As the popularity of cryptocurrencies continues to grow, so does the demand for cryptocurrency exchanges. A crypto exchange platform allows users to buy, sell, and trade cryptocurrencies. With currently the crypto market cap reaching $1 Trillion, it prompts the best scope for business minds to enter the crypto-verse. The cryptocurrency exchange development has become a lucrative business opportunity for entrepreneurs and businesses. You can create an exchange platform either from scratch or by using prominent white-label cryptocurrency exchange software. In this blog, we will explore what our exchange software is and the eminent process of developing a highly-efficient crypto trading platform.
Cryptocurrency Exchange Software – What Is It?
There are two effective ways to develop an exchange platform, one by scratch and the other with the employment of a white-label solution. The cryptocurrency trading software is a ready-to-deploy and customizable solution that allows cryptopreneurs to deploy their high-end trading platform as per their requirements. Also, many business minds opt for white-label solutions to set foot in the crypto space with their venture. As they are much more affordable and consume less time to create the crypto exchange compared to building the platform from scratch.
Business Benefits Of Cryptocurrency Exchange Software Development
- Potential For High Return On Investments (ROI)
- Various Revenue Streams
- Secured Business Model
- Improved Transparency
- Access To New Markets
How We Assist On Exhibiting A High-Standard Crypto Exchange Platform?
Step 1: Select The Exchange Platform Type
There are different types of crypto exchanges that can be built according to your exchange platform requirements
Types Of Cryptocurrency Exchange software
- Centralized Exchanges (CEXs):
Centralized crypto exchanges are the most common type of exchange that is being used for crypto trades. These exchanges are run by a centralized authority or organization and operate on a traditional, centralized server architecture. When using a centralized exchange, users can trade cryptocurrencies through the exchange, and the platform is responsible for holding and securing the user’s funds.
This means that users need to trust the exchange to store their funds securely and to ensure that the trading process is fair and transparent. Some examples of popular centralized exchanges include Binance, Coinbase, Kraken, and Huobi.
- Decentralized Exchanges (DEXs):
Decentralized exchanges (DEXs) are a type of exchange that operates on a decentralized network. It doesn’t require any centralized authority or organization to manage the exchange. In a DEX, users can trade cryptocurrencies directly with each other without relying on a third party or intermediary to facilitate the trades.
The trade execution and order matching processes are performed by using smart contracts on the blockchain, which means that users have full control over their funds during the trading process. A DEX platform eliminates the possibility of hacking or other security breaches. Some examples of popular decentralized cryptocurrency exchanges include Uniswap, PancakeSwap, and SushiSwap.
- Hybrid Exchanges:
Hybrid crypto exchanges are designed to provide the benefits of both centralized and decentralized exchanges. They offer the security and regulatory compliance of centralized exchanges. While also it allows users to have more control over their funds during the trading process, like in a decentralized exchange. In a hybrid exchange, the order matching and trade execution processes are decentralized. While the custody of funds and KYC/AML compliance processes are centralized. This means that users have control over their funds during the trading process. However, the exchange still has the responsibility to ensure that the funds are secure and that users are complying with regulatory requirements.
Step 2: Build A Platform With Advanced & Distinct Features
A platform should be built with intriguing and advanced features to gain the engagement of the target users, along with the essential features that are crucial for an exchange platform to act as an effective trading platform. Here are some excellent key features of a cryptocurrency exchange that are vital for an exchange platform.
- User-Friendly Interface: A user-friendly interface can make it easy for users to navigate the exchange and perform transactions quickly and efficiently. The exchange should be easy to use for users, with clear and concise instructions.
- Regulatory Compliance: A reputable cryptocurrency exchange should comply with relevant laws and regulations in the jurisdictions where it operates. This can include KYC/AML requirements, licensing, and adherence to anti-fraud and anti-money laundering laws.
- Multi-Currency Support: A top crypto exchange should offer a wide variety of cryptocurrencies for trading, including both major league coins and the newly launched ones.
- Trading Tools: Advanced trading tools, such as margin trading, limit orders, and stop-loss orders, can be helpful for more experienced traders and can make the exchange more attractive to these users.
- Wallet Support: An inbuilt crypto wallet on a crypto exchange allows users to store, send, and receive cryptocurrencies on the platform.It makes it more convenient for users to manage their cryptocurrencies, as they don’t have to transfer their funds to an external wallet.
- Security: A good cryptocurrency exchange must have robust security measures in place to protect user funds from hacking attempts and other security breaches. This can include measures such as two-factor authentication, encryption, cold storage of funds, and regular security audits.
- Liquidity: A top cryptocurrency exchange should have high liquidity, meaning that it has a large number of buyers and sellers and a wide range of trading pairs. This can ensure that users can easily buy and sell cryptocurrencies at fair market prices.
Step 3: UI/UX Design Development
The UI/UX development process is an important aspect of exchange platform development. A well-designed and user-friendly platform can help attract and retain users. It also enhances the security and functionality of the exchange. By prioritizing user research, responsive design, navigation, visual design, and security, our developers ensure the creation of a successful exchange platform that offers a great user experience.
Step 4: Front-End & Back-End Framework Integration
The front-end framework of a cryptocurrency exchange handles the user interface. This includes creating and managing user accounts, placing and canceling orders, and viewing order book and trade history. The back-end framework of a cryptocurrency exchange is responsible for handling the business logic and data processing. It processes requests from the front end, communicates with other services, and interacts with the database.
To integrate the front-end and back-end frameworks of a cryptocurrency exchange, our skilled developers use various APIs, SDKs, and libraries. These allow the front-end and back-end to communicate seamlessly and enable users to interact with the exchange in real time.
Step 5: Testing & Deployment
During the testing phase, The platform is multiple times tested to ensure the exchange is stable, secure, and functional. If any bugs or errors are found, they are rectified for the exchange to work flawlessly. Once the platform is confirmed bug-free, it is ready to be beta-launched among selected users to gain its review. And then it can be made accessible for wider audience in the market.
Conclusion
Infinite Block Tech is a renowned cryptocurrency exchange software development. Our top-tier solution allows you to deploy a advanced, and lucrative exchange platform that benefits both you and its users. With our proficiency in crypto market and advanced tech stacks, we exhibit a crypto trading platform that ensures optimized trades. And also, our experts ensure on satisfying all your business requirements for exchange development. Acquire our top-rated cryptocurrency exchange development services and bag its perks!