A Cryptocurrency exchange acts as a digital platform for trading various cryptocurrencies in exchange for fiat money. It has immense potential to attract traders all across the globe. It is important to embed the platform with low trading fees and have an interactive user interface.
It must offer high performance especially while executing basic trading operations for its users. The platform must be compatible with multiple devices and operating systems. It should ensure the utmost safety and stability during cryptocurrency exchange development. Since a worldwide trading base would be expected, technical support must be provided in multiple languages to suit the user’s comfort and convenience. It must possess sufficient liquidity and can handle a large volume of orders and process a huge number of transactions simultaneously.
It is important to distinguish between the role played by users and administrators. Users are those who perform the trading operations on the platform and manage their personal investments. They store their coins in a secure wallet. An administrator is responsible for running the business, fulfilling the requirements of the customers, and handling the security aspects of the platform.
Some of the crucial features needed to be incorporated by every cryptocurrency exchange software development company
- Formal sign-in/ sign-up facility – This feature is used for onboarding a new user into the platform. It should be well-developed and correspond to the highest form of security. This is necessary to prevent unauthorized logins, hacking attacks, and other manipulations concerned with the application. A two-step verification process will provide additional protection to the users. The registration process should be simple and must not demand too much personal information from the user.
- KYC verification – Every user will be rigorously verified through the KYC (Know Your Customer) system. It will understand the type and financial background of the user who is enrolling himself/herself into the platform and prevents any sort of scam to take place.
- Validation of AML – AML stands for Anti-Money Laundering. It protects all the digital assets located on the server. It ensures that all the trades occurring through the platform are highly transparent. A user’s complete profile will be checked which benefits him/her at the time of conducting their respective trading operations.
- Integration of a wallet for accepting deposits and withdrawals – Wallets are a facility for users to store their assets safely. It can be accessed with the help of private keys which are in the custody of the user. There will be a specific deposit or withdrawal limit set as per the AML validation.
- Transaction dashboard – Each user’s transaction history will be stored with details of their ID, the transaction amount, date, and time of carrying out the transaction. It is done to ensure end-to-end protection, and maintain accountability of the records. Users can fetch the records of all the transactions they have carried out from the transaction dashboard.
- Trade analytics – It is provided on a real-time basis for predicting the future trends and patterns of trades occurring on the exchange platform. It makes use of interactive graphs and charts aided by attractive visualization. It helps users to improve their decision making regarding investments.
- API integration – Every cryptocurrency exchange software development company needs to form integrated API’s to ensure that users can benefit from the automated trading systems and multiple language support systems. It will prove to be more convenient for users.
- Administrator panel – It helps in constant monitoring of the exchange’s operations. All the trader’s transactions and trades can be closely watched. The site can also be modified and extra features can be added based on the analysis of the user’s behaviour.
- Secure architecture – The process of cryptocurrency exchange development should involve end-to-end encryption of user’s data and their respective funds. The important components of trading must be located on different servers and communicated through secure channels. The encryption keys must be kept safe and secure from outside access.
The must-have features in a White label crypto exchange would be an intuitive user interface, a dedicated admin panel, an accurate trading engine, a robust order management system, sufficient liquidity, multiple payment gateways, and implement advanced security protocols along with compliance of KYC and AML regulations.
Special features in Cryptocurrency exchange development can be in the form of a margin trading facility, security token offering, IEO (Initial Exchange Offering) integrated modules, market orders, trading bots, provision of live statistics, and tracking based on IP.
The major expenses would be devoted to the maintenance of the platform, server installation, and the volume of the coin or the token to be integrated. If a business firm wants to launch a crypto exchange early and have a stipulated budget in place, they should consider the option of Whitelabel exchange development at an affordable cost. Customized development is the best route to create a crypto exchange that would disrupt the entire market. A white label crypto exchange is a ready-made trading platform with all the necessary functionalities and customization can be done according to the client’s requirements. There are several reliable White label software and scripts available in the market to help in the process of Cryptocurrency exchange development instantly.
Pick the right type of crypto exchange that you want to develop according to your business requirements such as a centralized exchange or a decentralized exchange or a mix of both through a hybrid exchange.
By analyzing the above factors, we can understand that developing and launching a cryptocurrency exchange requires a huge investment of time and resources. The hardware and software requirements along with the developer’s skillsets need to be finalized. The costs would vary from country to country depending on the extent of customization required by the client, the complexity of the project, and the number of team members and their associated skills involved in the process. The cost can range from a minimum of $15,000 and can go up to $60,000. A few cryptocurrency API’s are available in the market that can be used for free. Numerous blockchain development companies in the industry can also assist in the process of Cryptocurrency exchange development.