With the increasing popularity of virtual currencies, cryptocurrency exchanges have become irreplaceable in the crypto sphere. These exchanges are similar to stock exchanges. Like in a stock exchange, users can trade assets on these platforms. The only difference is that the users are trading digital assets or cryptocurrencies instead of stock.
Cryptocurrency exchanges make it possible for you to trade currencies. The trading can happen between fiat currencies and crypto or between two different cryptocurrencies. Buyers and sellers can fund their exchange account through their credit card. You can also integrate PayPal accounts as a payment method for the exchange. After funding, buyers can proceed to make a buy order. The exchange in turn finds a seller and the trading is carried out.
Centralized exchanges are the most popular form of exchanges. In these, the centralized operator is responsible for the security, upgrades, functionality, and so on. This relieves the users of the burden of having to protect their funds on their own. However, centralized systems face more risk. So, there will be a need for high-security functions to keep the coins safe.
These are decentralized and only work as an order book matching buy and sell orders. Users are responsible for their safety. However, the exchange itself is very safe due to the decentralized blockchain technology used in it.
These platforms are centralized exchanges. The only difference is that it is fully compliant with regulations in countries where it operates, including the US. As this is fully regulated, users can trade without a worry in these secure and future-proof exchanges.
As the name suggests, instant exchanges allow users to trade instantly. Rather than matching orders, these exchanges keep a large pool of cryptocurrencies. So, trading is fast and simple. However, users can only trade small amounts in these exchanges as the crypto reserve can run out.
Depending on your need, you can also choose a hybrid exchange that combines functions of both centralized and decentralized exchanges.
Crypto exchange development is a complex process that requires thorough analysis, planning, and excellent coding skills. The most important feature to integrate into an exchange is security.
At the Blockchain Development Agency, we integrate features such as HTTP authentication, encryption, jail login, anti-denial of service, smart contracts, and so on to heighten the security of crypto exchanges.
Additional to security, you should also pay attention to complying with rules and regulations. Crypto exchanges are sure to become highly regulated in the future. So, designing the exchange according to existing rules such as AML (Anti-Money Laundering) and KYC (Know Your Customer) is a great method to future-proof a crypto exchange.
Avoiding liquidity issues is also needed for a successful crypto exchange. This is the hardest part for a new platform. To overcome this, we follow methods such as simulating liquidity between two artificial accounts within the exchange or creating APIs connecting your exchange to another exchange.
At the Blockchain Development Agency, we have an inspired and hardworking team pioneering in providing all services related to cryptocurrencies. With your ideas, we can turn our expertise into a rounded crypto exchange platform.
Our crypto exchange development services include the crucial elements of an exchange such as high security, compliance to regulations, connecting with banks, and more. Our solutions are scalable and completely customizable. As a service provider, we value your opinion and will be there with you every step of the way.
Ready to develop your crypto exchange? Send us a message.