Does crypto have value only in a virtual world? The answer is no. Cryptocurrencies carry a monetary value that can also be used in real life. All we need is a crypto exchange platform that facilitates the easy conversion of digital currency into fiat. Most people use these exchange platforms that create a smooth way to attain instant and secure transactions.
First of all, it is really important to develop a flexible cryptocurrency exchange platform to get real money for successful crypto trading.
Are you excited to learn important info about creating your own cryptocurrency exchange platform development? Keep scrolling!!!
Cryptocurrency Exchange Platform – Definition
The process of exchanging virtual currency into real-world currency is known as a crypto exchange. The platform that helps to perform this activity is called a cryptocurrency exchange platform. Exchanges are popular these days because many businesses have already started to run crypto trades.
Interestingly, more than 18 thousand businesses have started to accept payments in cryptocurrencies. It proves the emerging need for cryptocurrency exchange platforms in diverse sectors.
How does a crypto exchange work?
Initially, the crypto owner has to choose a suitable exchange platform based on their research and requirements. Here are the steps that describe the working of a cryptocurrency exchange platform.
After choosing the platform, create an account using mail ID and other necessary details. Deposit fiat and convert it into required cryptocurrency, then store it in a digital wallet.
The exchange platform will keep a record of every transaction and hold the funds until a trader withdraws them. In simpler words, exchanges will act as a broker between the seller and the buyer.
Types of crypto exchanges
There are two types of crypto exchanges
- Online crypto exchange
It is an unpopular method of crypto exchange where people can swap their cryptocurrencies into real cash in a bank or other physical outlet.
- Offline crypto exchange
It is a complete online exchange method where people can swap their crypto assets into other similar digital assets.
Build your own cryptocurrency exchange platform
Creating your own cryptocurrency exchange platform might be difficult but not impossible. Here is how a person can develop a crypto exchange platform.
Step 1: Select the target audience
One has to determine their target audience based on the exchange platform facilities. If the platform is available globally, it might require international licenses and other legal documentation.
Step 2: Partner with a reliable bank
An exchange platform needs to partner with a bank to facilitate the conversion of fiat into cryptocurrencies and vice-versa. It is essential to choose a bank with suitable online facilities.
Step 3: Build an exchange architecture
A successful exchange architecture will have seamless processes right from the front-end to the admin panel.
Step 4: Ensuring the security
Most exchange platforms become prey to hacking and other malicious attacks. So, it is important to make sure that your exchange platform has high-security features.
Step 5: Increasing Transparency and liquidity
Transparency will help in avoiding the possibility of scamming on the platform. When Launching your exchange business, you have to artificially model demand for your service by either trading with a profile or connecting with another exchange platform.
Step 6: Provide customer support
Once you launch the exchange platform, you need to hire a required number of employees to take care of customer queries.
Business Perspective – Launching a Crypto Exchange Platform
From a business perspective, there are three things you need to consider while launching a crypto exchange platform.
Initially, you should calculate the budget of the exchange including the services like engineering, support, and configuration. Along with the minimum initial investment of $20000, you have to consider other expenses for customization and promotion.
Secondly, legal documentation regarding the exchange to reduce future risks post-launching.
Cost of Creating An Exchange Platform
When considering all the challenges in creating and launching a crypto exchange platform, the cost involved in the development process will be very high. There are expenses associated with employing the right team for services like UI design, web design, QA engineering, platform development, and manager.
Alternatively, you can also hire a professional cryptocurrency exchange development services company that can customize the exchange based on your requirements.