How to Build a Cryptocurrency Exchange App
Do you plan to start a Cryptocurrency Exchange Business? If so, now is the perfect time. The easiest and safest way to make money from cryptocurrencies is to create a crypto exchange application. Regardless of whether traders and investors make or lose money, the cryptocurrency exchange will remain a winner in any case.
But, how to open a cryptocurrency exchange app? So, let’s look at the main stages of the process.
Choose Option to Create a Cryptocurrency Exchange App
If you want to build an Android or iOS crypto exchange app but lack the technical skills to handle it on your own, there are many ways to go about it. We recommend starting with these options:
How to Build a Cryptocurrency Exchange App from Scratch
Choose Cryptocurrency Exchange Type
There are three different types of cryptocurrency exchanges: CEX, DEX and Hybrid.
Choose a 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.
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.
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.
Take Care of Transparency & Security
The cryptocurrency market attracts not only new members, but also scammers. Even the largest exchanges, like Binance or Poloniex, aren’t always able to resist hacking attacks.
Therefore, owners of cryptocurrency exchanges should constantly improve the security of their apps by methods like two-factor authentication, cold and hot wallets, database encryption, anti-phishing features, etc.
Test your Crypto Exchange
Keep in mind to test your application. The scope of testing should cover an assessment of overall system performance, functionality, speed, and security. Also, collect user feedback and make necessary improvements to ensure smooth operation and improve the UX.
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.