The potential of cryptocurrencies would be hard to miss if you have followed all the latest developments in the field of investments. Alongside the traditional investment options, such as stocks and mutual funds and currencies and commodities, cryptocurrencies have taken over the attention of investors with a storm. Today, the average daily trade in cryptocurrencies stands even higher than 110 billion USD! It would be an understatement to state that cryptocurrencies are one of the most popular investment options for today’s investors.
With the rise of trades in cryptocurrencies, a new business opportunity has opened up for tech companies in terms of owning cryptocurrency exchange apps. If you want to build your own cryptocurrency exchange app, then you have made a wise choice as the potential of these apps goes far beyond your comprehension. In the present scenario, crypto exchange apps are not going to let you down if you can assure quality and that is where we want to draw your attention. So without further ado, let us guide you through all the steps that will result in the development of your very own crypto exchange app.
What is a Crypto Exchange App?
In simple terms, a crypto exchange app is where the cryptocurrency trades take place. This is where cryptocurrency traders can purchase and sell cryptocurrencies using conventional currencies such as the INR, or USD. Other than this, users can also –
- Add conventional money in their account that they can use to purchase cryptocurrencies,
- Withdraw money from their account upon the sale of cryptocurrencies if they realise profits
- Store the purchased cryptocurrencies in their crypto wallet,
- Trade one cryptocurrency for another depending on their personal interest.
So, as you can understand from the description, a crypto exchange app is basically an intermediary that connects the buyers and sellers of cryptocurrencies. The app is also responsible for making the environment safe, secure and reliable.
Types of Crypto Exchange Apps in 2022
There are different types of crypto exchange apps which come with their own advantages and disadvantages.
Centralised Exchanges or CEX
A centralised exchange is regulated by a third party exchange operator and it provides more ease in terms of trades ie. purchasing and selling of assets (in this case, cryptocurrencies). The advantage of a centralised exchange is obviously in its working pattern – since all its operations are centrally regulated, it offers more reliability. However, because of the third party regulator, more charges are levied on traders in centralised exchanges. Another disadvantage of centralised exchanges is that they require traders to deposit money in their wallet to carry out any trades, and this makes these exchanges vulnerable to cyber crimes such as hacking.
Examples of centralised exchanges include Coinbase, Kraken, Huobi, etc.
Decentralized Exchanges or DEX
As the name suggests, decentralised exchanges are crypto exchanges with no central structure or regulatory party. In these platforms, buyers and sellers can carry out their trades and transactions independently without a third party moderator. Typically, the decentralised exchanges offer more security and these exchanges need the users to verify their identity thoroughly. Because of the absence of a third party moderator, the fees that are levied on traders are also lower in these exchanges. However, one down side of decentralised exchanges is that it can be sometimes be slow and traders will need to wait until the other traders close the order. Another disadvantage of decentralised exchanges is that often these exchanges do not allow traders to use conventional money to purchase cryptocurrencies. On top of this, due to the popularity of the CEX, the decentralised exchanges can lack volume which can result in low liquidity.
Examples of the decentralized exchanges are Uniswap, IDEX, Sushiswap, etc.
Hybrid exchanges are crypto exchanges which attempt to combine the advantages of both CEX and DEX. Hybrid exchanges offer more liquidity like CEX, which allows users to complete their trades quickly and easily. On the other hand, they also offer more security and privacy like DEX, which increases the safety of the trades.
Examples of hybrid exchanges are Nash Exchange, Qurrex Exchange, etc.
Instant exchanges offer a high speed of transaction and they support large orders as well. Crypto traders can use instant exchanges if they want to purchase or sell cryptocurrencies in bulk as quickly as possible. However, the platforms of such exchanges are somewhat complicated to use and the security offered by instant exchanges is medium.
How to Start a Crypto Exchange App: The Business Side
Building a crypto exchange business from the scratch is not easy and it requires extreme precision and knowledge of the process. The steps that you have to go through in order to start a crypto exchange business are given below –
- Availing legal advice to meet licensing requirements
- Running the calculations
- Finding an application development company
- Ensuring liquidity
- Adding a payment partner
- Ensuring security
- App testing and launch
- Maintaining a legal team
Availing Legal Advice to Meet Licensing Requirements
The first step to start a crypto exchange business requires you to avail a license, and this is no easy step. Depending on the region where you want to start your business, you will find different legal thresholds set up by different governments when it comes to crypto trading. As a crypto exchange business, you will have to make sure that you go through all the rules and meet all the requirements for setting up a crypto exchange business in the specific region.
Running The Calculations
Starting a crypto exchange application does not come in cheap. Sometimes, the costs can even go beyond what you may have predicted. You have to run the calculations again and again to be sure that your estimated amount is somewhat close to the actual costs. You will also have to secure funding if you yourself do not possess that much capital to start the venture.
Finding An Application Development Company
If you have met the licensing requirements and have secured enough funds for the business, then it is time for you to appoint an application development agency to turn your idea into reality. Strivemindz is one of the best mobile application development company which you can opt for. With Strivemindz, you can start developing a top notch crypto exchange app with the help of our expert and experienced application developers.
The term liquidity refers to the ease and speed of carrying out trades. Liquidity is a must have factor for crypto exchange apps which attracts more traders. You may need to collaborate with other crypto exchanges to improve the liquidity of your crypto exchange app.
Adding a Payments Partner
Without a payment processor, how will traders purchase cryptocurrencies in your crypto exchange? Thus, you have to partner with a payment processor for your application. Remember, while choosing the payment partner, ensure that the transaction rates and fees charged by the payment processor are one of the lowest, if not the lowest in the market. The payment processor also has to be PCI DSS compliant.
