How much cash do I need to run a crypto exchange. Coinbase has gotten multiples of 100s millions in FIAT VC funding. So they can cover withdraws.
But what if you are a small startup ( maybe ICO ) who wants to provide exchange services. If lots of people start withdrawing FIAT from you ... you can't keep up, unless you are taking as much FIAT deposits as they are being withdrawn ... any thoughts ?
I think you would need more than 200 million dollars in order to run your own crypto exchange in order to run your exchange properly if you will offer fiat withdrawals but if not then you will still need more than 2000 BTC in order to do it. You can also try to develop your exchange more and program it so that the buyer and seller will just exchange balance and the only thing you would need to worry about is fees. Just have at least 0.25% of every transaction done as fee for exchanging and also have a decent amount of fee on withdrawal.