how to build a cryptocurrency exchange platform?
A crypto exchange platform is a channel that allows traders to buy and sell cryptocurrencies for profits and swap crypto assets to fiat money and vice versa. For these transactions, the cryptocurrency exchange platforms incur transaction charges and earn profits in their business.
In general, three types of cryptocurrency exchange platforms are in existence.
- Centralized,
- Decentralized,
- Hybrid.
In centralized cryptocurrency exchanges, every trade transaction is performed in the surveillance of the business platforms. In decentralized cryptocurrency exchange platforms, the trades are independent, and the authorities don’t involve in the transaction until there are any disputes. The hybrid cryptocurrency exchange platforms include the benefits of both centralized and decentralized exchanges.
Among these types of exchanges, you must first pick the appropriate cryptocurrency exchange platform that you’re launching in the market based on the community demands. Then, you must select the method of developing a cryptocurrency exchange platform!
You can build a cryptocurrency exchange platform in two significant methods.
- Develop the exchange from scratch.
- Patch up the white-label cryptocurrency exchange software.
Irrespective of whatever method you choose to build a cryptocurrency exchange platform, there are some steps to be followed.
How to build a cryptocurrency exchange platform?
If you’re passionate about starting your own cryptocurrency exchange platform, you must surpass the following steps. Let me give a brief note on every step that you must pass through!
Seeking legal advice & aggregating funds
Even though cryptocurrencies are booming at a fast pace, many countries deny the business ideologies based on these digital currencies. Hence, you must seek advice from a consultant and then choose the geolocations to set up the exchange platform.
Once the geolocations and all the formalities are set, you can approach a blockchain consulting company to build crowdfunding tokens like ICO, IEO, IDEO to raise funds for the project. Some of the blockchain tech companies can take up your tasks of building exchanges right from clearing legal issues.
Get ready with requisites & tie-up with tech partner
Whether you pick the choice of developing from scratch or patching up the white-label exchange software, you need to decide the features and functionalities of the trading platform. Hence, scrutinize the top exchange platforms in the market and get ready with the list of advanced features and functionalities for your exchange. Consult with a cryptocurrency exchange development company and get a quote on the development cost. However, a big bang that hits your mind while diving in the process would be, “how much does it cost to build a cryptocurrency exchange?.” There is no strict answer from me! As the development cost purely depends on your demands!
Don’t hurry up! You can explore the deciding factors of development cost as a take away at the end of this post!
As for now, get ready with the list of requisite features and functionalities you need to enforce in your exchange platform. Pick the tech partner to develop your crypto exchange platform! You can pick up the professional team to audit the application at this phase if you are patching up the white-label software.
Watch Now : Crypto Exchange Development – A Revenue-Making Business Model In 2022
Integrating liquidity API and payment gateway
The mandatory feature of the crypto exchange platform is the liquidity of assets. Your cryptocurrency exchange must be integrated with the community peers to gain immense liquidity that would be the delight for your users. Also, to swap cryptocurrencies as per the convenience, your application must be integrated with the secured payment gateway that supports multiple payment methods.
However, choose the secured payment gateways for your exchange as it deals with your user assets! You’re solely responsible!
Auditing & bug fixing
Despite whatever application you have built, you must thoroughly audit before launching it for community users with the help of experts. In crypto exchange platforms, it deals with huge liquidity of assets across the wallet applications of users and the platform. Hence, the prying eyes are attracted by the huge funds of the exchange platforms. So, protecting your user and exchange funds with enhanced security features becomes undeniable.
Regression testing must be performed at every phase of the application and while fixing bugs. You must develop a complete exchange application without any flaws to launch in the market space! Audit thoroughly and fix the bugs!
Outreach & customer support
Your crypto exchange platform succeeds only when it hits the target audience! Hence, outreaching your exchange platform by highlighting the unique features and functionalities with innovative marketing strategies is essential. Delivering intense consumer support round the clock with extensive knowledge increases your exchange user base!
By now, you’d have mastered the professional steps to start a cryptocurrency exchange platform. Take away the deciding factors of the budget of the cryptocurrency exchange platform and the rough estimate from our team!
Factors that decide to build a cryptocurrency exchange platform!
You’ve explored how tedious is the process of building a cryptocurrency exchange right from scratch. Here’re the shots that snipe you the factors that decide to develop a crypto exchange platform!
- Requisite features and functionalities,
- Team size,
- The technology behind user-interface,
- API’s integrated,
- Wallet application,
- User module,
- Admin module,
- Database,
- Marketing strategies.
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