How to Develop the Best Decentralized Cryptocurrency Exchange (DEX) 2021?


how to develop a decentralized crypto exchange

In recent years, Cryptocurrency exchange platforms are the most popular trends. By using this platform, one can buy, sell, and exchange cryptocurrencies and digital assets. There are two main types of crypto exchange platforms available in the marketplace. Such as centralized exchange and decentralized crypto exchange. 

Centralized exchanges are traditional exchange platforms where there will be an admin to monitor and track the trading process. But on other hand, there is a secure and privacy-filled exchange platform. One such secure crypto exchange platform is (DEX) Decentralized Exchange. As of now, many exchanges are converting into decentralized exchanges. Because most of the users prefer to trade cryptos in this DEX platform. This made many startups and entrepreneurs prefer Decentralized exchange development.

(Note: According to Datalight, a crypto analytics website published information that said that the US has been the country that recorded the highest number of visits. It also unveiled that it recorded over 22 million visits accounting for 100 decentralized crypto exchange Platforms.)

This article explores the easy way to develop a Best-Decentralized Crypto Exchange that can reap lucrative profits within a short period. Let us begin with…

What is Decentralized Crypto Exchange?

A Decentralized Crypto Exchange is shortly described as DEX. It is the trading platform where crypto traders can perform peer to peer crypto trading without a third party or intermediate. But in centralized crypto exchanges, there will be an admin or intermediary in between to facilitate the crypto transactions.

In this type of exchange, no third party will be holding the user funds. Instead, the users will have full control over their funds. Also, in this exchange, users are responsible for every action that happens in the exchange. In simple words, in a DEX platform, users can log in to the account and their wallets effectively. To perform crypto transactions, the user needs to send a buy/sell request to the exchange. Then the exchange matches the order from the request. Also, executes the crypto transactions automatically with the help of smart contracts. 

Since most of the investors and traders felt traditional crypto exchange to be hacked easily. However, decentralized exchanges can resolve them completely. So, most of the users showed their interest to trade on decentralized crypto exchanges rather than centralized exchanges. This attracted many startups and entrepreneurs to focus on decentralized exchange development. Now, let us see…  

How does a Decentralized Cryptocurrency Exchange Work?

In general, a Decentralized Cryptocurrency Exchange usually works in the following ways.

  • If a user places a sell order, then to exchange the crypto on a DEX, the user needs to specify the following set of details
  1. The number of cryptocurrencies 
  2. The cost of the crypto asset
  3. Total Bidding Time
  • Once the selling order is set, crypto traders can start buying the crypto assets by submitting their bids for the buy order.
  • Once the desired time gets expired, the complete bids get reviewed by both the buyer and seller, and the order gets executed.
  • One can log in to their respective Cryptocurrency Wallet to sign in to the Decentralized Crypto Exchange (DEX).
  • Then the user can place buy/sell requests to the exchange.
  • The Smart Contracts of the decentralized crypto exchange execute the order and perform the crypto transaction.In the other words, in the decentralized crypto exchange

Best Decentralized Cryptocurrency Exchanges

Many DEX platforms are existing in the marketplace. But not all the exchanges are shining in the blockchain industry. Only some decentralized crypto exchanges tasted success in the marketplace. So here we list the best decentralized cryptocurrency exchanges that are prevailing in the crypto marketplace.

  1. Changelly
  2. Waves DEX
  3. EtherDelta
  4. IDEX
  5. Counterparty DEX
  6. CryptoBridge
  7. Bisq
  8. Oasis DEX
  9. Airswap
  10. Bancor
  11. ForkDelta
  12. StellarX
  13. Yolo
  14. Shiftly
  15. Atomex

These are the best-decentralized crypto exchanges that are prominent in the crypto marketplace. So by choosing the first-class decentralized exchange development, you can also develop a decentralized crypto exchange and become popular like these reputed exchanges. There are also other reasons to build a DEX platform, so let us see them…

Reasons to Build a Decentralized Crypto Exchange (DEX)

There are many valuable reasons to launch a DEX platform. But only a few reasons are more crucial to start a DEX. So here we list a few note-worthy reasons to develop your own Decentralized Cryptocurrency Exchange

1. Anonymity

Users and crypto traders in the DEX platform can make anonymous crypto transactions. Because there is no third party or intermediate to facilitate the transactions.

