DEV Community: patriciadixon

Why security aspects are critical in a Cryptocurrency Exchange Software?

patriciadixon — Fri, 23 Oct 2020 12:33:53 +0000

Cryptocurrency exchanges have witnessed huge growth in the digital era. They are trading money worth billions of dollars each day. More than 5000 different cryptocurrencies are circulating in today’s market. Many companies have accepted the fact that starting a cryptocurrency exchange is a valid business model. Some of the popular exchanges functioning now are Binance, Bitfinex, Poloniex, and Kraken.

Since they are the custodians of the data and funds of millions of users, exchange owners must focus on enhancing their security measures to protect themselves from hacking and phishing attacks. Many centralized exchanges have been hacked in the past and funds have been swindled away from investors without any chances of recovery. One of the high-profile hacks was the Mt.Gox attack in 2014 where a whopping 850,000 Bitcoins were stolen which eventually led to the exchange becoming bankrupt in the future.

Certain steps that crypto exchanges can take to fortify their security include the adoption of measures like two-factor authentication, SSL encryption, firewall implementation, transport security, password-protected user access, and a captcha. This will minimize the risks of social engineering.

Frequent penetration checks can be done to figure out the vulnerabilities in the exchange as no platform is 100% foolproof. The most common types of attacks on crypto exchanges are social engineering (phishing), DDoS attacks, and injecting malicious code through malware.

You can also organize a bounty program where exciting rewards such as tokens and coins will be distributed to those people who find bugs and security loopholes in your cryptocurrency exchange software.

Acquiring a high-quality white label solution is beneficial not just in terms of cutting costs and time but it also comes free from bugs ensuring no interference with the basic functionalities. It will come in a customized manner once you disclose your business requirements to a well-versed white label solution provider.

Some of the modern security measures that can be undertaken are

The usage of private keys to operate an account and storing it securely in the wallet. It can come with features like multi-factor authentication and auto-rejection of duplicate payments to prevent fraud. Users should also be given the option to store their private keys completely disconnected from the online world. Also, never share your private key with anyone.

Having a mix of hot and cold wallets will help in the diversification of funds to avoid risks. One wallet can be used for conducting daily transactions while the remaining money can be kept in a separate wallet. While the hot wallet will be directly connected to the online exchanges for allowing scaled transactions, the cold wallet will operate offline and not participate in real-time trading. Even if an exchange is hacked, the assets or funds stored in the cold wallet are not vulnerable to theft. Many cold wallets use supreme security measures like biometric-enabled authentication and multi-signature authentication.

A desktop wallet can be opted for which functions like a cold storage facility not connected to the Internet and the private keys will be stored only on your machine.

Firms operating in the cryptocurrency space can invest in a registry lock where the domain will be locked preventing hackers from making unauthorized changes such as modifying the registration details. The highest level of domain security is achieved as a three-way security passphrase check will be imposed between the domain registrant, the registrar, and the registry. However, only a mere 2% of all exchanges use registry lock facilities currently.

Domain Name System Security Extensions (DNSSEC) will help in authenticating all the domain name system (DNS) queries. It uses an effective combination of public keys and digital signatures to validate the authenticity of the data. Illegitimate DNS entries will be immediately rejected. Users will be prevented from accessing fraudulent websites and will not be affected by malicious activities such as pharming and cache poisoning. However, DNSSEC cannot ensure data confidentiality and protect the exchange against DDoS attacks.

Anti-DDoS modules can be set up to prevent downtime losses. An exchange website’s firewall can drop incoming ICMP packets or block DNS responses from outside of the network.

A variety of tools can be installed for ensuring a high level of Web protocol security. It includes HTTP Strict Transport Security, a Content security policy, X-Frame-Options for safeguarding against clickjacking attacks, and X-XXX-protection for preventing cross-site scripting attacks.

Simple steps such as using a secure internet connection and avoiding using public-WiFi networks can be taken. A VPN (Virtual Private Network) can be utilized for additional security as it keeps your browsing activity safe from threat actors.

Install strong anti-virus software and firewall in the device that you are using, be it a PC, laptop, smartphone, or tablet, to avoid the entry of hackers.

Change your password frequently and avoid using the same password on multiple devices and accounts. Ensure that you have a strong and complex password with a mix of characters making it difficult to guess. In case you have multiple wallets, use separate wallets.

Avoid clicking any suspicious or unknown links received via malicious ads or emails as it could be a phishing scam. Many crypto companies in the US and Japan have been targeted by spear-phishing campaigns. These attacks were carried out by impersonating affiliated organizations and employees using fake domains and malicious links were sent in documents via emails.

The crypto industry is constantly evolving day by day. Update yourself with the latest security trends and practices to protect your digital funds with essential safety precautions.

A Quick & Compact Guide To Crypto Exchange Development

patriciadixon — Wed, 21 Oct 2020 07:33:19 +0000

Cryptocurrency and blockchain might have been game changers with respect to technology and record-keeping, and could, in the future, be game-changers when it comes to global finance. However, it's been just over 10 years since the first bitcoin made its appearance.

