Crypto exchanges proved to be extremely productive even during the pandemic when many companies saw a sharp downturn. The global cryptocurrency market size is projected to reach 4.94 billion dollars by 2030.
Cryptocurrency is an alternate payment method developed using encryption methods.
A cryptocurrency platform facilitates its customers to buy and sell cryptocurrencies instantly.
Cryptocurrencies can act as a medium of exchange and a decentralized accounting system as encryption technologies are used. All you need is a cryptocurrency wallet to use cryptocurrencies.
Though there are uncertainties on and off, the cryptocurrency market is projected to grow further in the future. So, it would be a good idea to invest in a crypto exchange platform as more transactions will be carried out via crypto exchange apps.
What it takes to build a seamless and high-performing crypto exchange app?
Learn more about crypto exchange app development – from ideation to app release.
Let’s get started.
Types of cryptocurrency exchange
Before we go into the details, let’s look at the types of cryptocurrency exchanges.
There are several cryptocurrency trading platforms, and each offers unique features.
Centralized exchange (CEX)
|It is a third-party platform privately run by a central organization that allows exchanges of digital assets between buyers and sellers.It allows users to trade, sell, and trade cryptocurrencies, and also allows the central organization to profit from transaction commissions|
|It allows direct trades between cryptocurrency traders and uses blockchain technology to enable trading.It enables financial transactions without the involvement of banks, brokers, or mediators.As it is decentralized, it does not require a third party to hold the cryptocurrency.|
|Hybrid crypto exchanges||It has both the elements of CEX and DEX.This provides a high liquidity and quick transaction aspect of centralized exchanges.It also offers the privacy and security of decentralized exchanges.|
Essential crypto exchange website features
- Trading engine feature– Keeps track of all active orders and bids and enables you to discover and create new deals. It helps with crypto transactions, computation of balances, access to order books, and matching exchange operations, both buying and selling.
- Crypto wallet– It allows users to store, send, and receive digital currency. You can choose a hot wallet for online use or a cold wallet for offline use, which is less vulnerable to risks.
- Analytics– This function enables the user to maximize profits by making better real-time investment choices.
Some popular technical indicators traders use are the Relative strength index, moving average, moving average convergence divergence, and stochastic RSI.
- Admin Panel– It allows management of various operations carried out by crypto exchange owners and traders.
- Biometrics– This feature will enable more security as it is unique and only the users can access the app.
- Verification– Data encryption, two-factor authentication, and anti-bot verification must all be included in your app to protect your users’ data from threats and attacks.
How to build a crypto exchange app?
Here are the steps to get you started. Let’s take a closer look at how to start a cryptocurrency exchange.
- Identify the problem
Research the cryptocurrency market’s current trends and its users’ concerns. Find an existing problem, evaluate the available solutions, and then develop a unique solution that meets the user’s needs.
Examine whether developing a new crypto app would be successful by researching your solution’s cost-benefit. .
- Set the operational scope and budget planning
Planning an operating scope is critical since it will kickstart your crypto app. You can list the functionalities in this phase. It also gives the developers an idea of what they need to work on.
The team working on the app can plan and control the amount of time that has to be allocated for development by using these standards.
Determine your budget because failing to do so might mean losing your project by the development phase. Set aside enough money for your crypto exchange app development and marketing costs while taking currency rates into account to avoid potential risks.
- Choose the crypto exchange type and tech stack
Your app’s functionality will be determined by the platform you choose for your crypto exchange app development.
Choose between three types of cryptocurrency exchange platforms: centralized, decentralized, and hybrid exchange.
Choosing the right tech stack can prove your app’s success. If you are building a web application, you can pick the HTML5 tech stack. Java, Kotlin can be used to create Android apps, and Swift or Objective-C can be used to create iOS apps.
- Select jurisdictions
Once you’ve decided to create a cryptocurrency app, ensure you secure all of the necessary licenses for the nation or region in which your app will be available.
It might be a localized launch or a launch for a global audience. Before beginning your crypto exchange app development process, familiarize yourself with the laws of each nation. Pay close attention to legislative changes.
- Focus on compliance and regulations
The most essential thing to consider when building your app is to establish an accurate and powerful regulatory system to increase security measures because governments worldwide are generally cautious of using cryptocurrencies and exchanges due to the amount of money involved.
