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What Makes a Cryptocurrency Exchange Scalable?

In our recent article, How to Choose a White-label Crypto Exchange Software, we explored the key aspects of a successful exchange. One of them was scalability. But what does this characteristic mean and what makes it so important that we keep drawing attention to it?

Scalability is one of the strongest points of our solutions — the foundation of our company name and brand. In this article, we’ll dive into what makes a cryptocurrency exchange truly scalable and why scalability really matters.

What is Scalability?

Suppose you are the owner of a “beginner” crypto exchange with a basic environment. Say it has 1,000 weekly visitors and holds a trading volume of $4,000 per 24h. Your platform copes with this relatively small transaction and trading volume just right. Its servers and support team are not overloaded. Let’s assume that you then improve your marketing, and enter into strategic partnerships and new markets. As time passes, your business evolves and grows. Now you are facing new business challenges: you want to attract more advanced traders, perhaps even institutional users, and increase your trading volume. As a consequence, you need to scale your platform and make sure that it will cope with this overload and high transaction rate.

What Are The Key Features of a Scalable Crypto Exchange?

Fast Servers

Having a fast web hosting service is crucial for the success of your business. A reliable web hosting supplier helps you prevent downtime. According to a study by Portent, websites with load times between 0–4 seconds have the best conversion rates, while 0–2 seconds load time leads to the highest conversion rate.

We recommend you choose a server provider with lightning-fast speed (0.5–2 seconds per loading time) and 99% uptime.

Superior Execution Rate

The importance of high order execution rate depends on many factors, such as the order type a trader places. For some order types (i.e. for limit order) it might not be as crucial. But if an exchange plans to attract advanced traders, such as short-term ones or even high-frequency traders, the high order execution rate becomes a key factor of success. Scalable Solutions white-label platform’s execution rate is less than 500 microseconds; we recommend you aim for this number if you want your business to grow successfully.

High Matching Engine Capacity

The matching engine of a high-quality exchange can handle large volumes of transactions without any delays. It should boast characteristics such as low latency, high speed, accuracy, and high throughput. High-performing matching engines have a capacity of matching 100,000 Transactions Per Second (TPS).

Excellent Support Service

Aside from the above-listed technical characteristics, one of the most important features of a scalable crypto exchange is a great support service that is capable of processing all submitted tickets successfully and on time. An excellent support team knows the product from the inside out, responds quickly, is respectful, and is proactively helpful.

Advanced Trading Platform

To attract new advanced and institutional users, a basic exchange environment is not enough. PRO trading platforms have a long list of supported coins and trading pairs. For example, Scalable’s trading platform supports 648 digital assets and 3240 trading pairs.

Also, our clients can add popular and in-demand assets quickly and easily, thus attracting new users. It takes 1–3 days to list a new coin or token and 2–4 weeks for new blockchain integrations.

Let’s talk about platform functionality. Besides spot trading, it should also include margin and futures trading, and additional features like staking.

For advanced users, we also offer API integration for high-frequency algorithmic trading. API can help professional clients who already have traditional assets trading platforms to add crypto to their offer.

Conclusion

Many factors make a cryptocurrency exchange successful. Scalability is one of the most important ones. It ensures that the platform is capable of coping with new business goals, such as increasing trading and transaction volumes.

Scalable Solutions holds this name for a reason. Our trading platform meets all the scalability standards. Many of our clients rank in the top 20 exchanges of CoinMarketCap.

So, if you want to run a crypto exchange business and have ambitions to grow it, get in touch with our team.

Thank you for reading!

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References

  1. Portent. Site Speed is (Still) Impacting Your Conversion Rate. 31 August, 2022. https://www.portent.com/blog/analytics/research-site-speed-hurting-everyones-revenue.htm#:~:text=The%20first%205%20seconds%20of,(between%20seconds%200%2D5)

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Scalable Solutions

Scalable Solutions

Industry-Leading White Label Institutional Grade Trading Software. https://scalablesolutions.io/