As digital trading drives the enormous adoption of cryptocurrencies all over the world, it has become a profitable business to reckon in recent times. The extreme volatility in the value of cryptocurrencies affects its usage as a valid instrument of transaction. Hence, to streamline operations through a common system, the need for a Cryptocurrency exchange emerged.
Meaning of a Cryptocurrency exchange
It allows different buyers and sellers a platform to buy, sell, and exchange cryptocurrencies based on their current value which is impacted by the changing demand and supply conditions in the market.
The value of the coin where they have put their money would determine if they earn profits or incur losses. Exchanges are legally valid and recognized across different countries. It is a new opportunity for business in the crypto realm that can be exploited to the fullest advantage by entrepreneurs. There are different types of Cryptocurrency exchanges such as Centralized, Decentralized, and Peer-to-Peer.
Steps to follow during cryptocurrency exchange software development
Complying with the existing laws - The country where you plan to register your entity for conducting operations plays a major role in determining your success. Some countries like Saudi Arabia and South Korea have issued blanket bans on cryptocurrencies. Hence, make sure your business is completely legally compliant to avoid any hindrance in daily operations. Obtain a valid license required in the area of incorporation.
Consider the commercial aspects - There is a need to hire talented developers who are well-aware of applications of blockchain technology and the cryptocurrency space. Hence, considerable financial resources need to be spent. The software needs to be tested rigorously to eliminate bugs before being officially launched.
Availability of adequate liquidity - It refers to the ease at which assets can be converted into cash without impacting the market price. Higher liquidity would be needed as an organization scales up and to attract prospective traders and investors. Liquidity can be boosted by connecting your exchange with other exchanges using an API to conduct transactions in that exchange.
Having a reliable payment solution - This feature is crucial for the smooth processing of transactions and the settlement of trades. Certain financial institutions are hesitant towards dealing in cryptos due to immense regulatory pressure. The payment solution should be secure enough with multiple layers of security.
Implementation of high-level security measures - This is necessary to thwart any attempts of hacking and phishing on the platform. Introduce features such as two-factor authentication, encrypted database, password-protected user access, and multi-signature enabled wallets. Transfer a certain amount of funds to cold wallets. Secure the interest of your traders with a robust KYC and AML verification process.
Undertake rigorous marketing campaigns - Make your exchange to stand out unique amidst the intense competition. Utilize tactics such as SEO, content marketing, social media promotion, email marketing, participation in discussion forums on platforms like Reddit, and Quora to get higher exposure and achieve better engagement.
Provide swift technical support - Solid technical support will make your good exchange to become a great one. Provide it in multiple languages through emails, phone , and chat facility round-the-clock.
Analyze the technology being used - Have a detailed look at various aspects such as the trading engine and wallet integration. Hire well-versed crypto developers or utilize open-source exchange scripts according to your business requirements. White label exchange software is also cost-effective and takes less time to launch in the market.
The business of cryptocurrency exchange software development is the latest fad in this dynamic world. Hence, communicate your business requirements with a reliable company like Blockchain App Factory which is well-known for top-notch cryptocurrency exchange software development and get customized features at an affordable cost to transform your enterprise in no time.
