The term “cryptocurrency” has become a household term in the world of digital finance due to the increasing acceptance of popular cryptocurrencies such as Bitcoin and Ethereum. The growth of cryptocurrency exchanges gains traction as new cryptocurrencies enter the market.
A cryptocurrency exchange is a website that allows you to buy, sell, and trade digital and fiat currencies. The principles of increased security, transparency, and transaction speed guide such products. Your cryptocurrency exchange platform will be able to captivate and retain a larger audience as it becomes more reliable, quick, and convenient. As a result, revenue grows.
Global demand for crypto exchange software solutions is skyrocketing as a result of the surge in cryptocurrency adoption. Cryptocurrency investors will have a significant untapped opportunity to capitalize on rising market demand by establishing a trader-friendly exchange. This cryptocurrency exchange development guide curated by our experts from Pyramidion will help you know everything you wish to know.
Take a look at these amazing cryptocurrency exchange-related statistics.
- In 2028, the cryptocurrency market is expected to grow from 910.3 million USD in 2021 to 1,902.5 million USD.
- Furthermore, the tenfold increase in the number of digital coins in the last decade has ensured that cryptocurrency has now entered the mainstream. In 2022, there will be over 10,000 cryptocurrencies available, up from only a few in 2013.
- The cryptocurrency market will grow at a 7.1% CAGR from $1.6 billion in 2021 to $2.2 billion in 2026, according to a report by markets and markets.
- According to MarketsAndMarkets, the cryptocurrency market will reach USD 2.2 billion by 2022, growing at a 7.1% CAGR.
Cryptocurrency Exchange Development Guide
We, at Pyramidion, follow this proven crypto exchange development process to create an efficient crypto exchange script for our clients. Here’s what you should do at each phase of the development,
User research is essential for understanding the market, the needs or requirements of your target audience, and the overall goals of your organization. Create a requirements document outlining the main project objectives and deliverables. Your IT partner may use this information for efficient data collection and analysis, such as individual interviews, surveys, and competitor analysis. All of these details must be available to create effective UX solutions and provide an enjoyable user experience.
Set the Operational Scope
Another critical step is to define your cryptocurrency exchange’s operational parameters. Here you can specify the functional requirements for your app. Simply put, developing your app without first defining its scope is risky. It assures app developers that they are on the right track. It also helps the project management team estimate overall time and effort. Furthermore, depending on the scope of the operation, all future approvals will be required.
Prototypes and Wireframes
Before beginning the design process for a cryptocurrency exchange platform, it is best to create a visual prototype and wireframes. You can look into UX solutions and deal with any problems that may arise during the transition. Real-world testing of a prototype with actual users can determine the effectiveness of user-system interactions and the value of integrated features.
Simple and Intuitive Interface
Customers will return to your platform if it has a simple and consistent user interface that improves their trading experience. Here are a few things you could do to keep the UI and UX of your cryptocurrency exchange app in sync.
- Make good use of graphics and animations.
- Maintain a visually appealing user interface while remaining unthreatening.
- Make a basic dashboard.
- Make it clear and precise because it is one of the most important tools for users.
- Color should be used sparingly.
- They can be used to represent the identity of your brand as well as visual cues when grouping and visualizing data.
Choose Crypto Exchange Type
The cryptocurrency exchange selected is critical because it influences how the app functions. Cryptocurrency exchanges, as we all know, can be classified as centralized, decentralized, or hybrid.
Further Reading: Cryptocurrency Exchange Development: Cost, Working & More
Take Care of the Compliance & Regulations
Governments all over the world are typically strict about the use of cryptocurrencies and exchanges due to the type of money involved. Check to see if your app satisfies some KYC requirements, such as making it simple for customers to provide identification documentation.
Because of KYC compliance, there is no risk of money laundering when trading cryptocurrencies. Integrate a customer verification API into your cryptocurrency exchange and create a backend database to track transactions to remain legal.
Web Application Development
Consider the well-known front-end and back-end development frameworks listed below if you want to launch a cryptocurrency exchange on the web.
The most commonly used front-end development technologies are as follows,
The most popular server-side frameworks for back-end development are as follows,
Here are some examples of typical database solutions,
- MS SQL
Mobile Application Development
If you want to create a mobile app for crypto exchanges, here are some popular technologies to use for iOS and Android development.
The following technologies are the most commonly used by iOS developers.
- Framework – Swift, Objective-C
- Development Tools – iOS SDK, CocoaTouch
- Analytics – Firebase, AppsFlyer, Amplitude
- Data Storage – CryptoSwift, UserDefaults, CoreData, Realm, KeyChain.
Android developers prefer the following technology stack.
- Frameworks – Kotlin, Java
- Development Tools – Android SDK, Android Jetpack
- Analytics – Firebase, AppsFlyer, Amplitude
- Data Storage – SQLite, Shared Preferences, Room, Realm.
Test Your Crypto Exchange
Before releasing your application, ensure that it has been thoroughly tested. Collect user feedback and make changes as needed to keep the system running smoothly. During testing, the app’s overall usability, liquidity, functionality, transparency, ease of use, transaction speed, dependability, and security should all be assessed.
