-quality cryptocurrency exchange point. I wanted to organize a set of services that would suit all visitors. Of course, the goal was to develop a high-quality exchanger, so as not to have to blush in front of clients. And I had no intention of scrapping my idea after a couple of months. We were only interested in a long-term project.

How much can you earn using a cryptocurrency exchange office?

Let’s take the not-largest commission value of 2%. If an average of $5,000 is exchanged every day, the exchange office's commission will be $100 per day, and about $3,000 per month.

It is clear that in order to achieve such a flow of clients, it is necessary to advertise the exchange office on the Internet and include it in the listing on exchanger monitoring sites. The most important success factor will be the flawless operation of the exchange office, taking into account the important consumer properties mentioned above. However, advertising is also important so that new clients, aggregators of exchange offices and bloggers who write about cryptocurrencies learn about the exchange office.

Income of online exchangers

The margin of such points consists of the commission for the provision of services. On average, this figure ranges from 1 to 5% of the amount that a person wants to exchange. One of the factors influencing the profitability of an exchanger is the presence of competitors. The more competitors there are offering the same services (for example, transferring money from a Sberbank card to Bitcoin), the smaller the spread will be for setting a commission. Earning money in this case is very problematic, since a large number of organizations are pulling the blanket in their direction. All exchangers try to attract as many clients as possible by offering the most favorable conditions. And the visitor will choose exactly the place where the percentage for the service of converting a digital asset into a real one and vice versa will be less. That is why within one day exchange rates can vary greatly in different time periods. The owners of such organizations constantly monitor the conditions of competitors and set numbers that are more attractive to clients.

Then we were all very concerned about the question of how to make the exchanger profitable. After all, the rivalry was more than tough and uncompromising. First of all, I realized that the rate favorable to the client should directly depend on the amount and selected assets. These parameters will probably differ for different exchangers.

To ensure that visitors choose your item, pay attention to the minimum amount that can be transferred from one currency to another. This parameter must certainly be lower than that of all competitors.

Reputation is another important factor influencing the popularity of the exchanger. Many items are included in rating lists, where each person can leave their feedback on the organization’s work. If the client remains dissatisfied with the service, then in this case he will probably write a negative comment, which will scare away potential visitors to the exchange point. Therefore, I recommend monitoring the speed of work and the correct functioning of the software. Any minor incident will certainly affect your reputation.

In order for your exchanger to be visited by as many people as possible, there must be a good range of assets and directions. Some organizations have a limited list of services. If an outlet promises its clients the exchange of crypts exclusively using 2-3 electronic transfer systems, then its owners need to prepare for a small number of visitors. Once you add debit and credit cards, fiat cash and a variety of digital wallets to this list, the popularity of the exchange will immediately increase. Remember that people go where they will be offered a good choice. The presence of an exchange for rare cryptocurrency such as Altcoin will also play into your hands. You can put a higher commission on it, since competitors do not offer a similar service. Clients who own Altcoin will immediately become your regular users.

Basically, exchangers work around the clock. If you can ensure uninterrupted operation 24/7, then there is no need to worry about profitability. It is enough just to maintain a high speed of internal processes and the absence of technical errors. Manual work will require three shifts of good specialists.

I was constantly thinking about how to make my Bitcoin exchange even more popular. After all, the rivals did not even think of giving up the podium, mastering all the new technologies of high-speed service to people.

As a result, I realized another important truth: the point must have a solid reserve of assets for exchange. The more free cryptocurrencies there are, the higher the number of satisfied visitors. Often, a point of sale loses customers only because the stock of fiat or digital currency is not enough for exchange here and now.

Another plus will be a well-chosen program interface for interacting with clients. Make sure that people feel comfortable working with the exchanger, and not search in a panic for chaotically scattered digital buttons.

The fewer actions the user has to perform to achieve the desired result, the better.

Endless SMS and checking emails while waiting for a follow-up letter will scare off even regular customers, if somewhere everything can be done much easier. Therefore, I recommend writing the exchange office algorithm yourself, rather than buying a ready-made script. In the first option, you can foresee all the difficulties in advance and eliminate them even before customers start complaining about them.

Modern business cannot exist without sales promotion tools. I'm talking about special discounts for regular customers. It is best to develop a system of cumulative rewards. The greater the amount that a person exchanged with you, the more pleasant the discount on the next transaction. This policy always attracts new visitors, which brings in a lot of income. Plus, it keeps your loyal customers from switching online locations. No matter how hard competitors try, people here already have much more favorable conditions.

Key success factors of the exchanger

The main success factors for any exchanger include:

Reliability of cryptocurrency exchangers

Since the cryptocurrency market and transactions are largely unregulated, it is very important that clients trust you. Exchangers work in such a way that first the client transfers funds (fiat or cryptocurrency), and only then receives the funds into his account. If there are any doubts about the integrity of the exchanger, people will simply be afraid to make an exchange on this resource. The only way to earn your customers' trust is to work honestly and always ask for feedback.

It is also very desirable to have a 24-hour (or at least open until late evening) chat to quickly resolve all issues.

Reliable exchangers can be added to the Bestchange exchanger monitoring site.

Relevance of cryptocurrency exchangers

Your offer should be competitive, and the rate and size of commissions should be no worse than the average offer on the market. The average rate of cryptocurrencies can be checked on Coinmarketcap, but it also needs to be compared with the rates of competitors (in exchange offices the rate can be overestimated). Some exchangers inflate the exchange rate but charge a lower commission, others do the opposite.

The relevance of the exchanger is also determined by:

number of cryptocurrencies available for exchange
number of payment methods (cards, electronic payment systems and wallets)
funds limit
quality of support service

Online exchange rate calculator

On the main page of any exchanger you need to install a special calculator form. It will help users instantly calculate how much cryptocurrency/fiat money they will receive after the exchange.

