Cryptocurrency Exchange Development: How to Build An Online Trading and Cryptocurrency Investment System

Cryptocurrency Exchange Development

I may not know why you’re interested in Cryptocurrency Exchange Development, but I am confident you want to break the siege of many rigid payment systems or start making insane money like the top crypto exchanges; Coinbase, Binance, Bittrex and more.

You know, we must appreciate the fact that the emergence of cryptocurrency has changed everything when you consider the resistance against users with other payment processors like PayPal and more.

Now, if you must build an online trade online trading and cryptocurrency investment system, you might need the knowledge of coding – programming languages and all whatnots.

But what if you do not know any pythonian coding language and you are so interested in Cryptocurrency Exchange Development? If you fit in on any, we will define the steps you need to take to make this work.

 

What is a Crypto Exchange?

A cryptocurrency exchange is a system for buyers and sellers of different currencies to exchange different types of currency. The other matching module matches buy and sell orders, creates transactions to record the process, and updates the customer’s account balances.

 

The Truths About Cryptocurrency Exchange Development

Let’s be frank, if you are a programmer, you can write the “kernel” of the exchange over a long weekend, but the downside is that building a large-scale cryptocurrency exchange is quite complex. Here is what I mean.

Cryptocurrency Exchange Development

(Image – automagical.rationalmind.net)

If you are thinking or developing a crypto exchange trading engine then you might need some basic language such as C# and ASP.Net MVC4/Razor. And when you consider the UL, it can be a service-based using knockout.js and jqGrid to bind to JSON web services. (Hope I am not confusing you already).   

 

Cryptocurrency Exchange Development Cost

The first consideration about cryptocurrency exchange development cost is that crypto exchange is a 24/7 marketplace that matches buyers and sellers of various currencies.

 Basically, any Exchange Development Cost will center on the following 4 parts:

  • Order Matching Algorithm
  • Transfers
  • Advanced Orders
  • Trading Page

 

Cryptocurrency Exchange Development

(Image – automagical.rationalmind.net)

Going further,

Whether some exchanges hide the underlying market (Coinbase) while others make the order book semi-transparent to their users (Bitstamp) and provide advanced options, the point is, you will need to decide and on the cost of running a 24/7 marketplace. Below is the outlook.

All Advanced exchanges typically allow buyers and sellers to specify a set price for their order, while simple exchanges process orders at the market price.

 

How To Develop Cryptocurrency Exchange – The Key Features To Consider

According to David Veksler, to attract customers to a currency exchange, it needs to have three main features – even though there are more. The 3 are as follows.

#1. Liquidity

He explains that there needs to be enough volume for buyers and sellers to find each other, in order to (a) keep the bid– offer spread low and (b) process large orders without a large move in the price.

The available liquidity should be communicated to the customer via the order book, market depth chart, and developer API.

#2. Speedy Execution:

The order needs to be processed quickly, ideally instantaneously from the customer point of view.  Orders with set prices cannot be processed immediately, but the status of all orders should be immediately shown to the customer.

 

#3. Asset Safety:

Customers need to have confidence that the money they keep at the exchange will be safe – and of course, the exchange needs to actually be safe to use. 

While customers can’t see directly into the backend operations of the exchange, it is important to convey safety through communications and functionality.

 

Factors To Consider Before you Build Cryptocurrency Exchange Website

Before you consider to build a cryptocurrency exchange website, there are many different kinds of risks that an exchange faces- they are detailed below.

#1. A large, distributed exchange is like a medium exchange, but the split the customer activity into segments (shards).  The shards are independent, and if using cloud auto-scaling the exchange can scale indefinitely.

#2. Medium, asynchronous exchanges use independent layers to process requests. Here the interface takes user requests and submits it to a queue. Each queue runs as a service – possibly on a different machine.

The service executes the request, then communicates the status to the interface. For instance, when a customer-user places an order, the interface inserts a request into an order book, the polls for status updates.  

