Cryptocurrency Exchange Development: Your Roadmap to Capitalize on the Crypto Opportunity

Cryptocurrencyis disrupting the traditional economic market. As economy is moving from paper to paperless currency, more and more people are accepting the cryptocurrencies. The future of economy is certain to be surrounded by an overall digital environment.

The reason cryptocurrency is appealing to the masses is its features like security, transparency, speed, ease of use and trustworthiness. In various regions, people have accepted cryptocurrencies such as Bitcoin, Litecoin, Ethereum etc. just like any other fiat currency like dollars or pounds.

When it comes to investing in cryptocurrency, except for as traders, many people are opting for cryptocurrency exchange development. Besides, many others prefer to launch their crypto coins or tokens. Both of these words may sound similar, but it is paramount important to understand their differences. So let us delve into them:

Difference between coins and tokens

• Crypto coins: Cryptocurrency coins are referred to as digital currencies which are used to make payments. The special feature which distinguishes them from tokens is that they are based on a standalone or separate blockchain. Crypto coins are used to pay for goods and services in a similar manner of fiat currency.

• Crypto tokens: These are encrypted digital assets which are both tradable and fungible. Crypto tokens are hosted on another platform such as Ethereum.

What is Cryptocurrency Exchange Development?

Now-a-days, people are looking for more and more ways to earn money through cryptocurrencies. Because of this, investors are exploring the opportunities in crypto mining, launching of ICOs, investing or trading in crypto assets and even cryptocurrency exchange development. As the trend of crypto mining is declining due to halving of profits and there is a huge competition in the face of ICOs, so the best solution with minimum risk is to develop a crypto exchange.

Various types of cryptocurrency exchanges

There are different types of cryptocurrency exchanges that can be developed, including:

• Regular Exchanges: Centralized exchanges are regarded as regular crypto exchanges. They are an advanced version of the traditional method of trading. They focus on building a user-friendly interface where anyone can easily sign up and trade the coins.
• Peer to Peer Exchanges: P2P exchanges use a smart contract based escrow account to transfer and release crypto assets. It facilitates fully safe, secure and instant transactions.
• Cryptocurrency Brokerage Firms: This type of exchange aids users to trade cryptocurrencies in exchange for fiat currencies or any other cryptocurrency. Now-a-days, many users are making money through this platform.

By now you must be aware of the different types of cryptocurrency exchanges along with their provided utilities. Now let’s move on to consider various ways for cryptocurrency exchange development.

How to build your own cryptocurrency exchange

Considerably there are three different ways through which a cryptocurrency exchange can be developed. These are namely white label solutions, open source solutions or custom software development. Let us understand the viability of each variant.

• White-label Solutions

White label solution is considered one of the best solutions for accelerating time-to-market your cryptocurrency exchange. These are ready-made software with market-ready backend and database. The front-end of the software can easily be customized according to the need of the client.

• Open-Source Solutions

These types of solutions can be easily and freely used by anyone. They can deploy your exchange in a very short time span. But these are generally considered less secure and reliable and they even lack good support system to the user.

• Custom Software Development

The third variant of cryptocurrency exchange development is building an exchange from scratch. It requires more time and efforts on the part of the developers. Generally, there are less after effect issues and leads to greater profits.

Roadmap for cryptocurrency exchange development

Following are the steps that can help ensure a smooth-sailing crypto exchange development process.

• Ascertain where you want to develop your business
• Procure proper licensing of the location where you wish to set up
• Obtain funds for your venture
• Collaborate with a technology partner
• Connect with other exchanges to maintain an apt flow of liquidity
• Associate yourself with a payment processor
• Integrate advanced security features into your exchange
• Perform beta testing
• Setup a program to market your exchange
• Provide 24*7 customer support
• Maintain a professional team of experts for ongoing collaborations

Conclusion

To conclude, we have fully structured various aspects which should be considered before initiating the journey for cryptocurrency exchange development.

If you need any assistance or wish to develop your own cryptocurrency platform, make sure to partner with a professional team of blockchain experts like us. We provide feature-rich, highly-secure white label crypto exchange solution that can help you launch your exchange in just 3 weeks. Embrace our turnkey solution to accelerate time-to-market for your exchange and gain competitive edge.

View a free demo of our white label exchange or talk to our experts to share your needs.