What Is Cryptocurrency Exchange?
A cryptocurrency exchange is a web-based platform or mobile software through which you can trade and sell bitcoins, Ethereum, and other altcoins. These exchanges operate in two forms, decentralized and centralized.
Decentralized exchange or DEX is a platform for decentralized trading that uses blockchain and smart contracts to eliminate intermediaries. Users of these exchanges can make transactions from inside their wallets without depositing their cryptocurrencies into the exchange wallet. On the other hand, there are centralized exchanges where you can trade by recharging your account and registering your order automatically.
Features of Cryptocurrency Exchange
• Margin Trading
• Order Sharing
• Crypto Liquidity
• Robust CMS
• Commission Management
• API Integration
• Fund Management
• Futuristic Smart Contracts
• Transactions History
• Admin Panel
• User Wallet
• Roles & Permissions
Security Features of Cryptocurrency Exchange
• DDoS Mitigation
• 2FA Authentication
• SSL-Security
• Database Encryption
• Multi-signature Wallets
• Biometric Authentication
• Jail Login Method
• Escrow Management
• End-To-End Encrypted Transactions
• Anti-Phishing Software
• Browser Detection Security
• CSRF Protection
• Regular Security Audits
• IP Login Restriction
Types of Cryptocurrency Exchanges
• Centralized (CEX)
• Decentralized (DEX)
Centralized: Centralized exchanges are somehow similar to banks. They have a certain owner, they have high security, and they follow the rules. Perhaps the phrase focused a little vague, but generally, in the world of cryptocurrency., the exchange focused means using a person's midsection or an interface for management and control of the exchange is. Sellers and buyers handle their assets through this interface. Like a bank where customers deposit money and make transactions for money transfers through the same bank.
Naturally, such as banks that promise constant security and control of assets, these exchanges also have such characteristics. Users are fully confident that they will not only carry out exchanges instead but also keep their assets in the wallet of the exchange. Centralized exchanges for each exchange consider a certain percentage as a transaction fee
Decentralized: Decentralized exchanges, or DEX, create a peer-to-peer exchange by removing the interface. In these exchanges, assets remain in individuals' personal wallets and exchanges are made on the basis of smart contracts.
This means that the transfer of assets between users' wallets is done directly. In DEX exchanges, the privacy or anonymity of users is more preserved. In decentralized mode, although there is no intermediary for the transaction, users still have to pay a fee as the base fee for the transaction in order for the transaction to be registered and approved in the blockchain network. One of the advantages of DEX is the security of users' property in case of hacking attacks.
Disadvantages of Decentralized Exchange
• Users are at a loss if they are ever hacked for their passwords or private keys.
• Low Liquidity
• Only Basic features for Trade available
What is Cryptocurrency Exchange Software Development Company?
Cryptocurrency Exchange Software Development Company helps you to increase your brand visibility. You can customize it with your own brand name and logo with the help of a reputed web and mobile application development expert. It cost you much less when compared to developing your own app and do not have any post-maintenance hassles. Is it an already tested product running in the market, it can provide you with the expected return on investment. Last but not the least, it can help you to increase your profit by cutting down heavy commissions and increasing your customers. So if you are planning to start your own crypto exchange, Cryptocurrency Exchange Software Development Company is the best option. It can definitely take your business to the next level.