Key points to consider while building cryptocurrency exchange platform
More recently bitcoin and cryptocurrencies are latest trending keywords which are using in the digital world. Through the massive hit of Bitcoin the various cryptocurrencies have and are still emerging to achieve success like bitcoin. Currently, there are 1597 cryptocoins are totally in circulation in the crypto market and this may actually led to the origination of cryptocurrency exchange trading platform. The cryptocurrency exchange platform is a better way to make buying and selling cryptocurrencies more easily with secure crypto features.
For that, You may know 10 key notes for building your own a Bitcoin/Cryptocurrency Trading platform.
But, before starting the investment avenue you must be informed about where to start. As a businessman, everyone should know that best cryptocurrency exchange development company who they were offering reliable cryptocurrency exchange software script. The algorithm of money and cryptocurrency transfer in online on the cryptocurrency exchange platform will never be an easy task. It’s a ever complex process since it procedure needs to adept planning.
So, before choosing the cryptocurrency exchange script you need to aware the knowledge of how to start and where to start cryptocurrency exchange platform.
Keys to consider bitcoin exchange script:
Qualitatively Liquidity Option:
While choosing a crypto exchange script that looks beautiful with templates and themes, besides that you need to take into account of important features like liquidity. When the traders are looking to buy or sell the cryptocurrency, you must have high volume cryptocurrency exchanges in the trading implies that your site has good volume of exchanges might have. Presence of liquidity option has good impact on the capability to sell efficiently on cryptocurrency exchanges without a substantial price change. Also the low volume of liquidity is immensely affects the trading on many cryptocurrency exchange platforms.
Monetization and Profit Generation:
While building cryptocurrency exchange platform, as a crypto exchange owner you need to consider the payment options for your traders that would earn high profit rather than investment in your cryptocurrency exchange development.
The two types of mode in cryptocurrency exchanges:
1. Online Mode
2. Offline Mode
The bitcoin trading platforms of this type have their own internal storage of money in various forms such as bitcoin, dollars, Ethereum and so on. So, the platforms will be monitored by the admins for Payments and operations are conducted on behalf of them.
The cryptocurrency exchange platforms are well useful in offline mode, the exchangers that make usual of trading platform, which can earn huge profit on the exchange rate for crypto-currencies.
As a businessmen you should know the rule which follow in the cryptocurrency exchange platform is that, the cost of buying bitcoin in exchangers is higher than on the exchange platform, and the sales of bitcoins are lower than in the market.
By this way, Administrators and owners earn profit on the difference in the exchange rate, due to this, the cryptocurrency exchanger functions and operate.
Monetization for input, output and other gray schemes have not taken root well and they are practically not used.
The difference in cryptocurrency rates can be from 1.5% to 8%. But, It will depend on direction and currency. With the proper volumes, these are simply colossal figures.
Cryptocurrency Exchange Platform need to be transparent:
Cryptocurrency exchanges that are need to be fully transparent will publish cold storage addresses or audit information on how to verify the traders bitcoin addresses and reservation in cryptocurrency exchange platforms.
Bitcoin audits in the cryptocurrency exchange platforms are a good way for an trading to prove to customers that they have liquidity for exchanges. Those bitcoin audits can cover all over bitcoin exchange on cryptocurrency sales, and bitcoin audits aren't running a fractional exchange for cryptocurrency exchanges.
The most important question in the cryptocurrency exchange is the choice of choosing currency pairs like fiat-currencies and crypto-currency. The cryptotraders expects that many cryptocurrency exchanges need to support for fiat currencies is an important point for many residents for efficient cryptocurrency trading.
In addition that cryptocurrency pairs in exchange platforms, it is worth mentioning that in some states there is a huge need for cryptocurrency exchanging and trading. But there is a double-edged sword like one side is the cryptocurrency pair and the opposite side is the accounting of all financial cryptocurrency activities and financial reporting.
But in every cryptocurrency exchanges there should be a mandatory option, Know Your Client (KYC) and Anti Money Laundering are strictly regulated by each state.
Your Cryptocurrency exchange site can be protected by the following measures:
1. Using secure and protected libraries and frameworks.
2. Two-factor authentication using Google passcode.
3. Request documents from users (KYC and AML).
As we option mentioned that, This KYC and AML verification is mostly done to crypto exchange platform for cryptocurrency to FIAT pairs and vice versa.
It doesn’t necessary right now to upload documents for cryptocurrency to cryptocurrency pairs. In most cases you need only international passport, driver license or ID; also bank statement or utility bills for level 2 verification.
4. On the otherside that Manual confirmation from the administrator of high volume transactions and/or their large amounts in the cryptocurrency transactions. At that time, cold wallet is optional and highly recommended to be used.
Need to be aware of Malicious processes
Caused by malicious software either due to an intruder.
1. DDoS attacks – More number of requests are pass through certain servers and be cleaned for the end project.
2. Firewall vulnerability - They are solved quite easy – by professional system administrator, or an awesome hosting. AWS is probably the best solution at least if your Government allows hosting platform in the cloud. Otherwise, you have to take a closer look at the dedicated servers with load-balancing.
3. Authorized and protected access. 2Factor Authentication (2FA) is mandatory, whatever you choose Google Authenticator or SMS or even both options. If you decide to build decentralized cryptocurrency exchange platform you can forgot about this item.
4. Notification of administrators about suspicious activity in the cryptocurrency platform should be notable. Well, you and your team have to be informed and up-to-date with current stage.
If you have a thought of building a cryptocurrency exchange platform with the above mentioned profit generating business module, security measurements and user-friendly cryptocurrency exchange options in the cryptocurrency trading platform will be better thing to do trading efficiently.
Coinjoker- Cryptocurrency Exchange Development Company:
Coinjoker is the best crypto exchange development experience in 10+ years in cryptocurrency development and exchange services. We are offering wide range of security, user-friendly and various trading options in for cryptocurrency trading. We build many cryptocurrency exchange platform with readymade like popular crypto exchanges like binance, poloniex, coinbase, bitstamp, bitfinex and also offer customized exchange templates according to the client requirements regarding theme, templates and design for satisfying them from their expectation.
Contact us to drop your requirements below for building your secure cryptocurrency exchange platform now !!
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