Cryptocurrency Exchange Development explained in 11 easy steps

Cryptocurrency Exchange Development: How to get started?

Here are the top 11 steps which you should remember while starting a trading platform:

Researching and Planning

Right off the bat, it is important to research the present exchanges, their trends, revenues, etc and make a plan by exploring various factors. You can analyze various features which you are looking to integrate in the platform, security protocols, etc.

Also, understand the regulatory compliance and legal requirements in your target market. This includes Know Your Customer (KYC) and Anti-Money Laundering (AML). This is critical as it plays a significant role in establishing a presence there.

Choose the type of crypto exchange

Secondly, you have to select the type of crypto exchange which you are willing to build. Primarily, there are three major exchanges evolving at present. Based on your requirements, you can choose the type.

1. Centralized Exchange: These exchanges offer higher liquidity and user-friendly interface with a mediator in between to handle the trading process.
2. Decentralized Exchange: On the other hand, decentralized crypto exchanges are the ones with higher privacy with no intermediary in between to facilitate trading.
3. Hybrid Exchange: As the name suggests, it is a combination of both centralized and decentralized exchange.

Selecting the right technology stack

The most significant step is to pick the perfect and modernized technology that can help you to create a crypto exchange in a robust way. Here are a few things you should take into consideration:

1. Blockchain technology: You can choose any blockchain platforms such as Ethereum, Binance Smart chain, etc of your choice.
2. Development framework: Select both frontend and backend frameworks for your exchange platform.
3. Database: Pick for a powerful database system to handle bulk user data and transactions for greater volumes.

Intuitive features development

Now, you can get started with developing high-end and eye-catching features into the crypto exchange. Here are a few must-have features which you should consider during feature development phase:

1. User Registration & Login: Initially, you can create a user registration and login screens with email and two-factor authentication factors.
2. Crypto wallet integration: You can create or integrate a crypto wallet option for storing and trading cryptocurrencies.
3. Trading engine: Develop a crypto trading engine that can handle bulk orders, trades, and matches them.
4. Robust admin panel: Create a high-end tool for managing users, transactions, and system settings.

Security Protocols

Start integrating security protocols as they play a major role in blockchain-based crypto exchange platforms. Here are the things you should take into consideration:

1. Data Encryption: As exchanges use sensitive information it is crucial to use SSL for data transmission and encrypt them.
2. Cold and hot wallets: You can store the majority of assets and cryptocurrencies in cold wallets considering security purposes.
3. DDoS Protection: Don’t forget to implement security measures to protect against denial-of-service attacks.
4. Frequent security audits: Ensure that your platform’s security is up to date for evaluating vulnerabilities if any.

Considering Liquidity and Market Making factors

It is important to leverage liquidity and market making strategies for a superfine crypto exchange development. In this case, you can partner with liquidity providers for providing a streamlined trading experience. For market making, you can hire or partner with market makers for seamless trading.

Checking for compliance and legal process

Next comes the compliance and legal checking process. You can check for the following ones in this case:

1. Licensing: Get the necessary licenses based on the jurisdictions in the locations you are operating.
2. Legal counsel: You can hire legal experts to go through regulations and help you with drafting terms of service.

Perform testing process

Undoubtedly, it is significant to conduct a testing process to rule out bugs or any other issues instantly. You can perform rigorous testing such as unit testing, integration testing, and system testing to make sure everything works as expected. To be on safer side, you can release a beta version initially to collect the feedback and work on the issues before the actual launch.

Marketing and community building

Now, everything is ready. It is time to market it and build a community of audience to make your exchange visible across the globe. This can help you with gaining traders who can start trading on the platform.

1. Utilizing marketing strategies: You can perform traditional SEO and digital marketing strategies with content marketing for grabbing users.
2. Community Engagement: Develop a community around your crypto exchange through respective forums and social media platforms.

Launching the exchange

You are all set to launch your cryptocurrency exchange. Make sure you plan and roll-out your exchange well. Also, ensure that you constantly monitor the exchange performance and user feedback to provide the required adjustments.

Dedicated maintenance and support

You can set up a dedicated team to perform unwavering maintenance and support for the users to resolve customer queries on time. Also, you can make sure that your platform is updated with the latest upgrades, security patches, features, performance improvements.

To Close:

Building a cryptocurrency exchange can be challenging yet beneficial without any doubts. Ensure that you consider features, security protocols, technical expertise, etc for a successful cryptocurrency exchange development.

If you are a business person looking to build a crypto exchange platform, you can get in touch with us. We have an ample amount of expertise and can Help you with crypto exchange development that makes a difference and helps you to remain competitive. Our experts can provide a live demo of our previous works for a greater perspective. Reach out to us today.