A crypto exchange app is like a marketplace which offers a portal where you can create different order types to buy, sell, and speculate on cryptocurrencies with other users.
But, how to open your own cryptocurrency exchange app? Let’s dive deeper.
Before Start, Choose Option to Create a Cryptocurrency Exchange App
If you lack the technical skills to handle it on your own, we recommend starting with these options:
Purchase a white-label solution
Develop a custom app from scratch
This way, you can get your app in front of the right people fast. Now let's take a closer look at the second option.
#1 Choose Cryptocurrency Exchange Type
Crypto exchanges can be either centralized, meaning they are managed by one corporate authority, or decentralized, where they generally distribute verification powers to anyone willing to join a network and certify transactions. There is also hybrid option or peer-2-peer crypto exchange
The differences between options are best illustrated with a comparison table.
| Criteria | CEX | DEX | Hybrid |
| Liquidity | High |
Low |
Low |
| UI & UX | Easy to use |
Hard to use |
Easy to use |
| Matching speed | Very fast |
Slow |
Fast |
| Custody | Users trust CEX |
Users own their funds |
Users own their funds |
| Trading volume | High |
Low |
Low |
| Features | Unlimited |
Limited |
Limited |
| Fiat gateway | Yes |
No |
Yes |
#2 Keep an Eye on Jurisdiction
Jurisdictions under which to start a crypto exchange app vary greatly from region to region, from a clear set of regulations to a complete lack of regulation. For example, Malta, Gibraltar, Switzerland, or Singapore now stand out as attractive countries for those wishing to open a cryptocurrency exchange. However, you will still need to keep an eye on legislative changes.
#3 Think about Architecture, Technology Stack, and API
An exchange architecture usually refers to a platform structure that helps define the relationship and the way all the components of an exchange interact: the login screen, trading engine, user interface, security features, APIs, databases, etc.
#4 Find a Liquidity Provider
The success and competitiveness of your exchange business will greatly depend on liquidity: how long it takes to exchange an asset for its money equivalent. As you know, customers will always choose an exchange with good liquidity that can offer a narrower spread.
#5 Take Care of Transparency & Security
The cryptocurrency market attracts not only new members, but also scammers. So, you should constantly improve the security of your app by various methods like two-factor authentication, cold and hot wallets, database encryption, etc.
#6 Test your Crypto Exchange
Now it's time to test your application. Note that the scope of testing should cover an assessment of overall system performance, functionality, speed, and security. Remember also to collect user feedback and make necessary improvements to ensure smooth operation and improve the UX.
#7 Ensure the Sustainability of Business Processes
In addition to preparing for the launch and gaining an initial customer base, you should implement processes that will improve user loyalty. For example, you can provide ongoing customer support and take care of your asset management strategy.
Read the full article by VironIT
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