The popularity of cryptocurrency is attracting millions of users worldwide. The amount of use of this digital currency is at an all-time high. One of the hottest technologies right now is blockchain. Since its introduction in 2008, this technology has advanced significantly. It aids companies in conducting secure transactions as well as helping them retain transparency and honesty. Because of which, the cost to build crypto exchange platform is very high.
When it comes to cryptocurrencies, everyone get is familiar with Bitcoin. After being introduced in 2010, it quickly gained popularity, and today, the price of a single bitcoin has increased beyond reasonable expectations.
After observing this success, it is evident that investing in a cryptocurrency exchange platform is wise. This is because today’s top financial trend is cryptocurrency. The paradigm change represented by this digital currency is away from bank-controlled, centralized currencies like dollars, euros, rupees, etc., and toward a decentralized peer-to-peer system.
A cryptocurrency exchange is used by anyone who wants to purchase, sell, or trade cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dash, etc. Modern bitcoin mining has gotten more challenging and, in some places, is even forbidden. Experts often mention alternative strategies for profiting from the digital currency industry because of this. In this case, you may create a cryptocurrency exchange platform pretty profitably.
These crypto exchange platforms are used by people all around the world to conduct transactions. Typically, individuals hold onto money in bitcoin or another virtual currency while they wait for higher conversion rates. For instance, 16 million Bitcoins were in circulation last year. However, there are still not many actual locations where it can be withdrawn. With digital ones, the situation is much better.
Moreover, the above pictorial view clearly defines that investing in cryptocurrency exchange development is an ideal deal, and in this blog post, we are going to talk about cost estimation. So let’s not waste much time and get started.
What is Cryptocurrency Exchange?
Platforms for exchanging cryptocurrencies for other resources, such as modern and government-issued forms of money, are known as cryptocurrency exchange platforms. A digital currency exchange acts as a middleman between a customer and a seller and makes money via commissions and exchange fees.
Cryptocurrency exchange platforms are leading the sector to introduce the crypto exchange. In addition, helping users immediately trade and exchange cryptocurrency is another benefit.
Statistics Depict Crypto Exchanges Are Getting More Popular
Have you recently become more knowledgeable about cryptocurrencies? If so, it is a result of the various crypto exchanges’ rising popularity. Let’s quickly review some of the important figures:
- The average daily increase in bitcoin trade volume is a staggering 82 billion USD.
- More than 10,000 cryptocurrencies are currently in use worldwide.
- Global traders have access to 526 cryptocurrency spot exchanges.
- Digital payments now account for more than 700 billion transactions worldwide.
- Blockchain wallets are used by more than 70 million people worldwide.
Steps to Start Crypto Exchange Platform Business
Exchanges for cryptocurrencies allow consumers to trade a variety of digital assets without taking any risks. The bitcoin exchange business model offers a means of achieving profitability in the digital age.
The actions you must do to set up a fully functional cryptocurrency trading firm are as follows:
Perform Market Research
Suppose you’re worried about how to launch a cryptocurrency exchange company. In that case, you should start by conducting in-depth market research to identify the most recent crypto trends and essential characteristics that are luring crypto purchasers. However, as we all know, a variety of social and economic factors contribute to the bitcoin market’s high volatility. As a result, you must carefully consider whether this is the right time to launch your bitcoin exchange firm.
Define Your Target Audience
Think about how far your TA should extend; while your country and its laws may impose restrictions, this is not the case if you intend to expand your company internationally from the start. If the latter is the case, you must take care of obtaining the relevant international licenses and permissions in accordance with the areas where you intend to promote your exchange firm. In any case, you’ll require the advice of a lawyer with knowledge of dealing with foreign currency legislation.
Choose a Crypto Exchange Type
When creating a cryptocurrency exchange, selecting the right platform type for trading cryptocurrencies is essential.
The type of bitcoin exchange you choose will also have an impact on the exchange’s development costs. since the development budget varies depending on the type of BTC trading platform. Before making this choice, you must be knowledgeable of the many types of bitcoin exchanges currently available on the market. These types include
- Centralized crypto exchange
- Decentralized crypto exchange
- Hybrid crypto exchange
Choose from the above types you want to operate.
Create a Robust Crypto Architecture
You must effectively develop the crypto exchange architecture after deciding on the type of cryptocurrency exchange to launch. To create the best architecture, it is required to enable four crucial components. Examples of such features include trading engines, multi-currency wallets, administration control panels, and a user-friendly interface.
Focus on the Software
Today’s technology market is perfectly prepared for daring businesspeople who want to build their own digital currency exchange firms. Because of this, it might provide you with a starter software bundle. However, your search for a ready-made exchange solution may lead you to websites like BTCTrader or Alphapoint.
In addition to a web exchange solution, don’t overlook the mobile app development, as it might greatly boost your income.
