Are you interested in starting a cryptocurrency exchange business? This could be the ideal moment. The global cryptocurrency market, valued at $1.49 billion in 2020, is expected to surge to $4.94 billion by 2030, with an estimated annual growth rate of 12.8% from 2021 to 2030.
The most straightforward method to profit from the cryptocurrency market involves investing in coins and capitalizing on price fluctuations. However, an alternative path is to develop a cryptocurrency exchange application. Whether you are a trader or investor, the crypto exchange will definitely bring you profit. Nevertheless, it’s important to acknowledge that launching a cryptocurrency business is not a simple task, and since there are several complexities associated with this rapidly evolving field. So it’s imperative to meticulously assess all facets, encompassing technical, legal, and user-related considerations.
Now you may have a question about how to make a crypto exchange app? In this article, I will share with you the most important steps that will help you develop a complete crypto exchange app. I assure you that at the end of this article, you will get a clear understanding of how to make a crypto exchange application.
How to Make a Crypto Exchange App?
Creating an attractive cryptocurrency exchange solution is not as difficult as you are afraid of, provided you have a well-defined roadmap. This roadmap serves as the blueprint for a seamless application development and deployment process, guiding you in every step.
Let’s explore all the steps.
1.Identify The Problem
Begin by identifying your customer’s requirements and in which way your exchange platform going to resolve them.
This involves a deep dive into customer needs, a thorough examination of existing market solutions, and strategizing on how your app can distinguish itself by effectively addressing and resolving users’ challenges.
Moreover, conduct a cost analysis of solutions to determine whether your application is worth the investment.
2.Set The Operational Scope
Defining the operational scope of your crypto exchange is another critical milestone. Here, you can include detailed functional specifications for your app, outlining its features, capabilities, and user experience, to ensure alignment with your business goals.
In a nutshell, it’s risky to develop the app without setting a proper scope. It helps the app developers understand what to build. In addition, it helps the project management team estimate the overall effort and time required to complete the app.
3.Choose Crypto Exchange Type
Primarily, you have to select the kind of crypto exchange platform that you are going to create. This is most important as it is going to impact your cryptocurrency exchange mechanism, the way they are stored, fiat trading, liquidity management, and other features.
The three major types of crypto exchanges are:
- Centralized exchange – An exchange that facilitates the buying and selling of digital assets under the supervision of third-party as an exchange operator
- Decentralized Exchange – An exchange that facilitates the buying and selling of digital assets based on blockchain technology and smart contracts.
- Hybrid Exchange – It is a new-generation exchange that utilizes the benefits of both CEX and DEX.
4.Select a Jurisdiction
Whether you’re considering a global reach for your app or opting for a regional focus, obtaining the necessary licenses and approvals is imperative to ensure the smooth and compliant operation of your crypto exchange.
Moreover, it’s essential to note that regulatory frameworks can differ significantly from one location to another. While some regions or countries may have minimal or no cryptocurrency regulations, others have clearly defined and stringent rules in place. Understanding the regulatory landscape specific to your target markets is crucial for compliance and risk management. But it is better to keep an eye on upcoming legislative changes.
5.Take Care of The Compliance & Regulations
Globally, governments are more strict about the usage of cryptocurrencies and exchanges due to the kind of money involved.
Ensure some KYC norms are followed in your app, including providing seamless documentation processes to verify the identities of your customers. This safeguards against fraudulent activities and enhances the security and trustworthiness of your exchange.
To meet regulatory requirements effectively, it’s essential to integrate a customer verification API into your crypto exchange. Additionally, establishing a robust backend database infrastructure is vital for maintaining accurate and compliant customer records. This proactive approach ensures adherence to KYC and AML regulations.
6.Partner with a Payment Processor/bank
To facilitate seamless payment processing through fiat currency, it is essential to seek out a financial institution that provides an array of online banking services.
It is mostly applicable to countries where banks do not support instant bank transactions. In such situations, transactions may take a few days to settle.
For the convenience of users, it’s better to partner with banks that take care of fast transactions, clearance, and fund settlement.
7.Find a Liquidity Provider
Liquidity is another important feature of crypto exchange solutions, as the overall success of your exchange platform significantly depends on the level of liquidity it can offer to its users.
How soon does an asset exchange happen?
Generally, customers prefer to use an exchange with good quality that can provide a narrower spread.
Hence, you have to do some things:
- Integrating your crypto exchange’s liquidity position with other established businesses can be seamlessly achieved through the utilization of APIs, which facilitate the sharing of liquidity and trade volume information between two exchanges.
- Enhancing your crypto exchange’s liquidity position can be effectively achieved by integrating it into the exchange network, thereby enabling a more interconnected and dynamic trading environment.
8. Build High-grade security standards for customer data
Most crypto exchanges are easy targets for hackers and various malicious attacks due to the valuable digital assets they hold and their potential for large-scale financial impact.
So as an admin of the exchange, you must be very conscious of your exchange’s security. You have to ensure that the records and funds of your traders are securely stored in the wallet.
For security, you can go with power-pack features like 2FA, DoS, DDoS, CSRF protection, Data encryption, Biometrics, SSRF protection, and more. If you want to know more about the security features, you should definitely contact a cryptocurrency exchange development company like Zodeak, who leads the crypto market with their product.
9. Introduce a Customer Support Channel
In today’s business, customer support is an essential and indispensable feature for every application in order to meet user expectations and stay competitive in the market.
Moreover, an interactive customer support channel that provides swift responses to all customer queries is no longer an optional feature but rather an essential element for enabling positive customer experiences and driving business success.
Especially for crypto exchanges, it must have an interactive customer channel to provide the best user experience as it involves digital money transactions.
10. Test Your Crypto Exchange
Prior to launching your application, it is imperative to conduct thorough testing to ensure its functionality, security, and user experience are at their optimal levels.
Collecting user feedback and implementing essential improvements is a vital step to ensure the smooth and effective operation of your application, enhancing user satisfaction and overall performance.
When testing the crypto exchange, it is a must to evaluate the overall app performance, liquidity, functionality, transparency, user convenience, transaction speed, reliability, and security to ensure a robust and dependable trading platform.
At this point, I think you might got the answer for how to make a crypto exchange app? Well good.
Build A Crypto Exchange App with Zodeak
The demand for Cryptocurrency exchange app continues to rise every year!!
Therefore, to thrive in this competitive market, it is imperative to introduce a crypto exchange solution that is highly reliable, secure, intuitive, and fast, meeting the demanding expectations of users and outperforming the competition.
If you have an idea to consult a crypto exchange development company, then you can definetly contact Zodeak, a well-recognized development company with technical prowess in various domains. We promise to satisfy your requirements and make your dream come true.
Zodeka stands as an award-winning cryptocurrency exchange app development company, boasting extensive expertise in crafting exceptional digital success stories for a wide range of companies. Let’s engage in a conversation to explore the possibilities for your project.
