Oct 05, 2024
Table of Content
Cryptocurrencies and crypto exchanges are becoming the seamless and modernized solution for businesses today. Investors are constantly looking for a solution that can bring them with ample benefits and help them experience unparalleled growth in the present industry.
In today’s fast paced environment, cryptocurrency exchanges such as Binance, Coinbase, Kucoin, Bitfinex, etc are handling bulk volume trade every second and making huge revenues without any doubt. It is beneficial to build your own exchange platform and remain competitive from the rest.
This article helps you with the steps on how to setup a cryptocurrency trading platform like Binance instantly.
Before learning on starting a trading platform, it is crucial to understand the types of exchange and its features. Let us unveil them initially:
There are three exchange platforms in the market:
Centralized crypto exchanges are the ones which have an intermediary in between the traders to facilitate trading of cryptocurrencies and other digital assets. Every single transaction gets recorded on the order book. It offers higher liquidity but lacks security in some cases.
Decentralized crypto exchanges on the other hand do not have any operator to work on the transaction part. They are known for their high-end security since there is no third-party involvement here. But, they have poor liquidity.
Hybrid trading platforms are the combination of both centralized and decentralized cryptocurrency exchanges. It provides higher liquidity and trades are matched through a centralized engine.
Trading engine plays a significant role in operating transactions. Make sure you have this feature in your platform which not only facilitates trading but also evaluates balances and access the order book. Without this feature, it is impossible to perform trading.
An intuitive user interface is all needed. Make sure it is eye-catching with minimal designs that can attract traders with exceptional trading experience. On UI, you can ensure to have menus such as registration portal, login, funds deposit, buying & selling orders, customer support option, etc.
Crypto wallets are the ones which help in storing cryptocurrencies and digital assets. Your customers can quickly perform the trading process by extracting it from the crypto wallets. It manages the fund transfer requests for crypto purchases and sales.
This can be a robust functionality that lets the admin of the exchange platform make the required configurations based on the growing business requirements. Every powerful admin panel comes with mandatory features such as, adding new currencies, credit or debit funds to wallets, handling smart contracts, recording transaction history, changing trading fees, and investigating support concerns, etc.
Order book contains the list of complete transactions of the latest orders happening on the exchange platform. With this, traders can keep track of the trading and make a good offer to close it.
Transaction history refers to the feature which contains the list of closed orders. Every single trader will have access to the necessary data on prior orders, compare prices, see the time, and estimate their activity on your platform.
Undoubtedly, it is crucial to integrate security features into the exchange platform as there are higher cases of data breaches happening on it. Especially, if you are owning a CEX model, it is mandatory to check on this. You can consider factors such as end-to-end encryption, firewall, HTTP authentication, multi-factor authentication, etc.
Once you are familiar with the above factors, it is essential to consider the following factors:
1 . Define the objective
Initially, you should know the purpose of building a crypto exchange platform. Apart from this, you can also research the present challenges which users are facing. Evaluate your feasibility on integrating them and look out for the cost expenditure as well.
2 . Get the requirements for your business
Secondly, jot down your requirements to develop a crypto exchange like Binance. Also, decide on the type of trading platform that you want to build. Also, look for the features you are looking to integrate.
3 . Pick the right Blockchain platform
Select the blockchain platform on which the exchange platform has to be created. This will allow you to create a custom web app without writing blockchain code from scratch.
4 . Develop a model
Start building the crypto exchange platform by researching the blockchain models and exchanges available. You can configure the exchange based on them.
5 . Creating eye-catchy user interface
User interface plays a major role in trading platform development. Make sure it is easy to use so that traders can quickly perform their transactions. It should also update the information in real-time for hassle-free trading.
6 . API creation
There are various APIs available in the market. You can create an exchange platform by integrating those APIs for a comprehensive solution.
7 . Testing and Deploying
The next step is to test the application for bugs or issues if any. If in case you come across anything, ensure that you fix and resolve them instantly. Finally, you can deploy the exchange.
8. Marketing and Advertising
It is crucial to let your audience know about the launch of the trading platform. This will help you gain more traders and investors to get revenues.
9 . Maintenance and Upgrades
The final step is to perform frequent maintenance and upgrades. This will help you to manage the exchange platform in a better way.
Creating a crypto exchange like Binance can position you well in the rapidly evolving cryptocurrency market. By utilizing the advantages of both centralized and decentralized systems, you can offer users a secure, efficient, and user-friendly trading experience. Mindful planning, modernized technology, and compliance with regulations are crucial to the success of your exchange.
If you are planning to have an exchange to reap profits, you can get in touch with us. We will provide you with a live demo of our platform for a greater perspective.
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