Crypto Exchange Launch
Keep an eye on the development process as it progresses and ensures that multiple testing cycles are completed prior to delivery. Once the cryptocurrency exchange software is ready for launch, develop a comprehensive marketing and branding strategy.
Important Features for Your Crypto Exchange App
Now that you have learned how to build an exchange solution through the detailed cryptocurrency exchange development guide, consider how you can improve your customers’ crypto trading experiences. Even if your app has a slew of nice-to-have features, there are a few that must be present in every cryptocurrency exchange app.
Authentication and Authorization
Verification is critical for preventing fraud and upholding ethical business practices. Developers must ensure that their products are not vulnerable to unauthorized user account access or hacking. This demonstrates that the cryptocurrency exchange abides by all international laws.
A trading engine is at the heart of a cryptocurrency exchange solution. A cryptocurrency exchange app is essentially useless without a trading engine. Typically, a trading engine feature monitors all active orders and bids and allows you to discover and create new trades. This feature accomplishes the following in a nutshell,
- Cryptographic transactions are carried out
- Calculation of the balance
- Books are available for purchase
Multiple Cryptocurrency Support
Because of the flexibility provided by the cryptocurrency exchange development platform, clients can trade in the currency of their choice.
Easy Sell & Purchase
Users can buy and sell cryptocurrency coins on a cryptocurrency trading app’s marketplace. As a result, cryptocurrency app developers must ensure that their sell and purchase UI is simple and easy to use.
Since they facilitate communication with app users, push notifications are now regarded as one of the most important components of the majority of cryptocurrency exchange apps. Use push notifications to notify and alert your users, among other things, about special offers, coin exchange listings, price changes, new trends, and news. Through customization, users can select which notifications they want to receive.
If you want to start a cryptocurrency exchange, customers should be able to use the most popular digital wallets. To extract digital currency and convert it to fiat money, digital currency E-wallets must be able to conduct secure transactions.
Integration of Bank Cards
Users making purchases on the exchange platform should be able to use credit cards. Your customers will be able to add money to their accounts and withdraw money at any time thanks to the bank card integration.
Strong security for cryptocurrency trading is provided by the use of two-factor authentication and SSL, which increase login security and encrypt user access.
Editor’s Choice: Cryptocurrency Exchange Development Company
Business Benefits of Crypto Exchange Startup
The following are some specific business benefits of having a cryptocurrency exchange,
Decreased Development Costs
Because of the low development costs, customers are drawn to the cryptocurrency exchange industry. Such platforms will not require millions of dollars to launch when compared to other businesses today.
Increased Chances of Success
As a result of recent high profits made by investors, digital currencies have become very profitable investments. Experts predict that the cryptocurrency craze will not die down anytime soon, increasing the chances of a successful cryptocurrency exchange.
Future-Proof Business Model
Cryptocurrency exchanges are among the top ten business models that can make money in the future. It is an excellent business that will undoubtedly increase profits in the future. You will not only have a more secure future if you enter this market, but you will also be able to make more money.
Profitable in All Aspects
Even if the market falls, a cryptocurrency exchange will remain unaffected. They rely heavily on the commission system, which charges fees on all transactions, whether they are buying or selling. When the market falls, people sell their possessions. When the market rises, they buy. In each scenario, profit is always guaranteed for the platforms.
Minimal Development Time
A professional cryptocurrency exchange development company like Pyramidion Solutions will be of great assistance and will drastically reduce the time required to develop your project. We have the necessary expertise to complete the work on time.
How Does Every Crypto Exchange App Make Revenue?
Cryptocurrency exchange applications are used to conduct financial transactions. Many people visit the market to trade cryptocurrency. Consider using a cryptocurrency app to make money in the following ways,
The most common monetization strategy used by cryptocurrency trading app developers is in-app advertising. Allowing third-party partners to share their banner ads, video ads, text ads, or other types of advertisements on your cryptocurrency exchange app is one method for learning how to make your own cryptocurrency exchange app profitable.
Building a user base by developing a strong brand identity is a leading modernization strategy. You give your audience a valuable opportunity to learn more about your offerings by introducing your product with a set of free features. You can also include paid features in your app to generate revenue.
This monetization method may be particularly similar to the freemium model. Your cryptocurrency app will stand out in the market if you offer subscription plans with some premium features that serve as the product’s USP.
You can also launch affiliate marketing campaigns that link to the advertiser’s product or service pages. Though there are numerous options depending on the goals of your application, you may be unsure of the types of goods or services with which you can affiliate. You can provide affiliate links to advertisers who offer cryptocurrency training programs if you only provide trading services.
Another way to monetize cryptocurrency apps is to charge a set fee to users to initiate transactions.
Due to an increase in users each year, there is a growing demand for cryptocurrency exchange apps. To outperform the competition, you should enter this market with a highly secure, reliable, and user-friendly solution. For those who are unfamiliar with the same exchanges, the preceding article is an excellent cryptocurrency exchange development guide. After reading this article, we hope you have a clear understanding of how to create a user-centered and profitable cryptocurrency exchange application.
Consult with Pyramidions if you are unsure where to begin. You can talk to our Blockchain experts about your idea and get answers to your cryptocurrency and Blockchain-related queries!