Cryptocurrency exchanges have successfully bridged the gap between advanced technology and the utility of the common man. Besides generating huge returns for investors, crypto exchange software has also opened up exciting business opportunities for aspiring crypto entrepreneurs.
In order to run such software, cryptocurrency exchange development services at Unicsoft can help.
The wide availability of services for the development of a cryptocurrency exchange has greatly simplified the process of launching an exchange. In addition, the cryptocurrency exchange software provider also provides assistance in integrating important features like KYC, AML, liquidity, and the like.
Cryptocurrency acceptance is also growing, especially after passive support from large corporations like JP Morgan and IBM.
As of September 9, 2020, there are about 5,000 different cryptocurrencies on the market. Some reputable sources list around 7,000 active cryptocurrencies. A large number of coins only increases trade.
With so many converging factors and, of course, the degree of volatility, right now is the perfect time for you to start your cryptocurrency exchange business.
The crypto exchange space is dominated by big names like Binance, Poloniex, BitTrex, and Kraken. At first glance, it may seem like an insurmountable task to surpass such competition.
It should be borne in mind that the adoption of cryptocurrency is slowly but steadily growing and the intensity of growth is relatively higher when it comes to adopting cryptocurrency exchange as a valid business model. As the possibility exists that more and more countries are opening up their legal regulations to host this new business, it is possible that as a new player you can still be successful.
It should be remembered that Binance, the number one cryptocurrency exchange in terms of transaction volume, was lagging compared to others when they launched in 2017. By the time they entered, exchanges like Bitfinex, Poloniex, and Kraken had already created a marketplace. However, Binance has been constantly updating its services in terms of range of offerings and quality, and has also expanded its operations to several countries. Today Binance is dedicated to exchanging cryptocurrencies as to which bitcoin is cryptocurrency!
Various possibilities of cryptocurrency exchange software
When we think of cryptocurrency exchanges, we often add a shade of uniformity to it. There are different types of cryptocurrency exchange businesses that you can set up, namely centralized cryptocurrency exchange, decentralized cryptocurrency exchange, and hybrid cryptocurrency exchange.
Depending on your business model, jurisdiction, regulatory requirements of your target customers, you can create a cryptocurrency exchange of your choice.
Key features of cryptocurrency exchange development
Every cryptocurrency exchange must be equipped with a corresponding engine. The matching mechanism is considered the epicenter of all activity on the crypto exchange. The order book collects orders from buyers and sellers, and the appropriate agent takes care of matching them. Once the orders match, the trade is executed at a predetermined price dictated by market dynamics.
It should be remembered that a cryptocurrency exchange will be used by regular investors. Therefore, the user interface of cryptocurrency exchange must be made as simple and intuitive as possible. The transaction should be carried out in simple and straightforward steps. The interface should also include charts showing crisis fluctuations, popular currency trading pairs, and other important information that can affect trading.
Liquidity is another metric that determines the quality of your cryptocurrency exchange. This refers to the volume of transactions that have occurred on your exchange. Indirectly, this means measuring the likelihood that an investor is trading their crypto asset on your exchange. A new cryptocurrency exchange could consider either creating artificial accounts that mimic trading, or alternatively using an API to connect an existing exchange to benefit from the liquidity of another exchange.
Building crypto exchange software is not an easy thing. However, if you need help, you can visit this page.
