The term “cryptocurrency” has piqued the interest of many people all over the world due to its advantageous characteristics and profits generated by traders and investors. Completely decentralized blockchain technology is commonly used to create cryptographic assets. People all over the world are becoming more aware of and interested in digital currencies powered by blockchain technology. Given all this, cryptocurrency trading is becoming increasingly popular.
You can launch a new decentralized online cryptocurrency exchange marketplace for exchanging any digital crypto assets without spending a lump of resources on development, asset security, and staff.
Cryptocurrency Exchange & Statistics
Blockchain technology will make it possible to launch a business using a cryptocurrency exchange solution with a great user interface, high-security standards, and speed
Given the growing popularity of cryptocurrency, here are some key cryptocurrency statistics to whet your appetite.
- On February 21st, 2021, the market value of bitcoin was $1072.21 billion.
- By 2023, the blockchain technology market will be worth $23.3 billion.
- In the first quarter of 2021, there were 367,536 more bitcoin transactions than ever before.
- Between 2012 and 2020, the growth rate of Bitcoin is 193,639.36%.
- The cryptocurrency market will be worth $1087.7 million by 2026.
- Users have 97% confidence in cryptocurrencies, according to the 2021 user index.
- Turkey has the highest cryptocurrency adoption rate (20%).
Editor Choice: White Label Crypto Exchange Development
Types of Crypto Exchanges
Centralized exchanges, decentralized exchanges, and hybrid exchanges are the three different types of digital currency exchanges. They break down as follows,
- Centralized Exchanges
These exchanges, like brokerages, rely on a third party to ensure that transactions go as planned. This may appear to be contradictory, given that one of the distinguishing features of cryptocurrencies is that they are not issued or regulated by a government or other central authority. A centralized cryptocurrency exchange, on the other hand, can assist you in purchasing the desired cryptocurrency with fiat currency. Since they are controlled by a single entity, some centralized exchanges may be more vulnerable to attack, posing a risk.
- Decentralized Exchanges
A DEX, or decentralized exchange, is a type of exchange that, unlike centralized exchanges, does not rely on a third party. Peer-to-peer trading on open source, decentralized exchanges may better represent the cryptocurrency community’s spirit. In theory, a decentralized cryptocurrency exchange may be safer than a centralized exchange. Since there is no central entity or server that can be compromised, it may be more difficult to steal cryptocurrency. A DEX may charge lower fees and process transactions faster.
- Hybrid exchanges
Hybrid cryptocurrency exchanges attempt to combine the best characteristics of both centralized and decentralized exchanges. They want to provide end users with the security and freedom of decentralized exchange as well as the convenience of a centralized exchange.
How to Start a Crypto Exchange?
A cryptocurrency exchange is the best online business to start in order to increase profits. You may be wondering how to begin using a cryptocurrency exchange. To achieve the best results, building a cryptocurrency exchange platform by hiring a software development outsourcing company is the best option. The crypto exchange development company guarantees that the finished product will be one-of-a-kind. The cryptocurrency exchange software from Pyramidion is a reliable tool for doing so.
Here is what you should consider before launching or starting to develop your white-label crypto exchange platform.
- Trading Engine
This module determines the order in which assets are purchased and sold, maintains balances, integrates with liquidity pools and payment gateways, and computes rates and commissions.
- User-friendly Interface
Branding, personalization, and software customization are all part of the user interface. Names, logos, design parameters, features, and other details should be finalized.
- Security System
The platform owner determines the security safeguards, licenses, privacy policies, and anti-hacking measures in this section.
- Payment System
All deposits, withdrawals, fees, and revenue generation are handled by the payment system.
One of the primary concerns of cryptocurrency exchange is the ongoing maintenance of software.
- Admin Console
A user and site administrator panel is one requirement for a white label cryptocurrency exchange.
Factors that Persuade the Cryptocurrency Exchange Development Cost
A sophisticated cryptocurrency exchange typically costs between $35,000 and $500,000. Here are some of the crucial factors that affect the overall cryptocurrency exchange development cost.
#1 Development Methods That Influence the Cost of Creating a Crypto Exchange
As we are all aware, creating a feature-rich cryptocurrency exchange takes time and extensive research. A perfect and secure crypto exchange, on the other hand, can be accomplished in a variety of ways including,
- Development from scratch
- Create a cryptocurrency exchange using a readymade script
The methods listed above are popular methods for establishing a cryptocurrency exchange platform.
Further Reading: How Blockchain and Cryptocurrency will Shape Our Future?
#2 Elements of ROI that Influence the Development Cost of Crypto Exchange
The upcoming modules do not require a significant investment, but they can be used to increase the annual revenue of your cryptocurrency exchange. The impact of enabled features and add-ons will be reflected in your overall cryptocurrency exchange development cost.
- Margin Trading
- IEO launchpad
- Crypto Derivatives
#3 License for Running a Crypto Exchange
Obtaining a license to operate a cryptocurrency exchange business currently requires paying high fees to a number of governments around the world. There are some exceptions, such as Kazakhstan, which has a low licensing fee for cryptocurrency exchange platforms. As a result, speak with your crypto exchange solution provider and their developers about where you can obtain crypto exchange licenses quickly and cheaply.