Volume of initial financial investments

To prevent opening an online cryptocurrency exchange office from eating up all your savings, you need to be prepared in advance for certain costs. In general, the cost of such a project consists of the following points:

Advertising and marketing. It all depends on the number of competitors in your exchange directions. The more potential rivals there are, the more expensive it will be to popularize your own point. Advertising costs can vary from a couple of thousand rubles per month to infinity. Remember that independent promotion of a project is only possible if you have professional knowledge and experience. Otherwise, it is more convenient to pay money to specialists who will attract the right audience of clients.
Technical points. Developing the exchanger itself and setting up the site can sometimes cost its owner a pretty penny. If you do everything to the minimum and use a standard template, the costs will stop somewhere around 5000. Turnkey writing and creating an exclusive user interface will cost much more.
Purchasing a digital reserve. As I said above, the exchanger will definitely need a supply of cryptocurrency. The account must be replenished with real fiat money. I cannot announce the exact amount, since everything depends directly on the personal ambitions of the owner and areas of work. You can limit yourself to a few hundred thousand rubles or allocate tens of millions.

It is difficult to indicate the exact amount of starting capital, since everyone’s wishes are different. If you count on a modest beginning and a standard base, then the initial budget is approximately 500 thousand rubles. But this is the minimum bar from which the development of such an online project begins.

Problems of technical implementation

The creation of an exchanger (virtual) represents the formation of a dispatch center. The number of such dispatchers may be small (it is possible that one person is enough), however, this person must constantly monitor market conditions.

The business of converting any currency is to buy low and sell high (standard commission scheme). At least one side of the transaction is clear - the clientele. But which other one?

these may be other clients who want to make a transaction in the opposite direction. However, it is not always possible to maintain a balance between supply and demand volumes;
you will still have to conduct operations on the open (organized) market (in the form of an exchange).

The last point will require:

account registration;
installation of tracking software.

We are talking about fairly well-tested software in the form of robot programs that are capable of producing an average rate across several sites, as well as signaling the need to change the rate on the “price tag” of the virtual exchange office itself if the prices on the exchange go beyond the set limits.

The first technical problem is the presence of a robotic complex that “monitors” stock exchange quotes

It is impossible to “open” a currency exchange office (both classical and crypto) if there is no initial capital in the form of current currency balances. And the larger your assortment (the more currency pairs you are ready to put on display), the more you will need to invest in organizing your business.

When converting cryptocurrency, money from clients is often accepted not in the form of bank transfers, but from numerous payment platforms. This means that you need to acquire cash balances on each such platform by organizing a wallet there.

The conversion business requires serious investments in cash balances

Organization of technical issues

When I asked myself how to make my own Bitcoin exchanger , I had to study a lot of specialized literature. After all, desire alone is clearly not enough; you need to study the hardware and get acquainted with the real experience of your colleagues. In the end, it turned out that everything is not as simple as it might seem at first glance.

First of all, I have identified several goals that clients of a digital exchanger pursue:

Replenishment of electronic wallets. Not all online systems actively work with fiat. To pay for purchases and make payments using such Internet services, you need to exchange rubles and dollars for cryptocurrency.
A banal conversion of the available amount in real money into a digital number. Typically, this service is used by clients who want to trade on the exchange, as well as buy and sell something using various cryptocurrencies. This is the most popular option.
Laundering of ill-gotten funds. If a certain amount was transferred to the owner of the wallet for fraud or another illegal matter, then he needs to carefully confuse the traces of the finances. For this purpose, an online exchanger is perfect.

You may not know exactly why the client came to the point’s website. It is important to remember that the program must always work efficiently and without interruptions. The main goal of any such Internet point is a quick and trouble-free exchange of one currency for another.

How are funds exchanged through the service?

The service works as follows:

A visitor visits the site.
Selects the currency that he gives and that he wants to receive.
Fills in the fields with financial information - how much you need to give and receive. When the “I give” field is filled in, the amount in the “I receive” field is calculated automatically by the system, and vice versa.
Fills in other fields - mail, phone, wallet or card numbers.
Pays for the exchange.
Receives the required currency to the specified account.

ATTENTION! Some services provide exchanges upon pre-order. For example, if the required amount is not in reserve, you can order it or ask to be notified by mail when it appears.

What should you pay attention to first?

Here I will already use personal experience. Here are a few main points that need to be addressed immediately:

Affiliate program. The presence of referral links will greatly simplify the process of increasing your client base. My friends became the first users of the exchanger precisely because of a well-thought-out affiliate program.
Client's personal account. It is very important to obtain the contact details of people seeking help from an exchange office on the Internet (for marketing purposes only). To do this, each user must automatically gain access to a personal account, which will be created upon first registration on the resource.
Separate pages in the script for each exchange direction. This is a very promising topic for promoting an item on the Internet. There is a chance that the site will appear in search engine results.
Blog in script. High-quality content is the key to the popularity of an online exchanger.
Automation of current exchange rates. If you set numbers exclusively by hand, there is a risk of making a mistake, which will ultimately affect your profit. And this is also unacceptable slowness, since rates change constantly.
Intuitive design and adapted interface. The first impression made on a client, as we know, cannot be corrected. Therefore, the site should look reliable and attract page design. If you are too clever with the location of the function buttons, you can alienate a potential user due to the complexity of the exchange procedure. Everything should be in moderation and aimed at the convenience of the client.
High-quality and reliable script. Some of them, due to technical shortcomings, are simply not included in monitoring. Therefore, in order to avoid such trouble, it is necessary to pay special attention to the correctness of the script used.
Protection against DDoS attacks. The program must be practically invulnerable, otherwise the site will constantly slow down and freeze during operation. Who needs such a resource?
A certain level of access for exchanger employees. Ideally, currency transactions should be serviced by one competent operator. Work information should not be available to everyone.
Easy site administration. Avoid complex and confusing diagrams. It is in your best interests to quickly change the installed parameters and settings without any special knowledge.
Easy management of your email address database. Customer newsletters and alerts should launch without any problems. Otherwise, the work of the exchanger will be slow and ineffective.
Ability to independently configure the resource. If you have constant access to the script code, then it will be very easy to modify or improve the functioning of the site.
Adding currency gateways. Payments made using electronic systems must be accepted quickly and without delay.
Constant integration with monitoring. If your site does not have an online connection with systems for finding a favorable rate on the Internet, consider that the exchanger is not working. Customers simply won’t find it among the huge number of faster competitors.

