Building a cryptocurrency exchange platform is now easy - An Eli6 guide
Cryptocurrency exchanges have been evolving in the past few years. It has now reached a mature stage. The developers behind the exchange are independent and exploring new opportunities.
As the demand keeps on increasing day-by-day, the business enthusiasts are planning to build a similar crypto platform. Are you looking to develop a crypto exchange platform with unique functionalities? Do you lack expertized help to build one and start earning good business revenue?
No worries, let me help you build a crypto exchange platform and guide you towards launching your dreams.
Should I build an exchange from scratch or is there another option available?
Building an exchange platform is an option if you want to bring in something unique from the base level. Let me make this simple, it’s more like a brand new idea, a vision with a real statement.
Can you imagine the toothpaste you are using every day become a source of suppressing your hunger? Weird, but very much possible! Human beings are so creative, even the impossible is becoming possible now with our spatial intelligence. Yet, great thoughts come with a great price, this is an expensive idea in reality!
Also, it takes time to build such an eminent platform from scratch with your stellar idea. This is a perfect option if you need to make people around the globe to witness a new revolution.
Have a unique idea but you lack time and money? You have another option, and it is a scalable option too. The solution is having a 'White label product’.
What’s a white label product and how can I build my exchange using it?
Understanding white label product is simple! You get a pre-developed product from another team and then launch it under your brand name. The advantage of a white label product is that it doesn’t consume time and won’t cost like developing from scratch.
You can also customize the entire system based on your ideas. The product belongs to you so you are the boss thereafter. You can also use open-source scripts, it’s an option too.
We prefer you to buy a white label exchange platform so that you don’t have to worry about time and financial struggles. But make sure you are choosing the right white-labeled product and partner. The scope of the product is very much important.
The choice is yours, be wise, make good ground study, and then make a smart decision.
What’s next should I know about a crypto exchange?
A cryptocurrency exchange platform as you know provides two services,
*Fiat to digital currency exchange
*Crypto to crypto exchange
Not every exchange supports both of the exchange types. Also, consider how the deposit thing works. That is, to make your first exchange or trading, you need to have a cryptocurrency. What if the exchange only allows BTC to start trading? You have to convert your fiat currency (USD, GBP, INR, etc.) from other platforms which in sense is not a good idea. It’s an extra customer pain point.
It’s better to cover both types of exchange modes. Also, the next part comes with rules and regulations strategy. You have three options.
*Centralized exchange platform (CEX)
*Decentralized exchange platform (DEX)
*Hybrid exchange platform
CEX has a team to regulate the exchange. DEX will go with a smart contract where the rules are automatically executed. And the last one is a combination of both elements.
The exchange runs with the support of blockchain technology. A distributed ledger system where transactions are recorded and verified by the connected nodes. Nowadays, most of the exchanges move on from the traditional blockchain to a native blockchain and powered with native coins.
Based on your marketing strategy, you can bring a new source of light to the world of crypto trading.
Do I have to look further?
As the conclusion part of this guide, you need to create a to-do list and add more as per your requirements. Take a good look at the points you must cover before developing a crypto exchange platform.
What is best for me, a white-label product, or should I begin from scratch?
Follow a SWOT analysis if you go for a white-label product
Check the functionalities available in the product
The scope of exchange in your community
Should I go with a CEX or DEX or even consider a hybrid platform?
The scalability and customization factor to consider