#4 Budget and Time Constraints
It is critical to know when your cryptocurrency trading platform will go live. Because the price is determined by the time it takes to integrate specific features into the exchange. The price will be high if you need your exchange platform in a week or three days, for example.
The next crucial factor is that you must begin a cryptocurrency exchange on a shoestring budget with little financial assistance. Future business plans should be included in your budget. For example, if your exchange contains any bugs or errors. Then budget for managing and correcting them. It is also required to budget for unexpected expenses.
Others Influential Factors
Requirements or preferences may also have an impact on your budget. Other factors that influence the price of developing your cryptocurrency exchange include:
- A cryptocurrency exchange’s web/app business model.
- What functions should the exchange software have?
- A collection of technologies is used to create a secure exchange.
- The exchange is available for download on Android, iOS, and the web.
- Third-party APIs are being integrated into the platform.
- Trading types include stop market, stop limit and OCO.
- Java, C++, PHP, and Python are examples of programming languages.
- Templates for user interfaces or only.
To conduct a cryptocurrency exchange, you will now require the following team members,
- Backend & iOS/Android developers
- Frontend developers
- Graphic Designer
- Quality Analysis
- Project Manager
How Do Crypto Exchanges Work?
When a user opens an account with a cryptocurrency exchange, he/she can buy and sell cryptocurrencies such as bitcoin (BTC), ether (ETH), litecoin (LTC), polkadot (DOT), dogecoin (DOGE), and others. The users can exchange one type of cryptocurrency for another or buy cryptocurrency with fiat currency such as the US dollar, depending on the exchange.
The greater the size and reputation of a service, the more likely it is to provide a variety of cryptocurrencies. However, before opening an account, the user must ensure that the cryptocurrency he wants is in stock.
On a cryptocurrency exchange, a crypto user can buy cryptocurrency with regular fiat money or may be able to exchange one cryptocurrency for another. Also, it allows you to withdraw cryptocurrency, convert it to fiat currency, or save it for future use. Depending on the exchange or app used, the services available may differ. Some services, for example, may prevent crypto users from transferring cryptocurrency to their cryptocurrency wallet. Unlike traditional exchanges, which have set trading hours, cryptocurrency exchanges are available 24/7.
How Do Cryptocurrency Wallets and Exchanges Interact?
The simplest way to manage cryptocurrency is to keep it on the exchange where it was bought. However, doing so may limit the user’s options and make their cryptocurrency less secure, as exchanges are occasionally targeted by hacker attacks.
Only a few exchanges offer insurance against theft, fraud, or failure, and the vast majority are unregulated. The user may lose cryptocurrency if an exchange closes, as two did recently in Australia in October and December of 2021. Those who prefer it can strengthen their security by developing their own cryptocurrency wallet. Although it is more difficult to use a wallet and sums up the cryptocurrency exchange development cost, some investors believe the added peace of mind is worthwhile!
White Label Crypto Exchange: Benefits
Receive optional revenues as well as exceptional benefits such as increased user base, high liquidity, and a lot more including the below-mentioned,
- Ease of Access
A cryptocurrency exchange simplifies the process of opening an account and purchasing one’s first cryptocurrency. That’s why, both the system’s user base and interest in cryptocurrency markets grew.
The vast majority of these centralized exchanges are monitored and controlled in some way. If something goes wrong, this gives the trader peace of mind.
They give the traders their precise location and address. Customers will find it easier to contact them in an emergency as a result.
- Offers and discounts
When trading in large amounts, cryptocurrency exchanges also provide discounts. Users can also trade fiat currency for cryptocurrencies and cryptocurrencies for fiat currency.
DEX transactions do not give third parties any personally identifiable information. So, it protects consumers’ privacy and information. Furthermore, centralized exchanges request personal information such as an email address, proof of identity, and a phone number when registering. DEX does not require any of this.
The most significant advantage of decentralization is the increased security it provides. This is why cryptocurrencies were developed. They provide users with complete control over their assets.
- Making Use of Escrow Services
They act as a middleman in transactions, holding the money until the obligations of both parties are met. As a result, there is no need to be concerned once the transaction is completed.
Everything you need to know to get started in the cryptocurrency exchange industry and build your own company on the backs of satisfied customers is covered in this post. Your development standard will determine the success rate of your crypto exchange. This demonstrates that the app developers working on your project must have high standards. To profit from the current cryptocurrency market, imposters disguised as experienced blockchain developers abound. If you approach them, you will destroy your entire cryptocurrency exchange project as well as all of your hard-earned money.
To gain a competitive advantage in the cryptocurrency trading and exchange market, an increasing number of businesses are turning to Pyramidion’s cryptocurrency exchange solution.
Pyramidion Solutions is a seasoned and well-known provider of cryptocurrency exchange software. We are well-known for our high-quality cryptocurrency exchange software. You can quickly set up a high-quality cryptocurrency exchange using our exemplary knowledge in setting up the best solution at your end. Our cryptocurrency exchange scripts are completely secure and bug-free. If you want to start your own cryptocurrency exchange with less expensive advanced trading features, this is the place to be. Do contact our knowledgeable team, and we will be delighted to collaborate with you!