Cryptocurrency exchange and trading platform
The pandemic slowed down many industries, but not the fintech sector. Since it actually experienced a boom and growth in the investment and use of its services. But that doesn’t mean every fintech startup survives in the industry.
Want to learn how to build a FinTech app and have an edge over the competition? With extensive experience in creating FinTech development, OmiSoft is going to share industry insights on building crypto exchanges, current trends, costs and must-have features. Use our step-by-step guide to overcome challenges and build a business that brings in millions in revenue.
Crypto Exchange Basics | summary
Crypto who?
Crypto exchange– a website, app or platform developed with the functions of buying, selling and exchanging cryptocurrencies.
Main advantages:
- Safety
- Transparency
- Improved speed of transactions
Therefore, the safer, faster and easier to use your product is, the greater the chances of capturing the attention of potential users. And more users mean higher profits.
Types of crypto trading platforms
There is not just one type crypto trading platformbut there are 5 different types of exchange platforms that are worth exploring before making a final decision that you want to build your own FinTech app.
#1 Classic Cryptocurrency Exchange
Cryptocurrency exchanges help you trade crypto by placing a limit order which will later be placed in an order book waiting there until it is matched. You can also trade assets by matching a user’s request in the exchange’s depth of market (DOM).
#2 Peer-to-Peer Cryptocurrency Exchange Platform (P2P)
Probably the most popular type of crypto exchange. They allow people to buy or sell digital assets with confidentiality from other customers or companies without an intermediary. P2P exchange does not allow an order book and does not directly affect the cost of the asset.
#3 brokers and CFDs cryptocurrency platforms
This type of crypto exchange involves a broker, also known as the middleman. They charge a fee for the trade, but get extra security and safety for both parties.
#4 Derivatives trading platform for cryptocurrency
Another type of crypto exchange platform is derivatives. It allows trading of the underlying token price, therefore maximizing your profit (if done correctly). This type of crypto exchange also provides specialized instruments for trading such as endless swaps.
How to build the best crypto trading platform?
Developing one cryptocurrency trading app can be challenging, but with the right product development team, it’s very rewarding. Let’s take a closer look at what it takes to build a successful crypto exchange in 2022.
Step 1. Do market research
The first and essential step in any software product development is market research. Why do you need it?
- To keep an eye on your competitors
- To find the latest trends
- To get inspo for additional features that will attract advanced users
- See if it is the right time to enter the room
That in-depth analysis is really something you need to consider as it will help you gain a better understanding of the current situation in the market as well as help you form a better RFP.
Step 2. Select CEX or DEX
You have already collected all types of crypto exchanges. But you should also remember the importance of choosing between centralized exchanges (CEXs) or decentralized exchanges (DEXs). What is the difference? See the table below!
| Criteria | DEX | CEX |
| Liquidity | Low | High |
| Coin holder | User | Exchange |
| Fees | Low | Medium |
| Availability of Fiat Currencies | no | Yes |
| Examples | PancakeSwap, IDEX | Binance, Kraken |
The availability of fiat currencies and no liquidity problems are the main advantages of CEX platforms. But DEXs offer lower fees and the user is the coin holder.
Step 3. Design the Architecture of the Crypto Exchange App or Website
After choosing the type of crypto exchange app or site, the next step is to design the architecture. What do you need for that?
- Engine for trading
- Crypto wallet
- User-friendly interface
- Administration panel
Step 4. Hire FinTech development experts
Choose the right people for FinTech app development services is key, as it will affect the quality, budget and time you spend on the project. Hiring a dedicated development team for your project ensures that it has the right talent with FinTech experience and the right technology stack for your needs.
Step 5. Add the must-haves to get the best crypto trading app
When building a cryptocurrency exchange website or platform, there are some features you must have in it. Read on to find out!
Authorization and confirmation
- Authorization. To allow users to create and log in to their exchange profiles.
- Confirmation. It will help ensure transparency of every transaction and reduce the risk of attacks, which is why we recommend adding anti-bot verification and 2FA.
Engine for trading
The trading engine is the core of your platform. It will be responsible for how your system works. For example, your system can check whether a user has enough funds to make a trade and calculate the possible risks associated with it.
Crypto wallet
Multicurrency crypto wallet will allow users to store and transfer their digital money. E-wallets provide secure transactions for your crypto exchange.
Order and transaction log
The order book stores the purchase and sale orders themselves separately in lists. Whenever there is a match, the exchange automatically creates a deal.
Push notifications
Alerts and notifications add value to users and facilitate communication between them. Alerts can be set for trend news, price changes, etc.
Analytical tools
And last but definitely not least function to include is the internal analytical system. With it, users can get more information about the latest trends and build their trading strategies.
Can you create cryptocurrency exchanges?
Yes! The global market for new crypto exchange platforms is thirsty for new and better places to trade. But before you jump into developing yours The FinTech appcheck out the most common challenges you may face.
Key challenges in crypto exchange development
- Ease of use and market acceptance. Cryptocurrencies are not yet used globally for regular payments as they are difficult for a traditional payment system. Nevertheless, more and more stores, hotels and airlines are accepting crypto payments.
- Scalability. Today, Bitcoin and Etherium cryptocurrencies have growth limitations, as when a specific level of user activity is reached, the performance of the system drops immediately and fees rise as well.
- Microtransactions. To offer microtransactions, like buying a cup of coffee, you need to create a payment system that provides high speed and really low cut.
- Safety. Hacker attacks in the crypto world are growing like rapid fire. Although blockchain provides security, there are still ways to protect your crypto service: biometric authentication, artificial intelligence solutions, and transition to the DEX platform.
The bottom line
As you can see, build a FinTech app is not just a trend right now, but an opportunity to build a successful business. If you are curious about crypto exchange development or have an idea for a FinTech app, book a free consultation with an OmiSoft developer.
Our FinTech App Developer has extensive experience in building solutions that prioritize security and convenience in terms of user experience. So talk to us and get a complete list of the most suitable technology stack for your project and the scope of work to make your FinTech idea happen.
FAQ
How long does it take to build a crypto exchange?
Crypto exchange app development time varies depending on the complexity of your idea. On average it takes around 6-8 months.
Can I hire a cryptocurrency exchange development company for my project?
Yeah sure. OmiSoft’s dedicated development team can help you with blockchain app development. Just set up a free consultation and we’ll discuss what your project needs and assign the most suitable FinTech development specialists.
How much does FinTech app development cost?
Many factors can affect the cost of FinTech development costs. On average, it can cost anywhere between $50K to $100K. For a detailed estimate for your project based on your specific requirements and timeframe – drop us a line.
