A cryptocurrency exchange platform enables users to buy, sell, and exchange cryptocurrencies for other currencies like the US dollar and Euro.
Initially, to start using a crypto exchange, you should first understand the types of crypto exchange available in the industry.
- Centralized exchange
- Decentralized exchange
- Hybrid exchange
In Centralised exchange, the middleman performs the transaction to buy and sell digital assets. In contrast, decentralized exchanges form transactions without an intermediate. A hybrid exchange platform is a combination of both centralized and decentralized exchanges.
It is necessary to choose between these exchanges before launching your exchange platform.
Now let us deep dive in to know the steps involved in how to build a cryptocurrency exchange platform and it cost
Developing a cryptocurrency exchange platform from scratch is not easy. First and foremost, you should analyze the project and gather the requirements and features that you wanted to add to your platform.
- Acquire proper legal counsel and ensure the license requirement.
- Collect funds for your venture
- Find a cryptocurrency exchange software solution provider
- Connect your exchange platform with others to add liquidity
- Join hands with the payment processor
- Provide the Best security practices
- Promote your exchange platform through marketing and PR campaigns
- Provide 24x7 customer support
- Maintain a legal team for ongoing compliance and provide maintenance
It is crucial to determine the cost of building a cryptocurrency exchange. If you want to add more features to your platform, then the cost will be comparatively more. It is necessary to showcase your maximum budget because it includes the future plan as well.
Apart from these constraints, you will need to spend funds on general factors like providing wages to developers, due diligence, obtaining legal compliance for crypto exchange, and much more.
Here are some basic features that you will need to add in your crypto exchange platform
- Admin panel
- User interface
- Trade engine
- Order book
- Liquidity API
- Crypto wallet
- Security protocol implementation
- Payment gateway integration
- KYC /AML solutions
Developing a user-friendly interface is important in the cryptocurrency exchange development. The user interface should be designed in such a way that a layman can also use them to deposit and withdraw virtual currencies in your platform.
The trade engine is considered as a core part of the exchange platform. The main aim is to create an order book, regulate the transaction, and keep updating the balance to the users.
The exchange provider must manage the dashboard effectively. It is also important to integrate advanced features such as investor management, pending transaction management, and much more in an error-free manner.
When it comes to crypto wallet integration, some users prefer a hot wallet to perform an instant transaction, and some users prefer cold storage for a safer transaction. As a proprietor, you should decide on which wallet you want to integrate into your exchange platform.
Finally, you will need to integrate security protocols such as HTTP authentication, data encryption, etc.
As stated earlier, the cost of your cryptocurrency exchange will vary depending upon your customized requirements. You can also develop your exchange platform by using a white label crypto exchange software and start your exchange venture in no time!
