Cryptocurrencies have accumulated a market capitalization of $1.62 trillion as per CoinMarketCap. Investors are trading huge amounts of Bitcoin, Ethereum, Cardano, Binance Coin, Ripple, and Dogecoin every day. 382 crypto exchanges are trading 10,477 digital currencies in the market. Hence, this is the perfect time for entrepreneurs to launch an advanced Cryptocurrency Exchange Script made by a competent app development company.
What is Cryptocurrency Exchange Software?
It is an online trading platform that assists in the swift management of digital assets. For example, buyers and sellers can exchange Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and the leading stablecoins such as Dai (DAI), Tether (USDT), and USD Coin (USDC). Traders can negotiate a deal through the live chat option before executing it. They will pay gas fees and transaction processing charges for each buy or sell trade.
It helps in hassle-free buying and selling – of a wide variety of cryptocurrencies, governance tokens, and stablecoins.
A Cryptocurrency Exchange Script shares – real-time information about the market cap, prices, and trading volume of different digital currencies. Traders make the best decision by accessing the various charts and graphs.
A Cryptocurrency Exchange Software processes – millions of buy and sell orders every day. It executes trades after conducting Know Your Customer (KYC) and Anti-Money Laundering (AML) verification of investors
Centralized, Decentralized, and Peer-to-Peer (P2P) – are the three types of Crypto exchanges.
How can you create your own Cryptocurrency Exchange Platform?
Study the existing market conditions and investor behaviour. Decide the ideal location to start a Crypto exchange. Finalize the kind of crypto trading platform (Centralized, Decentralized, or Peer-to-Peer). Comply with the various guidelines and rules issued by the regulatory authorities. Hire a skilled team of blockchain and cryptocurrency developers, QA testers, UI/UX designers, and digital marketing specialists.
Create the Minimum Viable Product (MVP) with the basic features and functionalities. Test the MVP in controlled conditions. Involve in front-end and back-end development of the Cryptocurrency Exchange Script. Moreover, test the performance and security of the online trading platform.
Besides that, partner with a popular bank or a payment processor for the glitch-free settlement of funds. Ensure sufficient liquidity on the crypto exchange through APIs and partnerships with famous trading platforms.
Finally, launch the final version of the Cryptocurrency exchange platform at the right time in the market. Conduct online marketing campaigns by posting content regularly on forums and social media networks. This maximizes the business traction quickly.
Above all, provide 24×7 technical support services via email, live chat, and phone for both buyers and sellers of cryptocurrencies. This ensures a greater retention rate.
Know more about the Architecture of a Cryptocurrency Exchange Script
A Matching Engine – It accurately matches the buy and sell orders of investors. This ensures lightning-fast execution of trades and satisfies the business requirements of all the buyers and sellers. Further, it contains information about balances in wallets and the prices of cryptos.
Integrated digital wallets – Investors safeguard their crypto assets by depositing them in secure digital wallets. A Cryptocurrency exchange software supports both hardware (offline) wallets and software (online) wallets.
Wallets are protected by security measures like anti-DDoS protection, end-to-end encryption, firewall implementation, jail login, and two-factor authentication.
A friendly User Interface (UI) – A Cryptocurrency exchange platform is easily usable by both amateurs and professionals. Detailed guides are available for placing orders and processing payments.
A friendly user interface helps in the quick approval of deposits and withdrawals, and execution of peer-to-peer (P2P) transactions.
A modern admin panel – The admin uses the state-of-the-art dashboard for monitoring all the activities of buyers and sellers on the Cryptocurrency exchange script.
They take care of KYC/AML verification of investors, and liquidity. Moreover, admins are responsible for authorizing deposits and withdrawals requested by users and listing new cryptos and stablecoins for trading.
Determining the project feasibility for establishing a Cryptocurrency Exchange Software
Economic angle – A well-versed app development company can quickly launch the Cryptocurrency exchange platform at an affordable cost. Nonetheless, this leads to a competitive edge for entrepreneurs and increased returns.
The major costs will be on conducting digital marketing campaigns, paying salaries to blockchain and crypto developers, and maintenance of the online trading platform. Importantly, the budget will be less if the Cryptocurrency exchange script is developed in a few days or weeks.
Legal aspects – American authorities like the Commodities and Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency, and the Securities and Exchange Commission (SEC) will aggressively regulate the cryptocurrency market from now onwards.
Above all, this will ensure maximum protection for investors. Entrepreneurs have to abide by the law wherever their Cryptocurrency exchange functions. If not, they will risk the issue of a ban or a suspension in trading activities.
Technical intricacies – A Cryptocurrency exchange platform must be robust to handle peak trading activities. Additionally, technical outages can lead to heavy losses for investors and they will lose their trust.
Therefore, entrepreneurs have to invest in world-class technology for glitch-free buying and selling of digital assets. Besides that, they need to protect the Cryptocurrency exchange script from dangerous hacking and phishing attacks.
How to find a prolific Cryptocurrency Exchange Script provider?
A well-known app development company can provide smoothly working Centralized, Decentralized, and Peer-to-Peer crypto exchanges. Trading of assets is done either through order books or by posting buy and sell ads.
Entrepreneurs can also procure white-label clone solutions of popular crypto trading platforms like Binance, Bitstamp, Coinbase, IDEX, KuCoin, LocalBitcoins, Paxful, Poloniex, Remitano, and WazirX.
What are the attractive features of a Cryptocurrency Exchange Platform?
A Margin Trading option – Investors boost their returns by taking short or long positions on their assets based on the market movement. Generally, they can earn up to 100x leverage. More margin can be added by investors if they have sufficient balance in their digital wallets.
Availability of Insurance – The valuable assets of traders are safeguarded against theft through an Insurance policy. Likewise, funds of investors are pooled and held in different financial assets with custodial protection.
A Trading Bot – Do not miss the best offer by using the inbuilt Trading bot. It can automatically execute buy and sell orders round-the-clock at a suitable price. Above all, the trading bot studies the changes in prices and market trends deeply.
Acceptance of numerous payment methods – Apart from popular cryptocurrencies, investors can process transactions in the leading fiat currencies on a Cryptocurrency exchange script. They execute payments via credit cards, debit cards, e-wallets, net banking, and wire transfers.
How entrepreneurs benefit by launching a Cryptocurrency Exchange Software?
They make huge revenue from a commission on each trade, deposit and withdrawal fees, listing charges, registration fees from buyers and sellers, and transaction processing charges.
They also earn extra income by implementing fundraising campaigns for different Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Security Token Offerings (STOs). Lastly, entrepreneurs can mint profits if there is a massive rise in the prices of cryptocurrencies and daily trading volume.
Nevertheless, they can expand their business operations easily by receiving investment from the leading venture capitalists. This boosts their overall brand value and market share.
Cryptocurrencies have revolutionized the global financial system. They removed the role of middlemen and promoted more accessibility for the economically weaker sections of society. Digital currencies also provide advantages like decentralization, immutability, resistance against inflation, and transparency. Hence, you can break records in the booming digital economy. Hire a trustworthy app development company for building a captivating Cryptocurrency exchange platform.