In these 10 years, the most practical manifestation of cryptocurrency and its offshoots is the cryptocurrency exchange. A cryptocurrency exchange is an inevitable outcome of a large number of cryptocurrencies in circulation today. CoinMarketCap recognizes about 6955 different cryptocurrencies adding up to the market capitalization of $324 trillion as of September 9, 2020. Although there might be different numbers stated by different authoritative websites, the number does not in any listing plan below 4500.

One of the most dubious attributes of cryptocurrency is its volatility, or in simpler terms, it's constant and massive fluctuations in their values against each other and even fiat currency. This attribute, however, has made it an ideal candidate for exchanges. Investors and analysts who can predict the movement of the price of one crypto asset against another can buy a crypto asset at a lower price and sell it at a higher price, making a good profit in this process.

A cryptocurrency exchange breaks the confinements of crypto to just tech enthusiasts. It had opened up the crypto space for common investors.

It has also created a new business opportunity beyond cryptocurrency mining. A cryptocurrency exchange business can make quite some profits in the business. Let us look at the nuances and intricacies of a cryptocurrency exchange in good detail, and also the process of a bitcoin exchange development.

What is a cryptocurrency exchange?

As the name implies, a cryptocurrency exchange or alternatively, a bitcoin exchange is a platform where traders can trade different crypto assets just like how a Forex works. The price of these crypto-assets is determined by market dynamics like demand and supply. The cryptocurrency exchange is, in most cases, a website or a mobile app.

How does a cryptocurrency exchange work?

As you may have inferred from the above paragraph, that there are a few entities involved in ensuring a proper functioning of the exchange - the buyer, the seller, and in most cases, an administrator.

The seller places what is called as a selling order on the exchange. These entries are made on a digital ledger called the order book. A potential buyer can search the order book for orders that match their requirements and pricing. When they find one, they can buy the crypto assets from the seller and pay the required price.

If the buyer cannot find a proper order, they can place a buying order which again is entered in the order book. An intelligent algorithm called the matching engine takes care to match the buying and the selling orders and execute the trade.

How does a crypto exchange make money?

The process seems simple and straightforward. What benefit does a cryptocurrency exchange have in this entire ecosystem?

A cryptocurrency exchange can charge a transaction fee for every transaction made on the exchange. The transaction fee can be as low as 0.01% of the total transaction amount. However, this minuscule percentage is perfectly complemented by the sheer volume of trading that happens on a cryptocurrency exchange.

Cryptocurrency exchanges have been known to make profits ranging in billions of dollars just from these transaction fees.

In addition, a cryptocurrency exchange can also make its profit from other avenues like IEOs (Initial Exchange Offering), coin listing fees, liquidity market-making, and advertisements. All these possible avenues make a cryptocurrency exchange business one of the most profitable and lucrative ones in the crypto realm.

How to create a cryptocurrency exchange?

Now that the profitability of a crypto exchange has been established, it is only natural that every crypto entrepreneur but want to build one. There are a few key steps involved in bitcoin exchange development.

The analysis stage

When we talk about analysis, we are talking about multifaceted research that we will need to do for your bitcoin exchange. There are various aspects that need meticulous attention including but not limited to the scope, the jurisdiction of incorporation, the kind of software that you will be using to power your crypto exchange, the licensing requirements, the establishment of liquidity, ensuring high security, and of course, marketing.

Every stage mentioned here involves a separate chunk of focus. However, even before you engage in execution, a lot of these aspects need to be planned.

The market - cryptocurrency is a buzzword in quite a lot of places. There are locations where cryptocurrency has already been established and the competition is tough. There are, on the polar opposite end, places that do not know about cryptocurrency. The first one will result in you spending a lot for marketing and the second one will result in no returns or at its best, a tough time to break the market. It is best to enter a lukewarm market where people are aware of cryptocurrency and its benefits, but at the same time, does not have a lot of competitors pining for the same audience.

The legal aspect - the laws that govern anything to do with cryptocurrency and blockchain have been quite shaky and uncertain. There are a few jurisdictions like the United States, Malta, Astoria and Gibraltar that have been quite welcoming and have completely regulated the crypto legal system. Countries like India have permitted cryptocurrency exchange businesses but have not excepted them as a legal method of payment. When you incorporate your business, it is important to know the regulations that you will need to comply with.

The software - the cryptocurrency exchange software can be considered the epicenter of the business. The software at large has a cryptocurrency wallet, an interactive user interface, and the matching engine. An administrator oversees all these functions and components. In most cases, the quality of the matching engine determines the quality of your cryptocurrency exchange. You can choose to engage in your bitcoin exchange development from scratch by recruiting your own team or by partnering with a bitcoin exchange development company. Alternatively, you can consider using white label exchange clone scripts.

The liquidity - although it is an abstract quantity, liquidity is one of the vital aspects crucial to the functioning of a bitcoin exchange. Liquidity, in the context of a cryptocurrency exchange, is the representation of the volume of trades that happen on the exchange. Building liquidity for new cryptocurrency exchanges might be a hassle. In this endeavor, you can simulate trading between artificial accounts created within your exchange. You can, alternatively, connect with another existing exchange through an API to reap the liquidity benefits of that exchange. As some recent exchanges do, you can also consider partnering with market makers or become a member of an exchange consortium.