2. Scalability

The ease of scalability is one of the hidden advantages of decentralized crypto exchanges. This means that you need to depend on Blockchain for every transaction happening on the exchange. Here bandwidth relies on what price you set on GAS (in the case of Ethereum). So miners will be able to execute your request instantly. Even though the DEX system is down, it does not mean that all the funds are lost and everything is completely stopped. Here no one can freeze or have control over the user funds.

3. Ownership

Your users can now have complete ownership over the cryptocurrencies of the DEX platform. Since there is no intermediary or third party to facilitate transactions. 

4. Lack of a Central Authority

Every user in the DEX network will get equal access to data when there is no centralized server in the process. Thus, users can easily strike deals by buying and selling virtual digital currencies to other users on the DEX platform.

5. Privacy 

The personal data and information of the users will be kept confidential. Users do not need to reveal their identity to anyone in the exchange. Apart from the users to whom they are dealing with trading the digital assets.

6. Faster Trading

In this DEX platform, the crypto trading will take place instantly. Also, this kind of trading platform will help to save time and money for both buyers and sellers. By utilizing the best Decentralized exchange development, you can offer a faster exchange of cryptos at the best market rates for your users.

7. Security 

Security is a major concern for any kind of crypto trading platform. Decentralized Crypto Exchange platforms are more secure when compared to the traditional crypto trading platforms. 

These are the major reasons to start a decentralized crypto exchange for your business. Now, there will be a question that strikes your mind like how to launch a decentralized crypto exchange?. So now, let us see…

How to Develop a Secure Decentralized Cryptocurrency Exchange Platform?

To develop the best and secure decentralized crypto exchange, you need to follow certain steps. Here we list some essential steps to consider to launch a decentralized exchange platform.

1. Gather the Required Funds

The first step is to make sure that you have enough potential funds to start your own decentralized cryptocurrency exchange platform. In addition to this, know the exact cost to start a crypto exchange. since you need to hire a set of legal counselors, a team of experienced blockchain developers, and more. Hence it is essential to have enough funds to start a decentralized crypto exchange. Also, you need to allocate separate funds for solving any issues or errors that might happen in the future.

2. Market Research

When you are planning to start a decentralized crypto exchange, then you need to do market research. You need to analyze the functions, basic features, and types of tradings that take place in the DEX platform. Then analyze the price fluctuations of digital assets. Also, you need to analyze the current market trend for DEX and existing decentralized exchange development services. Finally, you must decide whether this would be the perfect time to get into the blockchain industry. 

3. Have Unique Business Requirements

After the market research, you need to come up with outstanding business requirements. So that you can stand unique in the exchange ecosystem. As of now, there are n-number of white label crypto exchange software existing every day. So having a unique set of business requirements will help you to succeed in the marketplace. You should have a plan right from the roadmap to the features to be integrated. Then you can easily make your DEX platform stand out from the crowd.

4. Choose the Country to Develop a DEX Platform

As of now, most of the countries haven’t made bitcoin and other digital currencies legal. So you need to make sure and choose the crypto-friendly countries from the following set of the list to develop a DEX platform.

  1. Estonia
  2. Malta
  3. Switzerland
  4. Brazil
  5. Hong Kong
  6. Luxembourg
  7. Bermuda
  8. The United States
  9. The United Kingdom
  10. Germany

The above-listed countries are crypto-friendly countries. So you can start your DEX platform on any of these locations to make your decentralized exchange a successful one.

5. Check for the Guidelines in the Country

After selecting the desired country from the above list, check for the country guidelines. Each country will have unique and separate rules, conditions, & regulations. Make sure you satisfy those country regulations before creating your dream DEX platform.

6. Design the Architecture of your Decentralized Crypto Exchange

In this step, you need to design a superfine architecture by integrating essential components. For the Best Decentralized Crypto Exchange, you need to enable the following set of components

  • Graphical User Interface (GUI)

A GUI must be built from an architectural point of view. So it must be completely applied to various sets of gadgets. such as crypto trading mobile apps, desktops, and more. 