 

Side Note: An order matching service processes the order, then returns the response, which is shown by the interface. As a matter of fact, there is a service for each major feature of the exchange, as well as maintenance services that are independent of user-triggered requests.

 

#3. Small, synchronous exchanges are simple and easy to build: they process all customer request in a single transaction, from the interface to the order book to updating the customer’s account record. They have very limited scaling abilities and will fail at large transaction volumes.

More Reading from David on –

#1. Open Source Bitcoin Trading Engine #2. How to Build a Bitcoin Exchange

 

Process of Launching Cryptocurrency Exchange Platform

As far as developing a crypto exchange is concerned the following are the proceedings to follow.

Step 1: Requirement Gathering, Exchange Preparation

Step 2: Vanilla Exchange Product installation with jurisdictional changes based on the geography of exchange incorporation

Step 3: Match Engine Installation as per requirements

Step 4: Integration of different Blockchains into the Exchange

Step 5: Enhancing the Security Features

Step 6: Listing of the Coins/Tokens on to the Exchange.

Step 7: Handing Over the Exchange.

 

Ref: List insight by blockchainappfactory.com

 

The Top 12 Virtual Currency Exchange Platform Features

#1 Admin Backend Panel: Can view all current functions, including KYC, Tickets issued, Referrals and all transactions.

#2. API Integration: Any virtual asset can be integrated into the exchange with integration mail service and SMS service providers.

#3. Multi-language support: The exchange will support multiple languages, including Mandarin, Korean, French, and Russian.

#4. SEO/SEM Enabled: Text readable SEO widget allows admin to add focus keywords, which will turn up on Google search.

#5. Leverage Trading: Effective risk management to reduce stop loss and thereby, increase the number of trades.

#6. Margin Trading: Borrowing virtual currency to trade in the platform to make a profit and return to the lender at a predefined rate.

#7. Integrated Referral Program: Users will get direct commissions and referral commission after that trade of the referral has been completed.

#8. Order Sharing: IBT Virtual Currency Exchange Platform allows to mirror orders optionally and increasing liquidity.

#9. Matching Engine: The matching engine supports 150k orders per second and different types of orders.

#10.  Multicurrency Wallet: Multicurrency Wallet supporting fiat and Virtual Currency with multiple payment and withdrawal methods.

#11. Payment Gateway Integration: Users can deposit and withdraw Virtual Currency via Visa/Mastercard, Wire Transfers, and other methods.

#12. Mobile Application: Users can perform On the Move Trading while Tracking Live Market Information with Live Price Alerts in his/her iOS or Android devices.

The above are the typical features a Virtual Currency Exchange Platform must have, however, it was that of infiniteblocktech.com

 

Basic Features Of Cryptocurrency Exchange Apps:

When you talk about bitcoin or crypto exchange development one of the parts you want to consider is the app – for users. With that being said, the following are some of the best parts to consider.

  • User Registration
  • Filtered Search for price and amount of Cryptos
  • Buy and Sell Bitcoins
  • Management of Dashboard
  • Request for agreement verification
  • Account verification status, and more.

Advanced features of Cryptocurrency Exchange Apps:

  • QR Scanner Code
  • Optional logout
  • Whitelabel Solutions
  • Two Factor Authentication
  • Escrow Binded Application
  • Recurring invoices and outvoices
  • Various trading order limits and more.

Insights from cryptoexchangescript.com

 

Cryptocurrency Exchange APP Development Cost

One of the best ways to win more customers is for a cryptocurrency exchange to operate through mobile applications. The advantage of this is that these trading apps come with a wide range of functionalities so users are glued to their mobile app always and often. Let’s see the cost overview.

The total cost of developing top Cryptocurrency exchange Apps like binance, poloniex, coinbase and more depends on various things such as the features that will be added and also the duration time that will be taken by the developer to build the crypto exchange application.

Another factor is the dependency on the safety measures and customized whitelabel solutions to build your unique cryptocurrency exchange applications at an affordable price.

