Amid the financial crisis of 2008-09, cryptocurrency was launched with an idea to create the alternative of fiat currency, but with a difference. The primary aim was to provide the decentralised model of transferring payments with no interference of a central entity and getting affected by the social, political and economic conditions of the country (non-inflationary). Amid the pandemic and Bitcoin halving event of May 2020, the popularity of the cryptocurrencies is soaring day by day with the huge positive aspects of the future. In such a promising market, startups and opportunity seekers are trying to take advantage of the situation by entering the market with new products and services. And in the massive hype, nothing could be much better than building your crypto exchange app. In this article, we will discuss a few of the points which can help you build crypto exchange app.
Points To Remember | Build Crypto Exchange App
Before building the crypto exchange app, you must ponder on a few of the following points:
- Operational Scope: Before hoping to develop crypto exchange app, you must consider the scope of operation to receive the approvals like licenses, registration certificates and many more.
- Regulations and Compliance: Cryptocurrency is based on the decentralised model of Blockchain technology is in the top list of regulators. Governments all across the world are keeping the tough eye on exchanges and making the compliances of some regulations necessary to protect the investors like that of KYC, AML and many more. Thus, you must consider proper documentation and addition of the proper API to avoid disruption from regulators.
- Processing of Payment: Before considering to build crypto exchange app, payment gateways, modes, settlement cycles, payment processing partner bank must be taken care of.
- Liquidity management: For the successful crypto exchange app, you need to have a better marketplace for exchange. Without liquidity, no exchange can sustain the position, integration with other exchanges is necessary to maintain the demand and supply of currency.
- Customer support channel: With a relatively new industry, users generally rely on customer support channel. Thus, before developing the app, try to build 24/7 effective customer support channel.
- Operating System: Type of operating system depends purely on budget and the targeted audience. If you are targeting the users of North America, West Europe, then you must target for iOS and if you are working for the users of Central or East Europe, Asian and African users, you can go with Android.
- Native or Compiled App Development: You can either go with native language for a specific platform or compiled app development. Beginner generally go for the native platform and deploy the tools of same like for Android, Java or Kotlin language and for iOS, SWIFT or Objective-C and IDE is Xcode
Major Components To Build Crypto Exchange App
After taking the major decisions, you need to have the clarity of the basic architecture of the crypto exchange app. To get adopted by the masses, crypto exchange app must be fast, intuitive and highly functional. The basic components to build exchange app are:
- Trading Engine: The core of any exchange app which runs the operations is served by the trading engine. It is mandatory for the execution of transactions, calculating balances, accessing order books and matching the demand -purchase on an exchange. Without an efficient trading engine, crypto exchange app is the failed exercise and empty shell with no value.
- Front end-user interface: Front end as the name suggests is the face of any exchange app, i.e. how the app is visible to users. User-friendly, intuitive interface with approachable easy options while trading is the boon for any trading exchange app. Ensure the user registration, open for fund deposit and withdrawal, order book and support features are hassle-free.
- Cryptocurrency wallet: Integrating interface or crypto wallet is necessary for any crypto exchange app where the users can store their tokens/coins securely while trading on the exchange. While developing a wallet, high-level security must be ensured.
- Admin console: For managing the different operational aspects of cryptocurrency exchange by operator/owner, we need an admin console. With the customised model, the operator asks for the options like editing trading fees, management of listing, adding new cryptocurrency and many more.
Besides the basic features, there must be feedback gathering option for the company to analyse the shortcomings in real ways. Before launching the fully functional app, you must create the prototype or MVP (Minimum Viable Product) to test the product and analyse the response of the users.
Time And Budget Restraints
Though making an app has not remained the tedious task due to the availability of white-label exchange software, open-source codes and some the companies provide the products to ease out making app. Creating a crypto exchange app is little complex as you need to take care of legal compliances, highly secured environment, constant debugging of the network, liquidity management and many more. Regarding the time, it depends on the team of developer, their efficiency and coding skills. From six months to two years, it can vary from organisation to organisation. Now when we talk about the budgets, you need to pay salaries to the team of experts and not the novices and need few systems with regular electricity consumption as the bare minimum requirements. So considering the cost along with the tools which need to be purchased, you need to chalk out the budget beforehand.
Cryptocurrencies are bound to grow, and we expect the demand for crypto exchanges with the latest features will also increase. If you are a crypto enthusiast and have enough funds or the potential to raise the funds, you must try to build crypto exchange app or at least can plan for the near future. Cryptocurrency might be deployed as the alternative to a fiat currency because of the momentum of digitisation and highly inflationary nature of fiat currency and the degrading services by the central entities. Satoshi Nakamoto in 2009 launched the Bitcoin which had the value of cents, it has travelled the journey of turning into worth thousands of dollars. Crypto space is still in a nascent stage which might explode the market with the breakthrough features.