Cryptocurrency Exchange Software Development Cost - White Label Exchange Software
Cryptocurrency has become well-known over the past few years, more and more people, no matter if they work inside or outside tech circles, are talking about it. In certain digital places around the world, Bitcoin, Ethereum and Litecoin have been used as frequently as fiat money. All transactions can be made via the cryptocurrency wallet.
Despite the broad usage of fiat money, there is a certain perspective that cryptocurrency may eventually one day replace our fiat money and causing changes to the traditional banking system, just like how current fiat currency replaced the gold standard. Although the value of cryptocurrencies fluctuates and recently has the tendency to drop, digital currencies like Bitcoin and Ethereum are still prosperous, almost reaching a new all-time high recently, attracting a lot of people to take a piece of it.
If you’re thinking about creating your own cryptocurrency exchange software, in this article, we’ll tell you what and how to do it and the costs behind it.
What is a cryptocurrency exchange?
All crypto transactions are recorded on the blockchain, paving way for decentralized value exchange. A cryptocurrency exchange is a business that allows users to trade crypto money or digital currencies for other assets, this can be fiat money or other digital currencies.
A cryptocurrency exchange is usually an online-only business but at times can also be a brick and mortar one.
The way it works is it sends cryptocurrency to one’s cryptocurrency wallet. Some even allow its end-users to convert cryptocurrency balances into anonymous prepaid cards which can be used to withdraw money from ATMs worldwide.
Typically, there are three types of cryptocurrency exchanges:
- The regular exchange allows traders to exchange cryptocurrencies, but there is a transaction fee needed.
- Peer-to-peer exchange connects traders without a middle man. A seller sets prices, and interested buyers respond.
- A cryptocurrency brokerage firm takes care of all complicated processes and charges commission for investors who don’t like to get involved in trading.
How to create cryptocurrency exchange software?
There are many reasons why you might want to build your own cryptocurrency exchange platform businesses which involves high security, privacy, 24/7 trading, efficiency, etc. Generally speaking, there are four main things you need in order to build in an exchange platform:
- Trading engine
- User-friendly interface
- Cryptocurrency wallet(s)
- Admin console
Now, let’s look at these 9 steps to build your cryptocurrency exchange:
- First, you need to gather an order list of all transactions by market traders.
- Then generate trading charts for customers so that they can efficiently compare and choose the desired trading pairs.
- Ensure facilitate storage of transaction histories for better accuracy.
- Work on the budget and time-frame for exchange software development.
- Enable efficient and secure login, withdrawal, and deposit options for customers.
- Integrate price aggregator into the exchange.
- Integrate the trading kernel (a central part of an operating system).
- Plan and design a user-friendly interface with adaptability to any device (be it desktop or mobile devices).
- Enable custom mobile applications.
Determine your time constraints and budget restraints
The exchange software is extremely complicated since it relates to users’ capital investment; therefore, its development and debugging process can take a whole year or even more to fully come into being. Before implementing it, think about your time and funds budget because the professionalism of your hired developers influences the amount of time it takes to complete your project. And also, while developing software, your team expects to receive wages that depend on the complexity of tasks involved.
To develop such software, you’ll need a team of experienced developers since a single IT specialist will not be enough for such a large project. A qualified team requires investing resources. Therefore, think about your time and money, and be patient, a cryptocurrency trading platform has to be crafted to perfection.
A user account system for the cryptocurrency exchange development is essential. In a typical user profile, the customer needs to identify themselves - together with a quick e-KYC process, and there must be an option for depositing and withdrawing money. The platform will support the investor to take advantage of their market positions.
An aggregator is also needed. Using this function, users can create their coins or tokens and put them on the list of assets. The aggregator can process a large amount of data in almost every second and this is one of the reasons your cryptocurrency exchange project becomes pricey.
Also, a trading kernel can’t be missed. Without it, the currency exchange can’t function. The purpose of it is to create an order book, perform transactions, and calculate the balance.
Equally important, the currency exchange platform must have a user-friendly interface. The interface design should catch customers’ attention, and adapt itself for different devices like smartphones or tablets. Custom-made mobile applications will attract more customers due to its handy accessibility and user-friendly interface.
The exchange platform user interface should provide the following features:
- Fast registration & on-boarding process
- Powerful multi-cryptocurrencies and fiat currencies deposition and withdrawal functions
- Complete access to the trading account
- Booking history and review of all transactions
- Statistical monitoring
- 24/7 customer support
- Vibrant charts & analytics functions
Wallet creation is the vital backbone of the whole cryptocurrency exchange development. To minimize and mitigate all risks, wallets should be divided into two groups: hot wallets and cold wallets.
Hot wallets allow your customers to move the crypto currency to an external wallet. The money that has been withdrawn does not need any approval from the exchange administrator. Cold wallets function slightly differently. The wallet contains the remaining coins and tokens that haven’t been used. No one can access the cold wallet if a hot wallet has been hacked as it is completely disconnected from the network. This is also the reason why users prefer keeping the main part of their assets in the cold wallet.
The cost to develop and launch a cryptocurrency exchange software varies based on various factors. But the base amount required will be starting at somewhere around $20,000 with all essential features mentioned above and functionalities integrated.
White label cryptocurrency exchange software
To build a cryptocurrency exchange platform on your own, from scratch, you’ll need skillful technical expertise, large resources, and time to build a platform that can give you a competitive edge and allow you to compete with those already existing on the market. While white-label exchange software offers a ready-made solution that is very cost-effective, you can brand and customize it to bring your vision alive of what a crypto-currency exchange should provide your current target market.
It comprises the complete infrastructure of a crypto exchange with all features, technical, and security integrations. The users can buy the software and customize it based on their own business requirements or preferences such as the color scheme, logo, UI/UX, etc.
Compared to other exchange versions, a white-label exchange brings several benefits like eliminating the need for technical expertise, save time and money, already been pre-tested and bug-free (more reliable), it also offers a wider-customization scope and quicker deployment.
A white-label cryptocurrency platform offers:
- All the functionality you need to build the platform that is competitive and puts you at the leading edge despite it isn’t custom made.
- Choosing the white-label cryptocurrency platform will get you to market faster than if you build the trading software yourself.
- Because the white-label providers have extensive experience in both building the software and maintaining it, the risk of failure is lower than if you do it by yourself.
- It usually builds on micro-services architecture which allows the platform to adapt to new customers’ needs, accommodate many integrations and they can scale up the capacity to trade quickly without disrupting the existing functionalities on the platform.
At TP&P Technology we have skillful blockchain developers in Vietnam that you can hire. Read our blog about: Blockchain Software Development: Another Disruptive Technology For Digital Payment to know more about how industries are already being reshaped by blockchain technology, especially in the financial industry!