Bitcoin is surging while stocks slump. Explore what’s driving its rise, from Trump’s crypto policies to institutional adoption and safe-haven appeal.

April 2025 was ghastly for stock market investors. US President Donald Trump's “Liberation Day” tariff announcements on April 2 contributed to existing negative market sentiment, sharply decreasing the major stock indices. From Apr 2–7, the market's two primary performance indicators, the S&P 500 and NASDAQ Composite indices, experienced 13% drops, some of the worst results in decades. However, The April shock wasn't a one-off event: the nervousness and losses in the market started in mid-February, mainly as a response to the new administration's drastic measures that ignited the fear of international tariff wars.

 (BTC) — the flag-bearer of the cryptocurrency market — is doing well. In fact, the world's leading crypto asset is 13.5% up on a monthly basis as of May 6, 2025 and continues to power on. So confident is the performance of the BTC crypto that it’s safely beaten the results posted by gold, the traditional safe-haven asset rising in times of trouble. Moreover, it’s looking like some investors are preferring to park their funds in 

Why is Bitcoin rising? What supports this seemingly unexpected pattern? Will this phenomenon persist over a longer-term window? In this article, we set out to answer these questions. Some of the reasons we’ve identified might be familiar to those closely following financial news, but others may feature less prevalent narratives.

As of our review date on May 6, 2025, the stock market is desperately trying to recover from its 

. The S&P 500 and NASDAQ Composite have lost about 7% and 9% of their value, respectively, over the past three months. Among the most recent shocks to the market in early April were Donald Trump's “Liberation Day” announcement regarding his intent to apply hefty tariffs against most countries' imports to the US. By late April, stocks were attempting to stage a recovery, but the market is still feeling nervous and its major indices are down on a 30-day basis.

In contrast to these developments, Bitcoin has been on a rise since Apr 8, a development that wasn't widely expected — especially given the fact that BTC joined stocks in their earlier tariff-linked nosedive earlier this year.

Analysts have devised a myriad of explanations and reasons for this phenomenon, and there's definitely no shortage of analysis and commentary on this intriguing development. The reasons below, in our view, deserve special attention, as they’ve likely contributed to Bitcoin's recent and ongoing rise.

When Donald Trump regrettably won the US presidential election in November 2024, the crypto community rejoiced. Finally — thought many crypto natives — a friend of cryptocurrency was taking up residence in the Oval Office. The 45th and 47th US president's crypto-friendly stance was and remains no secret. In fact, on the day of Trump’s inauguration, Jan 20, 2025, Bitcoin hit its all-time high of $108,786.

However, there was initially uncertainty as to how much of Trump’s embrace of crypto during the election campaign would translate into real action. Consequently, Bitcoin dropped off its highs weeks after the new administration assumed office. In late February, when the stock market first began to decline in response to tariff threats, Bitcoin also joined in, losing its late 2024/early 2025 gains.

This all changed in early March, when the White House announced the planned establishment of a crypto strategic reserve, a dedicated supply of five cryptocurrencies — Bitcoin, 

 (ADA) — that the US government would stockpile to secure the nation's financial position. Finally, it seemed, the Trump administration was taking tangible action to demonstrate its crypto-friendly nature.

Later the same month, the US Senate Committee on Banking, Housing, and Urban Affairs passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, a piece of legislation designed to bring 

, a major component of the overall crypto market, into the financial mainstream. The act is a fundamental regulatory measure, the first to gain congressional approval of any kind, and, if fully adopted, will bring the US closer to the European Union (EU) in terms of cryptocurrency regulation [the EU already has a comprehensive framework in this area — the Markets in Crypto-Assets Regulation (MiCA), adopted in 2023].

Both the Committee's approval of the GENIUS Act and, particularly, the planned crypto strategic reserve announcement have been instrumental in creating a crypto-friendly political climate in the US. Partly as a result of these developments, Bitcoin’s price not only didn’t decline in April in unison with the stock market — as happened back in February — but it also rallied strongly in the last three weeks of the month.

Institutional interest in Bitcoin began to rise significantly following a series of approvals by the US Securities and Exchange Commission (SEC) of Bitcoin exchange-traded funds (ETFs). In October 2021, the first US-based Bitcoin futures ETF — the ProShares Bitcoin Strategy ETF (BITO) — had its debut on the market.

While Bitcoin futures ETFs gradually entered the market after BITO's approval, 

 kept hitting a wall as they tried to get a nod from the SEC. After years of struggle and rejection, the regulator finally greenlighted a host of Bitcoin Spot ETFs in January 2024. That month, the SEC opened the gates for 11 Bitcoin Spot ETFs from providers like Fidelity, Bitwise, Grayscale, VanEck, Invesco and others.

