Hundreds of new trading platforms appear on the market every day. Some of them are good, while some are frauds. If you are planning to build your own trading platform, provided tips will be useful for your first steps.
Bur first, why is there such a huge hype regarding the cryptocurrency exchange trading platforms? How did it start?
Since its creation in 2008, blockchain technology has been making waves on the Internet and subverting the traditional ecosystem.
With the help of blockchain development experts, many companies worldwide have incorporated blockchain into their businesses.
In the cryptocurrency industry, the blockchain has set off a boom, and the global market value has soared to a staggering US$400 billion.
It is even expected that the size of the cryptocurrency market will increase significantly to 39.7 billion U.S. dollars by 2025.
Many financial institutions have accepted and integrated encrypted marketing services and decentralized open-source currency systems.
For providing successful encrypted marketing services, you will need a decent cryptocurrency exchange platform.
In this article, we will briefly share in detail how to build a successful trading platform.
What types of trading platform exchanges exist?
Firstly, let’s make sure that crypto-based trading platforms are built on two special cryptocurrency exchange software: Traditional Exchange and Peer-to-Peer exchange.
Let’s explain each of them.
Traditional exchange
This exchange allows the owner to set some predetermined rules. The users who visit a web page can publish lists or offers that meet preset terms and conditions.
Interested buyers do not need to directly deal with sellers to complete transactions because the order book carries out each transaction and acts as the platform’s intermediary.
Peer-to-Peer exchange
P2P exchanges allow merchants and sellers to create lists, contracts and offers based on their terms and conditions.
Merchants, traders, and buyers can also communicate with themselves by using the direct messaging option on the encrypted exchange platform.
Each transaction is carried out directly between the merchant/seller and the buyer, and the product is stored in the “vault” in the form of a smart contract until the two parties complete the transaction.
Which crypto exchange platform you will choose is absolutely depended on your preference. We recommend you consult with experts and together pick the platform that suits your business the most.
Below, we will list several factors you will need to consider before creating crypto trading software for your company.
Obtain a registered legal counsel
After deciding to establish a cryptocurrency trading platform, you will need to obtain legal counsel to better understand the regulatory requirements for proper registration and licensing.
Under the country’s government and regulatory agencies, all target locations need business permits to operate normally. There are several internationally recognized and admitted regulatory agencies you can cooperate with, such as SEC, CFTC, SEBI, FCA, etc.
After getting regulations, you can easily gain more trust among the traders.
Create a well-designed trading platform
We highly recommend designing a crypto-based exchange platform with the consideration of wireframes and prototypes.
You will need wireframes to realize the critical functions of the platform, and prototypes will help you visualize the interaction between users and the platform in detail.
This also includes the client-side logic of all website pages with the help of HTML, CSS or other programming languages.
Plan for the future to seek funding
The cost of starting this new enterprise may exceed US$135,000, including charges for technology, hosting, registration, consulting, and promotion.
Thus, You will need to obtain enough funds to activate a suitable runway. Otherwise, it will lead to huge losses. People need to make plans to seek and attract investors to receive appropriate funding.
Seek payment processor
Before finding a PCI-compliant payment processor to defend against cyberattacks, it is better to do extensive research.
There are different transaction rates worldwide, and it is necessary to cooperate with the appropriate payment processor to participate in the fierce competition.
Backend API
The API is not visible to the end-user. Still, the server part needs to execute the internal logic of the application and practice management functions (such as user authentication and authorization, server-side functions of the management panel, cryptocurrency betting, and user transactions).
Integration of blockchain technology
The founder must integrate blockchain technology into the cryptocurrency trading platform to solve high-tech network security and transparency issues.
The platform should be a secure foundation for various cryptocurrency transactions through digital wallets.
Blockchain technology provides maximum security and transparency by acting as a public ledger that can only show details of transactions to related parties, and third parties cannot access confidential information.
Organize a quality customer support
Additionally, another key detail is to put a big effort into customer support service.
After registering these customers with KYC and other documents, some full-time staff should be responsible for customer support.
These employees should focus on efficiency and providing timely solutions to customer inquiries without any hindrance.
This will increase customer engagement and increase brand loyalty in a highly competitive market.
Bottom line
Overall, that was a little information you will definitely need before launching your own cryptocurrency trading platform.
We hope the article was resourceful and informative. However, we also recommend you to seek advanced and professional financial and technical advice and hire professional candidates to guarantee your business’s success.
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