Cryptocurrencies are a lucrative source for many mainstream agencies. Organizations such as Microsoft, PayPal, Shopify and others are accepting the digital money. The best opportunity to enter the crypto market is by providing relevant products to market participants. The best choice would be cryptocurrency exchange software development.
With an increase in trading volume, it has been observed that the demand for exchanges is increasing. Crypto enthusiasts are looking for options that can help them trade better and efficiently. They generally demand minimal transaction fees and easy asset management.
For creating a structured and systematic online platform, the following roadmap should be followed:
There should be a proper goal or plan in your mind that where do you wish to head. It is a must for you to properly align the scope and functionality of your crypto exchange. Sketching the outline is undoubtedly the first thing to do which is followed by general approval for registrations and licensing.
The world of cryptocurrencies is creating a lot of buzz globally and governments from all over the world are now regulating the exchange platforms. For systemizing your exchange platform, you need to adhere to regulations of the country where you intend to launch your exchange. The exchange platforms need to comply with KYC norms and sync all their users’ identities and maintain a safe record at the same time. This minimizes risks of money laundering and keeps all the compliance safe in the first place. You would also need to integrate a customer verification API in the exchange and construct a foolproof backend database.
For easy conversion of fiat money into the cryptocurrencies, you need to associate yourself with a payment processing partner like a bank. If you have partnered with a superior payment processing gateway API, then your users will have easy and convenient withdrawal and deposit of funds.
The next suitable step in the cryptocurrency exchange software development process is to list the crypto assets – that you would like to offer to your clients – on your exchange. It is estimated that there are over 1500 active crypto assets that are being regularly traded in the market. Among these, Bitcoin, Ether, Litecoin, Ripple gain the maximum shares. You should choose wisely which crypto assets you want to be integrated into your cryptocurrency exchange.
The next best-befitting step is to ensure that maximum liquidity is maintained continuously. You need to make sure that the whole set of cryptocurrencies are exchanged easily without facing any radical changes in the price. This can be achieved easily by integrating the exchange’s liquidity position with that of the other exchanges API. The sharing of the exchange network and liquidity and trade volume is the best source to boost the liquidity position.
While getting started with building an exchange, you need to understand different criteria through which it can be started.
Let’s delve into each of them one by one.
These are the readymade solutions which are generally provided by companies offering cryptocurrency exchange development services.
A white label solution comes with many advantages such as rapid deployment as you just need to install and configure according to your project’s requirements. It also ensures high reliability and cost-efficient pricing as it is not built from scratch.
This is a solution that can be used by any person freely and that too for any purpose. It can be used as a base modifier as per the requirement of the project.
The main benefit of this solution is that it is free. You need not pay for using an open-source solution. But at the same time, it cannot be regarded as a reliable solution as it has never been sufficiently tested. Even the security of an open-source solution is very weak and lacks support.
Custom software development involves more effort in terms of time and money. Using this approach, a cryptocurrency exchange platform is developed from scratch and it also leads you to the high profits.
Custom software development allows the integration of custom features into the exchange. It also offers high security and reliability. However, the development time for a custom solution is large.
Once you have decided with which solution you wish to move forward, the next step is to create an architecture view of your cryptocurrency exchange platform.
Whether you require a white label solution or wish to develop your cryptocurrency exchange platform from scratch we have you covered with diligently crafted, customized cryptocurrency exchange development services.
Our white label solution helps you launch your crypto exchange in just 3 weeks.
Schedule a free demo of our white label solution or talk to our subject matter experts for a no-obligation quote for your custom exchange built from scratch.
