Centralized Crypto Exchange Development — A Notable Guide to Start Your Business
In spite of the Crypto market getting enhanced and advanced innovations in the industry, Centralized Crypto Exchanges still have been a giant house. They have stood apart in terms of revenue making and are looking to improvise on the existing platform. One primary reason behind the demand for Centralized Crypto exchanges has been the convenience for the users. Managing your digital assets under a centralized authority does make sense, in the busy world.
Well, in the interests of aspiring Entrepreneurs, Centralized Crypto Exchanges can be a highly profitable business. You can hardly put a foot wrong, with the business idea since it comes under the proven and tested method. The best example is Binance, making every trader wonder about starting a Centralized exchange like them.
In this blog, We have provided everything about Centralized Crypto Exchange Development.
Let’s start with..
What are Centralized Crypto Exchanges?
Centralized Crypto Exchanges are online business platforms that facilitate Crypto trading between buyers and sellers. They allow users to buy Cryptocurrencies like Bitcoin, and Ethereum using advanced trading methods and make profits through price fluctuations. They are highly secure and dependable making it the best choice for beginners looking to trade through a platform.
Centralized Crypto Exchanges have more trust among traders and have larger benefits. To understand them better, let’s look into the types of Centralized Exchanges.
Types of Centralized Crypto Exchanges
Centralized Exchanges are usually divided into types,
1)P2P Crypto Exchanges
2)OTC Crypto Exchanges
P2P Crypto Exchanges
P2P or peer-to-peer exchanges have a simple formula to allow users to trade instantly by eliminating the direct involvement of a third party. P2P exchanges can be divided into two types,
P2P Order book based
Order book-based exchanges are far more effective as they operate through a matching engine. When a buy order or sell order is placed, the trading engine looks for the right match at the earliest time possible. This type of trading is quite common and popular. Market Order, Limit Order, and Stop Order are the three main order types and each order has a specific function. The best example is the Binance exchange with the spot trading feature.
P2P Advertisement based
P2P Advertisement-based exchanges use an Escrow system to facilitate transactions. When a user wants to buy or sell Crypto, an Advertisement with the price amount can be listed on the platform. Users can directly negotiate Crypto prices with each other on the platform and Escrow Wallet secures the users from any potential frauds. The best example is Remitano.
OTC Crypto Exchanges
OTC or Over the Counter Crypto Exchanges are becoming popular and they are also called the User-to Admin Exchange. In these exchanges, the Crypto prices can be negotiated with the Admin of the platform and are essentially used by Crypto Whales. OTC Exchanges are most suited for bulk Trading. The best example is Coinbase.
Benefits of Centralized Crypto Exchanges
The benefits of Centralized Crypto Exchange development are plenty. Here are some of the benefits of developing a Centralized Crypto Exchange.
Better User Experience
Centralized Exchanges have always offered a much better user experience, thanks to their simplified and structured UI dashboard. Apart from that, Centralized exchanges have a support system for all kinds of queries and manage to address them in a very quick time. Note that, users tend to look for convenience, and Centralized exchanges are the best option for it.
Liquidity
Liquidity is a major component in Centralized exchanges and the more liquidity, the higher will be the number of trades. To ensure your business is at the top, you will have to keep ensuring high liquidity is maintained in your exchange. Centralized exchanges have always had the luxury of liquidity due to the quick trades possible.
Instant Trading
Centralized exchanges have the option to trade instantly, making it the best for new traders. With the prices being highly volatile, traders look to take advantage instantly and Centralized exchanges bring that factor into play.
High Security
Centralized Exchanges offer compact security and build more trust among users. Security is one of the challenges in the Crypto industry and if you are able to solve that aspect, half the job is done. Security can be the long-withstanding pillar for your Centralized exchange and an entrepreneur should apply the strongest security features to your exchange.
