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How To Build Cryptocurrency Exchange Platform

Velmie
Velmie
Dec 6, 2018 · 7 min read

What is the cryptocurrency marketplace?

Today the word “cryptocurrency” is known even for those who have never been interested in the digital world. You are highly likely to know that cryptocurrency is a virtual, self-dependent and secure currency that can`t be regulated by any centralized government. It is an open source that is controlled by code and relies only on “peer-to-peer” networks.

After such an epic growth in popularity of first-of-a-kind Bitcoin cryptocurrency created by some mysterious person under the pseudonym Satoshi Nakamoto, many others decided to duplicate such success and made their own currencies like Litecoin, SwiftCoin, Ether, Ripple and many others.

Thus, digital currency rivalry appeared and led to the creation of cryptocurrency trading marketplaces. Forex similar system concept allows people to trade cryptocurrencies for different fiat currency.

Top cryptocurrency exchanges 2019

As you see, the cryptocurrency exchange process is easy indeed, but there is another one important question everyone meets with — what is the best platform for cryptocurrency trading? Usually, the choice turns next to the platforms with low and affordable charges.

We prepared the list of 5 best low-fee exchanges so you can learn what strategies people use to be a preferred cryptocurrency trading marketplace among others.

1. GDAX is the platform with cryptocurrencies transfer at an extremely cheaper cost. It focuses only on Bitcoin, Ethereum, Litecoin and comes as a Coinbase’s exchange analog, so, if you have an already made Coinbase account, you can easily link it with GDAX. The exchange charges 0% for maker trades, 0.25% for Bitcoin taker trades, and 0.30% for Litecoin and Ethereum taker trades. What is more, there is no charge for making any deposits or withdrawals from your account.

2. Binance is a China-based cryptocurrency exchange with a robust set of trading tools, charts and security features. You can both create an account online and make deposits to Binance in any supported currency for free except for withdrawing funds from Binance that may lead to a fee. When trading on Binance, you are charged a 0.1% fee on each trade. Moreover, Binance has its own token, BNB, which you can use to pay any kind of exchange fees. Using the BNB token reduces transaction fees on trades by a specified amount: 50% during the first year, 25% during the second year, and so forth.

3. HitBTC was founded in 2013 but it is already valued at more than $ 100 million, being one of the largest digital currency trading platforms, with daily volumes around $ 400 million. Getting started with creating general account and depositing cryptocurrencies on HitBTC is free. In case of fiat currency depositing (USD or EUR), fee depends on the deposit amount and the currency used. Relatively low fees are charged by the platform on trades. Immediate transactions incur a 0.1% execution fee, while non-immediate transactions are granted a 0.01% rebate.

4. Bitfinex is a full-featured cryptocurrency exchange with daily volumes US $1 billion. It is a detailed, powerful and professional-level cryptocurrency exchange that provides access to the world’s leading altcoins as well as full-spec wallet services. All deposits are fee-free, except bank wires which are charged at the greater of either 0.1% of the deposit amount or US$20. Withdrawals are also subject to a fee depending on the currency being withdrawn, or the transfer type.

5. KuCoin is a cryptocurrency exchange with its own token KCS (KuCoin Shares), and it was launched after an ICO in September 2017. Although it is a brand-new exchange, KuCoin already offers about 80 coins for trade and is still in process of adding new ones. The platform charges trading and withdrawal fees, but crypto deposits are free. KuCoin charges a flat fee of 0.1% per trade, and, in addition, KuCoin Shares holders get attractive discounts. How to launch crypto exchange marketplace

How to build a crypto exchange platform

The main goal of such marketplaces is to connect those who sell cryptocurrency to those who want to buy it. But each platform is unique due to specific features. Some exchanges trade with users at the world market price, others share some open data on the state of trading within the exchange via their order book, supply people with functionality like determining set price of their orders. There are lots of things to be involved in the process of cryptocurrency exchange platform development.

Also running a crypto exchange platform is one of the most profitable businesses since 2017 as cryptomarket is booming and a lot of customers are looking for either a simple purchase of coins or for tools to speculate on the crypto market. Usually launching a custom p2p marketplace solution requires several months of work for a team of developers and investments over $100K. It is also a painful process of finding and solving issues that arise during the development and it could cause serious problems for an inexperienced team.

There are pre-made marketplace solutions available on the market aimed to reduce the development time and cost but sometimes this is not the case. For example, if you need to apply customizations you may face code restrictions and problems to find good developers to execute this task. Luckily there is a solution that solves most of the problems. It is called Cryptocurrency Marketplace and although that this is a prebuilt system that saves more than 60% of the time for marketplace development, it also comes with engineering and design service by original developers. It will allow you to get your own fully custom solution at less than a half price of development from the ground up while providing the best possible quality of the code.

The steps to starting your own crypto platform

Step 1. Define your business plan and unique approach. The best way to understand what the market is lacking is to explore the current market. You should explore the list above and test their features, to understand how you will be different. Questions you should ask:

  • What features do customers want?

Step 2. Now that you have defined your plan, it is time to define your development plan. There are many script producing companies that sell scripts quickly and disappear. You will be risking more than investment startup if you take this route. You also do not want to hire a freelancer and overpay, as you will want to have a good marketing budget. Cryptocurrency Marketplace is more than just a crypto exchange platform. We customize every solution and will help you plan your tech stack, pointing out possible security threats.

Step 3. Secure your funding. The best part about using Cryptocurrency Marketplace platform is that a fully customized solution starts at only $3,200 and that includes many features. There are many ways to get funding for your startup. Friends or family is a great place to start. You can offer your friends/family equity in your startup, coins, or have it be a loan. The next place is a small business loan. Being that the price is fairly low, you won’t have to borrow much and the payments will be very low. In fact, you can most likely use a credit card. Investors will take a big piece of your pie, but will also give you a bigger pie. Often investors like to see something developed before they invest. Another way that is great to raise your money or earn your money back quickly is to have an ICO and launch your own coin. However you pay, the reward will certainly be greater than the initial cost. The Crypto market is growing quickly and expected to reach $1 Trillion in 2019.

Step 4. Build it. Depending on your features and complexity, a good crypto marketplace will take between one and four months to complete. The wait is well worth it as quick solutions could cost you your business. Cryptocurrency Marketplace will start with a comprehensive consultation in order to understand your needs and discuss your stack options. You will be continuously updated throughout the development process, ensuring that everything is exactly how you want it. Cryptocurrency Marketplace has a team of debuggers that will thoroughly debug your solution. Lifetime support is included with each marketplace.

Step 5. Get your first users. Start with ten and then one hundred. Start by setting goals that you can easily achieve and do not expect to have a million users right away. Network and share your new product with people that you know and just met. Write a guest blog post. Contact your local news station. Use social media to market. Bootstrapping, in the beginning, is a good thing. It will give you time to conquer and understand potential problems that pop up. Early customers may even give you new ideas for features that will attract more. Be as personal as you possibly can and keep a learning mentality.

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