Some people look at the positive side of using cryptocurrencies as the new form of currency; then there are those who say it won’t be around forever. Irrespective of all this, bitcoin and all other cryptocurrencies are booming, allowing businesses and startups to taste some success with it.
Here we look at a few aspects of cryptocurrency and explain to you how to build a cryptocurrency exchange platform, all by yourself.
First up, what is cryptocurrency?
Cryptocurrencies have now become a global phenomenon, leaving everyone to want some of it. Cryptocurrency can be obtained by those who aren’t into tech as well.
The users who are trading with cryptocurrencies need not rely on intermediaries like banks and central authorities. The cryptocurrencies are to be used in exchange instead of fiat currencies like USD and EURO.
The system of cryptocurrencies operate on a peer-to-peer network and is decentralized. The transaction process goes through the blockchain network, which creates a secure mode of transaction for every user involved in the mining process.
The cryptocurrency transactions are inserted into a block, and the computers used for the network start solving complicated mathematical problems. Once the computer is done decoding the problem, the solution is then shown to others in the network, if the solution is correct, the block is added to the chain and the transaction is complete.
You can also take help of a cryptocurrency exchange software as it will help you build a decent and a user-friendly exchange platform. The exchange software will help you in creating a platform instantly. They help you in developing applications for mobile that are sleek and powerful.
Steps to Develop a Cryptocurrency Exchange Platform:
One of the major areas that you must focus on is the user-friendliness of the exchange platform. To get in more customers, you need to have a design that is suitable for use to both beginners and experts. It is a must that the UI design must provide support to all of the devices like smartphone, laptops, tablets, etc.
The suggestions from our side will be to hire developers who can help you develop a customized cryptocurrency exchange application.
Support to Cryptocurrencies
Another important aspect when developing a cryptocurrency exchange platform is the number of cryptocurrencies your exchange platform will support. As of now, there are more than 2000 cryptocurrencies; the numbers are still increasing.
It is quite understandable that if your exchange platform supports all of the significant cryptocurrencies; investments are bound to grow. The decision is on you, as the competition is increasing rapidly.
Creating a cryptocurrency wallet
Creating a wallet is essential in the development of a cryptocurrency exchange platform. The customers can use it to store cryptocurrencies; it will also ensure the safety of user’s funds. The wallet you create needs to have an enhanced security system which builds the trust factor among the customers.
These cryptocurrency wallets are categorized into two types: Hot and Cold.
- Hot Wallets: Users are allowed to export their currencies to an external wallet. Here, if the coins have to be withdrawn need not take the approval of exchange administrator. Hot wallets are connected to the internet; this makes it more prone to attacks by hackers.
- Cold Wallets: These wallets are not connected to the internet. Cold storage mainly refers to the currencies that are stored on a USB Drive. As an offline wallet, it protects from cyber attacks and the vulnerabilities that a system connected to the internet is exposed to. Many crypto users save their coins in a cold wallet.
A crucial aspect to be considered while developing a cryptocurrency exchange platform is to have the facility of payment processing. To support this requirement, you need to have payment processors like the bank and a payment gateway API; helping the users to send or withdraw money any time hassle-free.
THE BOTTOM LINE
Developing a cryptocurrency exchange platform requires a hefty investment. However, you should also see that cryptocurrencies are about to grow owing to their popularity. The transaction fees collected on your platform can bring in good profits.
By creating a cryptocurrency exchange platform to users all over the world, you can help them out with their day-to-day transactions.