Only the combination of all these factors and a competent combination of a strong technical base with an understanding of customer psychology help develop a business in a promising direction. If at least one position begins to sag, the profit immediately drops sharply.

Main risks

Sanctions against a Russian legal entity

The status of cryptocurrency in the Russian Federation is not defined, which leads to sanctions imposed by the courts on the proposal of the prosecutor’s office without any trial on the merits.
Currently, courts and tax authorities consider crypto as property, and this is an attempt to bring cryptocurrency savings to some existing basis and bring them into the scope of the tax code, but not an accurate description of the legal nature of the phenomenon. The Central Bank, Rosfinmonitoring, the prosecutor's office and security officials consider crypto as a money surrogate in accordance with Art. 27 of Law No. 86-FZ “On the Central Bank of the Russian Federation”, recognize the circulation of cryptocurrencies as a means of laundering criminal proceeds and are trying to lead to violation of laws No. 115-FZ “On combating the legalization of income...” and No. 395-1 “On banks and banking activities”. No liability has been established for the circulation of cryptocurrencies, and although attempts to introduce it do not stop, none of the laws yet stipulate any obligations for persons carrying out transactions with cryptocurrency. Sites that openly offer exchange services are blocked by a court decision; it is almost impossible to place advertisements in large networks on the subject of cryptocurrencies.

In the scheme under consideration, the main risks fall on the Russian legal entity, but five of these risks are not related to criminal prosecution. There will be no complaints against a company abroad, if its activities are properly registered. As soon as there are no claims against end clients, provided they submit reports and correctly calculate the tax base.

Russian legal entity the person will also not have anything to do with the management of cryptocurrency, will not provide relevant advertising, which means that the risk of checks, blocking of the site and accounts, although quite tangible, is still significantly reduced compared to other schemes currently existing. As an example, we can recall the case of Lavka Lavka (as well as their joint action with UAZ) on the sale of products for bitcoins, when the prosecutor’s office demanded an explanation and warned that payments on the territory of the Russian Federation were only possible in rubles, but found no violations. Although, in fact, an even less obvious scheme was used, when the buyer transferred bitcoins to the cooperative’s account, and the employees deposited money for it directly into the cash register.

Sham and invalidity of transactions

Obviously, transactions using such a scheme may be considered sham.
But in order to invalidate the transaction, this still needs to be proven. Due to sham, only a transaction that is aimed at achieving other legal consequences and covers up the different will of all participants in the transaction can be declared invalid. The intention of one participant to make a sham transaction is not enough for the application of legal norms. In our case, there is a counter provision that is actually received by the parties and which cannot be disputed, that is, neither the subject, nor the price of the transaction (and therefore the tax base), nor its subject composition changes. The prosecutor's office may demand that transactions made for a purpose that is obviously contrary to the foundations of law and order and morality, or that violate the requirements of legislative acts, be declared invalid. However, at present the transactions described do not fit any of these criteria.

Problems with banks regardless of jurisdiction

Banks are “black boxes” and the weakest link in the scheme.
Russian banks, in accordance with the recommendations of the Central Bank of the Russian Federation, will likely request additional documents for each incoming currency transaction, which will force compliance not from time to time, but as a process. Service failures are likely, which will require you to have several accounts and constantly search for adequate banks. The picture is similar with foreign banks, but to a greater extent due to the Russian citizenship of the final beneficiaries of the company and participants in the transaction.

How to make an exchanger: searching for a reliable script

So, I have decided what I need to develop a profitable working website. However, acquiring the necessary positions was not so easy. The Internet turned out to be literally crammed with a variety of rubbish. I spent a lot of time searching.

When we managed to decide on the functions of the exchanger, a rather pressing question arose: where to get a high-quality script. As a result of careful monitoring, the following options were discovered:

