Insights Into Cryptocurrency Exchange And Its Types Alongside Features
Cryptocurrencies, also known by the term cryptos, refer to digital or virtual currencies secured by cryptography alongside based on blockchain technology. Since the emergence of Bitcoin, several many cryptocurrencies are coming to the internet. Until now, there are over 16,000 cryptocurrencies in prevalence.
However, according to Allied Market Research, the global crypto sector’s size was valued at $1.49 billion in 2020, which soared at a compound growth rate of 12.8% and reached $4.94 billion by 2030. Seemingly, this implies that leaping into the crypto world will be a worthy thing to consider in present times. This informative blog will guide you through how to develop cryptocurrency exchange platform.
Cryptocurrency Exchange — Facilitate Exchange Of Different Cryptocurrencies
A cryptocurrency or crypto exchange is a platform where crypto enthusiasts can exchange various cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Tether (USDT), Cardano (ADA), Solana (SOL), etc.
Its functionality is quite simple as users have to sign up with the platform with valid details and continue with the verification process. After the initial setup, they can buy or sell cryptos at the market price. Typically, crypto trading platforms support crypto-to-crypto trading and fiat-to-crypto trading.
There are a plethora of promising crypto exchanges available in the market. Among them, Binance topped the list with a trading volume of US$ 15.22 billion as of March 2022, according to Statista. Other popular crypto exchanges include Coinbase, KuCoin, Bitstamp, Poloniex, WazirX, etc.
Insights Into Various Types Of Cryptocurrency Exchanges
If you are aspiring to launch a crypto trading platform, it would be better to have a sound knowledge of different types of crypto exchanges. So, this will aid you in coming up with your choice of which type of platform to be deployed. Have a glance at assorted cryptocurrency exchanges.
- Centralized Cryptocurrency Exchange
A Centralized Exchange (CEXe) is the traditional type of exchange, supporting crypto-to-crypto trading as well as fiat-to-crypto trading. The primary pros of this type of exchange are the intuitive UI/UX. Other promising attributes include various trading pairs, staking, and Initial Exchange Offerings (IEOs). The best examples of centralized cryptocurrency exchanges are Coinbase, KuCoin, and Binance.
- Decentralized Cryptocurrency Exchange
A decentralized cryptocurrency exchange overcomes the shortcomings of a centralized crypto exchange. It comprises automation using smart contracts. Without a doubt, there will be no possibility of a data breach as the transactions that happen on the platform are without third parties’ intervention. Popular examples of decentralized cryptocurrency exchanges are Uniswap and Binance Dex.
- Hybrid Cryptocurrency Exchange
The term hybrid generally states that it is the combination of two things in typical. However, the hybrid cryptocurrency exchange comes with a mixture of centralized and decentralized exchanges. That is, it will hold the trait of a faster transaction as in centralized and secured transactions as in decentralized. Furthermore, the hybrid type of exchange seems to be the next-gen type. Examples of hybrid cryptocurrency exchanges are Qurrex and Nash Exchange.
Common Features Of Cryptocurrency Exchange Platform
The functionality of the cryptocurrency exchange is mentioned earlier. This will be determined on the basis of which features are infused. Let’s now check the essential features that would significantly ensure the flawless execution of the crypto trading platform.
- Two-Factor Authentication
Whether it is a centralized or decentralized platform, the two-factor authentication feature is indispensable for crypto exchanges in general. This will reassure that only authorized users can access the platform.
- Escrow Wallet
The built-in Escrow wallet will grant the users to store the cryptocurrencies in a secured way, enabling faster transactions. However, this will provide an extra level of security and protection.
- Distributed Denial Of Service (DDoS)
The infusion of Distributed Denial of Service (DDoS) feature will prevent malicious attacks and traffic diversion to the server. Eventually, this will prevent intended users from accessing the crypto trading platform.
- Real-Time Tracker
The users will get to know the market value of various cryptocurrencies, and with proper analysis, they can decide on which cryptos to buy or sell. Thus, the live tracker will give real-time fluctuations of price.
- Multi-Currency Support
The support of multiple currencies will ensure the exchange of different cryptocurrencies. Popular digital currencies include Ethereum, Bitcoin, Litecoin, DogeCoin, and many more.
- Domain Registry Lock
This will significantly provide an additional level of security to the cryptocurrency exchange. That is, the domain registry lock feature will lock the domain at the entry-level. So that the domain name cannot be modified accidentally by the users and even by unauthorized users.
How And Where To Start With Cryptocurrency Exchange Platform Development?
There are two primary options to have opted for cryptocurrency exchange development. The first option is creating the platform from scratch and the second option is choosing a cryptocurrency exchange script. Compared to the first option, the second one is quite cost-effective and does not require much time for crafting.
Have you ever heard about a cryptocurrency exchange script? If not, here is what it is about. It is a ready-made solution housing salient features, indicating the typical capabilities of the crypto trading platform. It supports the exchange of one crypto with another one. Also, supporting, buying the cryptocurrency using the fiat currency. The choice is yours. Yes, it is up to your decisions to choose which approaches to go ahead with.
When decided, it is time to partner with a reliable crypto exchange development company, firm, or agency. Knowing the growing potential of cryptocurrencies, many companies are working on providing a white-label crypto exchange solution suitable for business needs and expectations. To ensure whether the crypto exchange company is reliable or not, check out the portfolio and get to know their previous works.
Wrapping Up
Hope that this quick blog has provided you with sound knowledge on how to launch a cryptocurrency exchange within a short period of time. Are you looking to leap into the crypto world? Undoubtedly, it will bring a lot of business benefits as this sector is growing at its pace in the blockchain era. Go ahead with approaching a suitable company, get the white-label solution customized as per your expectations, and launch your crypto trading.
