Building A Cryptocurrency Exchange Platform
Posted By : Satish Thakur | 10-Jul-2019
What is Cryptocurrency Exchange Platform?
The cryptocurrency exchange platform is one where users can buy and sell virtual or digital currencies at market established exchange rates. Cryptocurrency exchange platforms act as an intermediary between the customer and the digital currency traders.
Types of cryptocurrency Exchange Platform
Today, there exist many types of cryptocurrencies. The type that you choose will determine the structure of your platform. Basically, there are two types of platforms you could choose from:
1. Direct Trade Platform
2. Brokerage Trade Platform
Direct trade platforms: Here traders set their own exchange rate, it does not involve any market established price.
Brokerage platforms: Here any user can buy currencies at a rate set by an agent. Cryptocurrency agents are similar to foreign currency dealers.
Getting started with the Cryptocurrency Exchange Platform
First, you would need to establish a timeline and budget for the project. The complexity of the software leads to the fact that development of such software will take approximately a year depending on the mobile app company you hire.
Once you are certain you want to go ahead with the development, you will need to create a user profile module. In the user profile, the user can be identified and would have the option to deposit and withdraw currency. Many investors and traders will try to manipulate their market position with the help of the platform that should be taken into account.
Apart from this, you will also need an aggregator that will give the user the opportunity to create their own coins or token and put it on the assets list immediately.
The next step is to understand that the platform will not work if it does not have a trading kernel that forms order book, carry out transactions and calculates the balance.
The currency exchange platforms must have a user-friendly intuitive interface.
The design should be attractive, engaging and intuitive for users. The user should be able to navigate and locate buttons, screens, and features easily. The interface should be practical and user-friendly.
Features and requirements for Cryptocurrency exchange platform
From the user perspective, a perfect interface should provide the following features:
1. Fast registration;
2. Easy access to trading accounts;
3. Wallet to store cryptocurrency
4. Depositing and withdrawal of cryptocurrencies and fiat currencies;
5. Booking history and past transactions easily available;
6. Changes in balance and statistics monitoring;
7. Analytical infographics and charts;
8. 24*7 customer support.
An important task from the list is creating a wallet, where users can store and keep their cryptocurrency.
With the users’ wallets security at risk, we will divide the wallets into two groups: “Export” and “safe”
Export wallets will allow the users to export the currency to an external wallet and in this case, the money withdrawal will not require any approval.
The safe wallet will contain the remaining coins that are not accessible by anyone and are safe in case the export wallet has been hacked. Therefore, it is advisable for users to keep the main part of their assets in a safe wallet.
How to develop the cryptocurrency exchange software
Once you decide that you want your very own cryptocurrency exchange software, you need to be clear that the team you assign must have a clear understanding of the functioning and principles of such an exchange platform. The team should be familiar with the encryption systems and should be able to implement it properly.
The programming language used by the team to develop the platform will depend heavily on the type of cryptocurrency you are going to use. The other important thing to keep in mind is that the system you develop should be compatible with other payment systems to guarantee the safety of all transactions within the platform.
It is crucial to consider the time and resources required to make the project a success. Aspects like development, maintenance, and constant updating will require time and a good budget and due to the inherently complex nature of the whole project as it will take time i.e. around 15000 to 20000 hours approximately, to develop a cryptocurrency exchange platform.
How can the exchange platform be protected?
The first step you can take is to create a security architecture and configure it to make it difficult for hackers to get to the assets. Second, is the quality of the code which itself ensures security.
The blockchain technology became a popular way to protect financial systems not only in the areas where cryptocurrencies are involved but in traditional banking as well.
Satish is working as a Mobile Application Developer. He is eager to learn about technologies and never neglect the opportunity. He believes in "Don't only dream, Work for it".