Launching and running a Crypto exchange platform will be similar to starting a corporate from scratch. Even though it is little complex there valid reasons to start an exchange platform.
- The increase in the value of cryptocurrencies
- Increase in the number of users across the world
- Higher volatility in the crypto markets
You may have doubts whether the higher volatility in the crypto market may affect your business. There is no business without riskier terms. If there is volatility in Bitcoin then the market of other coins will also change. Will it be good for you? It completely depends on you. The market volatility provides opportunities for the traders and stabilizes the daily volume of the Cryptocurrency exchange platform. Only those holding a long term investment will lose. But as the owner of the platform regardless of the volatility of the crypto market, you’ll be able to earn from transactions carried out by the users.
Types of exchange platform which is currently present
Centralized exchange platform
Its a traditional form of exchange where a middleman will facilitate the transactions between the users and in this kind of exchange platform the trading fee will be near to 0.1-0.5%. The centralized exchanges offer higher liquidity even though security still is a problem in it since the user’s private key for their exchange account wallet cannot be easily accessed and will be controlled by the centralized authority.
- Will have high trade volumes compared to DEX
- Enables Fiat to crypto trades
- Has high functionality
Decentralized exchange platform
Decentralized exchange platform which is also called as DEX does not involve any middle man and the platform does not hold the funds of the user and serves only as matching engines for traders. DEX offers high security from hacks owing to distributed nodes. Examples of DEX includes Bitshares, Cryptobridge, Bisq, etc.
Hybrid Exchanges
The hybrid exchanges involve combinations of both centralized and Decentralized exchange platform. This type of exchange is built to overcome the limitations in both the centralized and decentralized exchange platform. This helps to ensure that no third party holds and maintains custody for user’s funds.
So, based on your requirements choose the right type of exchange platform you want to develop.
In order to develop a crypto exchange platform
, one needs to know all the information regarding the development of a platform from the scratch. Not only that the platform owner should have an extensive knowledge about platform he is about to develop but also should be ready with the needed features in his platform based on his/her current trend analysis.
To develop a platform you can hire a developing team but the ultimate cost of this process will be overbearing. Instead, you can choose to acquire a Cryptocurrency exchange website script from a Cryptocurrency exchange platform development company
which would cost you -4x of the cost of developing an exchange platform from the developers.
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