How to build a secure cryptocurrency exchange?- Guide for startersby Anna Lisbeth Blockchain Analyst
Cryptocurrencies have drastically evolved over the years and have become the currency of choice for many leading business industries that have transformed digitally. And the best way to make profits through cryptocurrencies is by trading them. With the volatile nature of cryptocurrencies, and with constantly increasing value, for example, Bitcoin’s value is now 10000% more than its embryonic stage; Trading cryptocurrencies is definitely a profitable opportunity!
But imagine if you can make double the profit? And what is the way to do that? To build a cryptocurrency exchange software of your own! Cryptocurrency exchanges have been gaining huge traction and they cover almost 80% to 90% of the total business volume. The tremendous growth crypto exchanges achieved in 2017, and the crypto price volatility in 2018 brought in huge profit returns for crypto investors, which led to increased demand and popularity. And to build one in the most effective way, to sustain, and stand out from this competition, it is essential for you to know the crucial elements. Let’s begin with a quick glance at the concept of crypto exchanges.
What are cryptocurrency exchanges for?
Cryptocurrency exchanges, as the name itself implies, is used for the exchange of cryptocurrencies. It is a platform through which crypto investors can trade their cryptocurrencies, in exchange for other cryptocurrencies or fiat money at a predetermined value based on the market dynamics. Crypto exchanges are underpinned by blockchain technology that controls, secures, and verifies transactions. With the constant evolution of technology, crypto exchanges also evolved into different types. Let’s take a look at them.
Types of cryptocurrency exchanges
Admin- user exchanges
This exchange is a fitting solution for starters who don't have much experience with trading cryptos. This exchange is integrated with a user-friendly interface and easy-navigable feature set. The exchange acts as a medium between the buyer and the seller. The user funds are controlled by a regulatory body, and the transactions are approved by them.
Unlike the above-mentioned exchange, p2p exchanges do not involve any regulatory body. The platform connects the buyers and sellers directly and allows them to conduct global peer-to-peer transactions. The exchange works completely based on a blockchain network, and the profit of the exchange lies based on the fees charged for every transaction.
This is one of the most popularly trending exchanges currently. This is because, unlike any other exchange, cryptocurrency exchanges with leverage allow traders to borrow a sum LARGER than the initial margin they deposit in the exchange. This will help them expand their market position exponentially as well as their profits.
These are some of the most popular exchanges. Now, let’s dive into the crucial factors you need to consider for building a smooth, secure cryptocurrency exchange software.
Checklist for a secure cryptocurrency exchange software
It is mandatory to ensure that your exchange complies with all the necessary legal frameworks according to the geographical location it is operating in. The regulations might vary from country to country, so you need to analyze and choose your location carefully. Also, it is important to follow the KYC norms for your exchange, for proper verification, and authenticated users.
First of all, for the exchange to be fully functional and operate in a smooth manner, it is essential to integrate the best and the most advanced technical elements. In order to do so, you require a skilled set of developers.
A managing authority to oversee if the activities of the exchange are carried out appropriately.
A manager of partnerships who is responsible for finding partners and contractors for the exchange.
A Marketing team to ensure credible marketing activities for the exchange for gaining maximum exposure.
A support team to handle customer responsibilities and queries.
However, the easiest way to implement all the above-mentioned operations at a nominal cost is to hire a cryptocurrency exchange platform development company. Such companies will have a team of qualified experts who will offer all-inclusive solutions for your exchange right from development, marketing, launch, support, and maintenance, etc. This will help you save a lot of time, money, and relieves you of the technical knowledge required. With a multitude of companies offering crypto exchange development services, to choose the right one, look into the following features.
Key features for a crypto exchange software
An advanced, graphic user interface
A powerful trade matching engine with high volume TPS( Transaction Per Second)
A secure cryptocurrency wallet
High Volume Liquidity
Multiple payment gateways
Advanced blockchain technology and smart contracts
Two Factor Authentication
Summing up!Cryptocurrencies are slowly becoming the primary mode of transactions and are all set to become future currencies. Many countries have started allowing payments using cryptocurrencies. Taking all of this into account, creating your own cryptocurrency exchange is a great business opportunity and has a great deal of advantages. All you have to do is, conduct extensive research, and choose the right cryptocurrency exchange platform development company to achieve enormous profits!
Created on Jun 1st 2020 08:41. Viewed 174 times.