Cryptocurrency Exchange is expected as one of the profitable business in the crypto world. The exquisite success of binance and several other popular exchanges has encouraged many individuals around worldwide to build their cryptocurrency exchange platform. The major reason behind the popularity and adoption of digital currencies is the blockchain technology, which allows more secure, quick and traceable transactions. Another reason for its popularity is that it will create an opportunity to earn large within a short period.
Probably cryptocurrency exchange development is one of the best options to earn profit!!
Different pieces of stuff are to be taken into consideration during cryptocurrency exchange software development. Understanding these will not only guide you to set up your cryptocurrency exchange but also help in the smooth execution of the process.
A cryptocurrency exchange is built to provide convenient, user-friendly and secure access to cryptocurrencies. Typically the users look for factors like exchange fees, security, verification process, reputation, services, etc and will decide to use it or not.
Key to your Exchange's Success:
Just building an exchange will not generate higher revenue. This is because generating revenue and user expectations are directly proportional to each other, that is, more the user expectations are fulfilled, more users will use your exchange and more revenue will be generated.
Proper development of cryptocurrency exchanges can yield huge profits with countless benefits. You can bring in those benefits in the following ways:
Trading fee: A Particular amount of fees is charged as a commission whenever the traders have undergone a transaction on a cryptocurrency exchange. This has been the most beneficial way of earning a profit.
Listing Fee: If some new coins are to be listed in the exchange, a percentage of the fee is charged as a payment. The Exchange owners can earn a good profit by the transaction fees paid by the traders as commission.
Thus there are numerous way of earning a profit if you have built an exchange according to the user’s expectations. Hence there are many Cryptocurrency exchange development service providers available, choose the one that suits you the best.
You may ask if so many individuals start building these exchanges, what would make your exchange stand out. What will be unique in your exchange that makes people use yours over others?
Well, the exact answer for all these questions involves a list of features that the user expects from a crypto exchange platform. That includes,
Order book and matching engine, security, liquidity and API integration, KYC/AML Integration, Multi-signature wallet, Trade chart, etc. If you develop an exchange that includes all the above-listed features, then your exchange is more likely to be used.
Step 1 - Choose the type of exchange you have decided to launch
The initial step to launch your cryptocurrency exchange is to decide the type of trading platform you have planned to create. Choosing the right type of exchange will make the target audience to be comfortable to use the platform
1. Centralized cryptocurrency exchange
This is a traditional form of cryptocurrency exchange. This type of exchange platform allows a middle party or intermediate person to perform the transaction for the users.
Moreover, the users of Centralized Exchanges do not have access to the private keys of their exchange’s wallet account. Thus the whole user's trust will put in the hands of centralized crypto exchanges with the central authority.
2. Decentralized Crypto Exchanges (DEX)
This type of exchange platform will not involve such a middleman to regulate the transactions. Therefore, the exchanges will not hold any of the user's funds or other information, will just serve as the matching engine for trade orders.
This exchange will also act as a Peer to peer exchanges. Decentralized exchanges also have the same set of components/features as similar to the centralized exchanges except for the fact that they have no longer access to the user's cryptocurrency wallet.
In short decentralized crypto trading platforms are highly secured undoubtedly.
3. Hybrid Cryptocurrency Exchanges
As the word "hybrid" itself defines that this exchanges are a combination of both Centralized and Decentralized Exchanges. The Major desire of this hybrid exchange is to solve the cons associated with both centralized and decentralized exchanges thereby providing a reliable and trustworthy crypto trading platform.
Thus, the traders believe this exchange to be the best exchange for cryptocurrency trading as it also ensures that no 3rd party holds and maintains the custody of users fund.
Step 2- Do Complete Market Research
The very next step in starting an exchange is to do a complete research in the crypto market. In such a case, you can refer to various cryptocurrency journals, communities, and updates such as CoinDesk, CoinTelegraph, etc.
Step 3 - Finding your Target Audience
Once you have done with your research, then it is the perfect time to find your target audience. For that, you should know the countries where you're Crypto exchanges are supported. Once you have done complete research on it to select your country, find your competitor's exchanges in the country and list out their features and functionalities they include in their exchanges.
Step 4 - Hire a Team of Experts and Know the cost of your project
To set up your cryptocurrency exchange, you should hire a cryptocurrency exchange development company to know the total budget and cost involved for your project. The total price of the project usually includes the technology used, cost of the solutions provider, its regulations and advertisements, etc. Therefore, hiring the right set of cryptocurrency exchange development team you will head towards the right destination.
At Coinjoker, we have all set of desired blockchain experts with in-depth domain knowledge and rich experience, who delivers Incredible development solutions to begin your crypto exchange journey. Whether you want to build your exchange platform from scratch or to leverage white label exchange development solutions, we can help and assist you. We offer customized crypto development solutions to help you accomplish your business goals and make a way for your long term success.
