With the popularity of the cryptocurrenices, crypto exchanges are also increasing in number since traders and investors need exchange platforms which allow them to interchange crypto coins or tokens.
Also, the exchanges allow you convert fiat currency into cryptocurrencies and vice versa. The most popular ones these days are Coinbase and Binance.
How To Make A Crypto Exchange
Making our own crypto Exchange is also a profitable business and we will examine the prerequisites and steps required to setup a crypto exchange. Also we will discuss the important features required to build an exchange.
Technical Components of Creating An Exchange
Below are some of the key features which the exchange should have. The pupose of these featues is to make the exchange more usuable, secure and user friendly.
The exchange should have a Sign in/ Sign up page with highest standards so it is protected from hack attempts. Security features like 2FA should be mandatory. There should be option for both SMS and Google authentications.
Know your customer (KYC) should be enforced so that all the users who sign up and use the Exchange are thoroughly verified. KYC helps to prevents scams and also increase the transparency of funds and trades.
Deposit And Withdrawal
This feature will allow the users to deposit funds inside the Exchange and able to withdrawal funds outside exchanges. There should be different withdrawal limits for different tiers of verification.
Analytics and Admin panel
With the help of analytics tools and admin panel, the exchage employees can montior the trends and also help to sort of any internal issues. Different employees should have different access levels.
Design of the exchange matters the most. The design should be attractive but at the same time simple and easy to use. The important menu should be easily accessible. The site shoud be designed in a way that it is attractive to the eyes and usability should be smooth.
Since the user funds and data are stored on the exchanges, there should be no compromise on the security. The architecture should be designed in such a way that it prevents all data leaks and possible hacking attacks. The best thing would be to store the data in different servers at differnet places to provide redundancy.
From the user’s perpective, every incorrect login attempt should be emailed to them. Also they should be notified of every sucessful login with IP details.
Crypto exchanges are in demand these days and we still have only limited number of good exchanges. There is a lot of potential for growth here and creating a high quliaty crypto Exchange can bring you very good monetary returns in short and mid term.