Buy on the forum or in the online store. This is perhaps the easiest way to get a script. You pay a certain amount and become the happy owner of the long-awaited algorithm. The price depends on the version of the program, its creator, as well as the greed of the seller himself. As a rule, the cost of a standard script suitable for a digital coin exchanger starts at $10 (in my opinion, the only advantage of this option). There is simply no upper limit. However, you should always remember that a developer can introduce a backdoor into his creation. This is a kind of “back door” that allows fraudsters to drain capital with impunity. There is an opinion that as soon as a certain amount of a specific number accumulates in the site’s accounts, the entire balance goes to the wallet of the dishonest creator of the algorithm. As an additional disadvantage, there are all sorts of errors and technical shortcomings that the client of the item obviously will not like. The security of other people's scripts is also often lame on both legs. Such programs are not updated, so they quickly and unnoticed by their owners become obsolete, both technically and morally.
Write your own custom code. In fact, an ideal scenario. The program will be 100% protected from interference from fraudsters from the inside, since only you know all the characteristics and features of the script. The personal system turns out to be flexible and equipped with exactly the interface that will definitely attract the attention of a large number of potential clients. All legal guarantees will be on the side of the script owner. But there are two significant drawbacks: the high cost of the project (at least $6,000) and the long creation time (from six months). Every minute your site is down costs you money.
Purchase a ready-made online exchanger project. What could be better than a fully operational, turnkey business? Many sellers offer high-yield items that are even mentioned in directories like Kurs.Expert and BestChange. A very tempting option with a minimum of time and effort spent searching for individual components. The list of advantages of a ready-made exchanger includes efficient launch, technical support and website maintenance (if such a service is available), and a ready-made customer base. However, remember that you are dealing with money. In this case, caution should be on top if you do not want to go bankrupt in the first month. The disadvantages include the anonymity of most sellers and the lack of guarantee of the promised “mountains of gold”. There is a risk of buying a project with a backdoor. The cost of a ready-made exchanger starts at about $11,000, which also does not play into the hands of the buyer. The customer base may be 80% random visitors whom you will no longer see on the site.
Buy a script from a professional studio that issues a legal guarantee. In the process of creating an exchanger, I contacted similar organizations a couple of times. When ordering a working program from them, you can choose from several configuration options. The entire purchase will take place officially, the developers bear full legal responsibility for the written script. As a rule, such studios can provide contacts of item owners who confirm the quality of the finished work. Another advantage is the high speed of project launch and constant technical support from studio specialists. The downside is the high cost - from $4000.

Since I didn’t want to delay the launch of the project, and it was very dangerous to risk clients’ money, the choice fell on the fourth point. The official studio provided all the necessary guarantees and a high degree of security for the exchanger.

I ordered the exchanger software here>>>

So, the issue with the script was resolved. The next point was choosing a domain and hosting. I purchased them outside the CIS.

About business on cryptocurrency

The demand for the topic on which it is planned to “stir up” the business has 2 sides:

the degree of demand for a service (product) in society;
competitive qualities of your business.

Success is possible even if you do not have an absolute advantage in any of these areas. However, you probably shouldn’t try to “get into” the market if all “articles” show only conditional disadvantages.

Prohibitions

The topic of cryptocurrencies in the Russian economy, and in the economic models of most countries in the world, is potentially taboo. Virtual money is not prohibited in all countries (as in Indonesia, Vietnam or Kyrgyzstan, for example), but where its turnover begins to become noticeable against the background of the local (fiat) currency, tightening the screws immediately begins. The reason for this behavior of governments is the properties of cryptocurrencies:

Impersonality – read, anonymity of use.
Cross-borderness – that is, absolute insensitivity to measures aimed at limiting uncontrolled capital migration.

Impersonality is also inherent in traditional cash (paper) money. That is why the efforts of governments are aimed at systematically squeezing “cash” out of circulation and replacing it with non-cash money circulation.

In the United States, in large cities, there are stores where there is a warning at the entrance about the inadmissibility of paying in cash.

Depersonalization creates a fertile environment for the shadow economy, based on all kinds of

violations of the law (from corruption to drug trafficking and terrorism). This is why the authorities spend so much effort on monitoring in real time movements in the accounts of their citizens or enterprises. Cryptocurrencies threaten to multiply these aspirations by zero.

On the other hand, people have an inherent desire to have their own secret (banking or love - it doesn’t matter). In order for such a contradiction not to exist, it is necessary for the state to recognize that it is necessary to fight criminals using methods other than through total control over the “nest eggs” of its citizens. But this entails reformatting the work of the all-powerful law enforcement agencies - the authorities do not like this.

Capital flight

Now cross-border. Capital flees from where it is uncomfortable. And here the promises of high potential rates of return are not as important as the actual practice of fulfilling these promises. If investment owners are not confident that they will not lose their annuities generated after investing (no matter for what reasons), they will never invest anything in the jurisdiction of that state.

Moreover, even residents of this state who have managed to generate rent will strive to remove the resulting profit from the legal influence of the authorities of this country, because they are sure that within the state this money is in danger of being taken away.

If traditional money in each state undergoes currency control in the process of global trade (i.e., state financial authorities control the flow of foreign exchange earnings to exporters, the correspondence of prices to market prices from importers, the correctness of payment of customs duties), then track cryptocurrency and put a barrier to it in the form of a ban on the transaction is not technically possible. The wallet may generally be located on a server located outside of a given state.

It turns out that cryptocurrency is an ideal tool for capital flight from the country. To prevent this from happening, the state needs to fight corruption, limit the omnipotence, and most importantly, the permissiveness of all kinds of security forces. We need to create a favorable tax climate for our citizens and non-residents. In general, a full-fledged competition for investors is required. What kind of prince would like this?

Perspective

Why spend so much time analyzing the main features of cryptocurrency that the authorities do not like? Yes, all in order to assess the prospects of the business as a whole. Imagine, you appear with your cryptocurrency exchanger. This is a business to create infrastructure for the conversion and aggregation of two systems (fiat and unapproved cryptocurrency), which will contribute to the greater introduction of Bitcoin into national economic circulation. Given official dubious comments from representatives of the executive branch regarding the prospects for the introduction of virtual money, such a business could easily find itself outlawed with all the ensuing consequences if government assessments of such activities become more radical.

With further justification of the need and possibility of establishing this business, it seems reasonable to explore all possible “inhibiting” factors and indicate ways to overcome them.

How to protect your cryptocurrency exchange code

I know of cases when, at the peak of user activity, as a result of a massive DDoS attack, the site turned out to be unavailable for a whole day or even longer. Of course, this seriously reduced the popularity of the resource among people, and the owner was left without a significant share of the proceeds. Such situations led me to think about how to make the exchanger as secure as possible.

I had to use word of mouth and look for a craftsman among my friends. I decided not to trust outside specialists, since the risk of going broke and letting down the resource’s clients was very high. Therefore, I recommend that everyone who wants to open their own online cryptocurrency exchanger contact only proven website security experts.

