In today’s world, a cryptocurrency trading platform is more than a requirement. It has become a convenience. Cryptocurrencies can be stored in your account or transferred to a traditional bank account, and they are quickly convertible into national or fiat currencies. A cryptocurrency exchange software development platform enables customers to trade their crypto assets safely. The cryptocurrency exchange is a marketplace where you may buy and sell cryptocurrencies. Trading cryptocurrencies gets simple and can be done with fiat money or by trading one cryptocurrency for another. Cryptocurrency exchange software provides a great deal of flexibility. The users have control over how to set pricing, which currencies must export, and how many transactions to handle. They are perfect for businesses of all sizes because of their flexibility. Let’s have a look at some of the recent statistics related to cryptocurrencies.
By January 2023, there were over 10,000 cryptocurrencies.
From $1.6 billion in 2022 to $2.2 billion in 2026, it has estimated that the market for cryptocurrencies will grow.
In December 2022, daily cryptocurrency trading volume surpassed $1.5 trillion.
Around 100 million people used cryptocurrencies worldwide as of December 2022.
The number of cryptocurrency exchanges has increased from 70 in 2013 to over 300 by 2023.
Types Of Cryptocurrency Exchanges: CEX, DEX, And Hybrid
Centralized Cryptocurrency
For most digital currency investors, the centralized cryptocurrency exchange is one of the most significant ways of transaction. Centralized cryptocurrency exchanges are online marketplaces for buying and selling cryptocurrencies. Central cryptocurrency exchanges are the traditional exchanges in the crypto world. A centralized institution approves transactions between cryptocurrencies and fiat currencies. Centralized exchanges handle 90% of all transactions because of their high reliability.
Decentralized Cryptocurrency
Decentralized cryptocurrency exchanges (DEX) allow users to exchange digital currencies without the involvement of a central entity. Smart contracts and decentralized applications assist in the automation of trades, making DEX more secure.
Decentralized crypto exchanges (DEXs) are blockchain-based apps that enable large-scale crypto asset trading among many users. DEXs are peer-to-peer marketplaces where cryptocurrency traders can conduct transactions without entrusting the management of their funds to an intermediary or custodian. Instead of acting as a financial intermediary between buyers and sellers, they do it entirely through automated algorithms.
Hybrid Exchange
The best of both worlds, CEX and DEX, are combined in hybrid exchanges. It provides security and assurance, like DEX, and fast transaction speeds, similar to CEX. Hybrid marketplaces are still in their infancy and are likely to explode soon. Some of the most well-known hybrid exchanges are Nash, Eidoo, and Qurrex.
7 Key Features To Look For When Choosing A Crypto Exchange
Admin panel
An admin panel is required to allow the exchange owner and operators to manage various operational aspects of cryptocurrency exchange. The customized admin panel can meet the specific needs of your crypto apps. Furthermore, any Exchange can personalize its admin panel with various functionalities. Editing trading fees and credit or debit funds, addressing support-related issues, managing cryptocurrency listings, adding new currencies, and so on are all must-have features.
Trading engine
The cryptocurrency exchange software development platform cannot function without a specific trading engine. Any trading engine keeps tabs on the offers, places orders, create new trades, identifies new deals, etc. Also, the trading engine has tools for skilled traders, such as live price charts, volatility index indicators, and analytical features.
Analytics
Any cryptocurrency exchange offering would be incomplete without a dedicated analytics tool. It enables traders to make real-time, data-driven decisions to capitalize on various trading opportunities and maximize their crypto profits. Live information tracking, graphical, trading experience, stochastic RSI for identifying overbought or oversold zones, and so on there are some key functionalities for any crypto exchange analytics.
User Interface
The user interface is not a feature in and of itself, but it contains all of the platform’s components that interact with the user directly. When creating an app like Coinbase, you must create a user-friendly interface that is simple to understand and fun to use, even for beginners.
User Authentication
One of the most significant features of a crypto exchange software platform is user authentication. You can begin by providing a form to collect user information. After the user sign-up process, you can enable more stringent user verification to strengthen the platform’s security. Many cryptocurrency exchange platforms use two-factor authentication, which requires users to provide passwords followed by another form of authentication. To increase security, you can choose other types of verification like data encryption features, anti-bot documentation and so on.
Cryptocurrency Range
You can add several cryptocurrencies to your cryptocurrency exchange software platform. It will allow traders to diversify their trading portfolio by investing in various cryptocurrencies. You can choose the cryptocurrency type based on your user audience or targeted customers.
Interest-Earning
Many cryptocurrency exchange platforms provide interest in various cryptocurrencies. As a result, users must understand these platforms’ interest-earning policies. Some cryptocurrency exchanges prefer to charge a striking fee to users who commit their coins for a set period, whereas others may lend the user money.
Conclusion
A digital currency or cryptocurrency exchange software development is the most well-liked and easy way to purchase, trade, and stake digital assets. There are numerous cryptocurrency exchange platforms available in the market. The business can select the one that best satisfies its objectives for profitability. The best cryptocurrency platform features ensure that a business build exchanges that meet the needs of its customers.
It is essential to review the primary security elements of any cryptocurrency trading platform to make it successful against any potential crypto jacking. Last but not least, it is simple to comprehend the leading cryptocurrency trading exchanges used by customers worldwide.