A cryptocurrency exchange is a form of digital currency exchange system, is a kind of business in which customers trade their cryptocurrencies in the exchange of assets such as fiat money or other forms of digital currencies.
Although, building one’s own cryptocurrency exchange requires a lot of work and effort, but it can prove to be a massive business when established and launched properly.
Just like mobile app development companies, it is possible for everyone to make cryptocurrency exchange applications but at a comparatively higher cost than mobile app development costs. Cryptocurrency exchange businesses gain the attention of a lot of traders all around the globe and even new users who wish to invest in digital currencies.
Also, the most successful cryptocurrency exchange businesses have a smooth blockchain-powered system which makes them easy to handle, has low trading charges and have an interactive interface. Many companies provide coin offers to customers to gain their attention just like any other good or service business.
Nowadays traders absolutely love this new form of currency exchange because of the following reasons:
- The cryptocurrency exchange business has high performance when it comes to trading.
- Traders are not limited to any one device. Trading can be performed with any of the devices.
- The cryptocurrency exchange is safe and stable as compared to other processes of asset or currency trading.
- It comes with multiple languages as per the users’ comfort and convenience.
- Cryptocurrency exchange businesses have a massive ability to liquidity with lightning-fast performance almost up to 1,400,000 orders per second.
- Their efficiency has also been increased by the feature of multiple coin support.
To start one’s own cryptocurrency platform, it is very important to know the basics and pre-requisites of it. There are basically two kinds of people active on this platform viz, the user and the administrator. The users are those who can log in to the cryptocurrency exchange platforms and exchange their cryptocurrencies or trade them for other assets.
Users are offered a wallet in which they can store currencies and withdraw it when needed. Another kind of user is the administrator who controls and runs this business and has a track record of the application and its security. The administrator manages the customer, its security and other settings. Another things required are the blockchain app development services as cryptocurrency itself is a subset of the blockchain technology.
There are many additional facilities offered by cryptocurrency exchange platforms and blockchain app development companies which promote user safety and prevents theft or any kind of tampering with user’s data or digital assets.
Some of them are as follows :
Sign In/Sign Up facility
No user can exchange cryptocurrencies without making his/her account in the platform, or say application. The sign-in facilities are well developed and correspond to the highest form of security. This feature prevents unauthorized logins, hack attacks or other kinds of manipulations and tampering with the application.
Many platforms also provide the 2 step verification process which provides additional protection to users. Just like mobile app development company, cryptocurrency exchange applications can provide OTP, mobile verification, email verification etc as their parameters for secure login or creation of account.
Verification of KYC
KYC stands for Know Your Customer. Every user is verified thoroughly. A KYC verification ensures the type and financial background of the user who is enrolling himself/herself for the cryptocurrency exchange business and prevents any type of scam.
Validation of AML
AML is abbreviated as anti-money laundering. After KYC verification, AML validation is done which ensures the protection of digital assets on the server. It also ensures the transparency of trades with the help of money laundering. AML validation helps to complete the profile of the user which benefits him/her at the time of trading.
Cryptocurrency exchange platforms offer digital wallets to users in which they can store their assets. Also, this feature can be used while withdrawing assets for trading. The limit of deposition or withdrawal is set as pet the AML validation.
Transaction dashboard is an inseparable platform of cryptocurrency exchange applications. It stores all the transaction history of each user. This facility is often powered by blockchain app development services which ensure the end to end protection and accountability of records. Users can fetch all the transactions from the transaction dashboard.
The trade done can be analyzed and monitored with the trade analytics feature which makes graphs and charts of various trades done and provides its profit margins and progress report. It also helps in the future prediction of trades and exchanges.
It is a very interesting feature which allows users to create their own automated trading systems. Multiple language support systems can also be created using an integrated API. This promotes users’ creativity and preserves his/her ideas on the cryptocurrency exchange. Also, customized and automated trading systems are more convenient for users.
With single hand access, the admin panel helps the administrator (the founder or CEO of the business in most cases), to monitor each and every trader’s transactions and trades. Admin panel gives the facility of modification of site and adding extra features which may help the users.
The cryptocurrency exchange platform is end to end encrypted. The important components of trading are stored in different servers and only communicate through various channels. Also, the encryption keys are located in dedicated servers which are highly secure and safe.
To develop and launch such an application requires a huge amount of time and investment. As per resources and past experiences, the approx time needed to develop is 3500 hours and it takes almost 16 weeks to launch the same to the common public. Apart from the hardware and software requirements and developers’ cut, more time automatically results in more investment. But the cost of launching and developing these apps are slightly different from the mobile app development costs.
They may vary from country to country depending upon the customization works, business requirements and the number and skills of people involved in the process. On average, the cost varies from $15K to $60K. There are a few free cryptocurrency APIs available which can be used. There are numerous blockchain development company which may help for the same.