During the January 2021 crypto bull rally, the world’s major crypto exchanges exceeded the all-time highspot volume trades. According to a report, digital assets over $468.7 billion were traded on the leading exchanges. This was 23.6% higher than the record transaction volumes of December 2020.
Amid increasing trading activities, even the leading exchanges faced several outages. Because of these outages, some of the exchanges had to pause the withdrawals. A Thai exchange underwent three such outages in January 2021 and was warned by the Thai SEC to close the operations and fix the issues. Understandably, crypto exchanges that keep growing are bound to encounter teething issues.
However, to stay up float in such a competitive environment, the white label crypto exchange development service provider must ensure optimization of the following features:
• Higher transaction per second (TPS)
A higher TPS value supports better trading experiences, especially during high market volatility. An exchange with a TPS value of over 80,000 is ideal for the current market situation. Along with higher TPS, the exchange must also have a powerful trading engine. This enables quick buy and sell order matching with minimum latency. The latency of an exchange is a measure of its ability to execute large volumes of transactions in their order books.
A high TPS and low latency exchange platform ensures traders can process their orders on time. As a result, they can make the most out of the price swings.
• Multi-layer Security
In 2020, crypto assets worth over $286,933,760 were hacked from 4 crypto exchanges. Over the years, hackers have become more sophisticated and to combat their actions, exchanges need to enhance their security. Crypto exchange software solutions must ensure most of the below security parameters are integrated into the exchange:
SSL implantation
The Secure Sockets Layer implementation along with the two-factor authentication is a must to combat the basic level hacks.
HTTP Authentication
When there is a secure connection between the web client and the server, HTTP authentication adds a new layer of security to the exchange website.
Jail Login
A limit on the number of failed attempts that a user can make is known as Jail Login. This disables the exchange log in if the user attempts to login with an incorrect ID/password. This could happen for certain duration or the user may be locked out until he uses another way of authentication to reset his credentials like a couple of security questions.
Anti-Denial of Service (DoS)
Denial-of-Service attacks are very prevalent in the crypto space. To protect the exchange website from receiving a large number of requests from an attacker who plans to bring the exchange down, an anti-DoS layer is required.
CSRF and SSRF Protection
The Cross-Site Request Forgery (CSRF) attack can lead to an unintentional action. For example, the user might end up changing the email ID. A protection layer against it is very important.
The Server-Side Request Forgery (SSRF) attack is targeted on the server. It causes the server to process malicious requests.
• Multi-sig Wallet
A multi-sig wallet adds another layer of security to the crypto assets. These wallets require two or more than two private keys to send a transaction. It’s like a bank vault that requires more than two keys to open the vault. The crypto exchanges must use this wallet as cold storage of their funds.
Apart from the above-mentioned aspects, there are some advanced aspects of crypto exchange software development that can add to its popularity. These are:
• Support major fiat currencies
Fiat on-ramp is very important for any crypto user. Thus, by supporting major fiat currencies like USD, EURO etc. and credit cards, the crypto exchanges can enhance their visibility among crypto users.
• Scalability enhancement
Another growing pain that the cryptocurrency markets face is the blockchain scalability issues. By enabling SegWit for Bitcoin and other such measures, the exchanges can help speed up the transaction speed. SegWit enablement basically separates the signature data from Bitcoin transactions. As a result, a Bitcoin block becomes capable of holding more transactions and increases the scalability of the network.
• Block confirmation tracking
A trader can easily track the transaction if the crypto exchange integrates the block confirmation tracking module. This ensures higher transparency between the exchange and the exchange user.
• Scalable modular architecture
The most important aspect of crypto exchange development services is that they need to be scalable. This is because the industry is still in its growing phase and we are at the tipping point of mass adoption. To support such massive disruption, the crypto exchange must be infrastructure-ready.
Types of Cryptocurrency exchanges built using White label solutions
A white label solution is designed to offer both basic and advanced modules to develop a fully-functional exchange. Here are the types of exchanges that can be built.
• Spot Trading Crypto exchange
• Leverage or Margin Trading exchange
• Derivatives trading exchange (Futures, Perpetual and more)
• Copy Trading exchange
• Over-the-Counter (OTC) exchange
If you are planning to build a crypto exchange, Antier can help. We offer customized crypto exchange development services to build an exchange as per your business needs. Whether you need a spot trading exchange, a margin trading exchange, or a derivatives exchange, we can successfully cater to your needs.
We offer a white label crypto exchange solution to expedite the deployment of your exchange platform, and at the same time, we can build a custom exchange from the ground up.
Schedule a free demo of our white label crypto exchange or connect with our subject matter experts to share your needs for a custom exchange.
