Cryptocurrencies are a hot topic in the current business world. Our economy is drastically evolving towards a digital sphere where cryptocurrencies and crypto exchanges are making a huge impact. The market is already filled with crypto exchanges, but there is a change in this number every minute with newcomers entering the market with their exchanges.
The constant buzz around cryptocurrencies and crypto exchanges is because of the many benefits it brings in to the investors, such as high-end security, scalability, swiftness, and to be able to conduct transactions globally at ease. This is why it is considered very profitable and preferable among budding entrepreneurs for their business.
Are you one of those entrepreneurs striving to launch your own crypto exchange? Are you wondering where and how, to begin with? Then, this blog is for you! By the time you finish reading this, you will gather knowledge of how to go about your cryptocurrency exchange software development that is profitable and fit as a fiddle. If you are a beginner, let’s first take a quick look at the concept of cryptocurrency exchanges.
What are crypto exchanges?
Crypto exchanges are digital platforms where traders can exchange cryptocurrency for another digital asset based on their market value. Some exchanges allow traders to exchange crypto for crypto and digital currencies only, whereas some allow even exchanges of fiat money such as USD for cryptocurrencies.
Crypto exchange platforms are backed by blockchain technology that helps record, secure, and verify transactions happening on the platform. Blockchain offers immutability and anonymity to the users, which completely safeguards the user’s information. There are different types of crypto exchanges such as:
- Centralized exchanges
- Decentralized exchanges
- Hybrid exchanges
How to create a solid crypto exchange?
To create a crypto exchange, there are two ways to go. The first one is building an exchange all the way from the ground up. This requires a lot of effort and involves too many processes that include:
- Obtain licenses according to the location you want to commence your exchange business.
- Generate capital funds for the business
- Gather every technical requirement
- Collaborate with a technical team
- Connect the exchange with external exchange to integrate liquidity
- Create a partnership with banks or financial institutions
- Integrate features and security protocols into the exchange
- Test the exchange platform for glitches and bug reports
- Market and launch for the exchange
- Constant maintenance and audits for the smooth functioning of the exchange
To get over with all these steps and to set the exchange in motion, will take an ample amount of time and cost a fortune. This is where a more efficient, secure method comes to the rescue!
The second way is to obtain a whitelabel exchange platform from a well-acclaimed company. Whitelabel solutions are readily-available solutions that are tried and tested and come along with a name, branding, logo, UX/UI, etc. Whitelabel solutions comprise of every technical, security integrations, features, and functionalities required to kick start the exchange. They involve several other advantages that help customers with hassle-free, seamless business experience. The advantages are as follows.
Primary Advantages of white label exchange solutions
- As white label solutions are readily available, it deprives you of development costs.
- Whitelabel solutions come with technical expertise and necessary legal frameworks.
- Whitelabel exchanges are more flexible and convenient to use. Any bugs also can be easily resolved.
- Whitelabel solutions are highly-scalable and customizable based on customer preferences.
- Whitelabel solutions help with quick deployment.
- They are already pre-tested before delivery and guarantee reliability. They relieve the stress of constant maintenance support.
These are the two ways to go about developing your crypto exchange. And whitelabel exchanges are the preferred choice because of the above-mentioned attributes. There is also a third way, which is not as well renowned as whitelabel solutions but is also a favorable choice, crypto exchange scripts! Crypto exchanges are nothing but tailor-made scripts with source codes that are reliable, bug-free, and help with the quick launch of the exchange.
Now let’s take a look at the top features common for every crypto exchange that you need to know in order to make your exchange authentic and profitable.
Salient features of a crypto exchange software:
- Multiple-cryptocurrency support
- Multiple language support
- Secured crypto wallet with multi-currency support
- Automated KYC/AML verification
- Dominant trade matching engine
- Order matching
- High-volume liquidity
- Admin backend panel
- High-volume TPS
- Blockchain technology and smart contracts integration
- Integrated API and SDK
- Multiple payment gateway integrations
- Multi-factor authentication
- Integrated referral program
- High-end security protocols
How much time does it take and cost to build an exchange?
Both these factors altogether depend upon the features and integrations you choose for your exchange and based on your personal customization preferences. However, as mentioned above, whitelabel solutions or exchange scripts are already readily available for launch. Hence, they save a lot of time and money compared to building the exchange from scratch. Usually, whitelabel exchanges take about two-three weeks to launch!
A quick glance of the latest advancements in the crypto exchange sphere for you:
There are many types of exchanges revolving around the market currently, among which the most trending ones are the crypto exchange with leverage platform and peer-to-peer exchange platform.
A leverage platform allows you to leverage a larger sum with a minimum margin deposit, which helps customers expand their position in the market and commence instant transactions at ease. A peer-to-peer platform is a completely decentralized exchange that allows customers to trade directly from anyone to anywhere around the world and conduct highly-secure, instant, efficient transactions. These two are trending because they bring in compelling benefits and boost profits for the exchange business!
Be it any exchange that you prefer for your business, and there is a multitude of companies offering reliable whitelabel solutions and crypto exchange scripts! To take your business to the next phase and attain a quantum leap, conduct extensive research, and hire the right company today!
Anna Lisbeth is a blockchain analyst and a writer, who is deeply intrigued about learning about blockchain technology and cryptocurrencies. I conduct research and write about upgrades in the blockchain business which helps entrepreneurs magnify their businesses in this growing sphere.
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