Fundamental aspects of creating a cryptocurrency exchange software
Know the ABC’s of creating a crypto exchange software and become a successful cryptopreneur
Cryptocurrency is an evolving currency in this present world. There are multiple ways of digital payments but it is not a wonder that cryptocurrency has got all the attention. It is because of its volatile nature and its market potential. Introduced in 2008, Bitcoin priced at very 1000 USD and now, it is being priced at 40k Dollars. No other digital payments would have made this kind of height in a short period as cryptocurrency does. Trading in cryptocurrency is a good option but it is more profitable to start your cryptocurrency exchange platform. Apart from a simple business option, it is one of the emerging businesses that can drag you huge profits. In this section, you can know about the fundamental aspects of creating a cryptocurrency exchange platform.
On a legal basis, the basic thing that your cryptocurrency exchange platform should get is the license. You need to get a license to run your cryptocurrency business without any legal interruptions. Many countries are supporting the arrival of cryptocurrency and so, obtaining a license will not be a huge task.
Agreement with banks:
The trade you are going to do involves multiple transactions and currency flows. So, you need to assure your platform with your approved bank so that they can support you and your clients during their transactions. Your clients may be buying and selling bitcoins and with strong financial backing, the transactions would be fast and reliable.
After getting the legal approval and financial backing from the banks related to transactions, it is time to construct your cryptocurrency exchange software for your business. It is a challenging task as creating your software is not an easy process. You need to have updated technologies and knowledge to do so. But there are other ways too. If you like popular cryptocurrency exchange platforms like Binance, then you can buy a ready-made clone script and modify it according to your convenience.
Make your platform more liquid:
Liquid platforms attract more investors and traders to your cryptocurrency exchange platforms. Because it is due to the liquidity that your cryptocurrency platforms survive. So, you need to increase the liquidity of your platform by crafting your API. This provides multiple transaction options to your customers and traders on the platform.
Customer management and support:
Engaging with your customers is the best option to know about your cryptocurrency platform. No one other than a third party user can identify any flaws or improvements to do in a website or platform. So, hire a great team who can manage your customers and accept their requests and guidelines and move it to the developer team. Also, issue-resolving can be made quicker with such a great team in your hand.
Providing multiple exchange platforms:
There are two types of exchange platforms — Centralized and Decentralized. Centralized platforms are intermediates who act as a trust builder. They facilitate the payments and transactions between the buyer and the seller. They are more attractive for the new users of the cryptocurrency platform users. But to be sure, they are less secure compared to the decentralized ones. Yes, they need the blockchain network too.
But they are provided with a public blockchain network. Yes, the customers will be provided with the private key too. But due to frequent transactions, there may be key-logging issues. In the meantime, Decentralized platforms operate in a peer to peer networks with a secure smart contract. Hence, there is no need of key-logging or cyber theft included. Also, the blockchain privacy is more intimate and so there is no need to get afraid of their security features. But you can provide these two platforms to your users as opinions of the users matter.
Yes, you can redirect your new users towards decentralized platforms. It can allow your traders and other experienced users to your centralized platforms. But with efficient customer support, you can guide them in their desirable aspects.
It is best to decide the type of architecture you need to build your software. It is generally based upon the customer value and your trade volume. There are three types of software infrastructures that you can follow to build your software. The first one is the Synchronous software. It is very simple and easy to construct and maintain. It is easy to do transactions in this type of software as they would be effective, fast, and reliant. The second one is the Asynchronous software which is known for its significance. It is built based on separate module efficiency. It can be created by a unique API programming method. It is because every single payment runs as a separate method of transactions and hence it is completely secure and private. If you are involved in large trading volumes with the necessity of maximum security, then you can build an asynchronous software for your cryptocurrency exchange business. A distributed network is the third category in infrastructure. By name, it is known to distribute the network and conduct operations by means of shards. So, each transaction is so secure and encrypted.
Tools to build your software:
There is no specific arrangement in building your software. You can construct your software as per your wish. But considering the user’s desire to trade in your software, you need to have certain tools to craft your software as a user-friendly, efficient, reliable, and compact.
- Firstly, you need to have an effective trade engine to conduct your user trades.
- Secondly, you have to back up your software with a powerful User interface to support your software.
- Thirdly, You should integrate your software with a cryptocurrency wallet. You can do so by using upgraded wallet integration tools.
- Fourthly, a strong admin panel to provide customer support and to provide solutions to any technical issues.
It is the backbone of any cryptocurrency exchange platform. A secured exchange platform is the one where people rely to trade at and so, it is more important to strengthen the security of the platform. Blockchain security is the most efficient and necessary security gesture that every cryptocurrency exchange platform has. In addition, it can be supplemented by other security features like 2FA, Anti-DDoS, etc. This will not only improve performance but also builds trust.
How to build your cryptocurrency software?
There are different ways to build your cryptocurrency software. The first one is building your White label cryptocurrency exchange software. This is unique as you build your ideas into operation and your software would be attractive and efficient. But you should never forget to update it with security features to stand out in the competition. The second one is modifying a clone script. Yes, if you are interested in any script like Binance, then you can buy a clone script. You can modify it based on your business needs and run your cryptocurrency exchange platform. This is the cheapest form of creating your cryptocurrency exchange software. But, it is up to your consideration to choose what type of cryptocurrency exchange software you need.
To conclude, you need to cover up the entire feature right from the legal aspects to the security aspects to create a successful cryptocurrency exchange software. So, why waiting. Buckle up and start your crypto software.