The specialist I chose did his job with a bang. He increased the security of the project, strengthened protection at all levels of exchange, and helped deal with countering stealer attacks. The expert also raised the level of site anonymity and developed special instructions on digital hygiene for exchange point operators.

If you want the project to work for a long time and successfully, focus not only on advertising and a bright interface. Don’t forget about the reliability of the resource’s internal data.

This is hard to believe, but if they want, scammers can not only carry out a DDoS attack, but also drain all the money from their accounts. Assess the level of risk and volume of losses. If you don’t want to end up deeply in debt, don’t skimp on the services of a competent professional who will provide maximum protection for the script.

Financial part of the business plan

How much will you have to invest in the business at the start?

Initial investments include (in rubles):

paperwork – from 10,000;
creation of a website and software for the operation of the exchanger – 100,000;
advertising campaign at the start – 150,000;
employee salaries – 50,000;
hosting payment – 5,000;
working capital for exchange – from 100,000.

The total amount is 415,000.

How much can you earn on a cryptocurrency exchanger?

Earnings depend on a number of factors.

Let's highlight the main ones:

Ease of use of the exchanger. A favorable exchange rate is not the most important criterion. Users prefer to work with services that they understand, without many unnecessary functions and additional fields to fill out.
Success of the advertising campaign. This factor is the main one. It includes website promotion in search results, as well as direct advertising.
Market conditions. Demand for different tokens changes frequently. Today Bitcoin is popular, tomorrow Litecoin, and the day after tomorrow a new advertised coin. The faster the ability to exchange a new token is introduced, the higher the chance of success.
Service reputation. Most users prefer to check information about new exchange sites. Positive reviews should prevail, and for this there should be no dissatisfied customers. To get feedback, you can use user incentives. For example, those who leave an honest review will receive a discount on the exchange.

The digital rush continues. The market is developing, and young startups are attracting investment through ICOs. All these are the reasons for the relevance of business on cryptocurrencies. An exchanger is one of the options for organizing such a business.

Design and decoration

As practice shows, users evaluate a site “by its clothes.” If the exchanger’s home page does not inspire confidence or turns out to be unattractive, you can’t count on a large customer base.

To create something functional and attractive, I assembled a focus group. We also had to conduct a special survey among friends. I chose people from different age groups as I planned to attract the maximum number of clients. Having learned the preferences and important points that potential users of online exchangers pay attention to, we created a simple but relevant software interface. All the buttons necessary for exchanging currency were placed in a prominent place, and intrusive animation was removed from the start page, which only overloaded and slowed down the site.

Popular cryptocurrency exchanges

More than 300 cryptocurrency exchanges have already been created. According to the CoinCap.io rating, 68 exchanges can be considered trusted. Among them the largest are:

Binance (Malta)

The Binance exchange was launched in 2022 in Hong Kong and later moved to Malta. In just 2 years, it managed to grow from an ordinary crypto exchange to an entire ecosystem, in which both individual and related projects now operate. Binance Exchange, Binance Chain, Binance DEX, Binance Coin, Trust Wallet, Binance Launchpad are just trading and blockchain products related to cryptocurrencies. And there are also research, educational, and charitable projects.

Characteristics:

Centralized (plus a decentralized one launched separately);
Native coin Binance Coin (BNB) and stablecoin Binance USD (BUSD);
Only cryptocurrencies paired with BNB, BTC, ETH, TRX, XRP, with stablecoins USDT, PAX, TUSD, USDC, BUSD, USDS;
Margin trading support.

Trading commission 0.02–0.1% for makers and 0.04–0.1% for takers (depending on volume, BNB discounts also available), no deposit fees, but different withdrawal fees (depending from the withdrawn cryptocurrency). Users have access to desktop applications for Windows and macOS, a mobile application for iOS and Android, as well as an API.

https://www.binance.com

Coinbase Pro (USA)

Coinbase was founded in 2012 in California, USA. Its crypto exchange in the first version was called GDAX, and the Coinbase Pro version was launched in 2022. In addition to trading, the platform offers users the online wallet Coinbase Wallet and the stablecoin USD Coin, and merchants the Coinbase Commerce service. They also have a premium service for institutional investors - a special exchange Coinbase Prime and a special storage facility Coinbase Custody.

Characteristics:

Centralized, registered with FinCEN;
Native stablecoin USD Coin (USDC);
Trading cryptocurrencies paired with fiat currencies USD, EUR, GBP, with stablecoins USDC, DAI, with BTC, ETH coins.

Trading commission 0–0.50% for makers and 0.04–0.50% for takers (depending on volume), no commission for deposits or withdrawals. Users have access to a mobile application for iOS and Android, as well as an API.

https://pro.coinbase.com

Bitstamp (Luxembourg)

The Bitstamp exchange was created in 2011 in Slovenia; later offices were opened in London and Luxembourg. The platform allows you to trade through a regular trading interface and through a pro version (for professional traders and hedge funds). There is also a service for institutions - traditional banks, brokers, neobanks, large fintech companies.

Characteristics:

Centralized, with registration in CSSF;
Exchange cryptocurrencies BTC, ETH, LTC, BCH, XRP with each other, trade them in pairs with fiat currencies EUR and USD, there is even a fiat currency pair EUR/USD;
Withdrawal and replenishment not only with cryptocurrencies, but also using bank cards or a bank account.

