Top Components to be Integrated in a Cryptocurrency Exchange

Launching of a cryptocurrency exchange takes a lot of technical expertise. Crypto exchange requires to be integrated with many market-leading components and attributes which is explained in detailed in this article. So let us get started.

Regulation

The overall crypto ecosystem is variable in nature and it is not controlled by any one individual. People still have some misconceptions regarding this industry. As there is no central authority who governs the transaction and thus government or any third party does not play any role in regulating the environment. Industry is still in the developing phase and now it is the time to capitalize on the growing opportunities. For starting with your own cryptocurrency exchange, first and foremost you must get your company registered under the applicable rules and regulations.

Company Registration

A white label crypto exchange can be started as both registered and unregistered company. A legit registered company has more trust among the users as it justifies their real existence. Registered companies have to get there entity listed at a place which would be regarded as headquarter and additionally also their bank accounts.

You need to research for a place which have crypto-friendly regulations. Focus on that region which would permit you to grow as a crypto exchange company. There are many regions such as Malta, Estonia, Belarus, Singapore and others which have crypto-friendly laws. Many tax-free countries are also emerging up in crypto space.

Members

Crypto exchange users participate in trading of crypto assets. The identity of user needs to be verified while entering into exchange which can be done through two important points which are:

• KYC (Know Your Customer)
• AML (Anti Money Laundering)

Being the owner of exchange you need to authenticate the identity of the users. Maintaining user identity is one of the important aspects to preserve the security of exchange. Generally, there are two key verification stages which are identity verification and address verification. You may also ask the users to send their personal pictures for further verification. Users should be granted permission only after full criteria are met.

Components

Following components must be integrated in cryptocurrency exchange software:

• Liquidity

There are various crypto exchanges available in the market but what makes a crypto exchange differ from others is their attribute of liquidity. Building an exchange requires rigorous efforts and they should be made robust by applying consistent liquidity.

One of the options to infuse liquidity is through simulation. Artificial intelligent bots can be integrated to enhance the level of liquidity. Trading bots maintain the efficient liquidity by consistently matching buy and sell trading orders. Another option is to share the liquidity with outside APIs. You may connect your network with other outside exchanges such as Kraken, Poloniex or Binance to maintain the liquidity.

• User Interface

It is not only the software structure which needs to be robust but also the design perspective. The graphical user interface needs to be both appealing and convenient to perform trade transactions. The interface may differ according to linguistic change, global or social preferences. The role of interface is to make even least tech-savvy person to complete the transaction process. User experience, navigation, layout and tests should be well checked and maintained efficiently.

• Trading Engine

The buy and sell orders of white label cryptocurrency exchange software should be matched with minimum latency. Various built-in orders such as market orders, limit orders and stop order and charting of portfolio is an essential requirement for a crypto trading ecosystem.

• Administrative System

Centralized exchange is maintained and controlled by owner or an administrator who looks after all the functioning. Certain aspects like management of account, transfers, wallet management, user’s identity mechanism has to be efficiently looked after. The norms for keeping the private system secure have also to be maintained.

• Cryptocurrency Wallet

Every cryptocurrency exchange has an associated cryptocurrency wallet through which all the buy and sell orders are performed. In the past all the hacks and scams have been majorly performed through crypto wallets. So, it has become paramount to keep the exchange’s wallets safe and secure to provide a reliable crypto trading experience to traders.

• Security of Crypto Exchange

Security is an essential aspect for any crypto exchange. Users deal with huge amounts of money by relying on the crypto exchange. Thus to maintain the trust and to eliminate the hacking attempts of hackers following safety mechanisms can be included:

• Hacking of full system access can be avoided through multi-factor authentication. Combination of hot and cold storage wallets may also be implemented to eliminate the hacking of administrative panel.
• Identity and transactions of users need to be made safe and secure. Multifactor authentication attribute can also be implemented in case of users. Therefore, hackers may not be able to gain access to the crypto wallet when it has to be validated by more than one user.
• You should make your information secret to the maximum level. Any leaking of private information may lead to serious attacks.
• The server where you will host your website should be a reliable provider. Providers such as Amazon Web Services or Microsoft Azure can be considered as safe servers to host your crypto site.

End Notes

Cryptocurrency market is full of different products and solutions. But one of the software products which have majorly included a large proportion of business is cryptocurrency exchanges. The trends of crypto exchanges are constantly on rise. Start-ups, SMEs or large corporations are increasingly getting engaged with this software.

There is immense business opportunities in starting with best white label cryptocurrency exchange software and getting a robust structure developed. We at Antier Solutions, build such crypto exchanges which have the potential to create a global presence. We develop highly secure, scalable and powerful exchanges which can drive safe and secure transactions.

Schedule an obligation-free call with our experts to launch your crypto exchange in just 7 days!