Since 2008, blockchain technology has significantly improved the financial sector. It has given rise to several exchange platforms that assist individuals in purchasing digital currencies. The widespread acceptance of cryptocurrency payment drives this increase. People from almost every country have begun to use these currencies in their transactions.
A cryptocurrency exchange is an online platform that allows users to buy, sell, and exchange crypto and fiat currencies. These products’ guiding principles are advanced security, transparency, and increased transaction speed. The dependability, speed, and convenience of the crypto platform influence the users leading to increased revenue. It is an excellent time to enter the crypto business and gain profit.
There are several technologies that can be used to develop a cryptocurrency exchange platform.
- Blockchain Technology: This technology can be used to create a secure and transparent platform for cryptocurrency trading.
- Cryptocurrency Wallets: Wallets are necessary for storing, sending, and receiving cryptocurrencies.
- Trading Engine: A trading engine is the core component of a cryptocurrency exchange platform.
- Payment Processing: This can include integrating with payment gateways like PayPal, credit card processors, or bank transfers.
- Database Management: To store and manage large amounts of data, the platform should use a robust database management system such as MySQL or MongoDB.
- Security: Implementing measures such as two-factor authentication, SSL encryption, and regular security audits can help protect users’ assets and prevent hacking attempts.
Types of Crypto Exchange Platforms
Since cryptocurrencies are volatile, online trading allows users to conduct speculative transactions and make revenue. Users can exchange crypto assets for fiat. Most exchanges’ primary goal is to provide services for selling and buying cryptocurrencies rather than real currencies. There are three main types of crypto exchange platforms to consider:
Centralized Cryptocurrency Exchanges
These exchanges function similarly to traditional stock exchanges, where buyers and sellers go to sell or buy assets. This exchange, also known as CEX, serves as a middleman, providing desired services to both parties. The centralized platform has authority or control over the user’s revenue. CEX has a user-friendly interface with many trading features supporting fast transactions. A few centralized exchange platform examples are Coinbase, Kraken, and Binance.
Decentralized Cryptocurrency Exchanges
They work on the true philosophy of the cryptocurrency industry and are also known as DEX. There is no centralized control holding investor funds in these exchanges. It enables users to conduct direct trades and is unhackable. Numerous well-known DEXs have gained considerable popularity among investors. A few DEX examples are Waves DEX, Stellar DEX, and Pancakeswap.
Hybrid Cryptocurrency Exchanges
The drawbacks of centralized and decentralized cryptocurrency exchanges led to the development of hybrid exchange platforms. This crypto exchange combines the benefits of centralized and decentralized exchanges. All of the shortcomings of centralized and decentralized exchanges get addressed by hybrid crypto exchanges. They combine the convenience of a centralized exchange platform with the security of decentralized exchanges. Users have complete control over their funds and are not required to hand them over to any custodian. While depositing tokens into the robust smart contract, users can trade digital assets directly from their wallets. A few HEX examples are Eidoo and Qurrex.
Eminent crypto exchange development process
The crypto exchange development services would set your brand apart from the competition. The following are the steps for creating a successful crypto exchange software.
An entrepreneur should start thinking about the future customers’ crypto trading experience from the start. When you’ve decided to build crypto exchange software, think about how to attract customers. The experts examine the company’s requirements and analyze the current market position.
Designers create the visual aspect of the crypto exchange software based on the requirements and market research, provide multiple user interface alternatives, and assess which prototype is the most practical and easy to use. A detailed visualization will help to avoid potential UX issues. The user interaction logic with the exchange software gets considered in this phase. The design team works on implementing the user interface design. Create stunning UI/UX designs with appealing display features that will bring a positive impact.
The development team will begin the project development after the design phase completion. At this stage, developers customize the features to meet the needs of the business. They are in charge of making your exchange visible to users. Back-end development is also taking place: writing the website’s core, securing it, and working with the database. A custom trading engine gets developed. The front-end phase follows, during which experts connect the back-end to the user interface.
The technical stack is as below:
- Back end: Laravel Django, PHP, and C#
- Front end: Angular, React, Vanilla.js, and Vue.js
- Database: SQLite, MS SQL, and MongoDB.
- Development Kit: SDWebimage, PromiseKit, and CocoaTouch
- Analytics: Parse, AppsFlyer, and Firebase
- Frameworks: Objective-C and Swift
- Data Storage: CryptoSwift, Realm, and Core Data
- Development Kit: Android Jetpack and SDK.
- Framework: Appcelerator Titanium, React Native, and Corona SDK.
- Data Storage: SQLite, Shared Preferences, and Realm.
- Analytics: Firebase, Amplitude, and AppsFlyer.
While building a crypto exchange software, API integration allows users to connect to other online resources. It enables systems to share data and stay in sync without human intervention, allowing the crypto exchange service to run and perform smoothly.
First, the business owner has to select a blockchain. Ethereum is a well-known and popular blockchain. Aside from this blockchain, there are advanced blockchains such as Solana, Cardano, and Polygon. Create a smart contract that regulates the functions based on the requirements. Orders, payments, accounts, and other information gets tracked using the blockchain network. All participants have access to the source and can view all transaction details at any time, allowing them to work confidently and reap new benefits while trading.
Testing is required to eliminate all bugs, identify flaws, and improve the crypto exchange software. The quality assurance specialists thoroughly test the user interface, storage, and security features. The vast majority of logic bugs are detected and eliminated by QA engineers. QA specialists inspect the crypto exchange software for bugs, functionality, usability, load, and compliance with technical specifications, which typically account for about 20% of the development time. The expertise may launch a beta version of the crypto exchange software for further testing.
The crypto exchange software is ready to be launched successfully into the market once ensured without bugs or issues. The experts will deploy the crypto exchange software in your preferred network. When the crypto exchange software has passed testing, it enters the launch phase outfitted with high-security features. After it has been built and thoroughly tested, the crypto exchange software gets deployed to local or cloud servers. The mobile app will get distributed through app stores such as the App Store, Google Play, Microsoft Store, Amazon App Store, and others.
Marketing and promotions
The journey begins with the launch of crypto exchange software. After receiving advice from industry experts, a proper marketing strategy must get implemented after launch. Connect with crypto news platforms to increase the internet presence or hold regular press conferences to promote the crypto exchange software. Plan the marketing activities within the budget as planned.
The maintenance team will continue to support the project even after deployment. The maintenance team assists with user feedback by enhancing new updates in the crypto exchange. The support service will help users resolve issues as soon as possible.
Cryptocurrency will rule the world and occupy every sector in the future. Entrepreneurs are shifting their focus to crypto exchange development. Following the factors mentioned in this post, an entrepreneur can create a crypto exchange website or app. So now is the best time to launch the crypto exchange software. Furthermore, the current tech world has many crypto development companies. Select a top company that provides the most recent trading and security features. Analyze and research the company based on customer feedback, ratings, years of experience, popularity, and development costs. Collaborate with a Crypto Exchange Development Company today to ensure your platform’s success in a competitive sector.