Focus on security

Cryptocurrency exchanges can either be centralized or decentralized. Centralized exchanges, although they are easy to use, compromise on one of the most basic advantages brought about by the blockchain - decentralization.
Centralization brings with it a few inherent risks. If they need to be managed effectively, ensuring top-notch security is something a cryptocurrency exchange cannot compromise on. A few steps that can be taken to ensure security are:
Two-factor authentication - instead of using a single combination of credentials, an additional layer of security can be introduced, so the user is authenticated with a greater degree of assurance.
KYC/AML formalities - a cryptocurrency exchange is, in essence, a financial company. It is mandatory for every financial company to follow the Know Your Customer/Anti-Money Laundering formality to ensure that the profit does not get siphoned into malicious terrorist activities.

In addition to what is mentioned above, a few additional security measures like AES encryption prevention, XSS clean, Google ReCaptcha, session expiry, and device tracking can help in enhancing security.

The advanced features

Most crypto entrepreneurs would agree that at a time when a head-start enhances the possibilities of profitability, going for a white label cryptocurrency exchange script is the best way to kickstart your cryptocurrency exchange business.

What makes these white label solutions extremely attractive is the degree of customizability they offer. Incorporating a few advanced features that help distinguish you're offering from your competition. A few of these features are:

Decentralized exchange trading atomic swapping
Margin trading/leverage training and lending
Bitcoin SAP
Digital token trading
Initial exchange offering

Marketing your Bitcoin exchange

All the effort put into Bitcoin exchange development will fall flat if proportional marketing isn't put in place. Marketing your cryptocurrency exchange should be a combination of crypto-specific efforts and generic digital marketing tasks.

You can participate in dedicated crypto forums like BitcoinTalk to talk about your cryptocurrency exchange. You can also make use of forms like Reddit, which has dedicated subreddits for anything to do with blockchain or crypto.

In addition, you will also need to in a few traditional practices like search engine optimization and organic social media engagement. Although the mainstream advertising platforms like Google Ads and Facebook/LinkedIn ads might not be available for cryptocurrency, you can still make use of a lot of third-party CPC services.

Conclusion

Considering the growing acceptance of blockchain and cryptocurrency now would be the right time for an aspiring crypto entrepreneur to start their cryptocurrency exchange business. As we have already seen, a white label clone script is the best way for you to launch your business at the earliest. The white label script also ensures that the product is free from but that might interfere with the most basic functions of a crypto exchange.

Most bitcoin exchange development companies, in addition to the script, also provide customization solutions, helping you assemble features that can help you stand out from the rest for your competition.

Why Blockchain is the backbone behind the high liquidity in Real estate Tokenization?

patriciadixon — Wed, 14 Oct 2020 10:14:23 +0000

Currently, the real estate industry is facing lots of challenges in the form of low liquidity, lack of interest from institutional investors, tectonic market shifts, and the economic downturn. Real estate tokenization is a solution to the crisis as it removes intermediaries such as brokers, agents and underwriters from the process, promotes more transparency and reduces the fees involved by creating a fair ecosystem benefitting all the participants equally.

The significance of Real estate Tokenization

It helps in streamlining the process of transfer of property between two different parties by eliminating the cumbersome role played by middlemen in the form of lawyers, brokers, financial institutions, and asset managers. By reducing the time and various costs involved, it ensures lesser chances of friction and better trust.
It sorts out the illiquidity issue in commercial real estate by eliminating procedural hurdles. By facilitating the trading of digital assets, it uses the power of distributed ledger technology to lift liquidity and reduce the cost of associated payments.
By using real estate tokens, liquidity and ownership relations can be made more efficient in the real world. Details regarding terms and conditions mentioned in the deed, land records, rental payments from tenants to owners, and maintenance can be dematerialized using blockchain technology.
By enabling partial ownership of assets, it reduces the different direct and indirect costs such as transfer tax, brokerage, and legal costs. Even non-fungible properties can be easily converted into tradable digital securities.
The tokens can be fairly traded on the leading international secondary markets and realistic market value would be fetched without any liquidity discounts or premiums on the property.
Third-party custody solutions can be rendered for both institutional and retail investors to store their private keys and tokens safely by meeting the regulatory standards and technical requirements.
Transactions and property deals can be done swiftly in a matter of a few minutes with minimum bureaucracy, a high degree of automation, concurrent execution, and low transaction fees.
Transparency can be ensured by making the ownership and transaction data available without any restriction to all the participants on the network by storing it in the distributed ledger. This ensures more control of information and better confidence in conducting transactions successfully. Information symmetry can be created within the primary as well as the secondary market. Investors can get details of past deals and figure out if the asking price charged by property developers is realistic or not eliminating any attempts of underpaying or overpaying.
A higher level of personalization is ensured as property owners, asset managers and investors will all be brought on the same page. Customized lot sizes and risk strategies will enable investors to move easily from top-down portfolio-based strategies towards profitable direct investment opportunities.

Benefits rendered by Real estate Tokenization

It improves the process of asset management through the use of smart contracts. With less paperwork and no presence of middlemen, it simplifies the part of the execution. Tokens can be traded smoothly in the market depending on the region of the property, the history of the buyer, and the type of asset.
Real estate tokenization reduces the chances of fraud to take place by ensuring high immutability. Stakeholders and investors can easily prove their ownership beyond any doubt. Users cannot sell someone else’s tokens as access cannot be granted without entering the correct private key. The exact history of ownership stored in the blockchain technology makes it impossible to falsify transactions and trick investors.
The barriers to entry are significantly reduced through Real estate Tokenization making it an affordable investment alternative to the common man and not just the rich class. A few hundred dollars invested will make an investor as a fractional owner.