The bulk approval in early 2024 marked the beginning of a new era for Bitcoin — finally, the cryptocurrency could be considered a full-fledged member of the financial family, along with stocks, major commodities, bonds and other traditional asset classes.

Institutional investors, many of whom use ETFs as a key product in their portfolios, embraced Bitcoin with enthusiasm, helping drive its price up. Just before the SEC’s January bulk approval, Bitcoin was trading at under $42,000. By late March of the same year, its price shot up to over $70,000, a sharp rise even by the wildly volatile asset’s standards. This tectonic shift contributed to speculation about Bitcoin eventually hitting $100,000 a realistic discussion, rather than a fantastical dream of the crypto-obsessed.

By now, Bitcoin is quickly becoming a popular element of diversified portfolios for institutional investors — especially those focused on digital assets — and the recent uncertainty in the stock market is attracting more attention to the world’s largest cryptocurrency from fund managers.

Amid the market uncertainty, investors are looking for assets that can act as a store of value, rather than a growth source. Bitcoin is increasingly seen as a legitimate store of value, with its decentralized issuance mechanism and universal governmental independence.

In the past, Bitcoin’s reputation was that of a technology-driven gimmick — more akin to points in an online game than a full-fledged financial asset. As the use of blockchain technology and crypto increased steadily since the mid-2010s, Bitcoin’s recognition and brand image improved drastically. By the end of the 2010s, investors were beginning to appreciate Bitcoin as a legitimate financial asset, albeit one that was wildly speculative and 

This association with excessive volatility persisted right into 2025 — and investors interested in a store of value usually don’t fancy volatile assets at all. However, the ensuing events of April 2025 — the stock market’s continual decline, along with Bitcoin’s raging ascent — indicate that a growing segment of risk-averse investors is viewing the world’s top cryptocurrency as an acceptable store of value.

Although still volatile, Bitcoin has managed to post positive long-term growth rates over all the typical time windows considered by investor folk. As of the end of April 2025, it’s up by 15% in the past month, 34% in the past half a year, 47% in the past one year and 970% over five years. For any of these time intervals, Bitcoin has confidently outperformed not only equities but also gold, an asset often regarded as the ultimate store of value.

Bitcoin’s decentralized issuance mechanism, independent from any government or central bank, is now seen as among the best hedges against international trade wars during which governments might limit access to their markets for outside investors using their regulatory muscle. Bitcoin’s independence and spectacular growth rates are increasing analysts’ opinions of it — not merely as a speculative growth asset, but as one of the best store-of-value assets around.

In the past, stock market declines often prompted a flight to safe-haven assets — i.e., gold and US Treasury bonds. However, in the current atmosphere, 

 to many international investors. The current stock market turmoil is largely driven by the actions of the US government as it imposes wide-ranging tariffs on imports. Since America’s trade partners around the globe feel uncertainty about dealing with the world’s largest economy and its government, the formerly ironclad confidence in the US is on the decline. Discourse concerning both the de-dollarization of international trade and the US pulling out of many of its strategic trading partnerships is on the rise. This situation was bound to be reflected in lower confidence in the US government's fixed-income securities.

As for the ultimate safe-haven asset — gold — the precious yellow metal has duly done its job during the most recent turmoil. At the tail end of April, gold's monthly growth rate stood at around 7%, while the S&P 500 and NASDAQ Composite were bouncing around 0% growth, desperately trying to claw back their early April losses.

However, while gold has done its job as a safe-haven asset during the bear market, it simply hasn’t done it as well as Bitcoin has. The same monthly growth figure for Bitcoin stands at 15%. In other words, during this stock market decline, Bitcoin has performed about twice as well as gold. While this is the first time Bitcoin has behaved in such a classic safe-haven style, it might be an early indicator that this unique cryptocurrency is emerging as a new competitor to gold at times of stock market troubles.

The current bear market in equities has seriously damaged investors' confidence in several other traditional large asset classes. As we noted above, the US government's aggressive tariff moves have dented investors' faith in Treasury securities in general. Commodities, with the exception of gold, are also known to be strongly affected by international trade wars.

This leaves investors with few large, liquid alternatives outside of gold. In this respect, Bitcoin is emerging as a reasonably large and liquid choice. Naturally, its liquidity levels aren’t comparable to gold’s. For instance, while gold’s market capitalization stands at around $22 trillion, Bitcoin’s market cap is slightly under $2 trillion. Likewise, gold features global daily trading volumes of between $200 and $300 billion, while Bitcoin’s are around a tenth of that.

