The process to Create your own Cryptocurrency Exchange Software involves certain tricks. As a business person, it is not always necessary to have enough technical knowledge to create your own Cryptocurrency Exchange Software. But knowing the basics will definitely help you to build a more efficient Cryptocurrency Exchange Software.
Cryptocurrencies became so popular and reached its peak that all the investors started exchanging the currencies over a platform. In this way, the cryptocurrency exchange platform gradually developed to run this business and the crypto exchange development cost also had a remarkable space.
Before moving to how to Create Cryptocurrency exchange Software, let’s have a brief description on What is Crypto Exchange Software.
What is Cryptocurrency Software?
Cryptocurrency exchange software is a platform where cryptocurrency trading is accomplished successfully. Each transaction that is done on the platform, provides a lucrative commission to the platform owner.
The cryptocurrency exchange platform manages cryptocurrency trading in a very efficient manner. It allows the person to buy, sell/trade cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dash, etc. It can convert the form of digital currency in another form.
Cryptocurrency Exchange Platforms
1.Centralised Exchanges (CEX)
Centralised Exchanges or CEX is the most common type of crypto exchange platform. Online resources have a centralised operator or use a third-party organisation that assists in transactions. Users trust the third party, for security, functionality, and assistance in finding trading partners. Centralised exchanges offer order books that record all buying and selling transactions. It can do millions of operations per second and also has a user-friendly interface which makes it an easy-to-use platform.
2.Decentralised Exchanges (DEX)
Decentralised platforms or DEX do not use intermediaries like centralised cryptocurrency exchanges. DEXs transfers funds directly to users’ wallets using blockchain technology or distributed registries.Trading cryptocurrencies without involving a third party. Here the funds are not stored in exchange accounts so there is no fear of losing funds.
3.Peer-To-Peer Exchanges (P2P)
Peer-to-Peer exchanges provide cryptocurrency trading directly between users. Traders put forward their bids, and other users respond to the offers and agree on the terms. There is a need for intermediary software in P2P exchanges for transfering traders’ cryptocurrency from the sellers’ deposits to the buyers’ wallets.
Instant Exchanges are easy-to-use. It allows users to exchange one cryptocurrency to another instantly. This platform offers easy registration with a simple exchange UX. Instant crypto exchangers receive and deposit funds directly to users’ wallets. This exchange possesses the highest transaction rates and supports large orders.
5.Hybrid Cryptocurrency Exchanges
This gives an option to combine two solutions. Thus, you can have advantages of both DEX and CEX. This type of exchange improves the quality of services. This type is much advanced, but is rapidly gaining popularity.
Read this blog to know Crypto Trading Bot
How to Build Your Own Cryptocurrency Exchange?
There are mainly three ways through which you can create your own Cryptocurrency exchange platform.
Let’s see those three methods in a little brief.
1. White Label Solutions
A lot of companies are there which provide the services of Cryptocurrency Exchange Software development and other Blockchain related softwares. White-Label Solutions allow you to use an already made product by making some minor customizations according to your business needs. This product is an already proven one and will be mostly free from technical errors or other bugs
2.Open Source Solutions
There are a lot of open source codes available on the internet. Someone who has sound technical knowledge can try to Create a Cryptocurrency Exchange Software from scratch. But there are a lot of issues attached to this type. They are not very reliable, secure, and also do not provide a proper support team.
3.Custom Software Development
This step involves developing the software from utter scratch. It takes a huge effort, time, and money to develop a Cryptocurrency Exchange Software through this method.
Steps to Be Taken For Making A Cryptocurrency Exchange Software
1.Choose your business location
2.Make sure you complete all the Legal formalities with care
3.Generate the funds for your venture
4.Consult a leading Cryptocurrency Exchange Software Development Firm
5.Make a connection Between Your Exchange with other service providers for higher liquidity rate
6.Opt a suitable Bank Payment Processor
7.Do all the things necessary for a safe and secure platform
8.Roll out a live Beta Version of the software
9.Execute perfect marketing strategies
10.Provide 24*7 customer support services
11.Maintain a professional and expert team for ongoing compliance
How much does it cost to Create a cryptocurrency exchange?
