Looking to start a Bitcoin exchange platform?
Good decision, this growing market has lots of opportunities.
In this article, we try to give an overview of how to create a crypto exchange. Before you get down to work, you need to understand the cryptocurrency exchange architecture that is how to set up the internal structure of the bitcoin exchange website. There are several different approaches that will enable you to do so, my purpose is to cover them all here.
What is a cryptocurrency exchange?
There is one fact available here that you can’t execute a transaction on the ethereum network with bitcoin you will need ethereum to transact on the ethereum network, so the two networks are not compatible.
How would the traders execute bitcoin transactions if they only have ethereum or other altcoins or vice versa? The crypto exchange websites emerged to fill this gap.
A cryptocurrency exchange is a process of exchanging virtual currency for other assets like different currency tokens or fiat money. It is extremely popular nowadays and numerous companies or entrepreneurs launch their own crypto trades.
These exchanges are peer to peer. Since they are decentralized, they cannot be controlled by any outside party such as banks or governments.
On these platforms, registered users can buy and sell digital money, follow the changes in the rates (they change from time to time), or store their crypto assets. These kinds of sites usually pay most of their attention to their level of security and payment facilities. However, an experienced user should regard the exchange rate they propose.
As people buy and sell bitcoins or other coins the price will rise or fall depending on the volume being sold. We hope that in the future the price of bitcoin (which is the reference of digital coins and altcoins) become more stable.
How do I create?
Like any new software lot of work should be done before you start the programming part.
Cryptocurrency exchange website development may become a challenge. However, you wouldn’t need luck or brilliant technical knowledge to do that. Here we have provided some basic tips for you on how to run this process in order to gain profit.
Before any other action, you have to do some research on existing crypto exchanges. Check out the feature and services they provide for their users.
We have listed some of the most popular crypto exchanges here:
Top 10 Bitcoin and cryptocurrency exchange
Know your target market
This part will define how successful your cryptocurrency exchange website development will be. Knowing your target market will allow you to create both a product and marketing strategy that will allow your site to grow up.
You also have to consider the location you want to provide services, you are going to need the necessary international licenses and permissions according to locations where you plan to present your exchange business.
By doing plenty of researches you will find out how exactly these exchanges came to be successful, as they are today. This will give you a huge amount of great ideas that can be used to improve and create your own bitcoin exchange.
Make a partnership with a trustworthy bank
To provide support for fiat currency, you must make a deal with a bank or payment provider. So it is very crucial to choose a bank that provides enough online facilities and suitable exchange rates.
Pay attention to the exchange architecture – UI and UX
Before programming, you have to exactly know that how you want your bitcoin exchange to look or function.
If the user gets bored because of the slow loading pages or complicated user interface because they can’t achieve what they are looking for with a few clicks. These are the things you have to consider before starting programming.
You can provide the mobile app for your exchange, in a world that the number of people who use their mobile phones to do their digital transactions is rising its an obvious fact that developing a mobile exchange app will attract many traders and bring significant benefits to your business.
There are some basic architecture methods that have the following steps:
Without this part, the overall mechanism cannot work. A trading engine should have access to the order book, match all the purchasing and selling orders, process transactions, and calculate balances.
The UI of the exchange must be completely user-friendly and totally smooth for the use of the users. Try to make an intuitive and user-friendly platform for your clients to find the process of trading, buying and selling, storing a simple process.
The digital wallets of your website must be enabled for quick and easy launching, and also support the secure operations of the withdrawal or deposits of your virtual money and change them to fiat currency.
The admin panel is an administrator panel to control the operations such as verifying processes, creating liquidity, or tracking the transaction banning the suspicious account.
Provide good customer support
After launching the platform, you have to provide support for your customers. The support services must be instant and quickly solve the clients’ problems. The support team must react fast and help the client with the proper solution or connect them with the appropriate team.
Pay attention to the security
Practically all services that work with currencies should know the customer policies, which check the passport or some other ID or verification Id to confirm the client is real and prevent the malicious activity and ensure other users entity and security.
As we know people are so eager to run their interactive websites on their own. One of the fast ways to develop their exchange website is to use a readymade template rather than developing it from scratch.
Building a website with premade template designs is the easiest thing to do. With the help of a pre-developed platform, you don’t need all the time and money for developing an exchange website from scratch. With the help of these pre-made template platforms such as WordPress CMS or the other pre-made software that we call them clone scripts (clone scripts are ready-made scripts that are similar to successful exchanges that are currently available in the market), all you have to do is choose, select, and modify the features and design and in a blink an eye your exchange is ready.
With the help of clone scripts, the time that is needed for the cryptocurrency exchange website development will be lower and with less amount of money. You can choose the platform that you want the clone script and redesign the appearance or add or remove the features based on your business requirements.