Evidently, Bitcoin is still not a match for gold when it comes to liquidity. Nevertheless, besides gold and Bitcoin, investors don’t have many choices in the current climate of tariff duels and international trade difficulties.

 elements built into it. This provides certainty to investors and supports the price of the asset in general.

First, the supply of new Bitcoin is subject to a well-defined schedule, with a fixed amount of BTC issued every ten minutes on the network. Known as the mining block reward, it’s currently set at 3.125 BTC. Approximately every four years, the block reward is halved. The 

, when the reward’s rate was cut from 6.25 to the current 3.125 BTC. The next Bitcoin halving will further reduce the rate of the block reward to 1.625 BTC, and is scheduled to occur at some point in April 2028.

Bitcoin also has a hard cap of 21 million on its total supply. Based on the regular release of block rewards every ten minutes (and the roughly quadrennial reward halving mechanism), it’s estimated that BTC 

These supply-limiting, deflationary properties should, in theory, support Bitcoin's price over the long term. The structured release mechanism and halvings also provide certainty and transparency to investors regarding the asset's supply levels. 

For investors who firmly believe that an asset's supply is a major determinant of its value, Bitcoin is definitely an attractive alternative.

Bitcoin’s price predictions currently range from wildly optimistic (and at times, exaggerated) to being more reasonably grounded in the top crypto’s key fundamentals. Some analysts are predicting that, having solidified its position as a highly resilient asset, Bitcoin will experience highly pronounced growth spurts. Among the boldest predictors currently is that of ARK Invest’s CEO and founder, Cathie Wood. The acclaimed investor believes Bitcoin 

However, the majority of other predictions are more moderate, and consider both positive and negative pressure factors.

Standard Chartered’s Geoff Kendrick believes that Bitcoin will trade at around $120,000 in Q2 2025, and will 

. This forecast is quite similar to the estimate by Peter Chung of Presto Research, who 

An optimistic outlook for Bitcoin is also supported by detailed modeling within the academic domain. Murray Rudd and Dennis Porter from Satoshi Action Education — a nonprofit dedicated to peer-reviewed, data-driven research on Bitcoin — published a paper in an early January 2025 edition of the 

 at some point between January 2027 and early autumn 2028.

Two major crypto price prediction portals, PricePrediction and DigitalCoinPrice, take a somewhat more reserved view regarding Bitcoin’s rate in 2027–2028, compared to researchers at Satoshi Action Education. Nevertheless, their estimates are quite optimistic: Price Prediction 

 $273,091 in 2027 and $408,480 in 2028, while DigitalCoinPrice is even more bullish, 

Based on these estimates, we can conclude that some of the highest quality forecasts for Bitcoin predict a rate of around $200,000 by the end of 2025. In two to three years (i.e., in 2027 and 2028), Bitcoin’s price could average as low as $250,000 and as high as $1 million.

Naturally, there's no shortage of extreme estimates on both ends, with some fervent crypto aficionados predicting astounding rates of millions of dollars within a year or two, and ardent crypto haters — loyal to their well-known line — maintaining that Bitcoin will soon be worthless. These extreme views, however, aren't what mainstream price analysts take seriously.

1. How much will one Bitcoin be worth in 2030?

Discounting headline-grabbing and/or extreme forecasts, it's likely that, by 2030, Bitcoin will reach a value of $1 million or even more. In fact, Rudd and Porter’s model sees this price as a possibility as early as 2027. 

Even if we assume more conservative estimates, such as those posted by the major price prediction portals, Bitcoin may be trading at from $500,000–$1 million in 2030. The average and maximum prices for Bitcoin by the two prediction portals we mentioned above are as follows:

It’s true that price prediction portals base their prognostications largely on aggregating forecasts from many sources, and by definition don’t always get it right. However, their current estimates for Bitcoin in 2030 are a reasonable averaging of the many divergent forecasts posted by analysts. As such, 

Bitcoin trading somewhere between half a million and a million dollars in 2030

Bitcoin as an asset has posted stellar growth rates over every imaginable time interval used by analysts. Its future prospects also look bright, as discussed above. Thus, having $100 in Bitcoin — or whatever amount you can safely afford to invest — might be one of the best available investment choices in 2025.

, as of early May 2025, there were 137,560 blockchain addresses with Bitcoin worth between $1 million and $9.99 million. The number of addresses holding $10 million or more is vastly lower, around 15,410. As such, the number of Bitcoin millionaires at the tail end of April 2025 — as estimated by network statistics — is 15,2970.

