- Finding a popular payment provider will significantly boost your odds of gathering crypto traders.
- Securing your processes and different technical aspects of your crypto exchange platform is essential.
- Blockchain developer can use their intricate skills to add various features to your exchange, such as offering additional crypto coins to trade.
The crypto adoption rate in Africa is gradually regaining its glory as BTC prices steadily increase. As a result, various African crypto exchange platforms are steadily increasing. However, how does one enter the crypto industry, not as a consumer but as a player? In a previous article, we initially saw the first few essential aspects you require to design your crypto firm. However, there are still numerous factors, and this article will highlight the necessary aspects to consider to gauge crypto literacy in Africa to design your crypto website.
Furthermore, the rapid blockchain adoption rate in Africa has made the demand for blockchain developers skyrocket and thus is also a factor to consider. When building an African crypto exchange platform, you must understand the remaining crucial bits.
Starting your African crypto exchange platform will require a straightforward approach.
There are plenty of guides on the internet catering for how to start a crypto exchange platform. You’ll soon notice that most of them are similar, and each talk about roughly the same thing. However, it is essential to note that this is Arica. Whatever is successful in other first-world countries will, unfortunately, fail mainly due to the lack of proper development in various African countries.
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The crypto industry in Africa is at an all-time high, but many would be surprised that barely a third of Africa’s total population participates in crypto trading. This puts in perspective the sheer magnitude of the untapped talent and the crypto literacy in Africa.Recently various organizations and universities offered blockchain courses to educate the masses on the various applications of blockchain, including cryptocurrency. This led to a slightly higher number of blockchain developers, further increasing blockchain adoption in Africa. However, it does not make much of a difference if this newfound knowledge cannot reach a brilliant mind located deep in the rural areas of Africa.
Thus these facts should be from the first basis when making your African Crypto exchange platform; simplicity. Indeed there are numerous veteran crypto traders within Africa, but they are a finite group compared to the potential of new crypto users.
Adding simplicity involves more than designing your crypto website. Being able to offer the necessary resources to guide new crypto traders would take you a long way. One of the few factors that led to Binance dominating the crypto industry is its initiative to educate new users while still catering to veteran crypto traders. Doing this guaranteed an endless supply of users.
An African crypto exchange platform may advance blockchain adoption in Africa, but it is a business first and foremost. The more straightforward crypto tools are, the more likely new crypto traders will opt for your crypto website than others. Crypto literacy in Africa could be much higher.
According to a recent Luno Research, 55% of Nigerians still need crypto literacy. Keep in mind that Nigeria holds most African crypto trading rates. 56% of South Africans and 64% in Kenya are crypto illiterate, yet both countries hold a significant chunk of the blockchain adoption rate in Africa. Seeing the opportunity to take advantage of this is a crucial factor.
To start an African crypto exchange platform, a trusted payment provider is what you need.
This fact heavily depends on one of the few findings in your market research. The crypto industry in Africa is concentrated in a few countries and scattered among the rest. Finding a popular payment provider will significantly boost your odds of gathering crypto traders.
Most international crypto exchange platforms opt for universal payment providers such as google pay, Apple Pay, Master Card or Visa. This should be a starting point for your African crypto exchange platform, broadening your market view beyond Africa’s border. However, it is also advisable to turn to your local payment provider.
A prime example is East Africa’s Mpesa. The fame of Mpesa is widely known in the crypto industry and among blockchain developers. Some even classify it as the first iteration of digital currency. This mobile money application transformed the banking concept in Kenya, and today it is widely used and recognized even by organizations such as Microsoft.
Acquiring a local service provider makes things easier for local crypto trades. This allows them to make transactions without going through the rigorous processes quickly involved in Google Pay or Apply Pay. Furthermore, adding multiple payment providers will attract more customers due to your application diversity.
Security is crucial for your African crypto exchange platform.
In the previous article, we briefly mentioned that security is necessary under the technical category. This is a further elaboration on that fact. Having adequate security and transparency will significantly determine the longevity of your African crypto exchange platform.Securing your processes and different technical aspects of your crypto exchange platform is essential. Many praise blockchain developers for their attempts at curbing cyber hackers due to the application of smart contracts. Unfortunately, hackers have also evolved, and now major crypto exchanges are targeted, and without a proper security system, it will lead to ruin.
Since time immemorial, the financial stem has existed for the primary purpose of security and storing the assets of its users, and it is still yet to change. Blockchain adoption in Africa has led to the mass application of its functionalities. However, a different security system has to be involved in each sector. No matter how big or small your African crypto exchange platform is, a security system is necessary.
Today there are certificates such as Proof of Reserve, which will eventually be a must-have aspect if a crypto exchange platform is to survive. Currently, exchanges built with Modulus Technology are among the most secure in the world. It utilizes offline cold storage wallets, two-factor authentication and encrypted databases. Showing your users that crypto exchange firms can withstand any crypto hack is a sure way to win their trust.
In addition, having a transparent operation is also a form of security. One of the many by-products of poor crypto literacy in Africa is a fear of the unknown. Many African governments have already rejected the option of digital currencies. Having an untrustworthy entity in the crypto industry will merely regress blockchain adoption in Africa.
The FXT debacle is a harsh reminder that users will always prefer to verify for themselves regardless of what a platform claims.
This generally means generating a tool where a user can verify that your African crypto exchange platform has all the liquidity required in case users try to withdraw.
Your team requires blockchain developers.
Given the rapid blockchain adoption in Africa, the number of developers has increased over the years. It is often paramount that a blockchain developer should be present in your team. If not, some sense of blockchain development is a must-have skill. This dramatically boosts the productivity and compatibility of your African crypto exchange platform with all the crypto coins hosted.In addition, it offers various added advantages. Hiring an external blockchain developer may not be the wisest of choices from a financial viewpoint. Having a blockchain developer makes things relatively easy.
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In addition, blockchain developer can use their intricate skills to add various features to your exchange, such as additional crypto coins. This will often be a broader selection for your uses, inevitably increasing the number of users in the long run. Maintenance of the system is also a job for the technical team and blockchain developer. In the long run, building an African crypto exchange platform will require a team effort to ensure it takes off with an added advantage.
Combining both articles gives anyone an accurate roadmap of the steps and elements crucial for establishing an African crypto exchange platform. The important note is accounting for the crypto literacy in Africa will determine the market of its crypto industry.
In addition, having a blockchain developer will save costs on budgeting. Making it simple will attract more users, but it will depend on the kind of Frontend UI you use and how you use it. Despite the steady pace of the crypto industry, the rate of blockchain adoption in Africa is still at an all-time high with no signs of slowing down.