 

Cryptocurrency Exchange Development Vs Whitelabel Cryptocurrency Exchange Software Solutions

There is no doubt that Cryptocurrency trading started via White label Bitcoin exchange software and numerous cryptocurrencies have gained instant recognition among the digital community.

But building a dedicated White Label Crypto Exchange Software from scratch is a tedious process, not to mention the heavy cost incurred during the designing and development stage.

Cryptocurrency Exchange Development

(Image by blockchainappfactory)

This upfront cost is why you need a Crypto Exchange Development Company or a cryptocurrency exchange developer to save your breath off it.

 

Top 5+ Coding Language for Crypto Exchange Development

The following are some of the top coding type sets needed to code the heck out of an altcoin exchange.

  • Docker / Kubernetes
  • Ruby 2.6.3
  • Rails 5.2+
  • Redis 4.0+
  • MySQL 5.7
  • RabbitMQ
  • C#
  • Net MVC4/Razor

 

Top 4 Workflow for Crypto Exchange Development

The following are some of the top Workflow needed to build a crypto exchange.

  • Agile Development and Scrum
  • Cross Functional Teams
  • Cross Browser Testing and Debugging
  • Mobile-First, Responsive Design

 

Top 5 Crypto Exchange Development Company/Programmers

There are many White Label Cryptocurrency Exchange Platform Providers in the Crypto worlds but I will look at the appealing 5.

Please note that there is no particular order of preference.  However, while there is no preferential listing, I would recommend you give attention to blockchainappfactory | infiniteblocktech | Skalex.

 

Guide – How to use Binance Trading Platform

 

1. David Veksler

David is a cryptocurrency exchange developer who majors in Domain-Driven Design and Cloud-Native Software Architecture.

He has diverse background that incorporates software engineering, product, project, and people management, and strategic direction. Blend of engineering, business, and marketing acumen acquired over 16 years identifying, building consensus, and implementing technology solutions.

 

2. Coinjoker

According to the website, Coinjoker is a leading cryptocurrency exchange development company, that pioneer in developing a high-end cryptocurrency exchange/trading website platform with our

Coinjoker builds Whitelabel Bitcoin & Cryptocurrency Exchange Script which makes your transactions faster. They have a team of 150+ blockchain developers who are specialized in building cryptocurrency and blockchain-based applications.

Fortunately, they have completed over 220+ premium cryptocurrency and blockchain projects for our global clients so, they know what they are doing.

 

3. Infiniteblocktech

According to the website, Infinite Block Tech is a Virtual Currency exchange development company building a complete and reliable digital asset exchange software to facilitate secure, easy, and fast transactions. They are one of the pioneers in the digital asset exchange development platform, with developers whose priority is in the safety and security of the exchange.

4. Blockchainapp Factory

Another top Cryptocurrency Exchange Development Company is blockchainappfactory. Blockchain App Factory is a cryptocurrency exchange development company that pioneers in developing a complete cryptocurrency exchange software to facilitate secure and fast transactions.

 

#5. Skalex.io

The Coinhub Team is in partnership in skalex Crypto Exchange with a Renowned White Label Solution.

Cryptocurrency Exchange Development AND IT' COST

Skalex is a global Blockchain software company, specialized in developing white label crypto exchange platforms. They develop custom Blockchain trading solutions for businesses.

The team at Skalex has many years of experience in the design, development and implementation of solutions for global corporations. As stated on its website, this experience enables the team to fully understand and evaluate the requirements and challenges associated with delivering new, innovative technologies to companies.

 

A Free Open Source Cryptocurrency Exchange Development Platform

One of the crypto platforms to build an Online Trade Online Trading and Cryptocurrency Investment System is RubyKube.

Cryptocurrency Exchange DevelopmentRubyKube is a free open-source modular crypto exchange platform. RubyKube as an open-source project has over 300 contributors from all over the world besides the core team of over 60 developers who originally forked the old abandoned Peatio project on GitHub.

About Peatio. As the core wallet and order book management system, we have built account management and KYC using open-source Barong OAuth2 system, as well as Business Logic and other components.

