Essential Features of a Cryptocurrency Exchange
By: Antier Solutions
Tags: Crypto Exchange, Crypto Wallet, Blockchain Development, Smart Contracts, Liquidity

In 2020, everyone seems to be talking about blockchain. The disruptive technology has made its way to sectors like healthcare, finance, and supply chain management. As technology continues to become popular, investors’ interest in cryptocurrencies is also soaring. It is no secret that in 2020 crypto exchanges are growing at an accelerating pace. Big names like DBS are also trying to venture into the crypto exchange space. This is because the everyday crypto trade volumes are swelling and users are looking for safer, cheaper, faster, and reliable exchanges.

If you are someone who is looking forward to operating crypto exchange software, you must first acquire all the knowledge. Here is all you need to know:

Types of Exchanges

A crypto exchange platform can be developed only when you decide the kind of exchange you want to bring to space. Currently, most of the cryptocurrency exchanges around us are centralized exchanges. These exchanges are operated by centralized bodies, are easy to use, and offer advanced features to the professional traders.

However, there is a problem with centralized exchanges. The centralized exchanges are easy to hack. On top of that, they require traders or exchange users to adhere to KYC regulations. To resolve these challenges, decentralized exchanges have come up. These exchanges support privacy, anonymity, and are resistant to hacks.

What makes cryptocurrency exchange a lucrative business opportunity?

The exchanges act as a middleman between the platform users. Whenever a trade is executed, the exchange owners earn a commission.

Cryptocurrency exchanges also hold the users’ funds. They can fund businesses that require cryptocurrency and make profits.

Features of a crypto exchange platform software

Some of the features are must-haves for crypto exchange platform software and then there are some that make an exchange unique and a crowd puller.

Wallets

A wallet is a place where users store their assets. An exchange that comes with a secure wallet is a big advantage for the users. However, it is a must for an exchange to offer a wallet that supports multiple cryptocurrencies so that the traders need not have a separate wallet to store different assets.

However, it is very important to ensure the wallet or wallet integration is completely secure. Your cryptocurrency exchange software price might vary based on the wallet integration and security aspects.

Intuitive Interface

Not many traders are familiar with cryptocurrency and trading. Whenever a novice trader tries to lay hands on cryptocurrency, an exchange is his first entry point. Thus, for an exchange to be successful, it is very important to offer its users an intuitive interface. It must suffice the needs of both novice and professional traders. However, it must come with a simple interface that hides all the complexities of cryptocurrency trading behind it.

Liquidity and fund control

For any exchange to start its operations, the prime parameter is to arrange liquidity. A trader never engages with an exchange that does not have sufficient liquidity. There are many ways to create liquidity. For example, the decentralized exchanges ask traders to become the Liquidity Providers (LP) by depositing their assets with the exchange. The LPs earn interest on their deposits and the exchange builds liquidity.

For any exchange to operate successfully, the fund control strategy must be in place. This is because every fund control strategy requires different types of security measures.

Trading engine

A trading engine is a must-have feature for any crypto exchange platform software. The trading engine must also come with features like live price charts, volatility index indicators, and analytical tools for professional traders.

If you plan to bring out a decentralized exchange into the market, here instead of a trading engine, smart contract logic needs to be built. These smart contracts enable the trade and ensure complete security of the trades. As smart contracts execute automatically, both the traders and the exchange operators need not keep an eye on the trade.

To wrap

Always remember, when you are operating a cryptocurrency exchange, it is all about people’s money. Thus, entering the market with a highly secure, reliable, and fast exchange is the only way you can make it through the competition.

At Antier Solutions, we offer ready-to-deploy exchange platforms integrated with institutional-grade security and market-leading features. In addition, we specialize in building a custom crypto exchange from scratch. Whether you need to integrate margin trading or derivatives trading, we have you covered.

Schedule a free demo of our white label crypto exchange platform or connect with our subject matter experts to share your business needs or learn about our cryptocurrency exchange software price.