In recent days, cryptocurrencies made a terrific boom in the marketplace. Because some major cryptos like bitcoin, ethereum, ripple, bitcoin cash, and litecoin prices are rising beyond expectations. Also, the usage of digital coins is increasing day by day. But on the flip side, some people have already started to focus on the crypto exchange business with the motto of generating lucrative money in the upcoming years.
Crypto exchange is the trading platform where several users will buy, sell, or exchange their desired crypto coins. Here users can trade different crypto assets and with that trading process, owners can make profits by collecting fees. That’s why crypto exchange is an emerging business and most startups prefer to launch a secure exchange with ideal features.
Undoubtedly, digital currencies are thriving since there are a lot of opportunities for businessmen, startups, and entrepreneurs shortly. But the most essential thing to be noted here is the cryptocurrency exchange development cost.
If you are a startup or an entrepreneur, then you would probably like to build a budget-friendly and secure Cryptocurrency Exchange. But many people have some queries like…
- How much does it cost to build a Cryptocurrency Exchange?
- Will the cost be too high for crypto exchange development?
- Should I need to spend huge money on development?
- Should I need a white label crypto exchange software or develop it from scratch?
And more… This article unveils the answers to all your questions to get started right away!. Now, let us begin with…
Notable Key Factors that Frame the Cryptocurrency Exchange Development Cost
Building a Cryptocurrency exchange platform with updated trading features will satisfy your audience to gain the top result. In this case, you need to choose a trusted cryptocurrency exchange development company that has years of experience in developing an affordable crypto exchange with extraordinary features. One such trusted development firm is Zab Technologies. When it comes to the crypto exchange development cost, some essential factors you need to take into consideration.
Type of Crypto Exchange you have chosen
Initially, to know the cost of starting a crypto exchange business, you should first know the different types of crypto exchanges in the blockchain space. There are commonly three types of crypto exchanges that are ruling the entire crypto market. Such as
- Centralized Exchanges
- Decentralized Exchanges
- Hybrid Exchanges
A Centralized Crypto Exchange consists of a middleman or an admin to perform the crypto trading. Whereas Decentralized exchanges help your users to perform anonymous crypto transactions without a middleman. Hybrid Exchange is a mixture of both centralized and decentralized exchanges. Each crypto exchange type has a different development cost. Therefore, know the working process behind these bitcoin exchanges and choose the desired type of crypto exchange you are willing to kickstart.
Figure Out the Time and Budget Constraints
It is crucial to know the exact duration within which you need your crypto trading platform to be built. Yes, it is important since it determines the cost of building a Cryptocurrency exchange. For instance, if you want to develop your crypto exchange within a week. Then the cryptocurrency exchange development cost will be comparatively more.
The next thing is to determine your maximum budget. Remember, the budget for developing crypto exchange must also include future plans as well. For example, if your exchange encounters any errors, bugs, or issues. Then you must have backup funds to manage them. Additionally, you need to spend your funds on some general factors. such as
- Providing wages to the employees
- Legal Compliance for your crypto exchange
- License for running an Exchange
- Payment processing
- Networking with other exchanges to improve liquidity
- Due Diligence and much more.
Hence, make sure that you have sufficient funds to manage the time effectively for developing a crypto exchange platform.
There are two ways to launch a crypto exchange. You should know the type of Cryptocurrency Exchange product you have decided to launch in the market. They are
- White label Crypto Exchange software
- Cryptocurrency Exchange Development from scratch
Being a leading Cryptocurrency Exchange Software Development Company, we provide both solutions. A White label Crypto Exchange is a readily built platform that you can buy and modify your desired features as per your requirements.
You can add or remove functionalities and customize them without any hassle. Our White label crypto exchange will help you to develop a standard cryptocurrency exchange platform instantly. So you can save your hard-earned money as well as your time. If you lack technical knowledge, then white label software can be a perfect solution.
On the flip side, building a cryptocurrency exchange from scratch is also possible. You can layout your desired trading features and futuristic functionalities in your crypto exchange. However, the time for Cryptocurrency Exchange Development from scratch usually takes around 4-6 months to get developed based on your unique requirements and advanced functionalities involved in it. In case, if you have any urgent requirements. Then it is better to go with premium White label Crypto Exchange software.
Integrating High-Security Mechanisms
To reduce the crypto exchange development cost, some people are making mistakes in security aspects. When you are creating a crypto trading platform, you can not avoid some common security features like two-factor authentication, encrypted database, and more. Some experts in the blockchain space are saying that crypto exchanges are the main target of anonymous hackers. So security mechanisms play a vital role to launch a secure platform. But enabling security features will also frame the bitcoin exchange development cost. Here we list some of the high-level security modules that you must implement in your crypto exchange platform.
- HTTPs authentication
- Jail login
- Data encryption
- Two-factor authentication
- SQL injection prevention
- Anti Denial of Service(DoS)
- Cross-Site Request Forgery(CSRF) protection
- Server-Side Request Forgery(SSRF) protection
- Escrow services
- Anti Distributed Denial of Service
These security features will protect your bitcoin exchange platform from hacking and other fraudulent activities.
So, these are the important factors that determine the cost of creating the crypto trading platform. Now, let us see…
Outstanding Features that Shapes the Crypto Exchange Development Cost
Features always play an important role while developing a crypto trading platform. Also, it determines the crypto exchange development cost. Here we list some essential trading features that frame the overall cost of developing a superfine crypto exchange platform.