4. What if I’d bought $1 worth of Bitcoin 10 years ago?

Exactly ten years ago, on May 6, 2015, Bitcoin's market value was $229.78. Your $1 investment at that time would have yielded you 0.004351 BTC. This amount of Bitcoin is worth $409.74 today (May 6, 2025).

It’s most certainly not too late for you to invest in Bitcoin. As noted above, most estimates for Bitcoin’s future price are highly optimistic. In addition, BTC is emerging as a new hedge against stock market disturbances. While this is the first time Bitcoin has clearly demonstrated such behavior, it’s indicative of its increased standing within the hierarchy of financial assets.

You might not earn the stratospheric returns that early Bitcoin investors enjoyed, but as of 2025, Bitcoin is definitely shaping up as one of the best investments to consider — and not only for lovers of risk and speculation.

Intermediate

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Why is Bitcoin going up — and how high could it go?

Chainlink Rewards, launching on May 8, incentivizes active participation in the Chainlink network.

Daily top performer — ICON Network (ICX)

The S&P 500 fell 0.64% on Monday as market sentiment weakened due to stalled trade talks and new tariff threats, with investors awaiting the Fed’s policy meeting and Powell’s remarks. Gold surged over 2% to $3,321 as a weaker USD and Fed rate hold expectations boosted demand, with traders eyeing resistance at $3,350 ahead of Powell’s upcoming comments. The Coindesk Indices, which tracks the broader crypto market, down 0.53%, with Bitcoin and Ether down 1.33% and 1.44%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is ICX, which surged 21.4% after the announcement of its transformation into SODAX, a unified DeFi platform powered by Sonic and $SODA.

ICON Network (ICX), launched in 2017, connects diverse blockchain communities through smart contracts and Citizen nodes, aiming to improve interoperability across blockchains. It uses decentralized identifier (DID) technology to securely store user data, supporting decentralized finance and digital content distribution. 

, a unified DeFi platform with a new deflationary token ($SODA), optimized liquidity products, and a migration to the faster, low-cost Sonic EVM chain for scalability and sustainability.

Check out the latest prices, charts, and data of 

, launching on May 8, incentivizes active participation in the Chainlink network. The first phase, Season Genesis, offers 100M SXT tokens to eligible LINK Stakers. Future seasons will introduce a more advanced claiming system and additional rewards linked to various Chainlink Build projects. Stay cautious of phishing attempts, and only rely on official links provided at launch.

Yesterday, BTC spot ETFs saw total outflows of $105.7M, with $16.4M from GBTC and $89.3M from other ETFs.

, enabling users to verify their reserved Human ID as an on-chain proof of identity linked to their humanity. RWT will convert to Humanity Points (HP), claimable offchain with one click. Palm scanning via mobile will also be introduced to confirm user presence on the network.

Beginner

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Chainlink rewards launches with 100M SXT token giveaway for LINK stakers

May 5, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — Robust economic data might support June rate cut

Things are becoming increasingly complicated for the Federal Reserve as it prepares for its upcoming meeting. With inflation in focus, officials are likely to maintain interest rates. Yet, concerns about an economic slowdown are growing, exacerbated by calls from President Trump for a rate cut.

Fed Chair Jerome Powell may find some reassurance in recent labor data, which reported a robust increase of 177,000 jobs in April 2025. This solid job market provides a rationale for the Fed to hold rates steady. Additionally, the Fed's preferred inflation measure indicates a slight easing of price pressures. However, rising tariffs on imports threaten to undermine this progress.

Uncertainty looms globally over major central banks, as the White House seeks trade deals that could significantly alter economic forecasts. Economists suggest Powell will emphasize the importance of price stability, especially as inflation expectations appear to be shifting.

Meanwhile, the European Central Bank continues to lower rates in anticipation of disinflation and weaker growth due to US tariffs, and the Bank of Canada has diverged from its usual practice of issuing a standard forecast, opting instead for two contrasting scenarios based on the tariff situation with the US.

Looking ahead, the US economic calendar is sparse, with upcoming data on service sector activity and jobless claims expected to provide insights into labor market trends. Globally, monetary policy decisions are anticipated in several countries, highlighting the widespread impact of trade tensions.

As central banks navigate these turbulent waters, the interplay of tariffs and inflation will be critical in shaping future economic policies.

Weekly crypto highlight — Strategy sees no pause in Bitcoin purchase

Michael Saylor's company, Strategy, has doubled its capital raising plan to $84 billion following a record $4.2 billion first-quarter loss. This loss was attributed to a new accounting rule mandating that the firm value its substantial Bitcoin holdings at market prices. On Thursday, Strategy registered to sell an additional $21 billion in common shares, having exhausted a previously authorized equity program.

