Digital currency is not a new word to you unless you have been hiding under the roofs for the last few years! Today, the cryptocurrencies like Bitcoin, Ethereum and Ripple have worked as the outstanding tool for investment.
The hype about cryptocurrencies has already inspired thousands of people to start earning money by mining cryptocurrencies, developing blockchain apps and many other ideas. Nevertheless, earning bitcoins through mining is no more a viable case today because of the unreasonable amount of power costs.
With the emergence of bitcoin, the ‘fear of missing out (FOMO)’ begins and so other new cryptocurrencies are discovered for people to leverage a piece of the pie. With this invention, the experts are contemplating to earn money through the exchange of cryptocurrency. Globally individuals are looking for such an exchange platform where they can keep their money in bitcoin or other virtual currency waiting for hitting the higher exchange rates.
The term ‘Cryptocurrency exchange’ itself explains the concept of exchanging virtual currency to any other assets like different currency tokens or fiat money. Here, on the exchange website the registered user can buy and sell digital money, can check the exchange rates from time to time and store some of his/her crypto coins or assets brought.
The existence of this platform is of utter importance as crypto trading is run by entrepreneurs and numerous renowned companies.
Developing a cryptocurrency is undeniably a daunting task. However, you don’t need to take to carry the burden of all ‘what’s, how’s and when’s’. We worked on your queries and have collected few basic tips for you on how to run this process efficiently.
In order to sanction fiat money, you will need to make an agreement with a bank or payment provider. Therefore, it is really important to choose the reliable bank that has ample online facilities, partner-friendly conditions, and budget-friendly substantial exchange rates. Along with that, choose the countries where Cryptocurrency is accepted and adopted as a regular means of payment.
A basic architecture of your system will decide about the quality of your software. Pay attention to these four required aspects in your system.
The trading engine is the backbone of any cryptocurrency system. The trading engine is responsible for executing transactions and even masters at calculating. Without this essential and primary part, the entire system cannot process. The trading engine should be allowed to access order book without any hindrance, as it matches all the purchases and sells orders.
The first impression decides about your success. Ensure your UI should be fully configured for spontaneous and smooth transaction process. Try to make the look more user-friendly so that they can easily get the access to their personal account, notice all the important changes done from exchange rates to available assets, and can easily place any order.
The storage of bitcoin and exchange operators are saved in the wallet. The electronic wallets you provide on your website for all the digital currencies should be quickly accessible, operated and secure.
This is a control center for the exchange operator. A dashboard that helps the administrator to run the trading operations along with checking the processes, creating liquidity, and responsible for serving professional customer support.
As we have understood about the architecture, we need to worry about selecting the right platform that can match all these functional requirements. The software should be capable of providing the required compatibility, security, customization capability, cost of acquisition and time of acquisition.
The three different options available on the trot are:
This option is the most difficult road to cross. You need a special team panel to handle the project. The project will be delivered successfully only if the members are well-versed in the different area of software development required. They should have the complete know-how of how to integrate each of the components appropriately. You even need to consider the time and budget invested to develop the software and app.
Check the different open source software’s available in terms of reliability and security. Once decided, you can ask developers to be sure about the bugs, check the codes and bugs earlier in order to avoid any functional error while transaction.
Availing a ready-made software is possibly one of the easiest options amongst the three. That’s because you can develop and customize the entire software based on your needs. You can carry out testing prior to the launch and the need of maintaining the software is even not required. All you need to do is change a few settings as per the requirement.
When the talk is about digital money, the only thing it conveys is security. We strongly recommend to commit to that principle, as the stats tell half of the cryptocurrency business were not successful because of being hacked. Therefore, think about every aspect of website security and make your software safe for all the transactions.
Without any doubt, for any exchange website, it is vital to choose as many crypto and fiat currencies as possible. This will ensure a broader client audience and quick international expansion. But the only hurdle comes with the manual integration of each currency you choose, as this turns the idea of exchange service in vain.
Therefore, think and do a profound research about currencies before choosing them for your startup.
With the various challenges defined above, developing your own exchange website is undoubtedly a costly affair.
However, keeping the choice of software aside, ensure your team should have a project manager, platform developer, QA, experienced UI/UX designers. The cost of the software will vary from the number of features you are expecting for your platform. However, the minimum price of the cryptocurrency exchange website with minimal features will be at least $25000 and with developers, with good experience, it may reach upto $400,000.
WRITTEN BY: Atman Rathod
Atman Rathod is the Founding Director at CMARIX Technolabs Pvt. Ltd., a leading web and mobile app development company with 17+ years of experience. Having…
FEW MORE POSTS BY Atman Rathod: