During the pandemic, many industries met severe breakdowns in their business growth. But, with the enhancement of people’s adoption of tech services, the fintech sector experienced a big raise among all the countries. Hence entrepreneurs getting invaded to make their startups massively in the online pace.
Indeed, the cryptocurrency exchange is one of the hot topics among digital surfers.
What is Cryptocurrency Exchange and why are people getting practiced to that?
Initially, Bitcoin was the first cryptocurrency, but due to the heavy demands occurring in the market, now there are hundreds of cryptocurrencies available in the market.
A cryptocurrency exchange is a platform for cryptocurrency holders, who need to trade their assets in digital coins. It is the medium that acts between the people looking to invest in cryptocurrencies.
The demand for the cryptocurrency exchange platform is expected to be higher in the upcoming years, because of the evolving tech trades. Hence why the exchanges like Binance and Coinbase are meeting huge markets in the crypto world.
If you are in the plan to launch a new business in the online market, creating a cryptocurrency exchange will be a potent idea, to discover your lucrative venture.
Here is the blog to grasp all the significant things about the Cryptocurrency exchange development.
Let’s continue reading.
Why Build A Cryptocurrency Exchange?- Statistics Proof To Start
Before getting to the blog, it’s important to know the market growth of crypto exchange platforms to assure your business sustainability. Crypto exchange is a multi-billion dollar growing industry.
Let know the market of crypto exchange,
As per the statistics data, the total capital of the crypto market in 2021 is $2.17 trillion. In the US itself, it has been exhibited that 2 in 10 people are investing in cryptocurrencies. And within 2 years about 75% of retailers will integrate crypto wallets into their business. This will surely increase the consumer base in the crypto industry.
To say exactly, let’s look at the growth of the top player in cryptocurrency exchange- Binance. Binance has owned a daily trading volume of over $18 billion. Hence they attained an income profit of about $20 million in the year 2021. And they predicted, within the years 2023-2025 they will hold a potential user base of about 300 million people all over the world.
From the above stats, you could ensure the future demand and the economic value of the cryptos, and the need for the crypto exchange platform.
Let, you start developing this crypto exchange platform with all the advancements, to drive a successful business in the industry.
Types Involved In the Cryptocurrency Exchange Development
Creating a well-conceived business plan will decide your business’s success. Analyzing the demands in the crypto market, and providing a niche crypto exchange platform will help you to earn revenue more.
In the crypto exchange development, there are various kinds of platforms. Pick your suitable business model and tend to launch a distinct crypto exchange marketplace.
Centralized Cryptocurrency Exchange
The centralized crypto exchange is nothing but trading under the platform with the monitoring of middlemen. This is exactly similar to the stock exchanges, in that all the crypto exchanges have the authority to manage the network transactions. Using the centralized exchange platform users can attain a large number of benefits. One of the main advantages of centralized is the availability of Fiat currencies and the reduced liquidity issues.
Hence developing a centralized platform will generate more trade and revenue. Here are some of the important services of CEX.
Order book exchange
The order book exchange is a centralized crypto exchange that provides a live order book system. Creating this order book exchange centralized service, helps the users to make a trade based on the market price.
Buy In Order book Exchange
If a user is going to buy, the page will rank the orders in descending. This will always show the highest bid on the top page of the buy order book. This helps to match the cheapest sell price in the sell order book, the transaction executes with the identical price until the amount dries up.
Sell-In Order Book Exchange
This is the process where the cheapest sell prices will be located at the top. If the cheapest sell price is matched with the highest bidding in the buy order, it automatically gets executed at the identical price available on the listings.
Let’s create this order book exchange development and help the users in showing the imbalance between the pending buy and sell orders, which shows in which direction the price may move.
Margin Trading Exchange
Margin trading is also known as leverage trading. This trading technique allows the investors to trade with the funds provided by a third-party service based on the margin, similar to getting a loan from a bank.
To say simply, if the user margin is $5000, they will get a loan of $25000 for digital trading. Hence, This margin trading exchange will offer you in leveraging the funds to trade assets and can get revenue easily.