Make sure your app follows KYC standards, such as enabling documentation to verify your consumers’ credentials. This eliminates the possibility of money laundering through cryptocurrency trading.
Build a backend database to keep track of records and incorporate a customer verification API into your cryptocurrency exchange to stay in compliance with laws. Ensure that your app complies with legal requirements such as GDPR, AML, and KYT.
- Partner with a payment bank or processor
To make your app functional, you must partner with a bank to provide various online services. Fast transactions, clearing, and payment settlement are usually preferred by customers.
Banks can provide cryptocurrency enterprises with commercial banking services like corporate accounts and USD/fiat custodial accounts. Customers can lend their crypto for interest, and a bank can receive a fee or a portion of the crypto earned.
- Find a liquidity provider
Another essential component of a cryptocurrency exchange is liquidity since users prefer those with high liquidity. Integrate your cryptocurrency exchange with the exchange network to improve its liquidity position.
Using APIs, you must integrate the liquidity position of your crypto exchange with other already-running firms. Integrating this would share Information on trading volume and liquidity between the two exchanges.
- Build the best security features
Crypto exchanges are expanding, making them an easier target for hackers and other harmful attacks. You must enable a solid security foundation for every transaction. You can enable it with the user interface and features like multi-signature wallets and two-factor authentication.
Keep your traders’ records and funds in a cold wallet that only an authorized individual can access. When money needs to be transferred between hot and cold wallets, the process should be quick, easy, and simple. Traceability should not be compromised.
- Introduce a Customer Support Channel
Your crypto exchange software could reach its full potential with the best customer support you can offer. Utilize a customer service channel that is interactive and guarantees quick responses to any inquiries from customers.
Your app must have a customer service channel to support your users as it involves financial transactions.
- Cryptocurrency support
Decide on the number of cryptocurrencies your app will support. The more cryptocurrencies a system supports, the more money will be spent on developing specialized APIs to get historical data, produce real-time charts, and make orders.
Payment cryptocurrencies, tokens, stablecoins, and central bank digital currencies are the four main subcategories of cryptocurrencies. Some digital currencies to consider for your app are Bitcoin, Ethereum, Tether, Binance Coin, XRP, Terra, Cardano, and Solana.
- Testing crypto exchange app
Perform a test launch before launching it into the wider market area. Pay attention to the feedback you receive and determine whether there are any improvements you can make to ensure the seamless performance of your cryptocurrency app.
The overall performance, liquidity, functionality, transparency, ease, transaction speed, dependability, and security of the crypto exchange app should all be evaluated.
- Ensure sustainability
Once your app is released, you must periodically update it with the latest versions and bug patches to ensure its long-term viability.
You need a dedicated team of engineers and developers that will handle your product even after it has been launched to ensure friction-free performance at every touchpoint.
How much does it cost to develop a cryptocurrency app?
The expense to build a cryptocurrency exchange app varies according to the platform’s features and functionalities, size, APIs, and business strategy.
The development cost increases depending on the number of currencies used because it costs more time and money to implement complex API functionalities.
The cost might be around 350,000 US dollars if you are creating a Crypto Exchange app with advanced features. If you’re looking for a low-cost solution, you can choose a decentralized exchange, which will cost around 50,000 US dollars for development alone.
How can NeoITO help in building a crypto app?
We can assist you in developing secure and highly responsible cryptocurrency apps. Our experts develop scalable, efficient, and personalized apps configured with the relevant legal compliances for the location of your choice. Consult with our NeoITO experts about your cryptocurrency exchange app development right now to get a price estimate.
What technologies should you choose for crypto exchange app development?
A successful app depends on choosing the correct tech stack. You can choose the HTML5 tech stack if you’re creating a web application. Android apps can be made in Java and Kotlin, whereas iOS apps can be made in Swift or Objective-C.
What are the types of Crypto Exchanges?
Three major crypto exchanges are Centralized exchanges(CEX), Decentralized exchanges(CEX), and Hybrid crypto exchanges.
How much does it cost to develop a cryptocurrency app?
The cost depends completely on the features of your app. If you want to create a centralized exchange with complex functionality, the cost of designing cryptocurrency software might reach 350,000 US dollars. A decentralized exchange will cost only 50,000 US dollars for development alone if you are looking for a low-cost solution.