It is imperative that your crypto exchange app must be secure for your users. The crypto exchanges can fall prey to cyber attacks and you have to ensure maximum security to safeguard your users. You have to implement encrypted database, two-factor authentication and other safety measures for the security of your app.
App Testing And Launch
Once your app is ready, test the app and check for any possible errors and glitches. Also check if any further improvements can be made. Once your app is full proof, you can launch your app and start your journey as an owner of a crypto exchange business.
Maintaining a Legal Team
Trading in general is an area which has multiple rules and regulations. Cryptocurrency trading is not any different and on top of that these regulations are not fixed forever and can change. You have to maintain a legal team who will make sure that your crypto exchange app fulfils the legal requirements at all time and thus, avoid any sort of legal trouble.
Features That You Can Add in Your Crypto Exchange App
To ensure the popularity of your crypto exchange app, you need to add some must-have features in your app. Strivemindz will help you add all the necessary features to your app and increase customer satisfaction level.
- User authentication
- Trading engine
- Crypto wallet
- Push notifications
- Admin panel
As soon as new users enter your app, the first thing that your app needs to do is authenticate and verify the identity of these new users. The KYC or Know Your Customer feature is an essential feature that allows crypto exchange owners to maintain security and safety in their app.
As the name suggests, this feature is responsible for the trades that are happening on your app. The trading engine does it all – from executing transactions to balance calculations. This is simply the most important feature of a crypto exchange app.
The crypto wallet is where your users can store the cryptocurrencies that they purchase from your app. The wallets are categorised into two types – hot wallets and cold wallets. Hot wallets are much easier and more convenient to use as these are connected with the internet. However, this also makes hot wallets vulnerable to cyber attacks. Cold wallets are offline wallets that offer more security but takes away the convenience.
Analytics lets your users to read all the necessary information regarding all trades and understand whether or not a trade will be profitable for them. The analytics feature includes several indicators that can somewhat predict the price movement of different cryptocurrencies.
Push notifications lets the app send a real time message to the users. Push notifications build the communication between the app and its users. You can use this feature to make your users aware of price changes, trading trends, special deals, and so on.
Admin panel is basically the feature for people who manage the app. This lets you decide several things regarding your app as the owner, such as – trading fees, adding new currencies or removing old currencies, address grievances and other customer support issues and so on.
A Crypto Exchange App Development Stages
We have already guided you through the steps to create a crypto exchange business. And yes, developing your app was a crucial step in building your crypto exchange business. This particular process itself is a lengthy one and if you want to know what are the stages you have to go through in order to develop your crypto exchange app –
- App design
- Client side development
- API integration
- Blockchain adoption
- Testing and launch
The development of a crypto exchange app starts from the app designing. Strivemindz offers expert solutions in wireframe designing and prototype designing which contribute to the development of the platform and the user experience.
Client Side Development
Client-side development is basically the stage where we develop the screen of the user / the clients. This is the part of the app with which the users interact and it determines how well the users can operate in your app.
API is the framework that helps run the features and the database in the application. It is the back end for your crypto exchange app. At Strivemindz, our expertise will help you develop a strong back end for your app with multiple dedicated features such as cryptocurrency deals, user authorisation, newsletters and so on.
Blockchain is a system that records all the transactions that happen in the world of cryptocurrencies. At Strivemindz, you can have our support in every step of blockchain adoption and with our expertise your project will be ready in no time.
Maintaining the security of your crypto exchange app is an essential part of crypto exchange application development. Strivemindz will help you in making your app completely safe and sound and protect your users against all kinds of cyber attacks.
Testing & Launch
Once your app is developed, now it is the time for testing as we have mentioned in the steps to develop a crypto exchange business as well. Test your app and launch as soon as your app is free from all glitches and errors and other issues.
Tech Stack Required to Develop a Crypto Exchange App
Developing a crypto exchange app depends on three things –
- Tech stack
The architecture of a crypto exchange app provides for the basic structure of the application. The architecture of the app decides how the different components of the app function which include databases, API, security functions, crypto wallets, trading engine etc.
The following tech stack is usually used while developing a crypto exchange app –
- Blockchain: Depends on the type of the platform
- Cloud: Microsoft Azure, Google Cloud Platform, AWS
- iOS client: iOS Fabric, Laravel, ROR, Node JS, Swift
- Android client: Laravel, Kotlin, ROR, Java, Node JS
- MEAN Stack: Node JS, Angular JS, Express JS, MongoDB
- Web development: PHP-Codeigniter, Laravel
- LAMP Stack: PHP, Apache, Linux Server, MySQL DB
- Database: MongoDB, MySQL DB, Redis
- Push notifications: MAP, Twilio, Amazon SNS
- Languages: Laravel, MEAN Stack, Java, PHP
- Others: C++, Phantom JS, Xcode, PhoneGap, PUMA Server, RSpec
The API determines how many features you can offer through your app. Some of the APIs that you can integrate in your crypto exchange app through Strivemindz are –
- Binance API
- Coinbase API
- CEX.IO API
- Cryptocompare API
- Nomics API
Cost of Developing a Crypto Exchange App
For a cryptocurrency exchange platform that needs both a website and an application, you will have to pay somewhere in the vicinity of USD 1,35,000 to USD 1,50,000 as cryptocurrency exchange app development cost.
“Please note” that these are just approximate ranges. An accurate estimate can only be prepared after a thorough analysis of the entire project is complete.
It is not possible to write down an actual amount that you will have to bear in order to develop your crypto exchange app. The following factors determine the cost of a crypto exchange business and app development –
- App Designing
- Website designing and development
- API integration
- Blockchain development
- Legal fees
To sum it up
Strivemindz stands as one of the leaders in crypto exchange app development. With the number of people being attracted towards crypto trading, the crypto exchange business is an area with massive growth potential. Utilize this potential to its fullest with the help of Strivemindz!