Cryptocurrency has become popular over the past few years.
It’s not just a fad anymore; many people are investing in cryptocurrency because they believe it will continue to increase in value.
While there are dozens of exchanges available today, only a handful of them is worth using.
However, if you’re wondering how to develop a cryptocurrency exchange platform, there are a few options to consider.
This, of course, is not without considering customer support.
A good exchange site will offer support through online chat in several languages. It will be accessible during specific hours.
And in addition, it will have real people interfacing with and answering customer questions.
Beyond all that, though, the following are the options to consider.
Development through a cryptocurrency exchange script
A Cryptocurrency exchange script is an excellent option for budding entrepreneurs because it provides a scalable, feature-rich platform that has in-built security measures.
The script can help build a comprehensive cryptocurrency exchange website that includes an easy-to-use dashboard, multi-payment support, and multi-language support.
That way, the crypto exchange website development becomes smooth.
Cryptocurrency exchange scripts are also generally secure, which means that your customers can place their trust in the exchange.
They also offer many advanced features such as advanced security mechanisms.
The script also includes 24-hour support, so that you don’t have to worry about any security issues.
There are several factors to consider when choosing a crypto exchange script. Firstly, make sure that the script is multi-tested.
This will ensure that your exchange is ready to be deployed instantly.
Secondly, make sure that the script can run in real-time.
Thirdly, make sure that the script is secure against malware and anonymous attacks.
Lastly, do ensure the cryptocurrency exchange script is easy to use and that it follows the 37-Fort Knox security checklist.
This is critical to avoid any kind of downgrade or loss of funds.
Get up and running quickly and easily.
Unlike a DIY project, using a script will allow you to get up and running quickly and easily.
This will save you the time and money you would spend developing a blockchain-based platform from scratch.
Moreover, the script will allow you to launch your exchange in as little as 15 days.
This is because a cryptocurrency exchange script can be easily deployed to a live website.
After which, you can customize the script to add your company’s logo and preferred Ul/UX.
Now, while white-label cryptocurrency exchange scripts allow you to modify and customize their functionality…
Please note that they are often crummy and untested.
And such scripts can lead to technical or non-technical crashes that can impact the quality of both your exchange and the expectations of your users.
So, if you have an open-source cryptocurrency exchange script, make sure you are in control of the source code, as this can be a huge advantage.
Once your script is live and functioning, then you can use PR campaigns or social media to market it and raise awareness of the new service.
Developing a trading engine for a cryptocurrency exchange platform
Developing a trading engine for a crypto exchange platform involves several interconnected components.
These components include the server-side trading engine, client-side trading terminals, and various auxiliary services and APIs.
A cryptocurrency exchange platform requires a trading engine to execute transactions and manage balances.
But that’s not all. Its other requirements are:
- An aggregator that can process a large amount of information every second.
- A trading kernel that will form and execute orders and calculate the platform’s balance.
- Ability to interface with several banks and payment systems
- A simple, straightforward interface will ensure that users will use the exchange and be more loyal to it.
- A user-friendly dashboard will make it easy for traders to access the information they need and decrease the time needed to complete transactions.
The security of user funds is crucial.
This is simply because, to be a successful cryptocurrency exchange, the system must provide the highest level of security and privacy.
And also because it is the desire of every investor to be able to withdraw their funds safely.
There is no crypto exchange platform out there that is both secure and reliable, that users wouldn’t be happy to use.
All these, put together, show the complexities involved in developing a crypto trading engine.
Development through decentralized P2P crypto exchange (DEX) architectures
The DEX is a new type of financial market that will be based on the blockchain.
It allows users to trade directly with each other, without intermediaries and centralized third parties.
The DEX can also be used as an alternative to traditional exchanges for trading cryptocurrencies.
It involves smart contracts powered by blockchain technology that enables traders to handle transparent, reliable, and automatized peer-to-peer transactions.
Smart contracts are being applied to blockchains to create new types of decentralized apps.
These applications allow people to trade digital assets without having to rely on centralized intermediaries such as banks and payment processors.
While smart contracts have been around for decades, it wasn’t until recently that they became widely adopted due to the rise of cryptocurrencies.
The concept behind smart contracts is simple: you enter into a deal with another party, and both parties agree to perform certain actions based on specific conditions.
Once those conditions are met, the deal automatically executes.
There is no third party involved; there are just the two parties performing the terms of the agreement.
This makes smart contracts ideal for situations where trust is crucial, like financial transactions.
There are several ways to use smart contracts today.
One way is to build a decentralized exchange, or DEX, that enables anyone to buy and sell crypto assets directly from each other.
Another way is to use smart contracts to create “proxy tokens,” which represent something else entirely.
For example, a token could represent shares in a corporation or ownership interest in real estate.
Finally, smart contracts can be used to create escrows, which protect buyers and sellers from fraud.
Classic cryptocurrency exchange platforms focus on trading and are similar to stock exchanges.
They allow users to buy and sell cryptos and fiat currencies.
That way, users can negotiate a deal if they have a counteroffer.
To develop a cryptocurrency exchange platform, you can take advantage of the existing exchange software and connect to other exchanges for additional liquidity.
You can also partner with a payment processor.
These steps are important for running a successful cryptocurrency exchange platform.
However, whether you develop your exchange or partner with another, you need to maintain a legal team to ensure ongoing compliance.
And you need a good customer support team that should be available to answer all user queries and technical issues.
And the best part?
You need a skilled team of blockchain developers who can lay out the right logic and architecture for the exchange and help you benefit massively from either of the options outlined in the article.