One of the ways to enter the crypto industry is to build your own cryptocurrency exchange. Making a crypto exchange platform seems like a far-fetched idea. But it isn’t as difficult as it seems as long as you hire a professional cryptocurrency exchange development company.
Building cryptocurrency exchange has never been this easy. A crypto exchange development company will simplify, upgrade and accelerate your development process. However, you should be aware of the development process, features to integrate, architecture type and cost involved.
Having an overall idea of crypto exchange development will assist you to build a successful platform.
What is a Cryptocurrency Exchange Platform?
A cryptocurrency exchange platform is an online platform where you can buy and sell cryptocurrencies. The platform is laced with the latest features, crypto utilities, APIs and tools to simplify your crypto trading.
Some platform also supports fiat currencies to buy cryptocurrencies. You can easily buy any crypto with a credit card, debit card or net banking. Moreover, you can even easily convert your crypto to fiat on these exchanges.
Cryptocurrency exchange platforms are the ones which have made crypto accessible and popular among the common people. That is why crypto exchanges play a vital role in the crypto industry.
Building a crypto exchange platform is a wise business venture in 2023. Cryptocurrency exchange development is one such business idea that will open multiple revenue streams with just one platform.
Looking to build a cryptocurrency exchange platform within weeks? Read on to find out how.
What Is A White Label Crypto Exchange Platform Solution?
A white label cryptocurrency exchange solution is a software solution that helps entrepreneurs instantly launch their platform in the market.
These are pre-built crypto exchange software that can be customized as per your requirements. The best thing is that you can leverage clone scripts of popular crypto exchanges and make one for yourself.
You can use the Binance clone script, Coinbase clone script and more to build a feature-packed crypto exchange.
What’s more, you can configure the features and functionalities of the crypto exchange platform as and when required.
It costs a fortune to build a cryptocurrency exchange platform from scratch. However, a white label crypto exchange development solution won’t cost you much. Plus, it reduces your time to market and launches ready.
Why Should You Consider Crypto Exchange Development?
Here are 5 reasons why you should consider cryptocurrency exchange development.
1. High Demand
The demand for a cryptocurrency exchange is growing day by day. And it doesn’t seem to stop.
People are investing in cryptocurrencies and digital assets as they believe they have the potential to grow in future.
Therefore, the demand for crypto exchange platforms will also increase.
2. High Profitability
Cryptocurrency is a 24-hour affair. Cryptocurrencies, tokens and assets are traded on the crypto exchanges 24 hours and 7 days a week.
Therefore, cryptocurrency exchanges make a lot of profit via trading fees and other platform charges.
3. Potential To Scale
The best thing about crypto exchange platform development is that you can upscale it anytime. You can start small with a few crypto trading pairs and cater to a small group of users. Then as your business starts to make a profit, you can make it big by introducing more trading pairs and features.
You can even launch your crypto platform globally and offer ICOs, mining, staking and much more.
4. More Business Opportunities
Every day a new cryptocurrency or token is launched in the market. As a popular and well-established crypto exchange platform, you will get plenty of offers from companies to list their tokens and ICOs on your platform.
Moreover, you will also have collaborations with brands for advertising, and launching products and services.
Further, with the rise in crypto and blockchain adoption, you will get even more business opportunities with other service provider companies.
5. High ROI
The cryptocurrency market value is billions. So, there is no shortage of users and business opportunities.
Other than trading fees and platform charges, you will earn revenue from advertisements, token launches and token swaps. You can even consider integrating Defi services on your platform. So every time a user uses a Defi service through your platform you will earn a fee.
Cryptocurrency exchange opens a bundle of business opportunities. In today’s age of blockchain and decentralized finance, the cryptocurrency market will only grow. And with the growing crypto industry, the success of a feature packed, secure and scalable crypto exchange platform is inevitable.
10 Must-Have Features Of the Crypto Exchange Platform
Here are 10 features you should ask your cryptocurrency exchange development company to consider.
1. Personal Verification
Verification and authorisation are important for user security and fraud prevention. KYC and AML verification prevents money laundering and other illegal activities.
Moreover, it also ensures that the platform complies with the guidelines and regulations.
You should integrate your crypto platform with a digital wallet. An in-built e-wallet allows your users to safely store, manage and transfer their cryptocurrencies.
3. Cold wallet
To offer an extra layer of security, you allow users to integrate their hardware wallet with the platform.
Crypto whales generally don’t trust their crypto funds to online wallets. being compatible with hardware wallets, you will not only offer your users the to protect their crypto but also retain crypto whales.
4. Trading Engine
Integrate a powerful trading engine with your cryptocurrency platform. A trading engine with high TPS will accurately make charts, match offers and rates and even process commissions.
Without a reliable and robust trading engine, your cryptocurrency exchange won’t function properly.
5. User Dashboard
The dashboard of your crypto exchange platform must have all the necessary components. It should include an overview of the user’s portfolio or investment.
The dashboard can also have the price charts of popular cryptocurrencies, newly launched tokens and the latest crypto market developments.
Do you know how inconvenient it is to go to another website to check crypto prices?
For the users’ comfort, you should include a crypto price chart tool in your platform. The price chart will show the real time prices, trading volume, market cap, token supply and 24-hour price fluctuations.
