This content originally appeared on DEV Community and was authored by sebastian tiger
Cryptocurrency exchange software
A cryptocurrency exchange is a platform where users can trade cryptocurrencies or fiat currency. Currently, the cryptocurrency trading/exchange market is growing has gained the attention of many people and businesses. As the number of people joins the crypto community the demands for exchange platforms will significantly grow because these individuals will need a safe and secure platform for their trading there.
Cryptocurrency exchange software is a software solution for buying, selling, trading, and other actions related to digital assets. The platform should allow users to borrow and lend some funds, for margin trading with ETH/BTC, BTC/EUR, and ETH/USD pairs.
What is the process of cryptocurrency exchange development?
The steps for developing the best exchange platform:
Research and analyze
the first step is to analyze the current demand for digital currencies to gather the info and make a clear concept of your exchange platform. This will help to predict the measure of the risks in the development.
Design
The next step is to design the front-end development that is attractive to be engaging for the clients and also be easy to use for any level of clients from a basic person to advanced traders. In recent years the platforms with the best user experience have gained the most considerable trading volume.
Development
developers develop a secure cryptocurrency trading platform that is fully functional and useful and it reaches the customers' demands. There are different methods for developing a website that we have mentioned in the following text.
Testing
Before launching the platform to the market, do the various test on the platform to be completely trustworthy and secure for the clients to do their transactions. They are going to invest all their hard-earned money into that platform so security comes first.
Here we mention the types of cryptocurrency exchange:
Centralized exchange: Centralized exchange acts as a mediator during the whole process. They have complete control over the transaction and store the money and funds and purchase the cryptocurrency from the trader's account until the end of the transaction process. Binance is one of the most known centralized exchanges in the world.
Decentralized exchanges: DEX stands for decentralized exchanges. The peer-to-peer exchange has tried to solve the problem of storing the users' funds and assets. In these kinds of exchanges, the traders execute the transactions directly with each other without the presence of a third party.
Hybrid: the hybrid exchange was developed to cover all the problems with the DEX and CEX exchange. It combines all the positive features of centralized and decentralized exchanges.
What are the important features to build the cryptocurrency exchange software?
Wallets: a wallet is a place where traders store their valuable assets. One of the features that any exchange website should pay attention to is the secure and fast wallet. The wallet must support multiple cryptocurrencies that the traders don't need any other wallets.
Liquidity management: The fundamental part of starting any exchanges to start the operation is to arrange the liquidity. A different method can be used to create liquidity. The large volume of trading is a good indicator for crypto exchange, the ability to fulfill the users' order at any time no matter if the order is big or small is a positive aspect.
Trading engine: the trading engine is a feature of any cryptocurrency. The trading engine should have the features like the live chart of the price, volatility index indicators, and calculative tools for professional traders. If the decentralized want to stand out in the market the smart contract and trading engine need to be built.
Mobile apps and mobile web app development
The crypto market is rising itself and the following we have the rise in the number of apps downloads that shows traders are attracted to the crypto apps because they prefer to have access to their account everywhere and every time so besides the cryptocurrency exchange software development as a business owner you have to consider developing a crypto exchange mobile app. So don't miss The opportunity to create your very own crypto exchange platform and its synced mobile application to shine among your competitors.
some features that a Cryptocurrency exchange software can have
Multicurrency support
Backend features
Front end features
Order matching and management
KYC/AML
Margin trading
Hot and cold wallet
Multi-language support
User dashboard
Admin panel
Support various Payment options:
Support deposits in any fiat currency
Support of withdrawals
Methods of developing an exchange website
Developing from scratch:
Develop the website on your own: You decide to develop your exchange from scratch the first thing you need is a team of experts including developers, blockchain experts, and designers then you have to pick a strategy for developing the website. Also, you have to keep in mind you may face some unpredicted problems and bugs so must be ready to fix these problems before launching them to the market. This method will cost less but it's a time-consuming process and because you have to take care of everything it will need a lot of energy and effort. Now if you think you are ready hit the road.
hire Cryptocurrency Exchange Development Company:
you have another choice for developing an exchange software. You can hire one of the trustworthy blockchain development companies to develop your exchange platform for you. Before choosing the company pay attention to the number of their employees, their user's feedback, and check their background by checking the websites they have developed previously. Keep in mind that if you hire a company to develop an exchange for you they have to constantly keep in touch with you and implement your idea into the software, they have to be on time, using the latest technology for developing a website is so important and make sure they provide the customer support after purchase. This method also needs time and money the time it needs vary for each website based on the features and functions you want the website to have.
White label solutions:
There is another way available for developing an exchange platform and it's using a white label exchange platform. This method is the fastest way to develop an exchange platform. First, let's see what is a white label crypto exchange? The white label exchange is a readymade software that is fully customizable on every side you can change the front end based on the design you have in your mind for your brand also you can add the extra features and functions to your website based on your business requirements. As I mentioned above the white label software is pre-coded so it doesn't need all the time that is needed for developing a website from scratch, I have to add that you can build your exchange platform and launch it to the market in a week. Also one of the advantages of using a white label exchange is that it is pre-tested so the possibility to face the bugs and problems is so low. The only problem with the white label is that you may face some minor limitations in the customization.
How does crypto exchange software work?
The first step is registration, the user provides the required info and signs in to his/her account.
Get an individual crypto wallet
Store the crypto in the wallet and place the sell order.
Sell Order will find its matched buying order
The cryptocurrency will transfer according to the exchange rules
Crypto or that fiat currency is sold then it will be purchased
The seller can receive the fund from the bank in their preferred currency even the fiat currency.
The security features that you must search for in a cryptocurrency exchange:
Escrow system
DDoS anti denial of service
Jail login
Two-factor authentication
Anti-fraud management
Time out session
This content originally appeared on DEV Community and was authored by sebastian tiger
sebastian tiger | Sciencx (2021-11-03T08:17:09+00:00) Cryptocurrency Exchange Software: Every Thing About It. Retrieved from https://www.scien.cx/2021/11/03/cryptocurrency-exchange-software-every-thing-about-it/
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