How to Build a Cryptocurrency Exchange App?
By: Pratik Rupareliya
Tags: Cryptocurrency Investment, Bitcoin, App Development, Business, Cryptocurrency

Liquidity is an important aspect for the success of a cryptocurrency exchange marketplace. The trades at an exchange drive its liquidity position and without bustling trading activity, no cryptocurrency exchange can survive. In order to manage liquidity at your exchange, you will need to integrate your cryptocurrency exchange’s liquidity position to other existing exchanges.

This can be done with the help of a modern API interface that shares liquidity and trade volume data between two exchanges. Being a part of crypto exchange network is also beneficial in improving liquidity position.

• Build High-grade security standards for customer data

It is always risky to make investments but with Cryptocurrency it all becomes so easier and secure. Cryptocurrency exchanges are such platforms that offer a medium to buy and sell digital currencies and there are around 500 exchanges to get chosen from as per bitcoin.com. So opt for good research, read relevant reviews, and have a fruitful conversation with experienced investors before taking any decision.

• Create customer support channel

The customer support channel has become a must thing for every software or product to add in it. For providing instant answers to all the queries of your customers, an interactive customer support channel will play a major role. When it’s about cryptocurrency exchange then you must adopt a customer support channel and provide the best assistance to your customer base.

• Cryptocurrency support

According to Coinmarketcap, there are more than 1500 active cryptocurrencies in the market. In fact, the rate of introduction of new cryptocurrencies spiked with the introduction of Ethereum platform that offered the ability to launch a new cryptocurrency without much hassle. In a competitive era, it is important to decide the number of cryptocurrencies the exchange will support.

The greater number of cryptocurrencies a platform support, heavier will be the investment in the development of dedicated APIs to fetch historical values, real-time charts and placing buy and sell orders.

Essential components of a cryptocurrency exchange app

Once you are through with major decisions regarding cryptocurrency exchange business, you need to get a clarity about the basic architecture of a cryptocurrency exchange app. Any cryptocurrency exchange app has to be fast, intuitive and highly-functional in order to succeed. For meeting these objectives, the app should possess the following components:

1. Trading Engine 2. Front-end User Interface 3. Cryptocurrency Wallet 4. Admin Console

Apart from these basic features, every cryptocurrency exchange app should have additional features that can be developed after gathering user feedback or by analyzing the top exchange apps worldwide. Let’s have a look at the critical components of the app in detail:

Trading Engine

A trading engine serves as the core of any exchange and runs the operations. It is essential to execute transactions, calculate balances, access order book and match all the buy/sell transactions on an exchange.

Setting up a trading engine should be a priority while building a cryptocurrency app. Without a functional engine, a cryptocurrency app is nothing but an empty shell without any value.

Front-end user interface

This component is particularly the face of your exchange, i.e. how users see the exchange. Make sure to build a user-friendly and intuitive interface with a minimalistic approach to offer an amazing trading experience. Keeping the clutter away will enhance the simplicity quotient, making it easier for users to execute trade orders. While building this component ensure that it has the following functionalities:

User registration and login

Fund deposit/withdrawal

View order book, transactions, balance, statistics, charts, etc.

Buy/sell orders

Support features

Cryptocurrency wallet

Embedding support for a cryptocurrency wallet is essential for a crypto exchange. All the crypto tokens/coins will be stored in the user’s wallet. Developing a wallet solution with enhanced security will help in the development of trust between users and your cryptocurrency exchange.

A wallet is a daemon on the exchange server that can be integrated into the cryptocurrency exchange app with the help of a script or API that suits the purpose.

Admin console

An admin console will help the exchange operator/owner to manage different operational aspects of a cryptocurrency exchange. The features of a console can be customized according to the specific business requirement but generally, every admin console must have the option to edit trading fee, managing cryptocurrency listing, adding new currencies, crediting/debiting funds to wallets and addressing support issues.

How will I get exchange software?

· In-house development · Using Open-source script · White label exchange software

How much time and cost does it involve to build a cryptocurrency app?

There is no doubt in saying that the popularity of cryptocurrency has been evolved. Now every business is thinking to develop its cryptocurrency app. But one question always revolves in their mind and i.e. how much time and cost does it involved to create a cryptocurrency app?

To know this answer, it is important to first understand the whole process methodology which is involved in the cryptocurrency app development.