What is a cryptocurrency exchange?
The cryptocurrency world is growing day by day. And the demand for suitable platforms is rising there is a significant profit in this industry. Many entrepreneurs are entering this community. Read the following to read more about the ways of cryptocurrency exchange website development.
Cryptocurrency transactions are working on the blockchain. A cryptocurrency exchange website enables the buyers and sellers to exchange their digital coins with other coins or other fiat currencies or even sell or buy different assets. A cryptocurrency exchange is like a trusted third party between a buyer and a seller of these cryptocurrencies.
Some features of a cryptocurrency exchange are listed below but not limited to:
• Powerful trading engine
• Multiple order type
• Multi-signature wallet
• Payment gateway integration
• Robust smart contract
• Liquidity management
• Blockchain platform stack
• Atomic swap
• Multi-sig wallet
• List nearest buyer
• KYC verification
• Private messaging
• Dispute management system
• Accurate trade matching engine
What are the three main types of crypto exchanges?
Currently, 3 types of crypto exchanges are available: centralized exchange or CEX, decentralized or DEX, and hybrid exchange.
Centralized exchange
They act as a traditional exchange. The exchange plays a role as the middle man. in the crypto community, centralized refers to an exchange where you trust someone else to handle your money and control your transactions. one of the disadvantages of this kind of exchange is that they are so vulnerable to being hacked.
• Trading process Is supervised by a central authority
• The transaction gets secured by an administrator
• Deals can’t be tracked via blockchain
Decentralized exchange
In the decentralized exchange software, you don’t need a trusted third party to handle the transactions. Here the seller and the buyer come together and do the process of trading, exchanging, buying, or selling the assets directly with each other.
• No middlemen or central authorities is needed
• decentralized trading environment can’t be hacked
• Digital assets and proxy token trading
• Escrow protection system
Hybrids
Hybrid cryptocurrency exchanges are the next generation of the crypto trading market. They have collected the good features of both centralized and decentralized exchanges. It means hybrid exchange has the liquidity and functionality of CEX and the privacy and security of DEX.
One-page cryptocurrency exchanges
It is an exchange platform providing the highest possible form of simplicity in cryptocurrency exchange.it allows users to exchange their coins for other forms of coins. One-page exchange is one such simple exchange that is available in the market. It has one specific feature that makes it different from other methods:
It doesn’t need any registration this is what one page tries to provide and it’s quite successful at it. Any user can log on to the page and convert currencies that he prefer to exchange.
How much does it cost to develop a cryptocurrency exchange?
Developing a cryptocurrency exchange website has an average cost similar to developing an application. Crypto technology has various features that may vary the cost of development. The features include multiple platforms, wallets, currencies, and security features like two-factor authentication, chatbots, backups, admin and user panels, different types of trading orders, and many more. Each of these features will affect the cost of developing a cryptocurrency exchange.
How do we can create a crypto exchange?
There are 6 basic steps:
- Decide the location where you want to do this business
- Know the regulation of that place
- Make a partnership with a bank or payment processor
- Provide the transaction history and liquidity on the exchange
- Add the best security practices
- Provide customer service and support
What is a white label crypto exchange?
A white label exchange is ready to use solution with the possibility to redesign the front-end and the pre-made back end. The UI/UX can be customized quickly based on the requirements of the business and the white label software can quickly be launched to the market. The white-label software is responsive and mobile and SEO friendly. It also costs less than developing a website from scratch.