About Cryptocurrency & Cryptocurrency Exchange?
Cryptocurrency is a type of digital currency that doesn't use banks to verify transactions. Peer-to-peer technology makes it possible for anybody, anywhere, to send and receive payments. Payments made using cryptocurrencies do not represent actual physical currency that is carried and exchanged in the real world, but rather are just digital entries added to an online database that describe specific transactions.
Crypto exchanges are the most often used platform for starting cryptocurrency and other digital asset trading. Privately owned platforms known as cryptocurrency exchanges allow users to trade one cryptocurrency for another, as well as for digital, fiat, and NFT currencies.
Usage of Cryptocurrency Exchange Financial Model
You need a financial model whether you want to;
- raise funds,
- determine the value of the company,
- for internal decision making, or
- just make a budget for your business.
These models are used both internally within the organization and externally for presentations to creditors and investors, both current and potential.
Though the main goal of creating a financial model for cryptocurrency exchanges is to obtain funding from corporate entities, venture capital firms, individual investors, etc. They'll invest money in the business by evaluating the number of users and also future forecasts and projections for the business.
What to present in a Cryptocurrency Exchange Financial Model?
- Forecast users,
- Forecast revenue,
- Forecast direct & indirect expenses,
- Forecast capital expenditures,
- Build 3-Statements (P&L, BS, and CFS),
- Ratio Analysis,
- Summary Report,
- Return on Investment, and
- Valuation.
Market
The Global Cryptocurrency Exchange Platform Market Size was valued at US$ 32.77 bn in 2021 and it is expected to reach US$ 347.50 bn by 2030, growing at a CAGR of 30.08%.
Conclusion
The fact that the current financial system is out of date is why we are all here. The financial sector has already undergone a major transformation thanks to cryptocurrency, and this revolution will only continue to bring forth significant changes.
Many investors are now attracted to launching their own cryptocurrency exchanges as a result of the rising popularity of cryptocurrencies and the potential of digital technology.
We, at Icrest Models, provides a financial model template that can be used by entrepreneurs for launching a Cryptocurrency Exchange Platform. Our template is easy to use since it is created with the utmost diligence and thoroughly tested to provide its users with a sense of relief and satisfaction.
Below is the template link for a Cryptocurrency Exchange financial model;
https://icrestmodels.com/product/financial-model-of-cryptocurrency