Opinion: in order to launch a bitcoin exchange you need to be sure that the market will grow multiple times.
In 2020, developers should abandon the launch of cryptocurrency exchanges if they are driven by a desire for fast earnings. This was stated by Pavel Shkitin, CEO of Nominex, during an online conference at ForkLog „Centralised Exchanges and DEX: pros, cons, differences“.
According to the expert, this is not the best time for the emergence of new trading platforms, as supply exceeds demand.
„It was necessary to launch the exchange in 2017. In 2020, you will have to work in a market that does not need your solution. You must be confident in the multiple growth of the kryptor market,“ said Pavel Shkitin.
If the opening of the exchange is an end in itself, its creators must be prepared within two years to carefully develop the product and take into account the possibility of losing the invested funds.
„We will have to invest our own money, because ICO/IEO models are dead and venture capitalists are not ready to take high risks,“ the expert explains.
An important aspect will be having a strong technical team and experience in launching successful cryptographic projects.
There is a huge gap between centralized Bitcoin Future and decentralised platforms in terms of tools and ease of trading, the expert points out:
„CEX is suitable for daily trading and earning. No DEX allows you to trade such a wide range of currencies, as cross trades are quite limited. Decentralised platforms offer a profitable farming strategy, but it is difficult to predict how long it will stay in trend.
Regulated and unregulated exchanges have their disadvantages. Most users do not want to „shine“ their digital assets and pay taxes when regulated, but unregulated platforms have a high risk of dumping and losing money.
„Users will come to the crypt currency exchange if it has a convenient trading terminal, the ability to register without KYC, a lot of liquidity, a powerful partnership programme and a widely applicable exchange token,“ says Pavel Shkitin.
An additional plus will be finding the platform in the top 50 CoinMarketCap, readiness to pay and train its users.
„During the first year, the new exchange will not be able to earn money – it will have to spend a lot of money and work for the future. Even advertising will not pay off in the short term,“ added Shkitin.