Challenges to the growth of Real estate Tokenization

Since the concept of security tokens is not uniformly regulated across the globe, a proper regulatory compliance structure is needed for optimizing the massive potential of tokenization.
More licenced platforms are needed for managing Security token offerings smoothly. It is a complex process and multiple trial and error mechanisms need to be worked out before becoming fully functional.
Details of custody solutions and security for digital tokens need to be finalized. In case the tokens happen to be stolen or hacked, the consequences would be costly and severe.
The tax laws regarding cryptocurrencies have not yet been defined in some countries. This leads to ambiguity as the tax structure would be different in various jurisdictions confusing investors.
Not many investors are aware of the concept of blockchain technology and security tokens. A lot of concerns are prevailing regarding the scalability of the technology.

The future in store for Real estate Tokenization

Since the real estate sector is slow to adopt emerging technologies, it will take some time for full-blown tokenization to take place. They have to comply with different government regulations and guidelines issued by regulatory authorities. KYC (Know Your Customer) and AML (Anti Money Laundering) verification mechanism need to be followed. A common international framework needs to be formulated for recognizing tokens and distinguishing it from the concept of securities. By providing more access to capital, the participation of broader investor groups, real-time investment, and instant tracking of ownership, it will undoubtedly bring a positive impact on the sector as a whole. Increasing adoption of blockchain technology coupled up with tokenization would streamline the entire real estate market without completely turning on its head. With more support from the various stakeholders involved in the system, tokenization can transform the sector making it more innovative, transparent and market-friendly.

Analyzing the compliance issues faced in Cryptocurrency exchange development

patriciadixon — Mon, 12 Oct 2020 07:30:21 +0000

Establishing a crypto exchange has become one of the profitable businesses in recent times. However, there are some associated risks that traders must know before investing their money in exchange.

Let us know more about these unscrupulous practices

Pump and dump schemes - Since the crypto space is still highly unregulated, many exchange owners are involved in pump and dump schemes. By controlling a majority of the supply of tokens, the projects undertaken by the owners collude with the exchanges, they force the token price to multiply abnormally by two, three or even ten times in a matter of a few months. This is usually done by firms with a very low market capitalization.

Establishing FOMO among the community - FOMO stands for Fear of Missing out. It is done by creating fake member accounts to share the news of a price pump among the interested community in a project. This will fetch the projects a healthy profit as exchanges will sell the tokens at high prices to the users who have no chance but to buy at the price charged without any negotiation. The traders must watch out for the trading volume of the token, whether the current price is being maintained by the exchange for a long time for the token, the use-cases and the demand for the token to avoid becoming a victim of FOMO. It is better to trade tokens that have a high trading volume spread out evenly across a few exchanges. In such cases, chances of price manipulation are low as a price pump done on one exchange will be brought down to the prevailing market price immediately safeguarding your interests as a retail investor.

Indulging in the massive distribution of freebies during the campaign - It involves giving away huge numbers of Bitcoins or altcoins for free to the users as a reward. However, lots of forgeries can happen as exchanges can create fake email addresses and photoshop the photos of the winners receiving the prizes. It is better not to participate in such contests held by the exchanges to avoid getting manipulated or tricked.

Focussing on the compliance issues faced by the crypto exchanges

The FATF (Financial Action Task Force) has prepared a detailed report covering around 200 countries regarding the AML (Anti Money Laundering) standards needed to be followed by the virtual asset service providers (VASP). However, many nations are yet to comply with the norms regarding domestic legislation. The watchdog’s main aim is to undertake a comprehensive risk assessment related to digital assets. Due to the economic downturn, many professional money launderers have turned to crypto as it is highly unregulated and ensures anonymity. They are also closely watching the growth of peer to peer transactions which are rendering the role of intermediaries as useless.

They have formulated a travel rule where exchanges should transmit details to FATF on the identity of the originator and the beneficiary of the funds for every transaction exceeding $1000. A second review will be conducted in June 2021 to ensure a sustainable regulation of the industry. Hence, the industry has to take concrete steps for the full implementation of the Travel rule before the start of the next year.

However, a few crypto companies have complained that the FATF’s report is not conducive for developing a coherent cross-border regulatory environment. It is conflicting with the AML rules and data protection with differences in the US and the GDPR (General Data Protection Regulation) of the European Union (EU).

This leads to VASP’s needing to be extremely careful regarding the customers they target for their business as they may fall under the radar of regulatory regimes. But, despite concerns, the FATF’s recommendations will lead to greater transparency in international monetary flows.

More clarity is needed regarding the regulation of digital securities, stablecoins, P2P transactions, and automated smart contract transactions. Many exchanges, however, are technically not prepared to comply with the travel rule. The latest technologies such as Artificial Intelligence and Machine Learning can be utilized on top of the blockchain networks for regulators to effectively monitor all the transactions being executed within their operations jurisdictions.

