Over the past decade, the adoption of technologies has increased globally, and cryptocurrency-based businesses are no exception. Many crypto-based businesses have been ventures by startups and entrepreneurs. Each of them is promising in its unique way and you cannot just leave one business in favor of another one. Among all crypto-based businesses, crypto exchange is one of the most popular in the ecosystem for cryptocurrencies.
As technology advances, cryptocurrency exchange software supports businesses with innovative features, faster business processes, and seamless trading operations. This blog deals with the financial side questions that swirl around many startup entrepreneurs’ minds regarding the cost of the solution, which is
1. How much does cryptocurrency exchange software cost?
2. What factors determine the cost of cryptocurrency exchange software development?
3. How to choose the best cryptocurrency exchange software?
These are very important questions that require some explanation from a holistic perspective, and we will try to explain a little in this blog.
Now let’s discuss the answers to the above questions one by one.
How Much Does Cryptocurrency Exchange Software Cost?
Cryptocurrency exchange Software cost entails several stages of the development process, where each stage accounts for fixed or variable costs. To develop an effective solution that supports exchange business models, there are some factors accountable for quick and accurate estimations.
The cost of developing the software can be ascertained from such estimates and calculations. Mostly, cryptocurrency exchange software development cost starts from $4000 and varies up to $50,000 depending on the features, security components, and integration being included or excluded.
And still, many factors influence the costs and their impact varies by clients, software developer, project duration, etc. If there is a clearly defined set of features, integration, and design elements then the average cost of the cryptocurrency exchange software can be figured out easily.
The cost of the solution depends on many factors, which we are going to discuss next in this blog.
What Factors Determine the Cost of Cryptocurrency Exchange Software Development?
Just like other software development processes, crypto exchange software has several factors when considering the cost. These factors of software development are critical to the cost allocation of your project. It includes:
The initial phase of the cryptocurrency exchange software development project involves the selection of the crypto trading platform. Platform selection involves identifying where it is admin-based like a centralized or decentralized or P2P exchange platform.
And then the operating system for the platform, the crypto exchange software development process, begins. Also, the software development process uses the necessary tools and features to ensure that it supports the intended platform and its configuration requirements.
The cryptocurrency exchange software is built on the Node.js platform and the Angular JS web framework, making it cost-effective. This phase can account for almost 10% of the total software development cost.
The features and functionality to be included in a cryptocurrency exchange software can have a big impact on cost. A basic solution with only the necessary features trading engine, multi-payment, multi-lingual support, KYC, 2FA, Anti-phishing code, a Ticketing system, and Dispute management can be developed in a short period at an affordable price. So, you must first decide what you want from the solution.
1. Where should software be hosted?
2. Do you need any advanced features like a trading bot, business intelligence, etc?
Besides, the cost of the solution will increase according to the features required to implement it. Also, various features vary in complexity and resources needed to implement them. So it is better to create a minimum viable cryptocurrency exchange software with the necessary features and functionalities based on your strict budget.
According to current standards, crypto exchange solutions can be integrated with many external applications to ensure proper functionality. Also, the cost and effort will vary based on the software integrations you choose.
Integrating multi-crypto wallets or payment gateways will be easy. However, many applications such as API, automation tools, smart contracts, escrow systems, etc. require more time and more effort.
What differentiates your cryptocurrency exchange platform from the rest of your rivals in the market is the awe-inspiring design you have. And the usability of the software is yet another important consideration.
Your trading platform mustn’t be complicated or frustrating for your users to use. It ought to have demands that must be met in terms of both appearance and performance.
The solution must be simple to understand and visually appealing enough to draw in crypto users worldwide. More complex designs of your crypto trading platform can be more expensive and it takes more time for developers to implement. So, when selecting UI/UX design elements, take your budget into account as well.
A large chunk of cryptocurrency exchange development costs goes toward development. More than 50% of the project investment is spent at this stage. The development of crypto trading software takes more time compared to other crypto-based software products.
However, the number of developers, hardware, and software resources are consumed at this phase. Software developers must take care of every piece of information collected from their customers while developing the solution.
Here is an estimate of the costs breakdown in percentages associated with each phase:
1. Software Features – 30%
2. API Integrations & Add-ons – 20%
3. Software Development – 20%
4. Hours of Work – 5%
5. Customizations – 15%
6. Complexities & Support – 10%
Developing software features requires a lot of time and effort. At the same time, software faces many challenges when the project is complex. Integrating third-party tools, particularly Payment Gateways, Binance Tradingview Chart, CryptoCompare, Google reCaptcha, and other APIs include annual license fees.
Also, the instances of customizations requested by customers and faced by a team of developers are major variable cost components during the development phase.
Time to Market
The cryptocurrency exchange software development process can range from a few days to several months. More people working on the project can faster the process, but only slightly. Because processes must occur in a specific order, a complex project will take a certain amount of time to develop.
During development progress, there may be many complications and errors occurs. To make the software work correctly, adequate time must be spent fixing the bugs and errors. To move the product more quickly from development to market deployment, more employees, resources, and hours will be required.
So the time duration in which the solution needs to be delivered can also influence the cryptocurrency exchange software cost.
These are a few of the key phases to take into account before purchasing the software. Before selecting the ideal solution for your trading platform business, you should also consider, project developer experience, technology stacks used, company experience, and software demos.
After looking at the cost, the third question that arises in your mind is how to choose the best solution for your business.
Let’s discuss it now…
How to choose the best Cryptocurrency Exchange Software?
Nowadays, we can find crypto exchange software in various price ranges. What most startup businesses are seeking is the perfect blend between software features and pricing. Also, some of them want a low-cost solution with quality features and functionality.
Low-cost cryptocurrency trading software can be found in abundance that is offered by many service providers in the market. But being low-cost on its own is not necessarily the lowest-quality one. Similarly, high-priced software is not always the standard one. Therefore, you go for software with all the necessary features at an affordable price to survive in the marketplace.
But, many startups buy cheap solutions initially and pay the high price later with several complications and crashes during their business operations. Most of the promised features and security components may not even be there and even if they are, those might be hardly functional.
No substandard product
On the other hand, looking for high-end features at a very low price is also not a wise approach for startups to enter the market. You will most likely be duped into an error-prone or substandard product. At last, you need to start your cryptocurrency exchange software development process all over again. It will cost you more than the budget you allotted for software purchases.
Overall, the best option for every startup that plans their business with a limited budget is that you can start with minimal features and expand as your company grows or as your demands or business needs go up. So even if your budget is limited, you don’t have to compromise and go for low-quality software.
So, to get the best solution, first, you need to find the best cryptocurrency exchange development company amonLooking for expert guidance? Call us right away!g thousands of solution providers in the market. Only they can provide reliable, highly functional cryptocurrency exchange software at an affordable price.
We hope this blog sheds some light on what you need to know about cryptocurrency exchange software costs. So, choose the right one that fits all these factors mentioned above.
Let us end up this blog with some final words,
As a final inference, cryptocurrency exchange software offers a myriad of direct and indirect benefits to your business with perfect revenue-generating models! We hope you have a fair idea of the cost components of crypto exchange software development and you can now make an informed decision.
Meanwhile, you should go for a prominent solution provider and Cryptocurrency Exchange Development company on the market, who have the expertise to give guidance to develop a custom and optimized trading platform solution within your budget.
Use the free demo software option, explore its features, and buy the right cryptocurrency exchange software!