Blockchain technology has impacted all over the Internet since its inception in 2008. Almost every industry around the world is looking forward to leveraging the power of this innovative technology.
The recent breakthrough of Cryptocurrencies like Bitcoin, and Ethereum has revolutionized the complete Fintech industry. Traders, businesses & public are now dealing & investing in Bitcoin & making huge money on a cryptocurrency exchange.
In no time, the crypto exchange has become the finest revenue-generating business model in the digital world. New to these terms? Let us first understand the basics of the exchange platform.
A cryptocurrency exchange is a trading platform where one can buy, sell, or exchange a wide range of crypto assets in a risk-free manner. The trading platform in no time has become a booming business model for most startups. The cryptocurrency exchange development business can generate a lucrative amount of money through multiple revenue streams.
Today, every sized business is seeking to reap the benefits of this millionaire technology, and what they can find better than starting their own cryptocurrency exchange business?
In this article, we’ll tell why & how to build Cryptocurrency exchange platform from scratch, what are the core features of this kind of platform, and how you can easily initiate your efficient future crypto exchange app in 10 simple steps.
Read Also: Fintech App Ideas for Startups in 2023
Key Features & Functionalities to Build a Cryptocurrency Exchange Platform
Creating a high-quality & feature-rich cryptocurrency trading app is needed so that it keeps on gaining users, startups & businesses. A scalable & efficient cryptocurrency exchange app must have the following features & functionalities-
Sign in/Sign up
A user will first land on this page. They need to either log in (if they already have an account) or register themselves (if new). The sign-in/registration feature would protect the system from any unauthorized logins, hack attacks, or misuse of data. Besides the general login/password combination, there is also a 2-factor authentication to provide additional security for users.
Users are thoroughly verified with this feature to ensure the transparency of trades and to eliminate the possibility of a scam.
This feature allows traders to deposit or withdraw money into/from the internal wallet featured by the cryptocurrency exchange software.
The feature allows every user to buy or sell currency to other users in the system without any system errors. The feature sets several possibilities for order creation that users can choose at their convenience.
The cryptocurrency exchange’s internal API is required to allow users to create their own automated trading systems or data exchange among the verified devices using the cryptocurrency exchange script.
This is a very useful feature as it allows the creation of various graphs and stats for better visibility.
A scalable admin panel is required to monitor trades and manage the actions made on the exchange based on their access level.
Note: These are only the main features required by a simple cryptocurrency app. For a complex app, one may need to implement more advanced features & functionalities.
Steps to Build a Cryptocurrency Exchange Platform
The cryptocurrency exchange development process is divided into aspects that are developed separately by different teams in collaboration with each other. An efficient exchange trading system requires the following app-building aspects to be taken care of:
This is the first thing users will see before they finally start using the application. Focus on building a harmonic design combining both aesthetics and usability. Make sure to first build properly-
- Wireframes – the base of the future design where you will implement the key features & functionalities.
- Prototype – the detailed visualization of how the user is interacting with the app
API is the back-end part of the application that remains invisible to the end-user. The server part of the application is responsible for performing the application’s internal logic and handling the basic functions like-
- User authentication and authorization
- The server-side function of the admin panel
- Cryptocurrency deals for the users
- API that can be used by third-party organizations
This is an important aspect of modern mobile app development. Testing helps in identifying and eliminating bugs & errors in the app & within the UI before the app is finally deployed.
Since the crypto app stores sensitive information of users, it needs to be protected from possible data leaks and hacking attacks. Ensure fool-proof security of your crypto app via:
- Secure architecture at the back end–ensure creating a secure way of storing and exchanging confidential information.
- User’s authentication –to prevent unauthorized login to the user account. This can be done by implementing security measures like two-factor authentication or account login notifications to the users specifying the location and the IP address.