There is a need for a common global framework that is applicable for every jurisdiction with immense interoperability.

International coordination in information sharing and technical infrastructure is also needed especially concerning the operations of VASP’s. VASP covers the likes of crypto exchanges, peer to peer services, wallet providers and custodians and other digital asset traders.

The impact of FATF’s recommendations on VASP’s

Every VASP must immediately assess their existing AML regulations and update its policies and operating procedures based on the FATF’s suggestions. They must begin a formal evaluation of the travel rule solutions proposed by the FATF. They should finalize the preparations for licensing, obtaining supplementary legal advice along with an independent assessment of their current system. After fixing the gaps in the existing AML framework, they have to assign responsibility to people to deal with sanctions. The travel rule solutions must be suited to the operations of the business before beginning the implementation process.

Despite FATF taking steps to regulate the crypto industry and bring it out of a dark shadow, many member countries bypass their recommendations by passing their own legislation. Since they do not comply with the guidelines, their names get featured in FATF’s blacklist making them radioactive to foreign investment. This will enable the growing business of Cryptocurrency exchange development to avoid funding illicit causes and transfer funds securely without any suspicion.

The key aspects to look out for before investing in a White label Crypto Exchange Platform

patriciadixon — Fri, 09 Oct 2020 13:07:52 +0000

Though crypto exchanges earn huge profits every year, their main sources of revenue lie in transaction charges, escrow services, and coin swapping. Hence, traders prefer using a White label crypto exchange platform since it possesses all the important features and comes at an affordable cost. Though it offers customization for a firm, the basic features cannot be altered.

What does a White label Crypto Exchange Platform offer?

Since developing a crypto exchange platform involves considerable spending of time and resources, the white label crypto exchange platform is integrated with all the in-built functionalities. Top-notch security aspects are ensured. The business firm has all the freedom to customize its brand name, logo, UI/UX design, and color theme and launch the platform with just a few steps.

Benefits rendered by a White label Crypto Exchange Platform

A firm can customize its brand according to its needs.
It helps in reducing the development costs and time significantly, and the owner of the exchange need not possess much technical expertise to manage the daily operations.
It is highly reliable and available 24x7, as the application is tested extensively before the launch.
It enables a firm to launch its application quickly in the target market.
Their comprehensive list of functions will make your exchange platform look competitive and give you a massive edge in the industry.
The risks of failure are low, owing to the white label provider’s experience. Through repeated testing through several trial and error methods, they would have developed the best-of-breed solution ready to be used in the market.
Since they are built on micro-services architecture, they are adaptable to fulfill the new needs of customers. They can accommodate different integrations at a fast pace and scale up the capacity to trade quickly without disrupting the existing functionalities operating on the platform.

Important features in a White label Crypto Exchange Platform

Support for the leading crypto and fiat currencies for executing trades and processing transactions.
Multi-signature powered wallets that store the coins or tokens of the investors.
Compliance with the KYC (Know Your Customer) and AML (Anti Money Laundering) guidelines.
A powerful and accurate trading engine for matching the buyer’s and sellers’ orders seamlessly.
A robust admin panel that monitors all the operations and keeps a close watch over user activity.
An elegant user interface that is comfortable and easy to use.
Sufficient availability of liquidity through API’s formed with the other leading exchanges.
Multi-device compatibility and smooth functioning in different operating systems.
Security measures such as two-factor authentication, Anti-DDoS protection, and HTTPS authentication.

The typical process to launch a White label Crypto Exchange Platform

It involves analyzing the business requirements of the firm by gathering enough information. Further, the features should be decided after extensive research, and the in-built functions must be installed.
Integrating the customized API is followed by testing the application to discover any bugs in the functions.
Afterward, the server is installed and there is an official launch of the application on a public platform.
The firm should provide round-the-clock technical support for clients to resolve any bugs and glitches.

How clients are given an advantageous position by using a White label Crypto Exchange Platform?

Since the development investment is reduced, the platform can be run right away. The client can add any additional features and customization according to his requirements. It can be effectively scaled as the operational scope widens by adding new crypto and fiat gateways, implementing new features, and adding more users to the crypto trading site to boost revenue. High-end technology is applied, which enables faster execution of operations. It is constantly being updated with new upgrades. Flexibility is ensured through the presence of several engagement models, monetization settings, customizable interfaces for amateurs and professionals, and multi-language technical support.

Choose a reliable provider who helps in implementing cutting-edge exchange solutions for your operations. Make sure that the platform is developed in a way that helps in reducing the time to market. Ensure that the platform comes with a mix of robust analytics, advanced alert settings, and risk monitoring. While scalability is important for a business, keep track of the various modifications being made, and manage fixes in a timely fashion.

It should be a turn-key solution and deliver an unmatched trading experience through reliable backend functions. Choose an expert team of developers who understand your business requirements and deliver effective marketing strategies. While dedicated project management is important, post-launch maintenance is also crucial.

It would be better if they have separate dashboards for admin, client, and order book. The Admin panel can store the history of transactions, provide a real-time view of the exchange, and display the user details. The client dashboard would showcase the account balances, current prices of different currencies, and trends in the market over a period. The order book will provide an overview of the incoming bids and show the data of the users. It can display a list of pending transactions yet to be authorized by the admin.

