A cryptocurrency exchange is a place where crypto assets can be bought and sold. Even so, just building an exchange platform won’t be enough to make it in the market as it is now. It is important to build an exchange with a lot of complex features and qualities. Every piece of software for cryptocurrency exchange development must protect funds, data, and operations while making the user experience better.
What does a crypto exchange platform should have?
When making a platform for trading cryptocurrencies, you must carefully think about how you want it to work. Depending on the type of exchange, the number and list of features will be different. However, all cryptocurrency exchanges have the same key features.
As an example, let’s take a closer look at the typical user journey and the things that are needed:
- Signs up for the cryptocurrency exchange system and says which cryptocurrencies they want.
- Anti-Money Laundering (AML) and Know Your Customer (KYC) rules are followed to check the accounts.
- The account has money in it.
- Type in the amount and value of the cryptocurrency you want to trade.
- If a counter-offer has already been posted on the site, the deal is done.
- Takes money out of the app and sends it to a credit card or a cryptocurrency wallet.
Based on the user journey, it’s clear that a cryptocurrency trading platform needs to have the following:
User Authentication and Validation:
Since user authentication is the first step in getting customers on the platform, make it as easy as possible. On the other hand, users expect other trade users to be honest and know what they want, so verification is very important at this point. Proper verification makes transactions more clear, reduces the risk of fraud, and shows that your bitcoin exchange meets international standards. Users should turn on two-factor authentication (2FA) and check their photos and IDs.
The user interface is the face of a cryptocurrency exchange software, so make it easy to understand and use. A simple interface makes sure that transactions are done quickly, which cuts down on trade time. From the dashboard, you should be able to get to order processing, order information, fund transfers and inputs, analytics, and so on.
The trade engine is the most important part of a cryptocurrency exchange. Also, the quality of the trading engine has a big impact on how well the cryptocurrency exchange works and how well it works. The better the solution you can give your users, the faster it is. For traders to be able to manage their assets well, they need to have direct access to the data about their transactions.
So, make building your trading engine a top priority. The use of blockchain technology could be a solution to this problem, since it not only provides full security and transparency but also speeds up your trading engine.
Give your users e-wallets so they can store and exchange crypto assets.
Order Book and Transaction History
An order book is a list of requests that are still being processed. This lets customers see what bids are currently being made. Using transaction history, users can keep track of what they have done. It’s a list of all the deals that have already been made, with details like how long they took and how much they cost.
You’ll need these if you want to make an app or website that uses bitcoins in a sophisticated way. Users should be able to get statistics in real time and more information about how the market works.
This is the best way to keep customers up-to-date on price changes, volatility, trends, news, and platform improvements. Customers can also keep track of trade listings with the help of notifications. Just keep in mind that customers should be able to pick which alerts they want. Push notifications are quick, easy, and cheap to set up. Other forms of automated marketing, like chatbots, cost more than push notifications.
How to start building your own Crypto Exchange?
There are three ways to start building a cryptocurrency exchange:
1. Starting from scratch to build a Crypto Exchange:
You can hire an expert exchange development service provider to make a crypto exchange for you from scratch. This choice is expensive and takes a long time because you have to keep adding resources to the project until it’s ready to go. You will have to test a new platform, and you may have to make changes to make it work.
2. The script for Crypto Exchange:
A crypto exchange script is a pre-coded exchange script that helps you build a crypto exchange platform that is the same as an exchange that is already working. With this script, you can quickly set up a cryptocurrency exchange that can be changed to fit your needs. You don’t need a lot of technical resources for this option because you can buy the script and any developer can make a solution for exchanging cryptocurrencies without starting from scratch.
3. White Label Exchange Software:
White label cryptocurrency exchange software is a solution that is already on the market and can be set up and launched quickly. You can set up the exchange quickly and easily without hiring a big team of developers or a lot of developers.
Setting up a p2p crypto exchange development is a smart business move if it is done right. More people than ever are mining, farming, and trading in cryptocurrency. Every day, the value of cryptocurrencies like bitcoin goes up, giving investors a huge return on their money. You may also benefit from the way the world’s financial systems change over time.