Whether you are interested to run a RubyKube-based exchange, or a coder looking to get your feet wet with modern Ruby apps – they welcome everyone!

Visit Rubykube Website

 

See: how to Buy BTC in USA

 

Cryptocurrency Exchange Development Cost

Below is a Cryptocurrency Exchange Software Pricing overview – as presented by blockchainappfactory.com.

Crypto Platform Type: Coinbase like Controlled Exchange

Price: 2 BTC

Fee Schedule: One Time Fee.

The Benefits

  • Whitelabeled Exchange Software
  • Fully Secure blockchain based
  • 6 months of support included
  • FREE brandable Whitepaper
  • FREE setup in your private cloud
  • Bitcoin deposit, withdraw, buy and sell
  • Ripple deposit, withdraw, buy and sell
  • Litecoin deposit, withdraw, buy and sell
  • Bitcoin Cash deposit, withdraw, buy and sell
  • Ethereum deposit, withdraw, buy and sell
  • 2 Factor Authentication
  • DDoS protection, X-XSS-Protection, HTTP Public Key Pinning and CSP Protection
  • KYC & AML
  • Support Tool for Exchange Users
  • USD EUR Bank Deposit & Withdrawal Support

 

Crypto Platform Type: Customised Binance Competitor

Price: 3 BTC

Fee Schedule: One Time Fee.

The Benefits

  • Whitelabeled Exchange Software
  • Fully Secure blockchain based
  • One Year of support included
  • FREE brandable Whitepaper
  • FREE setup in your private cloud
  • Bitcoin deposit, withdraw, buy and sell
  • Ripple deposit, withdraw, buy and sell
  • Litecoin deposit, withdraw, buy and sell
  • Bitcoin Cash deposit, withdraw, buy and sell
  • Ethereum deposit, withdraw, buy and sell
  • Buy orders based on conditions
  • Sell orders based on conditions
  • Trade between users
  • API Integration
  • Trade Matching Engine
  • Paypal deposits for customers
  • Stripe deposits for customers
  • Change Transaction Fees for buy and sell
  • Detailed Reports with filters
  • KYC & AML
  • Multi cryptocurrency Support
  • Multisignature Wallet
  • Highly Customized UI/UX
  • Multi-Language Support
  • Anti-Phishing Code
  • CSRF & SSRF Protection
  • Elliptic-curve cryptography Wallet
  • DDoS protection,X-XSS-Protection
  • HTTP Public Key Pinning CSP Protection
  • BAF Blockchain Experts Support for your exchange
  • Advanced Exchange Views
  • Payment Gateway Integration
  • SEO/SEM Enabled
  • Integrated Referral Program

Learn more on blockchainappfactory.com

 

Cryptocurrency Exchange Development Fee Cost – By Infiniteblocktech.Com

Crypto Platform Type:  Scale Up

Price: $25,400

Fee Schedule: One Time Fee.

The Benefits

  • Whitelabeled Exchange Software
  • Fully Secure blockchain based
  • One Year of support included
  • FREE brandable Whitepaper
  • FREE setup in your private cloud
  • Multi-Virtual Currency deposit, withdraw, buy and sell
  • Buy orders based on conditions
  • Sell orders based on conditions
  • Trade between users
  • Trade Matching Engine
  • High Performance & Scalable
  • Referral Rewards Programme for Users
  • Fluid Trading Platform
  • Flexible Withdrawal Permissions
  • Name Accounts can be Transferred
  • Order Matching in Decentralized Network
  • Order Book and Trader Pooling

Learn more on infiniteblocktech.com

 

Read Also – How To Get Cryptocurrency Exchange License, using Estonia as a Case Study

 

Final Notes

All we wanted to achieve in this article was understanding Cryptocurrency Exchange Development that is going on to build an online trade online trading and cryptocurrency investment system that will make an insane amount of money.  And without doubts, we want to believe you’ve gotten every ounce of it.

With the guide above I am certain cryptocurrency exchange development ideas, cryptocurrency wallet development and more complexities would have been sorted out by now.

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