Making exchange platforms for cryptocurrencies is the most popular and profitable business in the world right now. Bitcoin, which is thought to be the leader of the cryptocurrency industry, recently passed $19,800 and is now at its highest value. Cryptocurrency exchanges make a lot of money from the trading fees that users pay when they make a transaction on their platform and the listing fees that users pay when they add new coins or tokens to the exchange. So, now is a good time to make software for exchanging Cryptocurrency and make money from the trend.
Why is getting involved in cryptocurrency exchange development a good idea?
- Users can send money to each other across borders without being seen.
- The nature of the transactions makes it impossible for chargeback fraud to happen on the platform.
- There will be an affiliate programme where current users can get cool rewards for telling their friends, coworkers, and family about the platform by giving them a link to share.
- Assets can be moved quickly, cheaply, and without any control from an authority in a way that is decentralized.
- It works 24 hours a day, 7 days a week, unlike most financial markets that are only open for a few hours a day.
- It doesn’t change when the government changes its policies or when the economy goes down.
The different kinds of software for exchanging cryptocurrency that are on the market right now:
In this the users’ transactions are handled by a third party. Users must put their money on the exchange platform, where it will be held by a governing body. So, users of a Centralized exchange won’t be able to get to the private keys of their wallet account on the exchange. In the past, centralized exchanges have been hacked several times, and users’ funds have been stolen with no way to get them back. Centralized exchanges have to worry about the security of their users.
In a decentralized exchange, there is no middleman to handle transactions for the users. When users use a decentralized platform, they have more privacy and safety. The exchange won’t keep any of the users’ money, and the users will have full control over all of their assets without any limits. The user’s private keys are the only ones who can get into his cryptocurrency wallet. They don’t have enough liquidity, don’t accept advanced orders like stop-loss orders and limit orders, and can’t handle a lot of trades at once. Because of this, professional traders who do high-frequency trading may not be interested in using the platform.
Hybrid cryptocurrency exchange
Hybrid cryptocurrency exchanges take the best parts of both centralized and decentralized platforms and get rid of their flaws. This makes sure that users can trade safely and with confidence. On the platform, no third party will hold or take care of the funds of the users. Qurrex, Stoxum, and Eidoo are some of the Hybrid exchanges. Hybrid exchanges are the future of cryptocurrency trading, according to many crypto startups and entrepreneurs. Many projects are in different stages of technical development and testing at the moment.
How to start building a platform for exchanging cryptocurrency?
- Make sure your exchange follows all the rules that have been set by a certified authority in your area. This will make sure that your business doesn’t have any problems in the future. Countries that are open to crypto make the whole process go faster and smoother.
- Raise enough money for your business venture and ask potential investors for the money you need. There will be different costs for incorporating the technology, getting it registered with the government, hosting the server, getting expert advice from a lawyer, and doing the first round of advertising. There must be enough cash on hand to run the Cryptocurrency exchange on a daily basis until the platform is completely profitable.
- Team up with a reliable cryptocurrency exchange software development company for exchange that has a good reputation and a lot of experience.
- Work with a bank or a provider of payment solutions to make sure that transactions go smoothly. Make it easy for funds to be quickly cleared and settled, either through an automatic payment gateway or a manual remittance. It will make things a lot easier for your users. If you follow the rules set by the PCI, your cryptocurrency exchange platform will be safe from some of the cyber threats that come up from time to time.
- Set up APIs with the other top crypto exchanges on the market to increase the amount of money that flows through your platform.
- Include some popular features like a strong admin console, a powerful matching engine that manages the entire order book efficiently, a customer management system, spot KYC/AML verification, integrated hot and cold wallets for sending and receiving cryptocurrency safely, support for the major cryptocurrencies and the leading fiat currencies, and ERC20 compatibility.
- Implement the best security measures, such as two-factor authentication, end-to-end encryption, jail login, geofencing, IP tracking, cross-site request forgery protection, email authentication, and password-protected user access. Any hacking or phishing attacks can hurt your business’s reputation.
- After putting the software through a lot of beta testing and fixing all of the bugs by looking at its full range of features, launch the cryptocurrency exchange platform on the market at the right time.
- Set up large-scale marketing campaigns across many different channels of communication to get people talking about you and your business.
- Offer full-service customer support around the clock to keep more of your users. Hire a dedicated team to approve new KYC requests, handle customer complaints, and process fiat currency deposits and withdrawals.
How to get started with developing a cryptocurrency exchange?
- You can put together a team of skilled blockchain developers who will work for you. Estimate how long it will take and how much it will cost before you start. There are many things to think about, like the work experience of the developers, the tech stack to be used, and the features you want to add to your exchange.
- You can use sites like GitHub to find open-source scripts for exchanging cryptocurrency. The best thing about this method is that you don’t have to pay anything for the source code. To understand how the open-source script’s code works, you need to be a technical expert.
- You could also get a customized white label cryptocurrency exchange software as a present. It would have been tried out a lot before it was released, so it wouldn’t have any bugs or problems. You can also add your brand name, UI/UX design, languages, and a color scheme that fits the needs of your business. To use a white label exchange software, you don’t need to know anything about technology. All the important parts will be there ahead of time, and it is very cheap.
What does the future hold for the development of cryptocurrency exchange platforms?
These days, a lot of brokers, hedge funds, institutional traders, asset management companies, and financial institutions are getting into trading cryptocurrency. It is always a business that brings in money. There are some worries about how blockchain technology could change the way traditional financial systems work for good.
The credibility of the rapidly growing cryptocurrency industry would go up a notch if more institutional investors and big companies joined the market. It can be used as a means of exchange, a way to store value, a unit of account, to process transactions, and to prove digital ownership. It is much better than physical currencies because it can’t be manipulated or controlled by the government.
The value of cryptocurrencies on the market could go through the roof in the next few years, depending on how fast businesses digitize and how quickly they adopt blockchain technology. Extreme market volatility is another problem that cryptocurrencies have to deal with because their value can change a lot in a short amount of time.