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Choosing Cryptocurrency Exchange Software: 5 Anti-Features To Look Out For

Soft-FX professionals have compiled a list of five wake-up calls that should alert you when you are communicating with your potential software provider. We would, however, like to emphasize that this is not your blueprint for action but food for thought and an alternative, fresher point of view.

№1. Vendor exaggerates the matching engine capacity

A matching engine is the beating heart of any digital exchange. The algorithms it uses keep track of every open order in a market and look for pairs that can be fulfilled by each other.

Sounds fantastic? Keep in mind that exchange software vendors may also stress the fantastic and impressive performance stats of the product they are trying to sell.

Millions of transactions with a close to non-existent latency are possible at NASDAQ & co, in other words, at corporations operating trillions of dollars on a regular day. Such capacities are unavailable to mere mortals yet. You are going to want to stress-test the offered matching engine performance to evaluate its real-life potential.

№2. Vendor avoids tech questions, shifts focus to UX

Make no mistake, the success of your trading platform will depend heavily on your future customers’ perception of efficiency, ease of use, etc. So — paying attention to the user interface is indeed a must.

Yet another must for a future exchange-owner is paying attention to the willingness of their potential software vendor to let them test drive or at least verify first-hand the stability of the tech solution they are being offered.

If your vendor avoids talking about essentials like trustworthy execution of trading procedures, tracking and eliminating loopholes, slippage protection, etc., this may be a warning sign.

№3. Vendor is evasive when asked about any non-obvious costs

Soft-FX disapproves of trading software vendors who offer a 'default' package of services but 'forget' to mention that any extra actions/transactions on your or your clients' side will cost you extra.

Example: A solution you are being offered does not include a fee for trading volumes, a common occurrence in the industry. The vendor, however, may have concealed the fact that any balance sheet transactions your clients make on your platform are additionally charged.

That is why we recommend scrutinizing every present and absent point in the list of services your software vendor is offering.

№4. Vendor avoids security questions

If at the stage of commercial negotiations, the service provider is being shifty about security protocols integrated into their product, it certainly is a red flag.

Your exchange software provider must facilitate your access to every bit of security information as long as your safety and that of your clients is concerned, and readily agree to your requests to run a test of the software in a demo environment, or initiate a third-party audit.

Example: all Soft-FX products and solutions are audited by Deloitte, a Big-4 company.

№5. Abnormally low final price

As trite as it may sound, the following saying is characteristic of the exchange software market nowadays: quality products cost money. So what we would like you to pay attention to is not whether you are striking a bargain, but whether you’re paying the right price for your product.

Product development and the services of a professional, experienced tech team are always reflected in the final cost of the product. Our advice is to research the average cost for your local exchange software development market and compare them to what your vendor is saying.

Prices can be outrageously high as well as outrageously low. You may possess the funds your software vendor is requesting, but, on your part, don’t forget to ask for a price breakdown.

To recap: As you have most likely noticed, we’ve decided against droning about the benefits of running a cryptocurrency exchange, or the general characteristics of a safe and reliable tech platform. We aim to shift your focus a bit and help you see the features of an unreliable vendor. After all, identifying troubling signs at the negotiation stage and either receiving clarification or bidding goodbye to a dishonest software provider will save you tons of time, nerves, and, yes, money, too.

The very definition of crypto exchange software technologies is still pretty young, talkless of available solutions and emerging players. That said, Soft-FX has been tied to the crypto market since the latter’s infant days, and as of today is offering the soundest, affordable, most reputable, and safest in-a-box solutions for your crypto exchange. So why don’t you use the advice listed above and put the Soft-FX White Label Crypto Exchange to test?

Got any questions? Contact us, and we will happily clarify or elaborate on any points raised here.

Discussion (1)

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CryptoKit

Looks cool, is this on GitHub?