- Cryptography leveraging Blockchain ECDSA algorithm
Specialized Cryptocurrency Exchange Development- Smart Contracts
Many startups also look for building specialized cryptocurrency exchange platforms for designing smart contracts, and back-end, or front-end products exclusively. We offer the best in class Blockchain services including-
- Unit-tested Smart contract-powered platforms development using solidity
- Compiling and migrating smart contracts over Blockchain using Ganache and Flapper
- Invoking Smart Contracts Using Web3.js
- Expertise in setting up Main (public) and side (private) chains
- Secure wallet and token development
- Automated Escrow and KYC services
Bonus Tips- 10 Steps to Initiate your Crypto Exchange Platform Easily
Do A Thorough Market Research
The crypto market is highly volatile in nature so it is highly recommended to do thorough market research. This will keep you updated on the latest crypto trends and features that are attracting crypto users and would also suggest the best time to invest in.
Choose the Right Region to Operate
Choosing the right location is key for a successful cryptocurrency exchange business. While in some countries, cryptocurrencies are marking new heights, some countries like Russia, China, Bolivia, Ecuador, and Nepal are saying “No” to cryptocurrencies.
Here are some cryptocurrency-friendly countries- the USA, Canada, Japan, Singapore, Malta, Australia, and the European Union.
Choose the Type of Cryptocurrency Exchange
Have knowledge of different types of cryptocurrency exchanges that are existing in the current marketplace. This would help you to decide the right type of crypto trading platform to invest in.
Some popular crypto trading platforms are Centralized crypto exchange, Decentralized crypto exchange, p2p crypto exchange, crypto derivatives exchange, and hybrid exchange.
Carefully Design the Architecture of the Exchange
After you have decided on the type of crypto exchange to build, now you must focus on efficiently designing the architecture of your crypto trading platform. Four important components needed to design a perfect architecture are-
- Trade engine
- multi-cryptocurrency wallet
- admin control panel, and
- effective user-friendly interface.
Hire a legal team of counselors
Creating a cryptocurrency exchange comes with a lot of regulatory risks.
As crypto-asset rules & regulations vary from country to country, it is always advisable to hire a legal team of counselors.
Select the best Cryptocurrency Exchange Script Provider
Among so many crypto exchange script providers in the crypto industry, choosing the reliable one is a difficult task.
Choose the professional & experienced cryptocurrency exchange script provider who can help you create a stunning & efficient crypto exchange with ideal & prominent features as per your requirement.
Choose a Reliable Payment Processor
Partnering with a reliable payment provider to process payments through fiat currency is a thing one must not ignore while building the exchange app.
Partner with a prominent bank that has fast settlements of funds and can host online facilities providing the best user experience and convenience to your users.
Fool-Proof Security features are a must
With the increasing popularity of cryptocurrencies, bitcoins and crypto exchanges are the main targets for hackers. Improper security systems are putting many exchanges at risk. This may result in the loss of millions worth of cryptocurrencies.
Ensure you are developing your exchange with high-end security systems such as-
- HTTPs authentication
- Jail login
- Data encryption
- Two-factor authentication
- Registry lock
- SQL injection prevention
Don’t Forget to Go for Beta Testing
Running beta testing before hosting your exchange to the server is a step you should not ignore. Testing will help you identify the errors and rectify them instantly. Deployment can be done after testing.
Offer 24×7 Customer Support
After launching your crypto exchange to the market, you must ensure to offer effective customer support on a 24/7 basis.
An efficient & effective customer and technical support could attract many users to your platform & ensure your credibility.
With the popularity of the crypto exchange all over the world right now, it is clear why more and more startups are looking forward to a future involving themselves in the system.
Considering all the above essential factors, you can create and deploy a fully functional cryptocurrency exchange platform and start trading for great earnings.
Looking to start a flourishing crypto exchange business easily in a hassle-free manner? Connect to the world’s best Cryptocurrency exchange developers!
QSS Technosoft has been building high-quality cryptocurrency exchange applications for businesses around the globe. Our built apps have brought great profit to our clients in the very short term. You can hire our developers at flexible engagement models and as per your country’s time zones.
Let’s connect to discuss in depth your cryptocurrency exchange platform requirements!