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PSP for crypto exchange: checklist & cryptotrading basics
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PSP for crypto exchange: checklist & cryptotrading basics

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Choosing a payment service provider is of immense importance for the proper performance of any business. And when it comes to a PSP for crypto, selecting a payment gateway is even more vital. The reason is apparent — exchanges of such a kind won’t be able to function correctly without a robust crypto payment gateway. A crypto-friendly PSP will ensure smooth payments and payouts processing and represent a backing as a reliable partner.

Everything looks quite simple for a user trading on a cryptocurrency exchange: a site with dynamic information about rates, charts, and order books for buying and selling coins. Depending on the exchange it can feature a market depth chart, additional tools, and indicators. The ability to quickly refill the balance and withdraw funds to a personal wallet is a must. A personal account with trade statistics and the possibility to contact technical support is at a premium. But what are the crypto trading basics, and how is the exchange structured and functioning from the inside? What is needed to ensure its stable and uninterrupted operation? Let’s figure things out in due order. After all, the interface is only a tiny component of the exchange.

Cryptotrading basics essentials

So, what is a cryptocurrency exchange? The general meaning says it’s a business that allows for trading digital or cryptocurrencies for fiat money or other digital currencies. Plainly, it’s a place of exchange where buyers and sellers trade cryptocurrencies or transfer and convert currencies from fiat to crypto and vice versa. But a crypto exchange concept can also be defined as:

  • broker-dealers representing traders and trading on their behalf;
  • private traders who buy and sell currency on their accounts on their own platform;
  • holders of large volumes of cryptocurrencies;
  • issuers of their own currencies who trade on their platforms.

Types of cryptotrading

Two main types specify the temporal characteristics — long-term and short-term trading. These two types are further divided into subtypes based on trading strategies. They include automatic trading with the help of a bot, HODL strategy (long-term holding of coins in order to sell them later at a higher price), impulse-based strategy (trading at the time of active market movements), scalping, news trading strategy, etc.

Basic rules for cryptocurrency trading

Here are the key points to follow:

  1. Diversify. It is the main principle of risk management. Working with only one, even the most popular exchange, is a shortsighted and risky strategy, like investing in only one asset.
  2. Stick to a strategy. Do not be distracted away from the chosen plan. Letting your emotions run away with you and jumping from one path to another increase the likelihood to get losses more than profits.
  3. Do not take loans. And it’s not about margin trading but real loans — many traders take such steps, hoping to reduce their investments and get more profit quickly.
  4. Analyse. Pay attention to technical and fundamental analysis so as not to miss the breaking point of the trend. Also, follow the political and economic news.
  5. Minimise risks. It is imperative to use stop loss and take profit orders to minimise risks.
  6. Don’t take chances. Rely on analytics and facts rather than on intuition and luck.

Observance of these simple rules will significantly reduce the likelihood of your burnout in the first few days.

How to choose a PSP for crypto business

If you nurture a plan to run your own exchange but not to trade, your primary task is to find a reliable payment gateway for your business. Frictionless payment processing is one of the crucial elements of the whole business scheme. Integrating a reliable crypto payment provider allows for the quick processing of users’ funds. It also helps to avoid fraudulent transactions. But not all payment processors are equally suitable for crypto exchanges. So, here is a short checklist of what criteria you should pay attention to while choosing a PSP for crypto exchange.

  • PSP fees vary widely between companies. Additionally, some payment processors build hidden fees into their contracts, so be sure you understand what you’re signing. To maintain competitiveness and gain profit, opt for the lowest transaction rates.
  • Industry regulation. Ensure your payment processor is PCI DSS-compliant to safeguard your enterprise against cyber threats. Note that federal laws do not require compliance in some countries (e.g. the United States), though many state laws do. A secure payment gateway will protect your business and profit from fraudulent actions.
  • Specific business needs. The crypto industry landscape is varied, diverse, and habited by users with differing needs. Be sure that a crypto payment provider you opt for supports or allows for connection with various payment methods. It’ll help you reach more traders all over the world.
  • Smart routing. A payment processor with this feature is a surefire way to increase your conversion rates. It will help each transaction be processed until its successful resolution.
  • Type of integration. It can be fulfilled via API or HPP. Check which one better suits your enterprise.

Choosing the right PSP for crypto delivers a bunch of advantages. Apart from the security of the data and funds, you get the ability to accept a range of payment types, including alternative ones. Implementation of these criteria helps you gain users’ loyalty and trust.

There are many factors to consider when trying to discern which PSP to choose. But the core is as follows: the countries it operates in, its technical aptitude, and its services. Sure, one more factor appears to be individual for each enterprise: different price tags for the services. And they depend not only on the depth of the offered services but also on security, reliability, and establishment in the market.

Corefy for crypto businesses

We know that finding a reliable payment solution is not an easy task. It requires thorough consideration and matching of your needs with the offerings. We are here to help.

Partnering up with our payment orchestration platform is beneficial for the general performance of your business and can significantly push it towards success. Our feature-rich solution can be easily integrated into your current processes or launched as a new service. Our payment experts team and a range of smart tools (Routing & Cascading, Currency conversion, to name a few) help your conversion rates reach perfection and your business scale up. We enable you to accept payments in 400+ methods via 650+ providers.

Attract new clients by offering a convenient payment solution that gives you advantages over the competitors. Contact us to know more and get started in a snap.

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