Hence, team up with an experienced White label Crypto exchange platform provider who provides proper maintenance services, renders frequent upgrades, and rectifies security patches through constant on-call support.

Tactics to implement for making Cryptocurrency exchange marketing a success

patriciadixon — Mon, 07 Sep 2020 12:26:48 +0000

Due to the increased interest in cryptocurrency trading in the digital era, the business of exchange development has reached new heights.

Certain requirements to consider for making your exchange successful and standing apart from your competitors are

Enhanced security - With increased concern over the security of exchanges given the frequent occurrences of hacking attacks, an exchange platform needs to invest in robust security measures. Practices like two-factor authentication, user verification and an encrypted database should be mandatorily integrated.

High speed - The firm’s website must load quickly. There should be a seamless experience for users while shifting from one page to another. Hence, the web page must be optimized to make it faster. It must be able to process thousands of transactions per minute without any delays.

A comfortable user interface - Since the users of a cryptocurrency exchange would come from different locations with various age groups, the layout should be attractive and suit the requirements of enthusiasts and professional traders. Provide a great trading experience to your users. Users will see the ease in handling basic operations, convenience as well as an aesthetic pleasure to deal in cryptocurrencies.

Efficient marketing - Reach out to your target audience through carefully crafted campaigns across a variety of channels. Utilize different modes such as paid web advertising, social media promotion, media outreach and content marketing. Attract their attention by disclosing the benefits offered and bring them to trade cryptocurrencies on your website. Spread the word far and wide and promote your brand’s products and services for generating more awareness.

Apart from all the above factors mentioned above, hire an experienced and well-versed cryptocurrency exchange development team for building a successful exchange according to your business requirements. A major part of the success of the exchange depends on the skillsets of the development team behind it.

Must-have payment methods in a P2P Cryptocurrency exchange

patriciadixon — Fri, 28 Aug 2020 10:59:13 +0000

Since P2P cryptocurrency exchanges are fastly growing in the market, the need for integrating multiple payment methods is more important now. It will enhance the trading experience and help in attracting global crypto traders.

Some of the popular payment methods to be integrated mandatorily in a P2P Cryptocurrency exchange are

Debit card/ Credit card - Card-based transactions are convenient as it avoids the need for carrying cash everywhere. It directly sends money from your bank account while purchasing crypto assets. It permits both crypto-to-fiat trading and fiat-to-crypto trading.
Bank transfer - It comes as a useful tool in countries where card-based transactions are restricted. Of late, more traders are relying on this measure to complete their crypto transactions due to the presence of institutional credibility.
PayPal - It is an online wallet accepted internationally. PayPal permits the transfer of funds, deposit, withdrawal and storage of funds. It accepts most of the fiat currencies and is most suitable for a fiat-to-crypto P2P cryptocurrency exchange. It uses two-factor authentication that adds an extra layer of security for its users.
Mastercard/ Visa - The two dominant companies in the digital payments space act as networks between the banks and the merchants on a crypto exchange to complete a transaction. They provide a lot of exclusive offers for users to purchase crypto coins and tokens. It is compatible in regions where buyers and sellers claims are legal. Transaction fees would be levied to complete the payments process.
Digital coins - All P2P cryptocurrency exchanges would be compatible with the leading crypto coins such as Bitcoin, Ethereum and Litecoin. The developers of exchange should also provide various trading pairs for users to exchange different cryptocurrencies seamlessly.

The above payment methods must be incorporated in a P2P cryptocurrency exchange for satisfying the interests of crypto traders and investors. It will enhance the overall trading experience irrespective of whether a new exchange is being set up or an existing platform is going to be modified.

Team up with Blockchain App Factory for getting reliable payment solutions at an affordable cost to fulfill your business objectives smoothly. We make sure to follow all the relevant guidelines and our platform comes with multi-layer security, KYC and AML verification, technical support in multiple languages and swift dispute redressal.

Must-know facts about a P2P Crypto lending exchange

patriciadixon — Thu, 27 Aug 2020 10:46:52 +0000

A P2P crypto lending exchange has changed the dynamics of the financial market as it connects a borrower and lender directly by eliminating intermediaries.

Since all the transactions occur through the blockchain network, security, reliability and transparency are ensured.

Flexibility is ensured in disbursal of the amounts needed and fixation of the time duration of the loan. It will have to be repaid along with a pre-determined interest rate which is calculated by the exchange.

How a P2P crypto lending exchange works?

Borrowers can be either an individual or an entity. Unlike banks, the borrower’s credit rating is not analyzed. This leads to a higher demand in the market. The lender will most likely be an individual and will offer funds to the most needed parties on a priority basis. Both borrowers and lenders would be required to create their respective profiles on the platform.

Details to submit in a P2P crypto lending exchange

Both the borrower and the lender will have to submit information such as their name, phone number, address, bank account details, ID proof and type of investment intended to make. The lender should specify what kind of borrowers he wants to deal with. The borrower has to submit collateral which can be in the form of legal documents, crypto coins or guarantor. The matching engine will take into account the needs of the borrower and the lender and determine the terms and conditions. The two parties will discuss the agreement. The loan request can be accepted or rejected by the lender. Once the duration ends, the loan is repaid along with interest by the borrower to the lender. In case there is a delay in repayment, the lender has the right to recover the loan amount by selling the collateral pledged by the borrower in the open market.

