How to start your own cryptocurrency exchange with no hassle?
Cryptocurrency exchange is a marketplace where people can buy and sell cryptocurrencies. The exchange is a platform which acts as a middleman between buyers and sellers of crypto while combining liquidity. The main mean of getting and selling crypto, in general, is Cryptocurrency Exchange.
STEP ONE:
There are few factors that are to be considered before building a cryptocurrency exchange:
What type of cryptocurrency exchange will it be?
- Centralized Cryptocurrency Exchange
- Decentralized Cryptocurrency Exchange
Centralized Cryptocurrency Exchange-
It allows for trading of crypto to fiat or other cryptocurrencies. The exchange has control over users’ funds and other matching takes place off the blockchain network. The exchange also controls funding and limits. These are easy to use, have high liquidity, and boosts advance charting and exchange features. However, trading fees maybe high and trading activity will not be anonymous.
Decentralized Cryptocurrency Exchange
Via smart contract layer, through the peer-to-peer exchange, users directly send cryptocurrencies to one another. Since everything is on the blockchain, there is transparency
in the trade and lower chances of the hack. Sometimes these have less liquidity and volume, which means slower order matching and higher volatility. The exchange has no control over the user funds and the order matching takes place off the blockchain network.https://www.digixhub.com/how-to-start-your-own-cryptocurrency-exchange-with-no-hassle/