While it sounds like a far-fetched idea, creating and using your own cryptocurrency exchange platform in Kiev, Ukraine is easier than it sounds. Today we will look at what components are needed to create a cryptocurrency exchange and how to use it legally and effectively.
Cryptocurrency continues to evolve and flourish in today’s marketplace. Coinbase’s recent IPO confirms the importance of reliable and efficient systems as the demand for cryptocurrency adoption grows.
However, Coinbase is just one of many online exchanges that allow users to buy and sell bitcoins and other cryptocurrencies.
What if you had your own cryptocurrency exchange, crypto exchanger?
Benefits of developing a cryptocurrency exchange
Before we walk you through how to set up a crypto exchange, it’s important to understand why owning one is beneficial.
Profitability
Successful cryptocurrency exchanges are very beneficial to their owners, even if they are not very large. Exchanges make money from trading fees, which represent the price paid by the buyer to the seller and the percentage that the exchange takes to connect the two parties.
When you own an exchange, you determine the rates charged per trade. Some exchanges have a cut-off where orders above a certain threshold are 2% of the trade, and anything below that threshold is 3%.
Blockchain access
Blockchain technology continues to gain popularity with a wider audience than ever before. By running your own cryptocurrency exchange, you get access to the latest Blockchain technology updates, and your customers are confident that their transactions are securely stored in the Block Ledger.
Business building
The development of services for the exchange of cryptocurrencies is the development of an online business, where the owner is an entrepreneur. Once your exchange is up and running, it’s up to you to grow your business and build your digital legacy.
Running a business is challenging, but enjoyable because you get more out of it than you invest in it. You will meet many interesting clients and find satisfaction in the smooth operation of the cryptocurrency exchange service.
Technical components for creating a crypto-exchanger in Odessa, Lviv
We discussed why creating a cryptocurrency exchange is extremely beneficial, and now we will discuss how to do it.
Development of services for the exchange of cryptocurrencies (input-output of fiat money / cryptocurrency) – Ukraine
Creation of a crypto-exchanger – Kiev, Lviv
Blockchain and financial software are quite complex and you need to decide how you want to get started with the initial development.
If you want to develop software yourself, you must have some technical knowledge and programming experience. You should also contact iTizzi Custom Software Development’s team of highly qualified engineers and developers who are experienced in financial transactions and / or blockchain application development.
However, if you don’t have a technical background and want to launch your exchange as quickly and securely as possible, you might consider white labeling and open source solutions.
Trade Engine
Like a car, your online cryptocurrency exchange won’t work without a complex trading system. The trading engine is an integral part of any online exchange as it matches buy and sell orders, accesses the order book, calculates investor balances, and finally executes transactions between buyers and sellers.
When putting together a development team and preparing software for a crypto exchange, your trading system should be your top priority.
User interface
The outside of your website is where your customers and users will interact with your crypto exchanger. You want your user interface to be seamless, intuitive, and easy to use.
Make sure you have a clean and beautiful design that will appeal to new customers and that it is easy to sign up for the platform. You will probably want to include features such as online check-in, a clearly marked deposit and I / O area, maintaining account balances in both fiat and cryptocurrencies, price charts, and intuitive trading controls.
Service
You want your exchanger to be stable and manageable over the long term. For your cryptocurrency exchanger to be viable in the long term, you should design your API in such a way that it is simple, straightforward and developer-friendly, you need to do additional testing or bring in new engineers to optimize your software.
Customer communication tools are vital to your crypto exchange because they can report bugs and features that are not working correctly.
Development of basic functions for a crypto-exchanger
Launching an online cryptocurrency exchanger means you need to offer some important features that your users will love.
Wallets
Cryptocurrencies are stored in digital wallets until they are withdrawn, invested, or sold. When building your exchange, make sure you offer hot and cold wallet support.
Hot wallets are places where customers place their cryptocurrency online on an exchange, and a cold wallet is a standalone solution like a USB stick or similar static tool that cannot be hacked because it is not connected to the Internet.
Transaction speed
Customers want high transaction speed. The average for Bitcoin transactions is seven transactions per second, whatever is larger takes up the queue and you can sell priority for orders to get them done the fastest.
Your reputation depends on how quickly transactions go through, and if you consistently fill orders quickly, your customers will be happy, but if you struggle to keep up with your volume, you could lose users.
Development and management of a crypto-exchanger, crypto-exchange
Finally, after your cryptocurrency exchange is up and running, you will need to comply with all necessary laws and simplify the user experience.
Security
It is vital to keep your user data and work credentials secure. KYC (Know Your Customer) laws dictate what data and security is required for transactions on your platform.
Two-factor authentication, verified accounts and strong passwords help maintain secure exchanges and increase user confidence in the crypto platform.
Regulation
Different countries have different rules regarding who can trade cryptocurrencies on the Internet. Attracting a strong target audience will require some legal work and will most likely require legal assistance.
If you have users in different countries, different exchange laws apply. Therefore, before you advertise a service as a global exchange, make sure that you comply with all the regulations of each country in which you operate.
Banking and liquidity
Developing a relationship with a reputable bank will make it easier to process payments and deposit funds than working with a small bank that doesn’t have the resources to support and scale your business.
Customer service
Finally, if you want your business to be a success, you need a reliable customer service that is very responsive.
Order the development of a crypto exchange platform at iTizzi Custom Software Development and ultimately your business will be supported by satisfied users, they will continue to use your exchange and recommend it to their network.
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