Some of the benefits offered are lack of a credit check, lower interest rates, streamlined process and flexibility in repayment.

Hence make maximum use of the rising popularity by acquiring a customized P2P Crypto lending exchange from Blockchain App Factory.

Discover the various categories of expenses involved in Bitcoin Exchange platform development

patriciadixon — Thu, 20 Aug 2020 07:32:48 +0000

As traders continue to mint money from the rising popularity of cryptocurrencies, this is the appropriate time to indulge in Bitcoin exchange platform development.

However, it takes time to build a successful solution. Factors such as choosing the right developers, implementing the suitable technology stack, hiring legal experts, complying with registration formalities, and launching promotional activities.

Some of the major expenses to incur in Bitcoin Exchange platform development are

Obtaining a licence - A lot of governments charge a hefty fee for issuing a licence to operate a Bitcoin exchange. Nations such as Kazakhstan levy low charges as they understand the business potential that lies in a cryptocurrency exchange. Discuss with your team members so that you obtain your licence by following a hassle-free procedure and incurring an affordable cost.

Getting advice from legal experts - The extent of regulations is changing and varies from country to country. Comply with the rules and guidelines issued by regulatory bodies with due diligence to avoid complications in daily operations. Some countries like China and Saudi Arabia try to avoid recognizing Bitcoin exchanges legally though they are fans of blockchain technology. Follow the KYC (Know Your Customer)and AML (Anti Money Laundering) norms.

Processing of transactions - Since a Bitcoin exchange platform is expected to handle huge trading volumes, the payment processing system must be efficient and quick. Make sure to comply with PCI standards.

Teaming up with a technology solution provider - If you are interested in acquiring white label solutions, hire an experienced provider for ensuring a bug-free platform. Get access to the full source code they use for auditing purposes. Ensure that they provide dedicated support services post the delivery of the package. Make sure to reduce your costs and time taken to launch your solution in the target market.

Security measures - Invest in robust security practices such as two-factor authentication and end-to-end encryption to prevent any incidents of cybercrime. Ensure a safe trading experience for your traders. Occurrences of a data breach can have a huge impact on the reputation of the exchange.

Have a sufficient amount of funds to deal with any unforeseen expenses that may have to be incurred in different stages. Reach out to the experienced developer team of Blockchain App Factory for getting world-class Bitcoin exchange platform developmentservices at an affordable cost.

A basic understanding of cryptocurrency exchanges

patriciadixon — Thu, 09 Jul 2020 07:08:50 +0000

It is clearly evident that the craze for cryptocurrencies has drastically increased in recent years. Cryptocurrency exchanges act as the medium that helps entrepreneurs put their valuable cryptos into use and boost profits out of it. Cryptocurrency exchanges have provided lucrative opportunities to a multitude of crypto investors all around the world. Although they have helped them achieve million-dollar profits, they are still considered quite risky, unpredictable, and inconsistent. But with the profitable reward track records exceeding, entrepreneurs still aspire to invest in a cryptocurrency exchange software.

If you are one of them, and if you are a novice crypto entrepreneur, it is vital that you understand cryptocurrency exchanges and their functioning inside out. This will help you create a solid cryptocurrency exchange platform and achieve a risk-free, hassle-free business. This blog will help you understand every fundamental aspect of a cryptocurrency exchange that you need to know. So, let’s begin.

What is a cryptocurrency exchange?

Cryptocurrency exchanges are digital platforms that allow users from all around the world to exchange their cryptocurrencies for other digital currencies, digital assets, or fiat money, based on the market value of the asset. Most cryptocurrency exchanges allow users to trade digital assets only for other digital assets. But some of them allow the trading of digital assets for fiat money such as US dollars, Euro, etc., for cryptocurrencies.

Cryptocurrency exchange platforms function based on a blockchain network, which is a globally distributed network. The blockchain technology records, controls, verifies and secures every transaction that happens on the exchange, with a chain of blocks coded with strong cryptography. Also, it ensures complete user privacy and immutability, i.e., transactions, once recorded, cannot be interchanged or erased.

Entrepreneurs in the cryptosphere often tend to confuse between cryptocurrency exchanges and cryptocurrency wallets. To help you understand better, let’s see further the difference between the two, and how they function.

Difference between cryptocurrency wallets and cryptocurrency exchanges

The primary difference between a cryptocurrency wallet and cryptocurrency exchange is that the purpose of a wallet is to store your cryptos safely, while the purpose of an exchange is to facilitate trading one crypto for another.

In terms of Control

It is possible to store your cryptos both in your crypto wallet and on the exchange. But the major difference occurs in terms of the control of your funds. In the case of a crypto wallet, the users gain full control over the usage and transfer of funds. Users can control their private keys and their passwords.

But in the case of a crypto exchange platform, your funds are stored on the exchange account, or the exchange wallet, and a part of the overall control of funds should be handed over to the exchange platform.

Safety and responsibility

If you are a novice crypto trader and still learning the tricks, it is a better choice to store your funds in the exchange wallet. The management process is made much easier as the exchange takes control of the funds, and you can quickly trade your cryptos. Whereas, in a normal cryptocurrency wallet, you’re solely responsible for its security. If you forget your passwords or lose the funds, it is almost impossible to gain them back.

