Development of Crypto Exchanges and Exchange Services

As electronic money proliferate, they imply not only exchanging different types between each other but also exchanging e-currency for fiat currency. Various platforms emerged that enabled users to perform exchange transactions (e.g. WorldPay for Neteller, PayPal for Skrill). Also, fiat money transactions were popular: people used conventional funds to buy e-money or, conversely, used e-wallet funds to get fiat money.

When first cryptocurrencies — Bitcoin, Litecoin, Namecoin — spawned, the choice of exchange pairs has expanded drastically. By that time, electronic payment systems had already established handy mechanisms for depositing and withdrawing funds, whereas the competition degree made the intermediaries stick to as low fees as possible. Cryptocurrencies gave the exchange market fresh impetus and market players new ways to earn on exchanging. One by one, those platforms that used to handle electronic money only, started supporting crypto exchange. Just a brilliant demand-and-supply case.

Today, cryptocurrencies are familiar to everyone — particularly entrepreneurs working with finance and currencies. Ready to expand your authorities and enter the crypto market? Then meet our batch of solutions to help you with that endeavour.

Development of Crypto Exchanges and Exchange Services

Creating a crypto exchanger

Having heavy expertise in developing fintech websites, we can create a turn-key cryptocurrency exchange service. Already run a project that needs something new to reach a larger audience? Go with crypto exchanging. If you don’t have any product yet but set your heart on making money from money, let’s launch a great service from scratch.

From the owner’s point of view, the exchanger infrastructure is not a big deal if our company provides the front-end and back-end basis. On the other hand, future crypto exchanger users will also feel comfortable: all they will need to enjoy our service is to register, deposit, choose the exchange pair, and make a transaction. The system will automatically accept and work on requests, check the amount availability, and process transactions. If necessary, the online exchanger administrator can switch between the manual and semi-automated modes.

When developing a cryptocurrency exchanger, one should keep in mind that users prioritise the following features:

  • Operating speed;
  • Online support desk response time;
  • Diversity of pairs with popular cryptocoins;
  • Friendly fees;
  • UI intuitiveness;
  • Fault-free functioning.

We’ll tackle two last points by developing a technically-flawless exchange service. As for other imperatives, your staff will cover all of them by providing superior customer service.

Developing a crypto exchange

Essentially, Bitcoin, Ethereum, Litecoin, and other altcoins are traded on cryptocurrency exchanges: millions of dollars turn over every day. A crypto exchange is a trading platform that works like stock exchanges or FX platforms with the only difference that ‘crypto’ in crypto exchange means exchanging crypto money (coins, tokens) for fiat money (euro, dollar) and vice versa.

While bitcoins are welcomed and accepted in a plethora of stores across the world, less popular cryptocurrencies are shy of use cases. This is why users need to be able to sell them to buy traditional money and a crypto exchange is what enables them to.

By the way, a cryptocurrency exchange is as simple as an exchanger. Here are the main steps:

  1. Signing up. Email confirmation, personal data, voluntary verification.
  2. Depositing with a bank card, electronic money, or popular cryptocurrencies.
  3. Placing a buy/sell order to be fulfilled by another exchange user if they find your bid working for them.
  4. Cashing out or storing for further reselling.

This is not an ultimate list of what a user can do on a crypto exchange. High volatility of cryptocurrencies makes those platforms appealing to traders and investors eager to earn with them. In fact, crypto is not a thing for personal use or exchanging for fiat money only: this is a full-power earning tool.

Get profit by giving benefits

Every crypto exchange tries to provide special service to users. When choosing a platform, traders consider the following:

  • Available cryptocurrencies and trading pairs;
  • Deposit/withdrawal/trading fees;
  • Deposit/withdrawal methods;
  • Liquidity, daily trading volume;
  • User account protection, reliability of storage.

However, cryptocurrency exchanges are a venue not only for traders handling numerous pairs but also for miners that often sell extracted coins for cash. Also, a crypto exchange can come in handy for those who look for lower fees for international transactions or just want to store their savings securely. Finally, such exchanges attract investors feeling ready to spice their portfolio with a touch of different cryptocurrencies.

Crypto exchange owners earn on transaction fees — the easiest way to monetise a trading platform. Such fees can either be fixed or depend on a trader’s turnover. Besides, owning an exchange you can earn on listing coins and tokens, IEOs, and margin trading. But all this is only possible if your service is properly-designed, can guarantee security, and offers delay-free operation. Otherwise, you will never win the customer trust, never mind becoming a crypto market star.

Interested in developing a cryptocurrency exchange? We can offer you a custom solution that will leave any fully-packaged product behind. We are experienced in crafting a crypto exchange ready to withstand high loads — trading, users, etc. — and ensure excellent security.

Differences between crypto exchangers and crypto exchanges

Technically, an exchanger has nothing in common with an exchange. An exchanger is directly involved in trading operations: users trade with it. On the other hand, an exchange is a platform where users trade with each other, whereas the exchange is an intermediary regulating seller-buyer relations. While an exchanger owner does control prices, price environment on an exchange may hinge on traders that can ‘swing’ rates of certain currencies. Some could think exchangers are better in this context as pump & dump is impossible there. However, the exchange market is still by far more democratic as prices are affected by plenty of traders rather than the only person.

Basically, here is how prices are set in exchangers: owners tie the rates to exchanges, often referring to major ones. However, most exchange services set their own rates that can dramatically differ from current exchange rates. In fact, exchanger users cannot bid as they are given the rates. Meanwhile, exchanges allow users to place limit orders and make transactions when the price reaches the desired level.

In view of these differences, most crypto traders prefer exchanges. This will help you make a choice when ordering the development. Moreover, you can merge both crypto services and create a two-in-one solution. Just send us your request and we’ll give you more details.

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