Trading commission is 0–0.50% (depending on volumes), there is no commission for depositing cryptocurrencies, and for withdrawal it varies (depending on the coin being withdrawn). Fiat input - via SEPA free, via Wire 0.05%, via credit card 5%; fiat withdrawal - via SEPA 3€, via Wire 0.1%. Users have access to a mobile application for iOS and Android, as well as an API.

https://www.bitstamp.net

Each crypto exchange strives to provide users with special conditions. When choosing a site, bidders pay attention to the following characteristics:

Number of available coins/tokens and possible trading pairs;
Commission for depositing/withdrawing money, as well as for making transactions;
Methods for replenishing your account and withdrawing funds;
Liquidity, daily trading volume;
Protection of user accounts, secure storage of currencies.

Legal issues and choice of payment systems

I’ll say right away that I couldn’t find all the answers I was looking for on the Internet. The owners of existing exchangers were in no hurry to reveal their secrets. Time passed, the project stood idle, but it had to be registered somehow, preferably without breaking the law. The answers on the forums were very different. Someone talked about complex systems for cashing out numbers. Others claimed that they existed only by attracting dummy people to the project. I definitely didn’t want to get involved with illegal methods. Here are a few more suitable options that I was able to find on the web:

registration as an individual entrepreneur (all movements of funds are strictly official and recorded by the relevant control authorities);
acquisition of an expensive Japanese license (about 100,000;);
strict adherence to the restrictions of the payment system (work “like everyone else”);
concluding a loan agreement (closer to offline transactions).

After analyzing all the pros and cons of these methods, I decided to go with the third option. I must say that a lot of time was spent. For each bank and payment system, the available limit of exchange transactions was determined. Everything was done on the principle of trial and error. This work continues to this day, as the list of services and areas is constantly expanding.

I would like to highlight a rule that I strictly adhered to at the beginning of opening the exchanger. We did not contact non-cash transactions originating from legal entities (companies and organizations). This was done in order to avoid difficulties associated with the confusing system of legislative regulation.

What assets will you need to get started?

Desire, PC skills and start-up capital. Calculating the amount of money you will need to open an electronic currency exchange office is simple: the cost of software for the exchanger (500 - 1500 USD) + reserves in the amount of 1000-2000 USD for each currency / payment system (you can start with several of the most popular ones such as Perfect Money , Yandex.Money, Qiwi, Webmoney, Okpay, Sberbank, Alfa Bank, etc.).

You will most likely be surprised by such a wide range of prices for software for the exchange office. Everything is simple here. A standard and fairly reliable exchanger with a simple control system and without unnecessary “bells and whistles”, like those produced by companies such as Awebcom, can be purchased for 450 – 1050 USD, depending on the “equipment”. If you want something stunning, capable of immediately and outright striking half of the Runet users, you will have to pay 4,000 USD or more for the software. By the way, such expenses are not always justified, since in the business you are planning to start, clients are more interested in the exchange rate and the reliability of your service than in the availability of additional options and capabilities.

Selecting currencies for an online exchanger

A properly formed crypto base is the basis for successfully running such a specific business. At first it seems that the more coins you offer people, the more active the work will be. But in practice, this solution did not work out well. It is enough to have a good reserve of the 10 most popular cryptocurrencies. The commission percentage from them is slightly less, but the number of exchange transactions more than pays for it. For variety, I would advise including a couple of specific coins in the list if they have their own regular customers.

To decide on the currency, I went to the proven BestChange monitoring. It has a “Popular Destinations” tab. The first 15 items on the list ended up in my exchanger.

As you can see, monitoring shows more than 180 options. If I used all of them, the technical design of the exchange procedure would slow down the work of the entire point for a long time. Such an assortment will only confuse people. There is nothing to say about the operators; the number of errors would certainly scare off regular customers.

Setting up production

You need to wrap all this junk in Docker, configure the system daemon to launch the unit, ideally, of course, configure CI-CD, but these are probably all just details.

In the basic version, you can deploy via Git, use environment variables to read configs, use ipython to carry out migrations to the database:

You need to be able to use and configure nginx and understand how mod_rewrite works.

location = /api/rates/rates.xml { rewrite .* /api/rates/ last; }

By the way, to add your exchanger to monitoring, you will need xml for uploading the rates file, so this rewrite may still be useful to you.

You probably want to create some kind of admin panel - the Basic Auth mechanism and bootstrap admin template are perfect for this. All you have to do is pass the necessary context into the templates and play a little with the controls:

Connecting electronic payment systems

Since we ordered a script from reliable partners for a specific set of requests, the final version of the working program already had all the necessary settings. However, each currency had to be entered manually, which again took some time. The direction of exchange was also specified separately. The process was simplified by the presence of detailed instructions for the resulting script. Fortunately, the developers fulfilled their duties evenly.

If you're thinking about how to make a cryptocurrency exchanger, get ready for a lot of manual labor. If the choice fell on at least 15 base coins, then there will be about 225 directions even with the most rough calculation. And all this will have to be configured in the system with your own hands in order to avoid technical errors.

The procedure will be as follows:

the margin percentage is indicated;
income for referrals is prescribed;
the volume of the partner discount is entered;
The commission of electronic payment systems (if any) is noted.

A mistake of even 1 ruble will lead to dire consequences. But it will be extremely difficult to notice the defect. As a rule, all shortcomings are revealed after a financial loss has been incurred. Please take special care when filling out the above items.

All these procedures took us about a month of continuous delicate work. I personally double-checked all the points several times, since I didn’t want to risk profitability at all.

Required skill set.

Speaking quite simply, I’m probably not expressing myself entirely correctly. Nowadays, the skills that a developer must have are estimated at thousands of hours of time that he must spend on his training. I'm going to be very brief today, so let's get straight to the point. To implement the task we will need the following set of tools:

Linux, zsh, vim, systemd
nginx, ssl
ES6, Material Ui, React, eslint, webpack, scss
python3, asyncio, aiohttp, peewee
postgresql
telegram bot api
docker

And patterns like:

MVC - System Architecture Pattern
Abstract Factory, Factory Method, Builder, Facade, Prototype - object generation
Scheduler - multi-threaded task scheduler
Event Listner, State - events, states
Proxy - proxy for load balancing

In general terms, this seems to be everything that should be useful, you agree, quite a lot. Let's now go over it in a little more detail to understand how all this stuff needs to be configured to even work.

