EVERYTHING TO KNOW ABOUT CENTRALIZED CRYPTOCURRENCY EXCHANGE DEVELOPMENT!
We often come across certain technology advancements that are intended for one specific reason but find use cases in some other different arena. Centralized Cryptocurrency exchange Development comes under such a category of advancements as they find applications mainly in trading these days but cryptocurrencies were introduced as the means of making online payments.
With respect to the volatility of the crypto market, things change continuously bringing some considerable ups and downs in the cryptocurrency price rates. Moreover, there are some fluctuations in the scope of cryptocurrencies every now and then. These trends are meant to open up the ways for entrepreneurs to get done with the launch of cryptocurrency exchanges.
Cryptocurrency exchanges are the platforms through which the users perform trading operations with cryptocurrencies inclusive of buying, selling, and exchanging transferring of crypto assets. All these operations can be done even from mobile devices as almost all of the exchange platforms possess mobile apps compatible for trading with cryptocurrencies. While performing trades in the exchanges, the users can either go for crypto to crypto transactions or they can go for crypto to fiat transactions. This depends purely on the convenience of the users. This is the actual methodology involved in cryptocurrency exchange trading.
Some exchanges demand the users create their own accounts in the platforms to go further with meeting their trading needs. On the other side, there are also some other exchanges that demand only user authentication or verification and no need for opening accounts. Anyhow, all the exchanges will verify the IDs once before they permit the users for making trades. Even though the motto behind every exchange remains the same (trading), they are quite different in terms of presentation.
When it comes to the cryptocurrency exchange types, the following are the three major considerations in general:
- P2P (person to person) exchange types where the trades and the respective transactions happen between two persons (buyers and sellers) directly; here there are no price fixes for the trades; instead the sellers are allowed to fix the rates for the crypto exchanges.
- Exchanges facilitating trades between the buyers and selling and imposing charges for making transactions.
Here are the in-depth considerations:
Centralized cryptocurrency exchange development:
The central idea behind these types of exchanges is to introduce third parties or middlemen to help carry out the trading transactions; Unlike the banks, centralized exchanges provide a central authority like the third party to get done with the trading procedures. Here, the exchange will be having the responsibility of completing the transactions.
Decentralized crypto exchanges:
These types of exchanges are meant for peer – to – peer trading, thus eliminating the need for having a central control authority for trades. Here, the traders will be having complete control over their funds and the transactions will be getting completed via smart contracts. Through the help of smart contracts, the buyers and sellers use to protect their assets from security threats like attacks and hacks.
Hybrid crypto exchanges:
These types of exchanges have come up to address the common challenges with both the centralized and the decentralized exchange types. Yes, hybrid exchanges lie in between the centralized and the decentralized exchanges in terms of aspects like security, efficiency, and liquidity.
Well; how do the crypto exchanges work?
The sellers who hold some crypto assets and the buyers who are all in need of crypto assets get connected in one single marketplace which is none other than a crypto exchange. Yes! Whenever there is a match in the requirements of a buyer and a seller, the platform will list out the appropriate requirements in its trade order books, thereby initiating trades to happen between them.
The trade order books let the platform’s trading engine to bring an order match in cases of requirements from both the buyers’ and the sellers’ side. Once upon finding out an exact match, the centralized cryptocurrency exchange development software permits for the trade to get executed in a faster cum efficient way.
Note-worthy features of cryptocurrency exchanges:
- Security for hack-proofing
- Trading or matching engine for order match
- Admin panel for control
- Smart contract powered escrow for enhanced security
- Multiple currencies and language support
- Transactional speed for integrity and for making instant and convenient transactions
- Verification checks like KYC and AML for authentication
- Dispute solving and management
- Wallets for holding the assets
- Atomic swaps
- Trading bots
- Referral programs for rewards and incentives
Why Centralized cryptocurrency exchange development services?
As per the recent findings, the following aspects are observed that depicts the need for embracing cryptocurrency exchange development services:
- The total market capitalization of cryptocurrencies is around 1.3 billion US dollars and is found to be always at a skyrocketing pace.
- The exchange Kraken itself is being valued at around 4 billion US Dollars.
- The exchange coinbase has its value strike around 8 billion US Dollars with around a total of 300 million dollars of funds raised in the previous year.
All the above contributions have made us think obviously about launching our own cryptocurrency exchanges right with the assistance of a leading centralized cryptocurrency exchange development company like Shamla Tech.
What to look for in a cryptocurrency exchange development?
Let us assume that you have come across a plan to get started with cryptocurrency exchange development for your business. Along with that plan, you have a goal to make your exchange come up like some of the major exchanges operating in the market (binance, for instance).
Well; how could you make it happen?
Yes exactly we are here to help you out in making you aware of the following considerations that are necessary for centralized cryptocurrency exchange development:
- White-labeling: Developing crypto exchanges is possible either via a scratch or via white – labeling. A white label solution is the best way out of these two as it provides 100% customization to meet all your business demands exactly with ease. It is nothing but a ready-made solution that can let you make your brand go live instantly in the market with no hassles. The readily available script itself holds all the necessary modules and functionalities so that you could go directly to the launch phase. The solution as well offers easily customizable front-end and back-end codes to help you out with the scripting side. So, you could possibly leverage your business with the white-label cryptocurrency exchange software to get done with an instant, easier cum efficient exchange launch in the industry.
- Security: It is of course paramount that can help you in getting rid of the hacking possibilities so as to make your exchange acquire matchless profit in no time. Because, even with a single hack or attack, there might be a chance that you will get locked out with some millions of dollars. This might pave way for your business to be liable for a huge loss ever. Also as per a recent study, reports have shown that a majority of the hackers these days take advantage of the security holes that are made available in the crypto exchanges to make attacks. In order for adding credibility to the security with an exchange, the codes should be of well-tested security paradigms and should be bug-free. The following are some of the aspects that boost up the security of an exchange:
- Registry lock
- Anti-DDoS module
- Some other system security extensions and web protocols.
- Performance: This is the major factor that drives the liquidity of any exchange; Of course, it decides the liquidity level of exchange the most than anything else. A variety of techniques are there to improve the performance rates, yet the trading engine reaps the most out of them in bringing better performance ever. Performance can also be boosted up via the optimization of images and minimization of the web URL redirects. Ensuring a user-friendly interface also will help improve the user-experience and convenience levels so as to make the exchange operate with the ultimate level of performance.
- Scalability: The exchanges should be open for scalability to meet the rising demands of the business. For this, you ultimately need a flexible and robust infrastructure that can make it flexible to add or remove functionalities as required. Moreover, scalability allows you to make changes in one module without affecting the others.
Shamla tech – the best Centralized cryptocurrency exchange development company:
If you budget-specific in launching your own exchange marketplace, then no worries. You can embrace the white-label cryptocurrency exchange software from our side to help overcome all your budgetary constraints.
As a trust-worthy Centralized cryptocurrency exchange development company in the industry, we at shamla tech have been providing our clients with exchange solutions that are rich in scalability, security, and performance to come up with an exchange of your choice with no deviations.