How to Build Your Hybrid Crypto Exchange Platform?

Table of content:

Introduction

As bitcoin came into existence in 2009, a new revolution of decentralization and cryptocurrency kicked off. The fact that the currency wasn’t in control of any centralized power and could easily be used for anonymous yet secure transactions fascinated the users.

As the cryptosphere evolved gradually, new cryptocurrencies with new approaches and advanced consensus algorithms came into play. With the advent of more cryptocurrencies, more crypto platforms have emerged. Infrastructural development is still on the rise and would continue to mushroom with the growing demand and adoption of digital assets.

Evolution of Hybrid Crypto Exchange

As the demand for crypto appeared, the first kind of exchange that came into existence was a centralized crypto exchange. Centralized exchanges or CEX enable fast execution of trades between buyers and sellers through ample amount of liquidity and charge a transaction fee for exercising control over transactions. On the other hand, decentralized exchanges function free of third-party control and facilitate anonymous, hack-proof trades at a relatively lower speed than centralized exchanges.

Hybrid exchange (HEX) emerged to let traders enjoy the positive features of centralized exchanges and decentralized exchanges. Hybrid crypto exchange platforms address issues and combine the usability of both types of exchanges.

What is a Hybrid Crypto Exchange Platform?

A hybrid cryptocurrency exchange platform is a trading platform providing customers with access to private keys and enabling trades at low trading fees. The platform characterizes transparency, swiftness, and scalability, and operates free of third-party control.

Features of Hybrid Cryptocurrency Exchange Platform

As people realize the limitations of centralized and decentralized exchanges, more hybrid trading platforms are evolving with advanced features.

Some of the common features that are integrated at the time of hybrid crypto exchange setup are:

– Maximized Liquidity

A hybrid trading platform can be integrated with a myriad of liquidity options to ensure that the order book remains full.

– Escrow mechanism

As third parties don’t exercise control over funds traded on a hybrid exchange, an escrow mechanism is set up to facilitate safe, risk-free transactions.

– Seamless Transactions

A simple yet intuitive user interface and robust matching engine integrated within hybrid exchanges enable smooth, fast transactions.

– Atomic Swap Exchange

Atomic swap smart contracts allow the peer-to-peer exchange of digital currencies without any third-party intervention.

How to Develop a Hybrid Crypto Exchange Platform?

When it comes to a hybrid crypto exchange setup, businesses must follow the steps mentioned below:

– Perform rigorous research of the overall crypto market and your competition before you plan to set up a hybrid exchange platform.

– Decide whether you wish to build a hybrid cryptocurrency exchange from the ground up or you wish to leverage a robust white-label hybrid exchange.

– Choose your technology provider carefully. If you opt for a comprehensive consultancy service provider, they might also help you choose whether custom development or white label hybrid exchange development aligns with your budgets and needs.

– Share your project requirements with domain specializing technology partners who can then begin to analyze your specified product and business’s current state.

– The development phase begins just after the requirement analysis ends. The developers set up a hybrid cryptocurrency exchange according to your project needs.

– Make sure that the development company performs thorough testing of the crypto exchange platform before delivering. If you have chosen a white label hybrid exchange from a reputed and reliable technology partner, they usually offer a well-tested product.

– To ensure zero operational flaws, make sure that your custom crypto exchange platform is deployed on a beta server first. This step might not be included if you are opting for a white label product.

– Hone your marketing and branding activities as soon as your hybrid crypto exchange launches.

Conclusion:

If you are unable to make up your mind on whether a decentralized or a centralized crypto exchange can offer the utmost value to your customer, you must unite the advantageous functionalities of both. A hybrid crypto exchange setup would help you cover the most sought-after features and functionalities and eliminate all the unwanted ones. Choosing to build a hybrid trading platform can prove to be a great move for your business.

Whether you wish to fast-track hybrid cryptocurrency exchange development with white label hybrid exchange or build one from scratch to gain a competitive advantage, Antier Solutions can assist. We extend premium services to help businesses come up with their desired exchange platforms within their specified time and budget.

Schedule a call with our subject matter experts today to share your project needs.