These normal cryptocurrency wallets operate with private keys, and it is very important that you keep your private keys safe and secure. Once you gain experience and knowledge of the trading techniques, you can shift to a private wallet and store your funds either in a software or a hardware wallet.

Cryptocurrency exchange laws

The legalization of your exchange is the most important component that you need to look into. Before you commence your exchange business, it is mandatory that you adhere to the legal framework according to your geographical jurisdiction. The regulations differ from one country to another, one region to another. So, it is important that you conduct ample research and understand the regulations of your area. Gaining legal advice from experts is a better choice to ensure your exchange is 100% legally compliant.

Read Article Also About Key aspects behind a successful White label cryptocurrency exchange

Custody norms affiliated with crypto exchanges

Cryptocurrency exchanges are generally divided into three categories, such as centralized, decentralized, and hybrid exchanges. Out of these, the most commonly used exchanges are centralized exchanges. Centralized exchanges operate based on a central authority. Traders do not get custody over their funds or the trades happening, and instead, the entire control will be taken over by a centralized authority. Centralized exchanges, as much as they are popular, are also known for their hack issues due to involvement from third parties. However, these issues are slowly getting sorted out with each day.

Another type of exchange is the decentralized exchange, which is the complete opposite of centralized exchanges. Here, there is no intermediary involved, and the traders get entire custody of their funds. Hence, these exchanges are considered more secure, efficient, and seamless and are gaining more and more traction with each day in the market. With the rapid technological advancement, it is expected that the cryptosphere will soon turn into a completely decentralized environment.

These are the key characteristics that you need to know before setting foot in the cryptosphere with your own exchange platform. There is more to this. If you want to find out more information and be a part of this revolutionary sector, with your own exchange, conduct extensive research and choose the right company to offer you money-spinning crypto exchange solutions.

If you are a crypto entrepreneur, it is vital that you understand cryptocurrency exchanges. build your crypto own exchange, with the best exchange solutions

Key aspects behind a successful White label cryptocurrency exchange

patriciadixon — Tue, 07 Jul 2020 13:15:58 +0000

Cryptocurrencies have become a force to reckon in the digital world. As more enterprises get interested in the speculative asset, the development of a robust exchange is the primary step towards kickstarting trading activities. White label cryptocurrency exchanges are the best way to gain quick traction in the market.

These exchanges come with a solid backend infrastructure which improves the overall trading experience. With pre-testing done before delivery, the exchange can be straightaway incorporated into the core operations.

Factors to be considered before opting for a White label cryptocurrency exchange

Awareness of laws - Not every country is favorable towards the operation of cryptocurrency exchanges. Some nations have banned the existence of White label platforms. Up-to-date knowledge of the laws and regulations is a must. Care must be taken by the exchange to maintain flexibility in its functioning, keeping in mind the dynamic environment.

Research - Before availing a White label cryptocurrency exchange, deep analysis about the company and its operations must be conducted. Procedures related to Know your Customer (KYC) and Anti-Money Laundering (AML) should be adhered to with perfect precision.

Essential characteristics to be included in the software - Some of the must-have features are a matching trading engine, interactive user interface, and wallets (both hot and cold). The presence of a robust admin panel will help in attracting better clients than competitors. 24x7 technical support in multiple languages will deepen audience engagement and improve user retention.

Liquidity - The creation of adequate liquidity is critical for the long-term survival of a White label cryptocurrency exchange. It depends on a high trading volume. Full-time monitoring of purchasing and selling orders will improve the returns on investment. The benefits of trading should percolate among each investor. Liquidity must also increase based on the expansionary plans of the crypto exchange. Establishing a network with well-known exchanges will boost the trading volume, thereby boosting liquidity.

Type of Exchange - There are different kinds of exchanges such as Centralized, Decentralized, and P2P exchanges. A company has to select the right type of after understanding the regulations, requirements, and scope of business activity. The limitations of each exchange must be taken into consideration.

Benefits of White Label Cryptocurrency Exchange

Technical expertise not needed - With advanced modules already available in the software, it eliminates the need for the exchange owner to possess technical knowledge for the supervision of the development process. This helps in easy management of exchanges by people who have a basic grasp of operations.

Reduction in expenses and time - With White label cryptocurrency exchanges, a company can save valuable time by launching their services quickly. It avoids wastage of efforts on the different stages of development that can take up months or years. Additionally, capital expenditure on the creation of software is cut with the help of White label exchanges. With a guarantee of zero errors, it is suitable right away for use in production.

Improved scope for customization - Though the software comes in-built with all the necessary features, it can still be customized based on business requirements. Alterations can be made according to the brand name, logo, UI/UX design, and color theme. This helps in revamping the exchange’s image in the eyes of traders and investors. It encourages new entrants in the market to launch their brand conveniently.

Solving existing issues - Bottlenecks in software usage can be solved quickly using White label cryptocurrency exchange. With in-built solutions and the latest patches, bugs can be cleared before they become serious issues.

An understanding of all the above elements by business firms will go a long way in choosing the right White label cryptocurrency exchange.