Exchange rate update

To maintain the relevance of all technical processes, we immediately indicated the approximate ratio of currencies at the time of filling out work areas.

Again, it all came down to the convenience and adaptability of the purchased script. So I advise you not to take risks when choosing a program code.

Immediately after completing the work on filling out the directions, parsing the current exchange rate from BestChange started. I set up a loop update of the required monitoring currencies. As a result, the course changed every 3 minutes, which would have been extremely difficult to do manually. The process lasted continuously 24/7. But if there was little left in the supply of a certain coin, operators could always independently adjust a more favorable exchange rate. The same function helped out in case of strong fluctuations in the value of cryptocurrency in the event of spontaneous financial events in the world.

Telegram bot

Everything here is not difficult at all. We create a bot from @BotFather, configure it, take a token, put it in the config (we make two configs and two bots - one for prod, one for dev).

From this token we can create a bot and use it to obtain important data, as well as to launch the rpc protocol, which does not require additional authorization and encryption.

Now we can send messages to telegram from our backend, for this we will create a private chat and add the bot as an administrator there. Next, we need to create a webhook and a controller to process it (read about this in the previous article about monitoring). In the controller, we need to create a request manager that will define the handler.

Requests from tg can be different, for now we will only need message and callback_query (reply keyboard and inline keyboard).

Next, we will send messages to this chat with buttons that will allow us to control the values in the database. Here I will draw attention to the race condition, and subtle errors, so always use atomic_db_query

async with objects.atomic() as atomic_db_query: try: pass # some database change except: atomic_db_query.rollback()

You can press the buttons after manual moderation of the application - well, that is. you saw that the money actually arrived in your account, and only after that you pressed the button that will launch the mechanism to complete the document flow. You can also, for example, create a subscription mechanism that will inform subscribed users about course updates, for example:

This is quite convenient, because Telegram is always at hand, especially after unlocking. 24/7 everyone who is in a private group will be able to receive information messages, as well as manage the status of documents:

Accepting money from clients

Special instructions were developed for the exchange office, which greatly simplified the process of working with digital assets. It contained information regarding the introduction of card numbers and electronic wallets. Additionally, there were points that explained setting limits on the amounts and number of transactions, as well as switching accounts in the event of the absence of one of their currencies.

The instructions made it very easy to automate the exchange. Most of the transactions were within $200. If you do all of them only manually, then the operator will definitely make a mistake somewhere. After all, the number of operations is huge, and no one is immune from the human factor. Therefore, we tried to automate everything to the maximum, so that the exchanger’s employee only controlled and checked the procedure for transferring one coin to another.

Operators had separate instructions for each payment system. At the same time, I personally took care of strengthening the authentication. As a result, transfer approval could only be obtained from one computer or mobile phone. All passwords were required to be changed every two days.

The currency was stored only on the exchange and mainly on the balance of the “cold” wallet. Here, too, we had to work on the degree of security of money. The security system of the exchange was clearly not enough for us, since we were talking about amounts belonging to third parties.

The profitability from each operation and direction could be changed manually through the administrator mode in the exchanger itself. This made it possible to control the average level of margin. Of course, popular areas brought in small profits, but a sufficient number of clients supported our liquidity. Properly configured parsing allowed the program to be on the monitoring lines even taking into account the imposed commission.

Is it worth getting involved?

So, possible risk factors.

Virtual money is illegal

The likelihood of a situation where cryptocurrencies (in their natural form, with all their useful characteristics for the public) will be declared illegal is quite real.

This situation can be compared with the so-called “cash out” - the artificial withdrawal of non-cash funds into the shadows for the purpose of avoiding taxation, as a rule. Cryptocurrencies can exist in actual circulation for quite a long time (like “cash out”), but then at one terrible moment all infrastructure nodes will be blocked, and the actors and performers:

will experience financial problems due to the formation of debt due to inevitably seized funds;
will receive a real prison sentence.

If you are not afraid of these problems and are ready to fight the official punitive authorities opposing you, then this business is for you

Trusted infrastructure

What is an exchanger? In the classic version, you come to a currency exchange office, take out $100, put it in the tray in the cashier’s window, the latter checks it for counterfeitness, then gives you the amount at the rate in domestic currency. And even here, “misunderstandings” and outright fraud are possible. Suddenly, instead of $100, the cashier records only $10, and if the amount turns out to be several orders of magnitude larger, then, under the pretext of checking, the cashier leaves through the back door of the premises...

A virtual currency exchange office is generally an Internet site. It is impossible to come there; the interacting persons do not see each other. How does the conversion process work?

The organizers of the exchange office need to organize the availability of wallets in different payment systems and, preferably, current accounts in the most popular banks. And, of course, you will need cryptocurrency wallets for virtual money. The exchange technology itself is based on the principle of SWAP operations (“you’re here for me, I’m there for you”). There is no direct exchange. The owner of the exchanger and the client simply exchange their assets at a pre-agreed rate. The clearing roadmap is as follows:

the client (when communicating with the support service of the exchange resource) expresses a desire to carry out an exchange operation and an agreement on the exchange rate is made. The client receives details where he must list the assets he has in his hands and provide his account information in order to later receive a refund;
then the client makes a transfer;
The dispatcher tracks the amount and makes a compensating transfer.

For the organizers of the resource, everything is carried out on an advance payment basis. But the client is at risk:

after all, he can be deceived;
they may forget about him;
the exchanger may suddenly run out of funds in the required form,

etc. No one can provide guarantees on the Internet. Therefore, reputation is very important. This is the next point.