Additionally, the company has increased its planned debt purchase program from $21 billion to $42 billion, with $14.6 billion remaining. This shift reflects a growing awareness among corporate Bitcoin buyers of the unrealized earnings fluctuations that can occur, such as in Strategy's dramatic quarterly loss. The company holds approximately $53 billion in Bitcoin.

Prior to this accounting change, Strategy classified its Bitcoin as intangible assets, which limited its ability to recognize gains unless the assets were sold. This resulted in permanent markdowns whenever Bitcoin prices fell.

Over the past five years, Saylor has transformed Strategy, formerly known as MicroStrategy Inc., into the largest leveraged Bitcoin proxy globally. However, revenue from its software division fell 3.6% to $111.1 million in the first quarter of 2025.

Saylor's advocacy has significantly contributed to Bitcoin’s mainstream acceptance, inspiring numerous companies to follow suit by purchasing Bitcoin for their balance sheets. Analysts suggest that as more firms adopt this strategy, demand for Bitcoin will rise, potentially benefiting Strategy further.

Despite the stock's remarkable 3,000% increase since Saylor began buying Bitcoin in 2020, concerns remain about the sustainability of this approach. New competitors are emerging, including well-funded entities like Twenty One Capital Inc., increasing the pressure on Strategy. Nonetheless, Saylor shows no signs of slowing down, and is continuing to expand Bitcoin acquisitions aggressively.

Advanced

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Weekly Institutional Insights: Robust US economic data sends stocks higher; Strategy sees no pause in Bitcoin purchase

The US dollar is facing its biggest test in years. Since President Trump returned to office, markets have struggled. 

Introduction: The Trump effect and market breakdown

The US dollar is facing its biggest test in years. Since President Trump returned to office, markets have struggled. The S&P 500 recorded its worst start under a new president since 1928. At the same time, the US dollar is falling — not just against one or two currencies, but broadly.

Normally, when stock markets fall, the dollar gains as a “safe-haven” asset. But this time is different, as both stocks and the dollar are dropping, which is rare and worrying. Investors are leaving the dollar and moving into alternatives like the euro (EUR), Japanese yen (JPY), gold and Bitcoin (BTC).

Example of negative S&P 500-Dollar correlation. S&P 500 dropped while the Dollar rose — July to October 2023 correction period. 

A perfect storm: Tariffs, isolation and the Federal Reserve

One of the biggest reasons for the dollar's current weakness is fear. Trump’s aggressive trade stance is isolating the US economy, and investors are worried about new tariffs and the long-term damage to global trade relationships.

If Europe decides to deepen trade ties with China instead of the US, the dollar’s position as the global reserve currency could face a real threat. On top of that, Trump has been attacking Federal Reserve Chairman Jerome Powell, calling him a “loser” and pushing for lower interest rates. These comments hurt confidence in the independence of the Fed — a cornerstone of US financial stability.

, it could signal a more cooperative approach and help stabilize investor confidence, offering much-needed support for the dollar.

China, trade and the mechanism behind the dollar decline

For decades, China and other countries have exported goods to the United States, earning US dollars. These dollars were often reinvested in US assets such as Treasury bonds, helping support the dollar’s strength. But tariffs are upending this entire system.

When Trump’s tariffs were activated, Chinese goods became more expensive in the US This meant that China sells less, earns less profit and has fewer dollars to reinvest. Demand for the dollar falls — and so does its value.

In other words, more tariffs are actually 

 for the dollar. The same goes for other export-heavy countries, such as Japan or Germany. If they see reduced access to US markets, they hold fewer dollars and invest less in US assets.

This shift in global capital flows is a major reason why the dollar is falling, and why it could fall further — unless, of course, a 

, which could help bring global flows back toward the dollar.

Technical environment: Oversold — or more pain to come?

There are two key ways to track the dollar in financial markets:

The DXY is currently down 8.3% in 2025, sitting at around 99.5 — its lowest level since April 2022. Meanwhile, EUR/USD is trading at around 1.134,after hitting 1.157 on April 21 — its highest level since the start of the Russia-Ukraine war in early 2022.

Technically, the dollar appears to be oversold. The 

 (RSI) is at 38, which is close to the “oversold” threshold of 30. Earlier in April it hit 25, which often signals a short-term rebound. The 

 indicator also shows early signs of positive momentum, as the 12-day moving average has crossed above the 26-day. If DXY can remain above 100 for a few days, it could help to build a stronger rally.