Implement this margin trading service with a full-fledged solution and acquire a pool of crypto investors.
Crypto Derivatives Exchange
Crypto derivatives exchange is an item or contract that a buyer and seller make their trade with a determined value by an underlying asset. These assets will sell at a valued time and price. This crypt derivative exchange platform allows users to trade with the derivatives such as futures, swaps, and options.
Developing a crypto derivative exchange service will help you to overcome the fierce competition in the crypto market.
The Counter Trading Platform
Make a crypto exchange platform that supports this OTC functionality. OTC gives a niche trading market that stands out from regular trading. This OTC platform furnishes increased privacy for the buyers and sellers, which creates a fact highly unique.
Let’s create your crypto exchange with this OTC financial technology with cutting-edge features. This equips you to generate a large number of users.
Decentralized Crypto Exchange Platform
The decentralized crypto exchange is non-controllable by any authority. This means it does not store digital assets. The transaction would directly occur through blockchain technology. There are no middlemen servers to control the crypto operations.
If you are planning to launch a decentralized based crypto exchange platform, let’s do your business module with tailor-made features to attract crypto traders.
Peer To Peer Crypto Exchange Platform
P2P exchanges are also similar to the decentralized platform, but connect the buyers and sellers using the escrow service. There are no third parties between the users. P2P crypto exchanges are highly secured and more confidential in functioning every transaction.
The above are the important methods in creating the crypto exchange platform. Let you decide on the business model and pick the techniques to complete your crypto exchange development.
Let’s see the significant features of crypto exchange development.
Features To Look On In The Crypto Exchange Development
User authorization and verification
This is the part where everything in the crypto trade starts. This is the stage where you should facilitate your user with a friendly first interface. Start your app with the customer fill form, which will speed up and secure the user authorization process.
Along with this user, verification has occurred to ensure the right transaction. So, let you integrate your platform’s user registration process with the anti-bot verification and data encryption features.
Create your crypto exchange platform with a dedicated trading engine, to make your user transaction quick, easier, transparent, and secure. Your trade engine should support all the processes like bids, opening orders, finding new trades, generating new trades, and more.
This engine should assist all the trade calculations balancing, and match the sell/buy transactions with quirky design elements.
Sending, receiving, and storing cryptocurrencies are the major functionalities that a crypto wallet should process. This crypto wallet has been divided into three types, hot, warm, and cold wallet.
A hot wallet stores a private key on the server, which is not intended to store many funds, it should be reconciled with the warm wallets.
Warm wallets keep the private key in another server, that is separated and has a gap from the hot wallet. This warm wallet would keep many cryptos i.e, store the exceeded cryptos from the hot wallet.
A cold wallet is completely a separate one, which has a special computer to store the cryptos that are not connected to the internet. This will be used manually, only by the authorized person. Let’s build your app with the secured crypto wallet integration.
Crypto exchange analytics is a significant tool that performs real-time and date backend decisions, which will leverage the trading opportunities that result in huge profits. Some of the important processes of the analytics are tracking the live data, graphical trading experience, oversold and bought zones, etc.
Developing your platform with a robust crypto analytics algorithm will ensure the higher performance of your crypto exchange.
An intuitive user interface is a primary feature, which will seize more users for your platform. Build your crypto exchange UI with attractive designs that would hide the complexities of the trading and assist in providing a seamless user experience. Construct your crypto exchange marketplace with a grabbing interface.
Let you incorporate your app with all the aforementioned features that make your app too distinct from all the crypto exchange platforms.
Pick A White Label solution To Monetize quickly
It’s important to choose the development platform. Starting developing your cryptocurrency exchange software is quite hard to process. So, let’s make your business plan to build the app with a robust cryptocurrency exchange white-label solution. Because, by using this you can upload your crypto business within the minimum possible time and it is also a cost-effective one to invest less, compared to the scratch process.
Hence pick the right white-label cryptocurrency exchange development solution which is extensively secured and scalable with all the key features to perform. Customize your crypto exchange white-label software based on your business plan.