  • Trading & Matching Engine

This is the core component of the crypto exchange system. It must be completely composed of both the Order Books and Trading Bot Engine using Blockchain Technology. 

  • Cryptocurrency Wallet Development

Currently,  Centralized Exchanges have a hazard of getting hacked. So while developing a DEX platform, you need to acquire a secure cryptocurrency wallet development. It must be completely secure with some features like Two-Factor Authentication, Email Login, and more.

  • Liquidity API

Liquidity plays a greater role in a successful decentralized crypto exchange. Hence it is crucial to enable Liquidity API for external exchanges.

  • Admin Module

As a DEX platform owner, by using this admin module, you can make the desired changes to your platform. 

7. Choose the Right Decentralized Exchange Development Company

Pick the trustworthy decentralized exchange development firm that can bring you the intuitive and feature-rich DEX platform as per your business requirements. Zab Technologies, the leading Decentralized Exchange Software Development Company will help you to deliver a secure and the best Decentralized Cryptocurrency Exchange for your business.

8. Integrate Elite Features

You need to enable the best-in-class technical features in your decentralized crypto exchange to stand out from the crowd. Here is the list of the desirable features that we integrate into our decentralized exchange development.  

Users usually expect the following set of features in the decentralized crypto exchange platform.

  • Integrated IEO Module
  • Margin Trading
  • Security Token Exchange
  • Mobile Application support for Android, iOS
  • Liquidity API
  • Atomic Swaps
  • Multi-currency pairing
  • Cryptocurrency Wallet Development and Integration
  • Cryptocurrency Payment Gateway development and Integration
  • Admin Console
  • Issuer Console
  • Trading Bot
  • Cryptocurrency Price Ticker API
  • Rest API
  • Leverage Trading
  • Referral Program
  • Multi-language support
  • Market Making
  • Matching Engine
  • Futuristic CMS

9. Implementing High-End Security Mechanisms

To safeguard your exchange from cyberattacks and fraudulent activities, you need to implement top-level security mechanisms. Here is the list of high-level security features that we integrate into our decentralized exchange development.

  • HTTPS Authentication
  • Data Encryption
  • Anti Distributed Denial of Service (DDoS)
  • SQL Injection
  • Two-factor Authentication
  • Jail Login
  • Anti Denial of Service (DoS)
  • Cross-Site Request Forgery (CSRF) Protection
  • Server-Side Request Forgery (SSRF) Protection
  • HTTP Parameter Pollution Protection

10. Deploy and Market your Decentralized Crypto Exchange

Finally, you need to deploy and market your decentralized bitcoin exchange to your targeted audience and crypto traders. 

(Note: To improve the liquidity, it is essential to have a vast number of users and traders on your decentralized crypto exchange.)

These are crucial steps that you need to follow to develop a secure and the best decentralized crypto exchange. 

Why Choose Zab Technologies For Decentralized Exchange Development?

Zab technologies, a superfine cryptocurrency exchange development company in the blockchain industry. Being an early bird in the blockchain domain, we specialize in offering the premium decentralized exchange development service with integrating advanced security features in it. Apart from this, we also expertise in providing some reliable blockchain development services. Our services include

  1. Cryptocurrency exchange software development
  2. Cryptocurrency wallet development
  3. ERC20 token development
  4. Smart contract development
  5. Crypto payment gateway development
  6. ICO development
  7. Mobile wallet app development for IOS, Android
  8. STO development and more

Zab Technologies has dedicated and experienced developers to develop a stunning decentralized crypto exchange within the desired time. Also, we have a team of experts to offer effective 24/7 customer support. If you are planning to develop a secure decentralized crypto exchange, then connect with us. We have expert giants to assist you and accomplish your business goals at an affordable cost!.

If you still have queries on how to develop the best-decentralized cryptocurrency exchange?. Then reach us right now!.

Launch your own DEX crypto exchange platform in a week with Zab Technologies!

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About the author


I have started my career with Search Engine Optimisation and slowly concentrated on creative part as well. Now I'm working with a leading Blockchain Development Company in India - Zab Technologies

By Steve

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