With the emergence of digital trading, Cryptocurrency Exchange Software is selling like hotcakes. It is used for processing a large number of transactions either through coins or tokens. A solid exchange platform is needed for buying, selling, and exchanging cryptocurrencies.
The main components of a cryptocurrency exchange software solution are
- User interface – It helps users to perform the basic operations on the platform with ease. It should be intuitive with easy navigation. It must be compatible with multiple devices and operating systems.
- An accurate matching engine – It assists in managing the orders of the users without any errors. Trading cannot be held without the presence of a matching engine. It also plays a part in the execution of transactions and calculation of the account balances of users.
- A robust admin panel – It ensures the presence of adequate liquidity on the platform. It verifies the KYC process whenever a new user registers. It helps in granting access to users’ accounts. It processes different requests raised by users such as fiat debits or credits. It manages the overall trading processes and also handles any modifications to the trade.
- A secure wallet – It stores the coins or tokens of investors safely. It helps in building the trust and integrity of the exchange platform. It should stay highly secure for holding the data and funds of the users safely. It is best to have a mix of hot and cold wallets to manage the different risks associated with fund management. Hot wallets operate online and serve the digital currency exchanges, while cold wallets store coins safely through an offline mechanism.
Costs involved in setting up a Crypto exchange software
Budgeting is a tricky aspect in the developmental process as there is no fixed estimate of the expenses to be incurred. It depends on the features required, choice of the technology stack, and skillsets of people involved in the execution of the project. Overall, how much ever be the cost, the platform must function with utmost efficiency devoid of any technical glitches and bugs. It should assure a rock-solid performance for the traders.
Other factors to consider before investing in Cryptocurrency exchange development services
- Choice of technology – Whatever technology is selected by the developers of the exchange, it must ensure quick scalability and be highly dynamic. AI-powered technologies are a big trend now due to the need for automation and reducing human intervention.
- Competition in the market – Currently, the crypto space is filled with intense competition with big enterprises and startups having a significant presence in the industry. Ensure to have solid long-term planning in case things do not work out after the launch of the platform. Add new features regularly during your phase of expansion. Only effective planning and a robust development strategy would lead to success.
- Partnerships – Ensure to collaborate with the leading providers for payment solutions, exchange of tech stack, and marketing services for ensuring the authenticity and viability of your business.
Must-have Features in your Cryptocurrency exchange software
- Fiat to crypto trading – Ensure that customers experience a seamless trading experience while converting fiat currency to crypto and vice-versa. Ensure the presence of sufficient liquidity on the platform. Support the major fiat currencies such as USD, Euro, GBP, etc. Have ready integration with different fiat payment gateways.
- Referral program – An integrated referral program will encourage the existing users to bring new users onto the platform and expand your operational scope. You can distribute exciting rewards to them based on the number of referrals they have brought.
- The best security practices – Include robust security measures such as end-to-end encryption, password-protected user access, two-factor authentication, and anti-DDoS protection to ensure that the trading processes are never halted or compromised by outside attacks by unauthorized parties.
- Technical support – Provide round the clock technical support services in multiple languages to deal with any glitches and bugs faced by your global user base swiftly. It helps in uplifting your user retention. Have a dedicated helpdesk module.
- Provision of real-time data – Render real-time market data about changes in prices of assets, changes in exchange rates to your users through interactive graphs and charts. It helps to improve their decision making while undertaking investments. The reports should be easy to understand and must be devoid of any complexity.
- Support for different types of orders – Have an advanced trading system that accepts different types of orders such as market order, limit order, take-profit, and stop-loss order.
Why it is better to invest in a white label solution than build the platform from scratch
It comes with all the in-built features and functionalities and can be readily launched in the market. It can be customized according to the nature of your business needs. It saves both developmental costs and time.
The different types of Cryptocurrency exchange development
- Centralized exchange development – It acts as a secure trading platform and possesses sufficient liquidity for fast transaction processing and quick order matching. Though it faces some security glitches due to the increasing number of hacking attacks, it scores well in functionality, scalability and user experience.
- Decentralized exchange development – It gives more priority to privacy and security by allowing traders to deal with each other directly without the presence of a third party. It is mostly monitored by the Ethereum smart contract and uses the power of distributed ledger technology to ensure safe trading.
- Peer to Peer exchange development – The smart contract-based escrow system is responsible for encouraging trades to take place between the different users on the platform. Seamless redressal of disputes is ensured through a robust dispute management system. It ensures compliance with KYC (Know Your Customer) and AML (Anti Money Laundering) norms for every user onboarded on the platform. Confidentiality and protection of users’ interests are ensured through two-factor authentication. It ensures both an interactive and flexible trading environment.
The future in store for Cryptocurrency exchange development
It has a strong future ahead as many countries are attempting to regulate it. Many business firms and corporations have started to accept cryptocurrency as a means of payment. Its market capitalization is poised to grow in the next few years if its volatility is kept in control. The fact that it favours decentralization and transaction anonymity will keep it in good stead. It has to stay clear of fraud and hacker attacks to venture into the mainstream financial system. Its limited supply and growing usage are huge positives though many see it as a speculative bubble that will burst soon. A huge number of cryptocurrencies are being created such as Ripple, Litecoin, Bitcoincash, and Ethereum since the emergence of Bitcoin more than a decade ago. Hence, it cannot be eliminated from the future.