On the other hand, EUR/USD shows signs of being slightly overbought. The RSI is at around 60 (with 70 being the usual “overbought” threshold), and the MACD suggests downside risk is building. A drop below 1.13 in EUR/USD could push the dollar back up slightly. However, without fundamental support, any rebound may be short-lived.

Key events to watch: Tariff deadline and Fed cuts

Two major forces will shape the dollar in the weeks ahead:

Trump signing a tariff agreement with China

 before the July deadline — could help reverse the current negative trend and provide a short-term boost for the US dollar.

The US dollar is under pressure from all sides: politics, trade, interest rates and technical factors. Meanwhile, the rare combination of falling stocks and a falling dollar signals that global investors are losing confidence in their outlook on the US. The core of the problem is Trump’s aggressive trade policy and its impact on China — a longtime buyer of US assets.

As the 90-day tariff delay nears its end and the Fed prepares to lower interest rates, the dollar could face another sharp leg down. However, 

if a tariff deal is reached between the US and China

, the dollar could regain strength, as investor sentiment improves and capital flows return.

Technical indicators also suggest that the Dollar may be slightly oversold. RSI and MACD readings point to a possible short-term bounce if conditions improve.

In the meantime, traders and investors should watch the 100 level on the DXY and the 1.13 line on EUR/USD. These will be key markers for where the dollar is heading next.

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Bybit x FXStreet Report: USD is oversold as the result of technical indicators and EUR hype

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Looking to venture into the crypto space and set up your own cryptocurrency trading platform? Here's a full guide on how to start a cryptocurrency exchange.

The cryptocurrency industry has grown rapidly over the past decade and 

 than $1 trillion. If a business wants to enter this space, a cryptocurrency exchange is among the most important services they can provide to cryptocurrency users. 

Implementing an exchange gives users the ability to trade their crypto assets in a secure and efficient manner. It is possible to build your own cryptocurrency exchange platform from the ground up. However, this option takes a considerable amount of time and money, which is why you might want to consider a 

 instead. Here's everything you need to know about how to start a cryptocurrency exchange.

A cryptocurrency exchange is a type of trading platform that allows people to sell, purchase or exchange various crypto assets with a simple and risk-free solution. A cryptocurrency exchange is considered to be the most important component of the crypto industry.

When a user enters a cryptocurrency exchange, they're typically able to pair a 

 with the exchange, which allows them to purchase, sell or trade cryptocurrencies and crypto assets with ease. If you want to start a business that includes a crypto exchange, you'll first need to know how to start one. The best exchanges include all of the most modern features and security protocols that users have come to expect when managing their crypto assets.

When someone creates an account on a crypto exchange, they gain the ability to purchase, sell or trade currencies such as 

. Some exchanges allow users to buy crypto with a fiat currency of their choice, which could be the U.S. dollar or the euro.

If you're looking to build a crypto exchange, it's important to understand that the largest and most established exchanges typically offer the most currencies. However, selecting a white-label solution allows you to partner with a crypto exchange business that can deliver a crypto trading platform that supports dozens or hundreds of different currencies.

On most crypto exchanges, investors are able to use fiat currency to purchase their crypto of choice. These investors can also trade their existing crypto holdings for another type of crypto. For instance, it's possible to trade Bitcoin for Ether. In some cases, crypto can be converted to a fiat currency. Many investors keep holdings in their accounts to make additional trades in the future. Each crypto exchange has its own set of services to which users can gain access.

While non-crypto exchanges have specific trading hours they must adhere to, cryptocurrency exchanges remain active 24/7. When a user wants to trade on an exchange, they first place money into their exchange account or wallet. Many crypto exchanges provide their own wallets, which are usually required on that specific platform.

Once a wallet has been created, a user can view prices that cryptocurrencies are trading at. Of course, these prices are determined by the wider crypto market, as opposed to the exchange itself. After a user selects the crypto they'd like to buy, they can create a buy order, which is added to an order book alongside any other sell and buy orders made on the exchange. The majority of crypto exchanges collect small fees whenever trades are made.

Before you start a cryptocurrency exchange, it’s helpful to learn more about the numerous types of exchanges at your disposal including centralized exchanges, decentralized exchanges and P2P exchanges.

A centralized exchange exists as an intermediary between sellers and buyers. Nearly every crypto transaction occurs via centralized exchanges. This type of exchange provides users with the opportunity to purchase or sell cryptocurrencies for other digital assets or fiat currencies. These exchanges act as brokers for all trades and deals that occur. Many centralized exchanges safeguard crypto holdings that are kept on their platform.

