Categories: Crypto

Dive Into Cryptocurrency Exchange Software Development

Cryptocurrency exchange facilitates exchange between other cryptocurrencies and enables users to trade digital currencies.  Cryptocurrency exchange acts as the go-between the seller and buyer to facilitate the exchange with a small transaction fee.  

Types Of Cryptocurrency Exchange Software

There are four types of cryptocurrency exchange software in the market, and the user has to decide which system is more suitable to satisfy their needs. Each cryptocurrency exchange software is built to either feature to  

Centralised Cryptocurrency Exchange

Centralised cryptocurrency exchange software is the most commonly used for exchange purposes because of its user-friendly interface and simple exchange process they provide. The company that governs the platform records and validates every user transaction, the key features offered by the Centralized cryptocurrency exchange software, and customer support to back the customers with transaction queries and issues.  Beginners prefer a centralised cryptocurrency exchange service as it is user-friendly and guarantees security to the users. 

Pros Of Centralised Cryptocurrency Exchange Software

User-friendly- Centralised cryptocurrency exchange can be user-friendly as the company maintains the software and processes the transactions. 

Customer Support- The users would be able to have a customer support team to back them when they have any queries or issues in the tractions or to guide them in the transaction process.

Reliable-  The centralised cryptocurrency exchange software is more reliable as the company is responsible for maintaining the software and ensuring users’ security. 

Cons Of Centralised Cryptocurrency Exchange Software

Privacy-  Some companies might ask customers for personal details in KYC forms while signing up for their services, which puts customers’ personal information in the hands of an unknown person.

Transaction fees-  Centralised exchange software charge high transaction fees, and the transaction fee generates revenue for the company hosting centralised cryptocurrency exchange software.

Hacking-  The Company hosting centralised cryptocurrency exchange software is responsible for holding their customer’s digital currency stored in the wallets managed by the company, which has the probability of attracting the attention of the hackers.

Decentralised Cryptocurrency Exchange

Decentralised cryptocurrency exchange software offers complete privacy for the users as no company could oversee or record the transactions made by the users. Unlike centralised exchange software, users do not have to share KYC details during sign-up. The trades using decentralised exchange software are carried out via smart contracts and decentralised applications. 

Pros Of Decentralized Cryptocurrency Exchange

Privacy- In a decentralised cryptocurrency exchange platform, there is no exchange development company to collect the users’ personal details via KYC forms while signing up for their services, unlike centralised cryptocurrency exchange software.

Diluting The Hacking Risk-  In this cryptocurrency exchange software, the users hold their assets and do not transfer them to any third party for transaction purposes, which does not unnecessarily attract any hacker’s attention. 

Cons Of Decentralized Cryptocurrency Exchange

No Fiat Payments- Decentralized Cryptocurrency Exchange does not allow users to convert fiat currency to digital currency, which makes it difficult for non-cryptocurrency holders to enter the crypto world.

Hybrid Cryptocurrency Exchange

The Hybrid model is built on the positives of both decentralised and centralised cryptocurrency exchange services. Unlike Centralized Cryptocurrency exchange software, Hybrid cryptocurrency exchange platforms charge no transaction fees.  Hybrid cryptocurrency exchanges offer users security and privacy under a single exchange service.

Pros Of Hybrid Cryptocurrency Exchange

The Hybrid cryptocurrency exchange presents the users with the strength of centralised and decentralised cryptocurrency exchange software.

Cons Of Hybrid Cryptocurrency Exchange

Among the many hybrid cryptocurrency exchange development pros, this exchange type is not fully developed, and people are still exploring the possibilities. If you are looking out to invest in the hybrid cryptocurrency exchange development, you have to hold your horses for a little longer.

Peer-to-peer cryptocurrency exchange

The peer-to-peer exchange service enables you to trade directly with your desired counterpart without any company interfering and managing the transactions. It guarantees the user’s privacy as they trade with each other. The user also has the option to choose the payment mode. 

Pros of Peer-to-peer cryptocurrency exchange

P2P cryptocurrency exchange gives the buyers and sellers global access to trade with anyone of their choice and has no transaction fees. 

Cons of Peer-to-peer cryptocurrency exchange

The trading speed of the platform is never constant and may change according to the buyer and seller’s trade request. There is also a risk of scammers because of the additional confirmation required to confirm the transaction from one end to initiate the transaction on the other.

Process of Cryptocurrency Exchange Development

The cryptocurrency exchange development process involves various stages of development, including business analysis, design process, smart contract development, UX and UI design, testing, deployment, maintenance, and optimisation of the exchange platform.

  1. Research and development

The first step to entering the cryptocurrency exchange development process is to research deeply and analyse the crypto market and competitors’ strategies.

  1. Design Process

The next step is to plan the basic functionalities of the cryptocurrency exchange platform. Developing a user-friendly look for the website and mapping the in-app flow is essential for the success of the cryptocurrency exchange development process. 

  1. Smart Contract Development

Smart contracts enable traders to process successful transactions on the developed cryptocurrency exchange platform.  

  1. UI and UX design

The cryptocurrency exchange platform should have a user-friendly interface to make users complete transactions easily. The development company should provide continuous UI development concerning smart contracts and give feedback to customers right after completing the transaction. 

  1. Testing

When the development company develops the basic version of the platform, the next step is to test the platform and ensure it is free from bugs and shortfalls. Manual and automated testing is performed on the platform.

  1. Deployment

After completing the tests on the platform, the platform will be deployed online and tracked for further improvements and to maintain the website free from bugs and glitches. 

Conclusion

There are various types of cryptocurrency exchange development software available in the market. Every cryptocurrency exchange software is the best.  All you have to look out for is which cryptocurrency exchange software provides the right solution for your business requirement. The right cryptocurrency exchange development company can produce efficient results for your business requirements.

Ethan More

Hello , I am college Student and part time blogger . I think blogging and social media is good away to take Knowledge

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