The crypto market is one of the most fast-paced financial markets in the world. The market and technology are moving forward, and not many crypto exchange brokerages know how to evolve their small startup into a fully-featured competitive crypto trading platform.
Let’s take a look at how you can grow your small brokerage into a billion-dollar crypto exchange that every trader would want to reckon with.
Sounds good, right? Let’s dive in!
Offer Superior Liquidity
In the crypto market, liquidity means the ability to trade quickly and efficiently. A trader can easily buy and sell preferred coins in a liquid market almost instantly regardless of the volume of transactions. On the other hand, trade hardly takes place in a non-liquid market.
If you offer superior liquidity, crypto traders will naturally gravitate towards your crypto platform. Besides, traders on your crypto exchange would have access to lower spreads, which is the difference between the ask and bid price.
Feature Exclusive Trading Instruments
The importance of listing a wide range of trading instruments is not possible to overemphasize. In any business, when the supply is scarce, and the demand is strong, there is bound to be a competitive advantage.
If you feature on-demand trading instruments on your crypto trading platform, it goes without saying that these trading instruments would boost your platform’s potential. Both newbie and experienced traders would turn to your trading platform to use those tools for their profiting.
They would also recommend your brokerage platform to their friends or family members. As such, your platform would become more competitive and could rub shoulders with crypto giants like Binance and Coinbase.
Have A Simple User Interface (UI)
Since cryptocurrency, and by extension, blockchain technology is still in its nascent state in some countries of the world, having a user-friendly and visually appealing UI can transform your small brokerage app into a competitive crypto platform. The truth is that there are still so many people that do not understand what cryptocurrencies are and how to use them, let alone how to register on an exchange to trade. Therefore having a genuinely user-friendly and straightforward UI will help you acquire many beginners looking to kick-start a crypto trading career.
One good example of a crypto exchange that leveraged a simple user interface to be reputable across the world is Coinbase. They did an excellent job creating a simple UI with as few controls as possible so that traders can easily buy or sell their preferred coins. You can learn from Coinbase and implement their user experience logic on your platform.
Be Friendly to Market-Makers
To be competitive, you should think about making your crypto brokerage as friendly as possible for the market-makers. Being market maker-friendly means offering rebates, commission, discounts, or even valuable API access based on trading volumes.
Additionally, you can further appeal to liquidity providers and market makers by adding quality of life features like “cancel on disconnect” or “post-only orders.”
The bottom line? Making your crypto brokerage more friendly to the market-makers would tighten spread, enhance liquidity, and provide superior value to your clients.
Consider Running an Affiliate Program
One marketing technique that can transform a small brokerage into a competitive crypto platform is a healthy affiliate program. As a small brokerage owner, if you still haven’t integrated an affiliate program into your business model, now is the right time to do so.
An affiliate program is also about rewarding your loyal customers. If an existing customer has been trading on your platform for a long time, there should be some form of incentive to encourage them to continue doing business with you. Customer loyalty and an affiliate program fit perfectly in this situation.
The incentives don’t have to be huge, but they’ve got to be there. Once your loyal traders convince their friends or family members to register and start trading on your crypto platform, you should offer them a reward. That way, they would naturally spread the word about your products and services and be happy to do it.
Implement Token Listings
Another trick that can make your small crypto brokerage competitive is to list as many tokens as possible. A variety of available token listings naturally attract more users to the exchange platform. For instance, after recording more than 100 coins, the membership base of Binance shot up significantly.
Once you successfully list a multitude of different tokens, you can then expand and focus on creating a diverse crypto exchange platform like Yellow Blockchain that companies can approach to list their offerings for kickstarting their IEO, ICO, or STO.
Gamification is another excellent feature you may consider to scale your crypto brokerage business. It works alongside user acquisition and retainment. If you implement gamification in your brokerage, you would be a step closer to becoming an attractive exchange, inducing prospective traders to register and start trading through your platform.
This action will differentiate your brokerage from others who adopted a less aggressive approach. One famous example of gamification is to organize or host a trading competition. If you have a native token that your platform uses, you can reward those who participate in the contest.
Just keep in mind that gamification works best in small controlled doses, so don’t overdo it. Remember that your customers come to perform financial trading activities in the first place.
Run Partnership Events
Last but not least is to form partnerships with trusted brands and innovative crypto market players. Ensure you craft a compelling press release to inform the crypto community members about your platform’s state and future plans. Once crypto enthusiasts see that you have patterned with their chosen brands, they would have high regard for your crypto brokerage, and your service would become more attractive.
Meaningful partnerships and acquisitions will not only make your brokerage more competitive, but it will also complement your existing services to make them more user-friendly.
As you can see, making your crypto exchange platform highly competitive like Coinbase and Binance is not rocket science. Follow through with the tips we have shared in this article, and you would be a step away from transforming your crypto brokerage.
If you think it will take years of development and millions of dollars to tune your crypto platform features, look at Blockchain development industry leaders like Openware. You could deploy market-ready open source crypto exchange solutions on a startup or enterprise-scale and even move entire platforms on revolutionary Blockchain infrastructure, all within weeks.
Thanks for reading, and don’t forget to share your experiences with us as you climb the success ladder in the ever-growing crypto exchange market.