There are more than 2000 crypto in the digital world, and each day, new crypto is developed and launched. Some people believe that crypto is a short-term trend, and the hype will calm down. Others believe in its potential and actively bid on the currency in the hopes of making a fortune. Whatever the case, it is clear that blockchain opened up new business avenues for everyone.
We see the potential blockchain has, particularly in decentralized exchange development and want to harness its potential to the fullest. Hence, we will use this guide to provide insight into decentralized exchange software and help you create an advanced product.
What does DEX mean ?
• A decentralized exchange or DEX is a digital currency exchange platform. This website enables users to buy and sell cryptocurrency through P2P transactions. The DEX accomplishes this by providing a secure internet platform without intermediaries.
• DEX is different from common centralized exchanges that require third party involvement. Typical central exchanges need a third party to oversee all transactions and control the anonymity of assets through the two sides.
• A DEX is where the blockchain takes the place of a third party. It brings up critical operations to the blockchain and excludes the shortcomings of a central exchange. This approach enables customers to retain asset control and promotes safer and transparent trading to occur.
• DEX utilizes smart contracts and executes market transactions by distributing transactions to autonomous code. However, there are multiple options to fulfil orders with different degrees of decentralization.
Decentralized Finance :
The entire world is amazed by the top-notch features present in the decentralized exchange development that grabbed millions of users' attention in a short period. The DeFi crypto exchange platform allows users to exchange their cryptos with fiat currencies for the best price value in the finance market. The crypto exchange platform is entirely decentralized to eliminate the need for a central authority to benefit the users with less gas fee, wait time, and faster transactions.
Decentralized Crypto Exchange :
The Automated Smart contract powers the decentralized crypto exchange development to manage the overall flow of transactions without any delay. DeFi crypto exchange platform has a built-in wallet that allows the users to store, transact, display and sell the cryptos to potential buyers for the best price value in the market. They are well structured and built using the latest cutting-edge technology to attract global users to gain high returns in the future based on their investments.
Benefits Of Decentralized Exchange :
The benefits a decentralized exchange provides attracts many crypto enthusiasts who prefer not to trust their crypto to a centralized platform. DEX is rapidly gaining popularity, and that cannot be understated. The reason for this popularity is
Transparency -
The blockchain tracks every transaction on the platform, meaning that a decentralized exchange has the same level of transparency as a centralized exchange
Anonymity -
Users are not required to complete an identification process that generally occurs on a centralized exchange. Users have complete anonymity when exchanging one crypto for another. This feature attracts many users who prefer to keep their identity hidden
Asset preservation -
Authorities can confiscate a traditional exchange’s servers, assets and user accounts. However, that is not the case in a decentralized exchange. Here, there is a computer network existing worldwide, making it almost impossible to restrict operations.
Simple interface -
A DEX’s UI makes it easy for newcomers to understand the site’s operations.
Decentralized Exchange Features :
If you want to build the best decentralized crypto exchange software, remember to develop a complicated platform. It is essential to think over the functionalities and their purpose, thereby giving you a clear goal to start with. Whether you want to provide trading with one or two cryptos, you always outline the features your platform should have. A typical white label crypto exchange usually has the following :
User registration and verification :
The user’s journey into crypto trading begins with the registration process. Ensure to provide a simple and efficient onboarding process. This step ensures a user can register in under a few minutes. The verification process is vital in ensuring transaction transparency and reduces the chances of fraudulent accounts from registering.
Trading engine :
People need to see trading data in real-time before deciding on handing in their investments. Thus, you should have a robust and versatile trading engine.
User Interface (UI) :
Every part of the platform is directly related to the user. It is critical to focus on a user-friendly interface, making it easy to understand the site’s operations. A lack of a simple UI will limit the platform’s usability and understanding to technicians and experts in the field.
Order book :
The decentralized exchange software groups the buy and sell orders separately then generates a list of open orders in the order book. The site then searches for an order that matches its conditions and closes a deal between users. The order book helps the user navigate through the current rates.
Transaction history :
The transaction history list includes data about every transaction on the platform. This list contains the trade rate, operation time and the amount traded. The feature helps users track their performance on the exchange.
Analytics :
Analytical tools enable users to get further information about market trends and create strategies based on them. There are many technical indicators traders use to make an informed decision. Hence, it would be best if you considered which tools to add to the site.
Advantages of Decentralized Exchange :
• The users can experience faster exchange rates with high transparency over their transactions.
• A decentralized crypto exchange platform runs on a p2p exchange software to enhance the speed of fund transactions.
• It has integrated KYC and AML verification processes present in the crypto exchange platform for user identification.
• The development of the crypto exchange platform has an in-built wallet that allows users to exchange currencies, deposit, and withdraw funds.
• It is an open-source network in the decentralized crypto exchange platform that allows anyone to access instantly irrespective of their social background.
• DeFi crypto platform is an open-source network that allows anyone to access seamlessly, irrespective of their wealth or social status.
• It maintains high transparency over user transaction details to gain trust over the decentralized crypto exchange development platform.
Cost To Build Decentralized Ethereum Exchange :
As previously stated, producing a white label decentralized exchange is an uphill task and, as a result, it is an expensive process. However, with an intelligent attitude and a careful approach, you can launch the platform reasonably.
For starters, your development team should comprise a project manager, a platform developer, a quality assurance engineer, a user interface developer and a web designer. The cost of each professional will change based on several factors; however, the biggest factory in the country the team is located in. It would be helpful to choose a location where you can get the best decentralized exchange development services at a nominal cost.
Conclusion :
Today’s highly-driven technology world is the ideal place to launch a decentralized autonomous crypto exchange. More people are turning to crypto and betting on its potential, which is why it is the right time to take advantage of this trend and launch your own crypto exchange platform to develop your business quickly.