Some of the more popular centralized exchanges include Bybit, Coinbase, Gemini, Kraken and Bitfinex. The main benefits of using a centralized exchange include user-friendly interfaces and an additional layer of security. However, a centralized exchange tends to charge service fees while also being vulnerable to hacks and other cybersecurity threats.

A decentralized crypto exchange is any crypto exchange that isn't centralized, which means that a single entity isn't in charge of all assets on the platform. Since a single entity doesn't control the platform, transactions and trades are automated with the use of 

Decentralized exchanges are considered to be safer to use, since hacks and other cybersecurity threats won’t take place as long as the smart contract which runs the platform is well-designed. In general, decentralized crypto exchanges are meant to provide users with control over their own assets, as well as any transactions that transpire on the platform. There are multiple models that a decentralized exchange can use to handle orders and transactions, including the 

A few examples of popular decentralized exchanges include PancakeSwap, Uniswap and Matcha. Decentralized exchanges were built specifically to resolve the issues that crypto investors have had with centralized exchanges. By eliminating intermediaries, transaction fees are effectively reduced.

The primary benefits of a decentralized exchange include full privacy and redistribution of fees to various liquidity providers. On the other hand, these exchanges don't accommodate fiat currency and tend to have low amounts of liquidity.

Peer-to-peer (P2P) crypto exchanges are platforms that provide users with the opportunity to exchange crypto directly with each other. Instead of implementing an order book that pairs sell and buy orders and takes control of assets, the P2P model provides users with the opportunity to perform direct transactions without any kind of intermediary involved in the process.

A user's identity must be verified before they’re able to purchase or sell on a P2P exchange. The main benefits of a P2P exchange include ample security, flexible payment options, reduced fees and better accessibility. A few of the more common issues with this type of exchange extend to poor speed and/or user interface, and lack of anonymity compared to other types of exchanges.

What Do Traders Look for in a Cryptocurrency Exchange?

When traders wish to use a cryptocurrency exchange, there are many features that they want to have access to. Because of the number of exchanges available, most crypto investors will use the trading platform that offers the best, most advanced features for their purposes. Let’s look at some of the primary considerations for users of crypto exchanges.

Accessibility is an important component for any exchange that wants long-term success. Not every exchange operates in the same region, which means that regulatory concerns may apply. Some of the top exchanges can be accessed almost anywhere.

Meanwhile, other platforms have different levels of accessibility, depending on the country or state from which they operate. By necessity, a cryptocurrency exchange that can be accessed by a majority of users will invariably be more popular than one that can't be accessed by a large portion of potential customers.

Security is of the utmost concern to traders and investors who are searching for the “best” crypto exchange. Trustworthy, secure exchanges are able to give traders confidence that their crypto assets will remain safe at all times. The best security features that a crypto exchange can implement include the ability to store assets offline via 

, two-factor authentication and an insurance policy for custodial accounts.

For any cryptocurrency exchange, having great customer service is imperative. Customers need to be able to easily contact the exchange and receive quick replies to their queries. Because of the relative newness of the crypto market, many investors will have questions about how to perform transactions and create buy or sell orders. Since crypto exchanges and customers are located around the globe in numerous time zones, the best customer support solution is one that's available 24/7.

There are hundreds of different cryptocurrencies that a crypto exchange can support. Certain coins and tokens can only be purchased or sold on specific exchanges. When a user is interested in a token, they’ll need to locate an exchange that supports it. White-label crypto exchange platforms typically come with a lengthy list of supported currencies.

A large number of tokens that are available on the crypto market are 

 tokens, which means that they can be used for smart contracts on the Ethereum network. A crypto exchange may provide users with access to all ERC-20 currencies.

Every crypto exchange has at least some fees, which could include withdrawal fees, spread fees and transaction fees. Many traders choose platforms with relatively low fees to ensure that profits aren't reduced substantially. If you're looking to build a crypto exchange, consider offering low fees at the start to improve your exchange’s chances of becoming successful in a crowded market.

When an investor wants to purchase or sell crypto, the exchange that they're using needs to be able to provide enough trading volume to support these transactions. If the exchange doesn't have much to trade, the user who makes the purchase may be tasked with paying higher prices. When a crypto exchange has more than enough liquidity, sellers and buyers will be able to receive the best prices.

When looking at how complex a cryptocurrency exchange is, investors and traders tend to gravitate toward the platform that has a friendly user interface, as well as easy onboarding. If the exchange is too complex to use, many investors will turn away. In fact, new investors require a simple user interface to gain a better understanding of how to conduct transactions. White-label crypto exchanges are usually very easy to set up.

