Open your own Cryptocurrency Exchange

in #steemsilvergold7 years ago

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As the automobile became more and more prolific in the early 1900's there was a need to increase the amount of gas stations per X square mile area, and a requirement for exploration and production to upscale.

So it is and will be for crypto exchanges. Given the relatively few exchanges in the market place coupled with the influx of capital that is following an exponential curve, there exists a huge opportunity for passive income fortunes to be made.

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The production of cryptocurrency coins through mining is nearing the inevitable plateau end stage of any exponential curve where deviation comes into effect from saturation.

When one analyses the growth pain of Coindesk manifested to users as a slow down in transaction times and site unavailability, the reasons become self evident. 8.2 million accounts require higher spec hardware, greater bandwidth and load balancing. With physical network connection producing a transmition bottleneck and packet collisions.
Thus the need for more exchanges geographically distributed.

Unlike mining, exchanges are at the early stages of the exponential curve. A curve that has far greater and sustained growth before reaching a gentle plateau.

Opening an exchange off your own back is a daunting task requiring software to be developed,expenditure on hardware, differing financial and legal obligations country by country, initial costs of building a float of currencies to have available to exchange.

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Fictitious person:
"I'm a taxi driver with little capital to invest and no knowledge of where I'd even begin to start opening my own exchange"

The following is not an advertisment but an example of in my opinion the easiest way to start and run an exchange.

There are a number of umbrella type companies that offer the ability for you to become a member exchange node in their existiing peer to peer blockchain based nodes.
The existing nodes are performing transactions with full order bookes. Requests in their transaction queues are passed to other nodes with shorter orderbooks which then in turn pass requests to other quieter nodes. Equilibrium is sought and maintained throughout the group.

You pay an annual license fee of roughly $4000 that gives you a fully hosted service. Meaning after a growth period recouping your outlay you can dink pinocolladas on the beach whilst the machines do the work for you.
Kind of like Terminator - Judgement Day with the tables turned ;-)

I don't want to specify any particular vendor over another so leave it to you to search yourselves.

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it good idea

You'll be kicking yourself in a year if you don't do it.
Think every one time you exchange Steem to dollars for instance. There's two transactions the exchanges make a commission on.
Steem -> Bitcoin-> Dollars

That's very logical thinking. While everyone is looking into mining your thinking about what happened with company's overwhelmed with exchanges.
I like that.

Thanks buster544. I think it's great advice.

Great Foresight - you learn something new everyday - and I had been wondering about crptocurrency exchanges- you are 20 steps ahead my friend - valuable piece of info - ;-)

You can pay a license fee of around half to run, configure, update on your own kit but from the figures I've worked out fully hosted is the way to go and the time is now.

I'm with you - It is definitely the way to go, I'm newish to Cryptocurrncie/ Blockchain, so I'm still learning/understanding, I will be looking into it, and following you very closely - @roop you are spot on - and your right - the time is now...

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