How to Create a Cryptocurrency Exchange Software?

In today’s world, cryptocurrency has become an important asset, and owning some of it is equivalent to owning physical assets. But, minting such digital currency is becoming increasingly difficult due to many factors, which include higher system requirements, and legal restrictions, to name a few.

A lot of startups are aiming at cryptocurrency as a domain to work with, and with mining getting tougher for small-scale startups, there is a viable alternative – Cryptocurrency Exchange Software.

Cryptocurrency exchanges are those portals where one can exchange cryptocurrency for fiat money or other cryptocurrencies. The main benefit of such portals is that the exchange rates are more stable due to the centralized nature of the exchange, as most of them act according to the current situation. Also, with the evolution of more cryptocurrencies, an exchange would only be a profitable venture for any company.

How to Build Such a Software?

Although building cryptocurrency exchange software seems to be a huge task, it gets easy enough if you properly plan and execute it. Here, you can find some ideas that could be beneficial if you are looking to create such an exchange and earn some profit.

Who and Where are You Targeting At?

First of all steps, you must decide whom your exchange would be serving and where it would be accessible. Some countries have placed a legal ban on cryptocurrencies, whereas some others have adopted cryptocurrencies as a legal tender. So, deciding your market would be of paramount importance as in many countries, people do not see cryptocurrencies as a tender, but rather as a fancy technical thing. For this, you would need a team to assist with necessary data and analyze how the region had dealt with cryptocurrencies in the past. This can be useful as we can customize the software according to the region we target.

Plan on a Perfect Digital Presence

If you are investing in creating an exchange for cryptocurrency, you must have an online portal where your users would exchange cryptocurrencies just like they do with fiat money. Also, ensure that your exchange has a mobile application facility to enable the users to exchange cryptocurrencies on the go. For ensuring that your users have a smooth sailing on your exchange website, you must ensure that the following features are fulfilled.

Trading engine is the interface where you can find the history of transactions and exchanges that took place on your platform. These also serve as a core feature by which calculating balances, recording order history, and processing transactions can become easier.

• Frontend Development

While aiming at anything aimed at a general user, you must ensure that the user has a good experience with your product. The same rule applies to cryptocurrency exchanges too, importantly because the product is digital in nature and the world today has become accustomed to smoother UIs. Ensure that the user can have a look at the current exchange rates between currencies, deposit money (crypto or fiat), know their balance on the digital wallet, and place an order, with an easily accessible interface.

• Electronic Wallet

While creating a cryptocurrency exchange software, one must ensure that the digital wallet on your platform that the users use must be easily launchable, and also a secured transaction environment during exchange operations.

• Administrator Panel

Administrating a digital currency exchange is far from easy, and this panel should ease up their work by giving necessary information on exchange operations, managing liquidity, verifying transactions, and providing professional customer support when necessary.         

• Multiple Verification Factors

While logging in to your software, multiple authentication steps can be employed, such as a one-time password or a fingerprint reading mechanism, if used on a smartphone, in addition to the usual username and password combination. By this way, the users can feel safe on your software and can safely exchange digital currency.

Ensure a High Level of Security

While operating a cryptocurrency exchange, one should invest more on keeping the platform secured and any hacking attempt should go fruitless. Many such digital currency exchanges have to go out of business as they were hacked. Also, one must ensure that the website should securely store transaction history, ICOs and history of withdrawals. Customers’ personal information must also be kept with maximum security possible, as such details could be used by bad actors for ill intentions. 

Also, ensure that you strictly follow appropriate Know Your Customer (KYC) policies, where proof of identification is verified so that your website is without any bad actors.

Get a Suitable Choice

As there are hundreds of cryptocurrencies in circulation today, selecting cryptocurrencies on which your exchange would operate is a tough task. Ensure that you operate with the highly regarded Ether, USDT, Cardano, and a few more. Also enable operating with prominent fiat currencies, if you are planning to operate an offline exchange. As it is nearly impossible to maintain an exchange that operates for every cryptocurrency that gets created solely due to the infrastructure requirements, it is wise to choose a few and operate seamlessly.

Whom to Approach for?

If you have planned to start an online cryptocurrency exchange, you need not be worried as there are a lot of cryptocurrency software development companies currently serving. With their expertise and your insights, your idea of a new cryptocurrency exchange can become a reality.