Don’t Overlook Security Measures
Practically all businesses that deal in money should abide by the Know Your Customer (KYC) principles, which call for examining a client’s passport or another form of identification to validate their identity. The major objective of adhering to such rules is to eliminate scamming opportunities in the exchange network.
Provide Good Customer Support
You should hire at least a few staff members to handle assistance after the platform is launched. It is essential to offer complete accessibility to the support services, which means that the support staff must respond quickly and offer assistance with the necessary expertise.
Key Features to Include in Your Crypto Exchange Platform
One of the first things you need to concentrate on is the features you intend to include if you want your coin to be successful. This is because there are already an excessive number of platforms available; therefore, if you want customers to appreciate and use your platform, you must try to offer both essential elements and others not included in other platforms.
Make an effort to make your exchange platform stand out by choosing reputable bitcoin exchange platform development services that can make your dream a reality. You must also pay attention to security. Hire blockchain developers that can build the platform with the highest level of security, as no user will trade if they do not feel that the platform is safe and secure.
Your exchange platform will benefit from and experience greater success the more user trust you are able to earn. Therefore, you need to have the following functionalities in your platform for bitcoin exchanges:
Easy Signup/Sign-in: Nobody enjoys registering or logging in to a platform or app repeatedly. Thus, you must concentrate on making the signup and login processes simple.
Execute a Verification Procedure: Not all users must be permitted to utilize the trading platform. Only the certified and authentic ones must be permitted. Therefore, focusing on user verification is a necessary step when trying to construct a Binance clone app.
Easy Depositing and Withdrawing: The user will receive information about withdrawing and depositing amounts by email, QR code, transfer, ATM, and many more methods. It is possible to trade and deposit digital currency without having your account verified, but in order to withdraw funds, you must have your account verified.
User-friendly Dashboard: It’s a terrific idea to provide users with a simple dashboard so they can keep track of every transaction they make. Additionally, it is essential to integrate thorough analytics so that users can quickly build, analyze, and interpret a variety of graphs and charts and trade accordingly.
Integration of API: To enable customers to build their own automated trading systems or data interchange among the verified devices utilizing the cryptocurrency exchange script, the exchange must have its own API.
Admin Panel: With the help of an appealing admin panel, crypto exchange platforms can easily monitor trades and manage the actions made on the exchange based on their access level.
Estimated Cost to Build Crypto Exchange Platform
According to Fortune Business Insights, the global cryptocurrency industry is anticipated to increase at a CAGR of 11.1% from 2021 to 2028, reaching $1,902.5 million.
The price of establishing a platform for cryptocurrency exchanges has increased in line with the rising demand for cryptocurrency exchanges. Several factors, such as influence the price of a cryptocurrency exchange platform
The functionality you require for your cryptocurrency trading platform should be your first priority. Some exchanges are relatively simple and just provide the most fundamental trading features, such as buy/sell orders and charting. Others provide a wider range of functions, such as trading in derivatives and margins.
The more features you require, the more expensive it will be to build your platform.
Size of Development Team
The size of your development team is a crucial additional component to take into account. You might be able to establish a simple cryptocurrency exchange platform with only a few features if you only have a small development team. However, a larger team will be required if you want to introduce a more sophisticated exchange with a comprehensive set of capabilities.
Location of Development Team
The location of your development team is a crucial additional issue to take into account. For instance, the development cost will be higher if the team is situated in a region with a high cost of living. Furthermore, depending on the area, the price of talent and other resources can change. The cost of development will be higher if the team is situated in a region where talent is in scarce supply.
Depends on Tools and Technologies
Different bitcoin trading platforms have different development costs depending on the tools and technologies employed. The cost of purchasing or leasing hardware, software, and other resources may be higher if you choose a traditional development strategy, for instance.
However, your costs might be reduced because you will only be charged for the services you really utilize if you choose to employ cloud-based solutions. Utilizing open-source software might also help to reduce development costs. To guarantee that you can keep expenses in check, it is essential to consider all of these variables when choosing the appropriate tools and technologies for your project.
Have a look at the following table that will help you know which technology is used for which platform.
|Tool||Xcode 9.3||Android Studio||PHP / Laravel|
|Web service||Swiftly JSON||Rest APIs||–|
|Database||MySql||MySql, Local Database||MySql|
|Design||MVC, MVVM||Material Design||MVVM|
The above tools and technologies are used to build a robust crypto exchange platform. However, these are just common technologies; ultimately, it depends on project requirements, complexity, and feature integration.
Designing a crypto exchange platform is not a simple task; you need to consider multiple things as well as hire the best blockchain developers from Elluminati Inc. Businesses these days are looking for the best opportunities to develop robust and high-end exchange platforms due to their massive popularity in the digital market.