Starting a crypto exchange requires a considerable amount of time and research. You or your team must have ample amounts of technical knowledge, expertise and resources to turn a concept into a fully functioning crypto exchange. The many steps that are required to build a crypto exchange include:

If you want to start a cryptocurrency exchange, it's important to understand that doing so takes a large amount of time and money. While you can hire developers to help you create an exchange for your business, this option will require you to take a high percentage of funds out of your budget.

Because of how lengthy and arduous this process can be, it's highly recommended that you look into a 

 software provider. By partnering with one, you don't need to know exactly how to create a crypto exchange.

Using a White-Label Crypto Exchange Software Provider

There are numerous steps you must follow to start a cryptocurrency exchange. Using a white-label crypto exchange solution is considerably easier than building one of these platforms from scratch. When partnering with a crypto exchange solution provider like 

, the process is simple and straightforward.

 makes it easy for businesses to start a cryptocurrency exchange by using our powerful crypto cloud solution that allows partners to obtain digital asset services and white-label solutions. The main partners Bybit Cloud works with include digital asset holders and platforms, trading brokers and blockchain enterprises. So even if you’re a stock trading company looking to enter the crypto sphere, or an existing crypto exchange on the hunt for stronger solutions, Bybit Cloud has got you covered. 

Every process that an exchange must perform is automated, simplified and standardized with Bybit Cloud. We offer extensive data analytics functionality as well as a considerable amount of market knowledge. The process that's required to start a cryptocurrency exchange with Bybit Cloud can be performed in three simple steps.

First, contact Bybit Cloud and speak with our team about your current business needs and goals. The team at Bybit Cloud will then assist you in delivering a crypto exchange that adheres to these goals.

The initial solutions available to you are fully customizable, and can be delivered in around five working days. Primary details for this exchange will also be provided, which include your domain name, developer account and logo.

Once the final product is ready to roll out, the Bybit Cloud team will assist you throughout every step associated with launching the platform. This assistance extends to operational guidance and comprehensive training to support your business growth.

From stability to top-level integration, many tangible benefits come with using Bybit Cloud to start a cryptocurrency exchange.

Bybit Cloud maintains a lengthy track record of approximately four years without any downtime. This level of stability can't be found with most white-label crypto exchange solutions.

Obtaining a white-label crypto exchange means that you don't need to waste time building your trading platform from scratch. Once you start a cryptocurrency exchange with Bybit Cloud, you'll gain access to full customization of services and products, as well as modular management of daily operations and any new assets.

The crypto exchange you obtain with Bybit Cloud can be customized to meet your needs, which means that the end result will be based entirely on your business model and current requirements.

Your exchange will have access to a considerable amount of liquidity and we currently maintain best-in-class derivatives trading depth. When you start a cryptocurrency exchange, having access to liquidity is essential for easy growth.

Our solution provides third-party integration of custom payment gateway, data analytics providers, KYC/AML providers and many more. 

Bybit Cloud provides our partners with comprehensive data analysis tools that allow for quick and seamless performance assessments.

When you develop a crypto exchange with Bybit Cloud, you'll find that market fluctuations can be effectively controlled, since background data is automatically updated and early warnings are sent on the front end.

Bybit Cloud delivers full support for your crypto exchange operation and development with features like dedicated technical support, user behavior analysis and operational data analysis.

Once you've created a crypto exchange with Bybit Cloud, the support you receive doesn't end there. Whenever you want to add new features or services to your exchange, our comprehensive white-label solution provides support for future development services.

The entire Bybit Cloud solution is supported by industry experts who will provide guidance for operational planning, which should allow you to keep mistakes at bay once your exchange is brought online.

When your company is looking to start a cryptocurrency exchange, it's highly recommended that you opt for a white-label solution like Bybit Cloud. This can serve as your one-stop solution for any crypto products you require. These products allow you to integrate transactions and asset payments into the products you offer with the Bybit Cloud API.

As mentioned previously, Bybit Cloud offers a substantial amount of asset management and data analysis tools for you to take advantage of. These tools help you easily manage your platform, leverage data analytics for better performance and build applications in a more efficient manner.

New entrants to the crypto exchange industry usually have a difficult time creating an exchange that meets the high standards most investors have. With the Bybit Cloud solution, you'll be able to develop a robust crypto exchange that exceeds your user expectations and attracts new users.

Cryptocurrency exchanges are the lifeblood of the crypto industry, providing investors with the means to trade their assets. Even though it's possible to build an exchange from scratch, it would be more effective to partner with a white-label crypto exchange solution provider like Bybit Cloud that can quickly deliver a platform to meet your every need. Contact us directly to 

How to Start a Cryptocurrency Exchange

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