The leading stats provider in Crypto Platforms, CryptoCompare has said that there is a substantial hike in the number of entrepreneurs preferring to start crypto trading platforms in the month of April. The reason is that:
- Apart from bitcoin, there are more than 1300 altcoins. This will provide an excellent resource for the development of exchange services.
- The second reason is, many countries are making crypto investments and trading legal. This is surely an interesting factor when it comes to making use of digital assets.
Do you own a crypto exchange platform? If not, you should create one. Cryptocurrency prices are rising off the roof and this is the best time to create your crypto community and earn profits. This blog will be a comprehensive guide to build your own crypto exchange website.
Pre-requisites on How to Create Crypto Exchange Website:
1. Checking for Regulations.
2. Check that you have any regular funds
3. Building a community
4. Exchange platform that you might require
5. Choose who is going to develop
6. Choose the type of solutions that you require
6.1 White label exchange solutions
6.2 Open-Source Solutions
6.3 Custom Software Development.
7. Build a Cryptocurrency exchange platform from scratch
8. Cryptocurrency Exchange infrastructure:
8.1 Trade Engine
8.2 User Interface
8.3 Cryptocurrency wallets
9. Implementing Security Measures:
9.1 Two Factor Authentication
9.2 Multi-Sig wallets
9.3 Anti-DDoS protection.
10. Cost to start a cryptocurrency exchange:
11. Closing it up:
It is more important to know whether you are going to operate globally or for a specific location. Once you decide on that, you should seek the legal advisories to know about your country’s jurisprudence for cryptocurrencies and exchange platforms.
Building a Crypto Exchanges loaded with loaded security features is mandatory to run a long term business. Ensure you have the capital hold to build your crypto trading website. Else you can raise the required funds through a strategy like Initial Coin Offering (ICO)!
It is crucial that you build a huge set of audience who should support your products and services. There are diverse platforms available to build your user base. Either through Social Media sites such as Facebook, Instagram, Linkedin, etc or through other marketing strategies such as Email Campaigns, Blogging, etc.
What type of Exchange Platform do you require?
There are two types of trading platforms in the market. Centralized and Decentralized Exchanges. If you are looking for centralized exchanges, you can create a User to Admin based trading platforms similar to Coinbase, Bittrex. In these cases, exchanges have control over the user funds. They also ensure high liquidity along with high scalability. Whereas in exchanges such as Idex or EtherDelta, traders have complete control of their exchange. You can decide which type of exchange you want to invest in.
Choose who is going to develop
Decide whether you are going to develop on your own or you need a solution provider. If you are a tech-savvy person and skilled coder, then developing a trading website is going to be an easy task for you. You have plenty of online resources and tutorials which can help you. However, the duration period can be longer when compared to the latter. If in the case you are going to hire a development team, you should consider a few factors before hiring.
- Know the Expertise of the team.
- Know the type of products they have previously delivered.
- Know the features they provide.
Choosing the type of solution you require
Decide on which type of solution you actually require. There are primarily, three types of solutions for your question “ How to create a Bitcoin exchange website?”
White-Label Solutions are the concept in which companies can rebrand the product created by other enterprises and make everyone believe that they have created it.
There are plenty of companies that provide White-Label Solutions. By using this scheme, you can get your product instantly as they are already developed.
As the name suggests, this type of solution is readily available and can be used by anyone. The greatest advantage is, you don’t need to pay for Open-Source Solutions. Anyhow security and databases are their weak spots.
This type of development is done from scratch. This can take a long time but can ensure you with high-profits. You can list out the features you need on your Crypto Exchange website and your development team can provide you with solutions.
Build a Cryptocurrency Exchange Website from Scratch
If in case you are going to build your own bitcoin exchange website, here are things you should follow:
- Track your location and identify the legal norms in your location where you are going to start your exchange.
- Get a proper license from the targeted location.
- Get advice from the crypto-based business experts
- Decide your type of crypto exchange that you want to launch.(CEX or DEX).
- Do some in-depth research on the crypto exchange development industry.
- Collaborate with Established Banks
- Choose the best Crypto exchange service providing company.
- Create your desired exchange with high liquidity.
- Provide 24/7 customer support to your users for communication.
Therefore, you should partner with reputed banks or payment processors. While choosing the banks or payment processors, make sure they are in compliance with the country you have chosen.
Cryptocurrency Exchange Architecture:
Ensure you develop a high-end architecture that encompasses the following components:
When you start with creating your white label crypto exchange software, the trade engine is an important factor.
Trade Engine handles all the transactions and checks for the balances. Added, it is responsible for matching the buy/sell transactions on the exchange.
An Intuitive and attractive user interface will bring a lot of potential users to trade on your platform. In the front-end UI, users can log in, check for the transactions, can deposit or withdraw the funds, etc.
In the back-end, users have the option to alter the details entered. It can be such as changing the trading fee, adding new cryptos, managing the transaction history, etc.
A Crypto Wallet is the one that stores the cryptocurrencies and private keys. There are a lot of cryptocurrency wallets available like Desktop Wallets, Mobile Wallets, Hot Wallets, etc. Since your wallets hold private keys, it is important that you create secured wallets.
Implementing Security Measures
Since Crypto Exchanges have sensitive information, it is mandatory that you should make a trading platform that isn’t prone to hacks.
Two Factor Authentication
This is the most common mechanism which you should utilize while creating a cryptocurrency exchange website. With this strategy, you should enter two authorization keys to your account.
One is through the regular password and another thing is to enter the code received either through SMS/call. Using this strategy, the website remains more secured.
Multi-Signature & Time-Lock
In order to perform the transactions, users should confirm the private keys. For additional security, exchanges can introduce multi-signature confirmation which requires more than a single key to execute transactions.
Time-Lock is similar to Multi-Signature but with an additional step. As the name suggests, the multi-keys i.e. private keys should be entered with a time gap in between. That is, you can enter your first private key whenever you want. But the second key should be entered after a certain period of time, say 24 hours. Thus hackers can’t get your money in their pockets!
DDoS Attack Protection
This attack means that overwhelming with traffic from multiple sources with the intent of suspending the services. Therefore, it is a must that you implement security measures to get rid of this attack.
Cryptocurrency Exchange Development Cost
It is a piece of great news that you have decided to kickstart a cryptocurrency exchange website. For that purpose. You will need to approach the best cryptocurrency exchange software development company to get the best services. It all depends upon the cost. Zab Technologies provides all kinds of crypto and bitcoin exchange development services at affordable rates for all startups and entrepreneurs. They provide enterprise-based blockchain and cryptocurrency exchange development services too.
Their cost of development varies from service to service. In this cryptocurrency exchange development criteria, the cost varies if you want to go with a white label crypto exchange or from scratch. Zab Tech does extensive research on which suits you and provides the best to kickstart your cryptocurrency exchange business instantly.
Closing it up:
Undoubtedly, trading platforms will remain to top the headlines in the upcoming days as well. Make sure that your trading platform stands out and supports a major number of cryptocurrencies. Added, increasing website visibility can attract a high number of users to your platform.
If you are planning to hire skilled developers to get a completely secure cryptocurrency exchange website, there are plenty of startups ready to help you! If you have a requirement for White-Label Solutions or even custom-software development, experts can assist you with the work done!