Your users can now trade the digital assets at some time interval to reap a good amount of time with this trending trading feature.
It allows the users of the trading platform to exchange directly between each other without having a third party or intermediate.
IEO Integrated Module
Initial Exchange Offering is the latest crowdfunding model or a feature in the blockchain marketplace. By integrating this feature, as an exchange owner, you can select the crypto token and cryptocurrency projects to be listed on your platform. Also, you can charge a certain amount of fees for listing.
Mobile Application for IOS and Android
We develop a stunning and user-friendly crypto exchange that supports both Android and IOS mobile applications. Therefore, your global crypto users can trade a wide range of cryptos instantly with Android and IOS devices.
Liquidity is one of the crucial factors to consider while launching a crypto exchange for your business. Your bitcoin trading platform will be completely enhanced with our Liquidity API by dragging external providers.
Crypto Payment Gateway Integration
A Crypto payment gateway is a payment network where merchants can accept payments in cryptos. It helps to facilitate secure crypto payments between the seller and buyer. Like a traditional payment processor, it comforts the users to pay in distinct cryptocurrencies in a hassle-free way.
Order Book System
It is the most essential feature for traditional crypto exchanges. Because it helps your exchange users to track, check all open orders, transactions, and history in a hassle-free way. All the buy/sell orders will be completely recorded on the crypto trading platform.
In case, if there is no liquidity, then our Market Matching feature will serve as a counterparty to place an order between the buyer and seller. Hence, your users will experience a seamless crypto trading experience.
Cryptocurrency Wallet integration
Crypto wallet is a must-have feature for any type of crypto exchange. Because it helps your users to store, receive, and transfer cryptocurrencies securely. We implement best-in-class security practices and build a secure crypto wallet. Regardless of both the hot and cold storage type wallets.
AML(Anti Money Laundering) features will assist you to stay away from money laundering and neglect the flow of illegal money into your crypto exchange. It is a hassle-free way to refrain from illegal actions on your bitcoin exchange platform. Whereas KYC(Know Your Customer) feature will help to validate the originality of the user who has done their government ID cards. So, enable this feature in your crypto trading platform to enhance originality.
Customized admin panel integration
Admin panel assists you to control the cryptocurrency exchange from end to end. As a crypto exchange owner, you can customize all the trading features, security modules, and other functionalities from your end.
Unlimited currency exchange pair
This feature permits your user to transfer the cryptocurrencies with fiat currency or any other digital currency in a trouble-free way.
Third-Party API integration
API allows you to do perform the following actions
- Handle Multi-sig Wallet
- Facilitate Cryptocurrency Transaction
- Restoring the Market
- Data Escrow Application
- Admin manages to record the number of traders. It gives a safe and secure transaction for the exchange business.
Zab technologies will enable these outstanding features in the platform. So that you can easily launch a function-rich crypto exchange perfectly. In addition to this, you can also add other top-notch trading features to the platform. For instance, our crypto exchange relatively supports these neoteric features when speaking about the cost to start a crypto exchange, we integrate the following set of features:
- Futures Trading
- Security Token Exchange
- Perpetual trading
- Market Orders
- Trading Bot and more
Therefore, depending on the features you require in the cryptocurrency exchange platform, it also shapes the cryptocurrency exchange development cost.
Importance of these Features in a Crypto Exchange Development
- Creating a user-friendly ecosystem is an essential thing in cryptocurrency exchange development. The user accounts must be designed effectively to manage the users and enable them to deposit/withdraw virtual currencies in the platform.
- Next comes the Trading Kernel which is the core part of crypto exchange development. The primary motto of this feature is to create an order book, regulate the transactions, and update the balances.
- Undoubtedly, having an intuitive interface is very important. Users should easily navigate within the platform and perform instant crypto trading.
- As an exchange owner, you must be able to manage your dashboard effectively. Hence, it is important to integrate features such as pending transactions management, user management, and investor management.
- On the other hand, your users should also enjoy ideal features in your exchange platform. In this case, you can integrate some features like live statistics, history of transactions, buy and receive cryptocurrencies instantly, view balance, etc.
- Next comes the multi-crypto wallet integration. Some users will prefer Hot wallets for instant transactions. While some users prefer cold storage for a safer transaction. Therefore, determine whether you are going to integrate both the storage type for the wallet.
- Finally, you should enable powerful security protocols. such as DDoS, HTTP Authentication, Data Encryption, 2-factor authentication, Jail Login, and CSRF Protection to get rid of being hacked.
Ok, now let us see…
How much does it cost to start a Crypto Exchange?
Being an award-winning Blockchain development company, we cater to our clients the best-in-class crypto trading platforms at an affordable price. As discussed early, the cost of development will vary depending on your customized business requirements. But the cost to start a crypto exchange ranges from $25k – $30k. With the project complexity and based on your business needs, the price might vary.
In case, if you want to launch a crypto exchange using white label crypto exchange software. Then the cost could range from $10k – $15k. But based on your customizations and the features you add, the development cost will differ.
We hope that now you are aware of the crypto exchange development costs for both scratch and white labels. So the choice is yours, you can either develop a crypto exchange from scratch or else you can go with our ultra-modern white label crypto exchange software. Thus, choose the right path to develop your exchange and earn ample amounts of profits within a short period.
If you require a white label crypto exchange software or a crypto exchange platform from scratch, you can get in touch with Zab Technologies right now. We excel in developing stunning crypto exchanges with desirable features at the best price in the market.
Feel free to contact us, We would love to answer all your queries!!!