Cryptocurrency exchanges are the most popular trend for the year 2020. These are platforms where users can buy and sell cryptocurrencies and digital assets. One such popular platform is DEX Decentralized Exchange. This blog discusses the simple way to set up the Best Decentralized Crypto Exchange which can reap profits for the year 2020.
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 Bitcoin Trading Platforms.
What is a Blockchain Decentralized Exchange?
A Decentralized Crypto Exchange is the platform where traders can make peer to peer digital assets trades without a third party or intermediary in between. In the case of centralized crypto exchanges, there is an intermediary in between to facilitate the transactions.
Since most of the traders find a crypto exchange to be hacked, decentralized exchanges can resolve them completely. Hence, most of the traders are interested to trade on decentralized crypto exchanges rather than centralized ones.
Components of a DEX Bitcoin Exchange:
A Best Decentralized Crypto Exchange comes with the following set of components:
- Graphical User Interface (GUI)
As the name suggests, a GUI should be built from an architectural point of view which must be applied for various sets of gadgets such as mobile apps, desktops, etc.
- Trading & Matching Engine
This is the core component of the system. It should be composed of both the Order Books as well as Trading Bot Engine using Blockchain Technology.
- Cryptocurrency Wallets Integration
As Centralized Exchanges have a hazard of getting hacked, a cryptocurrency wallet should be completely secure with features such as Two-Factor Authentication, Email Login, etc.
- Liquidity API
Liquidity plays a greater role to build the best decentralized crypto exchange. Hence it is important to integrate Liquidity API for external exchanges.
- Admin Module
You are the owner of your Bitcoin Exchange Platform. You should make the desired changes to your platform with the Admin Module.
Working of a Decentralized Crypto Exchanges:
A Decentralised Crypto Exchange usually works as follows:
- The token owner places a sell order: To exchange his/her token digital assets on an open-source decentralized crypto exchange, the owner specifies the following set of details:
- The number of crypto assets
- The cost of the assets
- Total Bidding Time
- Once the selling order is set, traders can start buying by submitting their bids for the buy order.
- Once the desired time gets expired, the complete bids get reviewed by both the parties and the order gets executed.
To put it in simple words, in a best decentralized crypto exchange:
- One can log in to their respective Cryptocurrency Wallet to sign in to the Blockchain Decentralized DEX Crypto Exchange.
- They can submit a buy/sell requests to the exchange.
- The Smart Contracts of the DEX Bitcoin Exchange execute the order and the digital assets are transferred.
LIST OF TOP DECENTRALIZED CRYPTO EXCHANGE
How to set up a Best Decentralized Crypto Exchange (DEX)?
A Decentralised Crypto Exchange can be built with the following set of steps:
- Gather the required funds
The first step is to ensure you have the right set of funds to start your own Decentralized Cryptocurrency Exchange Platform. Additionally, know the cost to start a crypto exchange since you need to hire a set of legal counselors, a team of experts, etc. Hence it is important to have enough funds in this case.
- Come up with unique business requirements
As there is n number of white label crypto exchanges existing every day, you need to have a unique set of business requirements. Right from Roadmap to the features to be embedded, everything should be planned to make your exchange stand out from the crowd.
- Choose the desired country to launch a DEX Crypto Exchange
As most of the countries haven’t made cryptocurrency legal, you need to make sure, you choose the country from the following set of the list:
- Hong Kong
- The United States
- The United Kingdom
- Check for the guidelines in the country
Select the desired country from the above list and check for the guidelines there. Each country will have separate regulations. Make sure you satisfy those before you launch your dream DEX Crypto Exchange Platform.
- Pick the right Cryptocurrency Exchange Development Company
Go with the right solution provider who can bring you the intuitive and best decentralized crypto exchange of your choice. Zab Technologies, the superfine Cryptocurrency Exchange Development Company can deliver you the top-graded Decentralized Cryptocurrency Exchange for your business.
- Integrating Technical Features
You need to integrate the best-in-class technical features in your DEX Cryptocurrency Exchange to stand out from the crowd.
Traders usually expect the following set of features in a crypto exchange platform:
- Integrated IEO Module
- Margin Trading
- Security Token Exchange
- Mobile Application support for Android, iOS
- Liquidity API
- Atomic Swaps
- Multi-currency pairing
- Crypto Wallet Integration
- Admin Console
- Issuer Console
- Trading Bot
- Cryptocurrency Price Ticker API
- Rest API
- Leverage Trading
- Referral Program
- Multi-language support
- Payment Gateway Integration
- Market Making
- Matching Engine
- Futuristic CMS
- Implementing Security Mechanisms
In addition to this, you need to implement top security mechanisms in your crypto exchange platform!
Here are some of them:
- HTTPS Authentication
- Data Encryption
- Anti Distributed Denial of Service (DDoS)
- SQL Injection
- Jail Login
- Anti Denial of Service (DoS)
- Cross-Site Request Forgery (CSRF) Protection
- Server-Side Request Forgery (SSRF) Protection
- HTTP Parameter Pollution Protection
- Marketing your Best Decentralized Crypto Exchange
Finally, you need to market your Decentralized Bitcoin Exchange to your target audience. To enhance the liquidity in the platform, it is important to have a huge number of traders on your DEX Crypto Exchange platform.
Why set up a Best Decentralized Crypto Exchange for 2020?
You can set up your own Decentralized Exchange due to the following set of reasons:
Your traders can make anonymous transactions since there is no intermediary to facilitate the transactions.
Ease of scalability is the greatest advantage of decentralized systems. This means that you rely on Blockchain for every transaction happening on the exchange.
Your traders can now have a complete advantage over the digital assets of the software platform since there is no intermediary to facilitate transactions.
Decentralized Crypto Exchanges are completely secure when compared to the centralized crypto trading platforms.
Without a doubt, decentralized crypto exchanges are going to be the future of the crypto trading industry. Building your own best DEX Bitcoin Exchange can reap you with profits for the year 2020!