The cryptocurrency exchange software price varies based on several factors. But the base amount needed will be starting around $21,000 with all fundamental features and functionalities integrated.
The factors that determine Cryptocurrency Exchange Development Cost
1.Time and resources decide the budget restraints
This is the first factor to be considered before implementing the cryptocurrency exchange.It will definitely take a long time to complete the task. As it involves more time, you need to plan the resources to form a team and complete the task to determine cryptocurrency exchange development cost.
The wages for the resources depend upon the complexity of the entire project. The resources may not be satisfied to work for low wages and you need to plan the budget for the resources as compared to other industry standards.
The programming requirements of the project are collected together as an aggregator. The aggregator requirements are a very important factor to be considered. As it is a highly complex system, it requires constant monitoring to debug with the programming codes and the aggregator is required in such cases.
The aggregator requires more information about the system so that it is easy to update the factors required for the cryptocurrency exchange development. Since it involves more information, the cost to build a crypto exchange is a little high as per the requirements of the cryptocurrency exchange platform.
A user interface always decides the success of the platform. An easy and user-friendly interface should involve certain features and your budget depends upon implementing those features into your cryptocurrency platform.
You can invest in the proper external agency to focus on the design part of the cryptocurrency exchange platform when the developers are mainly focussing on the development part of the system
The following features can add value to your user interface with good user experience
1.Easy registration procedure
2.The simple way to exchange the currencies
3.Easy access to the accounts
4.View of past transactions and booking history
6.Infographics and charts
Trading kernel or trading engine is a very important base to develop the cryptocurrency exchange platform. The main functions of the cryptocurrency exchange platform depend on the trading kernel
The main roles of the trading engine or kernel are as follows:
1.Develop the order book where the investors can view the orders i.e the interest of buyers and sellers
2.Executing the transactions
3.Helps in calculating the balance of the transactions.
The wallet is a very important thing to be considered to build the cryptocurrency exchange platform. It is used to transfer digital currency.
The digital currency of the crypto exchange platform can be stored in the system wallet and there are many types of a wallet like hot wallet, cold wallet, mobile & desktop wallets, etc and there leading cryptocurrency wallet development service as well.
The users will be allowed to send and receive digital currency through many modes like ATM, email, QR code, etc. It is always safe to add any authentication steps to verify the transaction
Users should be allowed to buy the crypto coins and then sell it to other parties. This should be facilitated in the crypto wallet.
Admin management module of the cryptocurrency platform exchange is a very responsible part of the platform. Admin should be able to monitor the trading fees, should be able to access user details like email, name to contact the users.
They should also be able to do the following part of the cryptocurrency exchange
1.Support the users
2.Able to access the fund accounts with proper privileges
3.Add new crypto coins
4.Should be able to handle the cryptocurrency listing.
5.Update the trading fees
API ( Application programming interface) is a group of function which will allow the application to access the features of the operating system or other external services. So it improve the functional operations you can implement API.
Factors to be considered while implementing API:
1.Private API – This is used within the application
2.Public API – Public API is service provided by the third party
3.Websockets – communication protocol to receive the response from server as an event-based response
4.Fix Protocols – To allow developers to integrate the trading platform
To analyse the activities, analytics is an important feature to be considered to build the cryptocurrency exchange platform. It consists of options to add charts and logs. This will be helpful to increase user visibility of the platform
The database is a vital part of any application to handle all the data related to the application or platform.
Two generally used database are:
Redis – It is an open source databaseRedis
SQL – It is a reliable database
Both can be considered in to maintain a database of the platform
Time Required For Building a Cryptocurrency Exchange Software
The time required to develop a Cryptocurrency exchange software is depending upon the requirements. To make it perfect and precise. Also, it should stand apart from competitors. So it takes some time to give it a special and unique look.
We have tried to bring out the different aspects you should know before you build your own Cryptocurrency Exchange Platform. And also you will be able to find the factors which determine the cost to build a cryptocurrency exchange platform.
Well, now you can consult a leading technology service provider who has enough experience in dealing with the same. They can guide you in the right direction!
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