Reputation

It needs to be grown, maintained, in general, monitored constantly.

To do this you need:

carry out Internet promotion;
be present as a topic of discussion on the most popular online forums;
and most importantly, be included in the database of various aggregator services. These online resources combine data from numerous exchanges and virtual exchangers, publishing not only current exchange rates, but also data on current balances. As a result, at the request of the user (client), only those exchangers are issued that meet his requirements, and most importantly, actually have the means in the required format to carry out the conversion of interest. One of the most popular aggregator services is bestchange.ru.

The problems of trust on the part of clients (in general terms) are understandable. But trust is also required from the outside

project participants - individuals who will have corresponding wallets registered in payment systems, and most importantly, bank accounts. It is impossible to register everything for one person. Most likely, you will have to “delegate authority,” that is, you will have to hire (or take a share of) people whose accounts or wallets will receive large sums of money (or small, but a lot) permanently. Of course, this money will continue to go to the same exchanges (accounts on which it is better to control exclusively independently), but for some time it will be at the complete disposal of these hired (or attracted) people who can easily prefer a bird in the hand than prospects long-term cooperation.

If you have a team of people you can trust without fear of being deceived, then your chances of creating a successful online conversion business are great.

Here are two main points that can slow you down at the start. Problems associated with them must be resolved before the start of the project. However, one should not think that these are the only difficulties. These are just necessary conditions, but by no means sufficient.

Foreign exchange reserve management

The script must work efficiently with money and timely register each transaction. I could at any time display a report on the organization’s turnover and profit. We also had to compare the amounts passed through payment systems with the volume of currency recorded by our program. This was done to identify possible errors and control the real balance of money.

In our exchanger, all reports were managed by operators. There were two specialists, and they worked on a 2/2 schedule. At the same time, the employees of the point did not know each other. Everyone had a personal secure account. The operator could check his partner's work for errors. If a defect was discovered, the attentive inspector received a small bonus.

Every week, a general reconciliation of balances and turnover took place at the exchanger. The inventory was handled by a separate person. We called his job title reconciliation accountant.

All available stocks were entered into the script, so we could always assess the current situation and upload the correct reports. At first, I limited my budget to $10,000 fiat and 3 BTC coins.

If one of the reserves was reset to zero, the reserves were replenished by purchasing currency from other exchangers.

Not everyone met us halfway, since it is always difficult to build partnerships among competitors. If the crypto market was hectic and rates were changing at breakneck speed, certain digital coins could be incredibly expensive. At the same time, there was a shortage of virtual assets. However, such situations arose extremely rarely.

I can say that controlling reserves is not that difficult in reality. Huge reserves simply burden the pocket, since they are unlikely to be needed in such a size. The exchanger's income does not directly depend on the volume of the reserve. Profit varies depending on the number of transactions performed per day. On average, an active point will require about $30,000 and 3-4 BTC coins.

What factors influence the formation of the electronic currency exchange rate within the exchanger?

There are 3 such factors. These are:

Current exchange rates for major offline currencies (euro, dollar and Russian ruble).
The amount of your working capital at a given time. Thus, if there is a shortage of title units, you will be forced to reduce the rates of electronic currencies for both purchase and sale. If we are talking about a lack of cash, a reasonable solution would be to increase the exchange rate.
Competition. Users strive to make exchange transactions at a rate that is favorable to them. Accordingly, you will have to take into account current rates in competing exchangers.

How to make an exchanger popular: marketing rules

You probably understand perfectly well that such a resource is very different from standard websites, online stores or simple blogs. This is a very specific business, which also needs to be promoted following a certain algorithm. Plus you will also need to take serious competition into account. However, the presence of a large number of competitors also indicates consumer demand for the service. Therefore, it makes sense for you to increase the popularity of your exchange office. This is done using the following methods:

Training of resource employees. Detailed instructions with practical advice will be a good help. It is very important that operators understand the system, are able to identify errors and know what to do in the event of a controversial situation. The more competent the exchanger’s employees are, the faster and better it will work.
Client notification system. Since cryptocurrency is exchanged for quite a long time, people always worry about the safety of their funds. After all, he simply transferred money online to someone unknown. An established user notification system should inform a person about each stage of currency movement. This can be done via SMS, email or messenger messages.
Transparent referral reward system. All participants must understand what reward awaits them if they successfully fulfill certain rules.
Live reviews on the site. The resource must gain the trust of customers. People love to see that the project is constantly updated with real reviews from users like themselves. This indicates the activity of the exchanger and the high quality of its work.

In general, such a business can safely be called profitable. However, its owner must work hard to create a truly high-quality cryptocurrency exchange. Remember that you cannot skimp on technical aspects and protection. Only then will the project begin to generate stable income for its owner.

Types of exchangers and their mode of operation

There are several types and types of exchangers.

By type of work:

Manual. Currency conversion is carried out manually by operators.
Automatic. Most services carry out automatic exchange of funds - this is faster, more convenient and more economical, since you do not need to pay for the work of additional employees.
Semi-automatic. Payments are processed automatically, but the operator monitors that the system works properly and transactions are processed without errors.
Offline exchangers. The user submits an application for an exchange through the website, and the transaction is carried out at the company’s office.

By operating mode:

Daytime. They only work during the day. This applies not only to manual, but also to some automatic exchange services.
24 hours a day. They operate around the clock, most do not stop operating even on weekends and holidays. Exceptional cases are technical work on the site.

By number of currencies:

Multicurrency. They operate with a large number of cryptocurrencies. Some of them allow you to exchange digital money for fiat money.
Mono-currency. They exchange one currency for another - fiat, usually bitcoin or altcoin for rubles, dollars or euros.