Cryptocurrency exchange development services is a platform that allow peers to trade assets digitally through cryptocurrencies such as Bitcoin, Ethereum, etc. Peers can also trade assets for assets digitally instead of using cash or cryptocurrency. This increases the opportunity for sellers to use the cryptocurrency exchange platform to easily liquidate assets by identifying buyers without any border limitation or restriction. Cryptocurrency exchange platform also helps to best match buyers with sellers according to type of assets, token exchange limits, etc.
This article discusses about cryptocurrency exchange software development through a step by step guide. But before learning about cryptocurrency exchange development, you should first know about its benefits.
How cryptocurrency exchange development is a game changer in the industry of trading?
Cryptocurrency exchange platform operates using a decentralized platform and thus it does not require any centralized authority in reviewing, selling assets and transacting funds through cryptocurrencies. Here, one can access the transaction data and cryptocurrencies at anyplace, anytime without any currency exchange restriction. This also makes the platform much more immutable and unhackable.
It is easy to regulate cryptocurrency exchange as it is not limited by any law. And, it is not easy to shut down the system too. Hence, all data is available 24/7 with real-time notifications, security and privacy.
Guide for developing an efficient cryptocurrency exchange platform
Before developing a cryptocurrency exchange platform, the first task is to identify the type of cryptocurrency exchange platform you want to develop. Also, next you should decide the type of architecture based on which your cryptocurrency exchange platform will operate on.
Cryptocurrency exchange platform types
Centralized type of platform
Here the cryptocurrency exchange will take place along with the involvement of middlemen and central authorities to monitor, control and authorize transactions.
Decentralized type of platform
This type of cryptocurrency exchange platform enhances the P2P processes by directly connecting peers without any middlemen and central authority.
Cryptocurrency exchange architecture
Small type synchronous architecture
This type of architecture can handle simple and small transactions only. They allow only limited in terms of scalability and number of volumes allowed to be traded.
Medium type asynchronous architecture
Here, the volume of transactions and the scalability is higher than synchronous architecture. Separate layers and modules are created depending upon the type of data and interface. It can also integrate multiple API to compile different peer connections.
Large type distributed architecture
Here whatever requests users submit, are split into shards which are fragments of the data and transactions that need processing. These shards are independent in terms of scaling and growth. Hence, the volume of transaction is higher than the other two structures.
Key considerations for developing cryptocurrency exchange platform
Ensure to provide solutions to the legal issues at hand
Cryptocurrency exchange platforms does not abide by any existing trading regulatory laws. Thus, most of the transactions take place without license which many may not prefer to. You can change this but either obtaining a license or creating your own enterprise regulatory law. However, those newly regulatory laws have to be universally confirmed.
Focus on Anti-Money Laundering (AML) Know Your Customer (KYC) technologies to safeguard transactions, identities and avoid illegal threats.
Functionality and User Interface (UI) are important considerations
As much as the importance of developing your own cryptocurrency exchange platform, it is important to ensure that the functionality and user interface does not affect the operability or user experience.
Joint venture or achieve agreement consensus with a bank
Users must be able to store, transact, transfer and withdraw their cash, funds and cryptocurrencies as they wish without any hassle. This means that, the payment processing must be rapid and must go through a payment gateway API to ensure that the channel of transaction is secured and private. Thus, make a contract agreement with a bank to depend on them for regulations and convenience.
Enhance the liquidation process
For any trading market to be successful, especially a cryptocurrency exchange platform to be successful. It is important to ensure that assets and cryptocurrencies can be easily and conveniently liquidated through your platform.
To accomplish this, implement API integration with UI to attract traders and investors. Ultimately, the liquidation position and value of the user’s asset must be increased through the trust and branding image of your cryptocurrency exchange platform.
Provide 24X7 customer support
Cryptocurrency exchange is still new and probably at the baby stages. Not all users maybe well-versed with its functionalities and usage. User’s might have numerous amounts of queries, doubts and various kinds of issues that need attention to resolve. Customer support services include launching of ICO, UTO, support for issuing tokens, etc.
Essential features that enhance cryptocurrency exchange operations
Components such as crypto (HOT) wallets, administration panels, trade engines and creation of whitepapers enhance the process or orders, exchanges and speeds up the process of transactions too. Through these features, users and clients must be able to sign-in, register to access their accounts to create new orders or view previous transactions history.
Security Aspects of cryptocurrency exchange platform
Your cryptocurrency exchange platform must not be vulnerable to attacks such as brute force attacks and must be open to phishing. Protect the data through KYC, AML and multi-factor authentication system.
Conclusion: Create your own cryptocurrency exchange easily now
Forecast future potential, provide higher system performance and increased reliability by using the right technology stack, tools and components to develop an efficient cryptocurrency exchange platform. The most important consideration of should be the adherence of your cryptocurrency exchange platform to be compatible with multiple cryptocurrencies.