Revenue Streams
Ultimately, developing a Centralized exchange for revenue and multiple revenue streams is the need of the hour. What happens in most cases is that startups are most focussed on one revenue stream which might not work in a risky industry like Blockchain. Centralized exchanges always have wide revenue options like trading fees, withdrawal, and deposit fees, listing fees, etc.
Top Features of Centralized Crypto Exchanges
Here are the top features offered by Centralized Crypto exchanges.
Trading Tools
To enhance users’ productivity during trading time, Centralized exchanges offer advanced trading tools. Order books containing different orders like market orders, stop orders, limit orders, etc, price charts, and API access to live data, all come under the trading tools of Centralized exchanges.
Security features
Centralized exchanges are built through robust security features like Two-factor authentication, Anti DOS, Anti DDOS, End-to-end encryption, etc. This secures the Centralized Crypto exchange from any kind of hacking activity or malicious activities.
Multiple Payment Methods
Centralized Crypto Exchanges offer the option of buying Cryptocurrencies using Fiat and this allows more users to enter into the frame. Apart from that, Centralized exchanges support various payment methods like Cards, bank transfers, and payment gateways through external APIs.
KYC/AML Verification
KYC or Know Your Customer facilitates the identification of potential fraudsters by verifying the identity of the traders. KYC is mandatory in Centralized exchanges, making it quite tough for any threats inside the exchange. AML or Anti Money Laundering feature prevents and reports any suspicious activities in front.
Robust Infrastructure
Centralized Exchanges have a simple, but robust infrastructure that is scalable and adaptable to quicker transactions. Once, the Exchanges start to grow better, they will have to be in a position to handle a large volume of transactions and the scalable nature of Centralized exchanges allows it.
Margin Trading
The Margin Trading feature allows users to trade Cryptocurrencies by borrowing loans from the exchange. The collateral here is the assets of the users and can be useful while the funds aren’t enough. The interest is calculated based on the return time of the loan.
How to Develop a Centralized Crypto Exchange?
There are two popular methods to develop a Centralized Crypto Exchange. You can either develop the exchange from scratch or use a White Label Solution.
When you develop a Centralized exchange from scratch, everything in the exchange is newly built from top to bottom. Uniqueness is prioritized and every feature is built with high importance. This method is usually deployed when the exchange owner has a large sum of money to invest and has ample time. However, this might not be suitable for budding startups who are looking to enter the industry with less investment.
You can also develop a Centralized Crypto Exchange using a White Label Solution. A White Label Centralized Exchange Software is a ready-made solution that helps to launch a Centralized exchange with all the features and functionalities instantly. This is specially made for startups who are looking for customizations rather than uniqueness. Low investment with a high Return on Income is a massive factor in crypto-based businesses and Centralized exchanges manage to offer that.
For either of these methods, you will need the support of a Centralized Exchange Development Company.
Cost of Developing Centralized Exchanges
The average cost of developing Centralized Crypto Exchanges ranges from $12,000 to $30,000 based on the requirements. When you opt to develop your Centralized Crypto exchange through a freelancer, the price can get reduced but the quality might differ. Also, the reliability cannot be guaranteed by a freelancer.
The best way to develop a Centralized Crypto Exchange is to approach a top-class Centralized Exchange Development Company. They have all the necessary essentials to bring out the best outcome for you in a professional manner with fewer chances of failing. Although the time and cost estimated might be slightly high, the final result is exactly what is required in the current setup. Suggestions from top developers in a development Company are far more valuable and are definitely an X factor for developing Centralized exchanges.
Conclusion
The future is all about automation and AI, making it a completely decentralized way of living. With that in mind, entrepreneurs have to be proactive and build their dream Centralized exchange as soon as possible. By doing that, they can be far superior to their competitors who are yet to understand the potential of creating Crypto exchanges.
The other thing is that the Bitcoin price is rising like ever in recent times, and this is the best time to bring your ideas into reality. Many traders are looking for a much more secure and reliable exchange that offers the best features and lessens the time. Whether you are a trader or an investor, you can save ample time by investing in Centralized exchange development for long-lasting profits.