These data will help users plan their crypto investments better.
7. Admin Panel
An efficient and organised admin panel is the priority. It allows you to manage user accounts, trading, platform content, services, wallet and other features.
You can effectively manage all activities on your platform with ease.
8. Transaction History
The transaction history feature allows users to view their crypto and fiat transactions on the platform. It not only allows them to keep track but also enables them to check if the transaction is successful, pending or fail.
9. Order Book
An order book refers to a catalogue of available buy and sell orders for a cryptocurrency. It is automatically generated by online exchanges, which categorize the orders into separate lists. Once a user discovers a suitable offer, the system executes the trade between the two parties.
Any completed orders are removed from the order book and transferred to the transaction history, which enables users to monitor the performance of their trades.
Notification features keep your users up-to-date with the latest developments on the platform.
Users will receive a notification on successful crypto trading, transactions, or any profile changes.
Notifications are also active for major price fluctuations and the latest crypto news.
Tech Stack Required For Crypto Exchange Development
Choosing the right technologies to build a cryptocurrency exchange is crucial. If your platform isn’t up-to-date with the latest technologies then it won’t cater to the preferences of the advanced technological world.
Here is a list of tech stacks for crypto exchange development.
- Frontend: jQuery, AngularJS, React, Bootstrap,
- Backend: Python, Django, PHP, NodeJS,
- Data Management: MongoDB, Redis, PostgreSQL,
- Android mobile: Android SDK, Kotlin, RxJava, Android Studio, Ionic, Xamarin, Flutter
- iOS mobile: Swift, XCode, iOS SDK, Core Data, Ionic, Xamarin, Flutter
What Should Be Your Crypto Exchange Architecture?
When starting a cryptocurrency exchange, the architecture of the platform is critical. It helps in creating a comprehensive and logical overview of how the exchange will work, how different components will interact with each other, and its scalability.
Several components are critical in creating a cryptocurrency exchange architecture, including user login, trading engine, multiple wallet generator, control panel, user authentication, user interface, security functions, APIs, and databases.
Types of Application Architecture
There are two main types of application architecture: monolithic architecture and microservices architecture.
a. Monolithic Architecture
Monolithic architecture refers to a platform built on a single server, limiting its functionality and request processing speed. It is cheaper to create, but the profit margin is low.
b. Microservices Architecture
Microservices architecture involves each component located on a separate server. This type of architecture improves system efficiency, throughput, and customer request fulfilment. It is more expensive to create and maintain, but it can increase the platform’s scalability.
3 common cryptocurrency exchange architectures are:
Synchronous architecture applies to small and non-complex cryptocurrency exchanges that process each order streamlined. It has poor scalability, and large trading volumes may cause order book failures.
Asynchronous architecture is better suited for highly scalable systems. It involves multiple separate layers passing their requests, and users receive status updates. This type of architecture provides every significant feature with a distinct service, and users are not involved in maintenance processes.
Distributed architecture is suitable for complex cloud-based exchange platforms that require unlimited growth capacity. It involves dividing services into separate groups that operate independently, and users’ requests are split into shards that are processed individually. A communication network ensures components interact with each other for achieving a common purpose.
Build Crypto Exchange Platform In 6 steps
Here is how to build a cryptocurrency exchange platform in 6 easy steps.
1. Discovery Phase and Market Research
The first step in building a crypto exchange is conducting market research to understand your target audience, competitors, and customer needs.
2. Budget Calculation
Calculating your budget is essential to ensure you have the necessary funds to hire UX/UI developers, web developers, contractors, and purchase web hosting space, set up security software, and other resources needed to launch the exchange. It’s important to explore budget-saving methods such as dividing the development stage for MVP or using outstaffing.
3. Designing Wireframes, Prototype, and MVP
Designing wireframes, prototypes, and MVP is the next step in building your crypto exchange. This helps you understand what people want from your exchange and how they use it. Once you have the right design and functionality, you can start working on the product.
4. Usability Testing
Usability testing is an essential part of building a successful crypto exchange. Testing should be done as early as possible so that any design changes can be made before launching the final version of your product.
5. Product Development and Launch
Once all bugs have been fixed, it’s time to start developing your product. This involves coding up your backend so that it’s ready for launch. During this phase, make sure that all features are tested thoroughly before going live. You’ll need to build out all the necessary features for exchange and ensure they work well together without causing any issues.
Once your exchange is launched, it’s crucial to maintain the product with upgrades and bug fixes. This is an area where you can have a dedicated team of engineers and developers maintaining your product for several months after launch. This is an essential aspect of customer support.
What is The Cost Of Cryptocurrency Exchange Development?
The cost of cryptocurrency exchange development depends on various factors:
- App features
- App functions
- Model type
- Architecture type
- Technologies used
- Business model
- App complexity
- App size
On average it will cost you $200,000 to $300,000 to build a cryptocurrency exchange.
However, if you opt for a white label cryptocurrency exchange development solution, then you will have to pay less. Building a crypto exchange from scratch costs more.
Build Crypto Exchange Platform With Blocktech Brew
We will help you kickstart your crypto business venture with our cryptocurrency exchange development services. Contact our experts today!