How to make a crypto exchange application on your own?

On 27 Jul., 2022

There are six important stages you should come across for developing a full functional crypto exchange app.

How to make a crypto exchange application on your own?

You’re excited about starting a crypto exchange app but don’t know what needs to be done? This article can guide you through the process. There are six important stages you should come across for developing a full functional crypto exchange app. 

  1. Choosing the Exchange Type
  2. Fixing the operational region
  3. Developing exchange components
  4. Adding Liquidity
  5. Getting regulation and compliance
  6. Marketing the exchange

1. Choosing the Exchange type

Crypto exchange is now available in three different formats such as centralized, decentralized and hybrid exchanges. As you are into the exchange development, choose what types of exchanges you want to operate. The earning potential differs in each of them respectively so be precise to go for the operational model.

2. Fixing the operation region

The operation region needs to be well researched and think about the scope involved. You have to get regulation and licensing from government authorities in order to run the exchange in some countries. Consult your legal team to obtain the necessary approvals from every attorney in charge of the fintech applications industry. 

 3. Developing exchange Components

Admin panel interface

The admin panel is the management console for exchange operators to handle the operations inside the exchanges. The admin panel interface can be modified with easy usability according to the exchange owners wish.

It has the following options as follows,

  • To edit commission fees
  • Setting up trading fees
  • Listing new coins or cryptocurrencies
  • Responding to users query
  • Verifying user information
  • Managing user funds in the wallet 
  • Add payment methods
  • Set up withdrawal/deposit limits
  • Shows the transaction history
  • User analytics

Wallet support

The user wallet is the prime medium for exchanging user funds through crypto exchange. Integrating the wallet into the exchange server should be done by usage of API. There are third party wallet solutions available which you can link and facilitate the wallet support.

But most of the centralized exchanges build their own wallet solution either custodial or non custodial. 

First time users will deposit fiat currency into the wallet to buy cryptocurrency. Hence, the wallet should be compatible in storing fiat currency as well as crypto portfolio. 

Front-end user interface

Front end user interface is the first impression of how the crypto exchange looks like. Make the exchange easy to use for every user whether they can be newbie or pro traders.

Guide your users to do each operation in a visually appealing way. There should be no unwanted popup, ads, and other announcements spoiling your users' experience. 

Allow the users to perform the trading functions in maximum two to three steps. The users should feel comfortable in login their account to check the order status, portfolio log, and other important details frequently. 

Make it quick and faster.

Order Matching Engine

The order matching engine is the brain of the cryptocurrency exchange. It matches the buyer and seller order, fetches the order details, executes the orders automatically, and deposits the funds in the user wallet synchronously. The faster the order matching engine, the faster the trade happens. 

Make sure you are  employing an advanced trading engine. It’s hard to develop this order matching engine on your own, better to get it from third party providers. 

4. Adding Liquidity

Liquidity is the green signal for your exchange users to make informed decisions. The crypto exchanges generally have three options to add liquidity. One is liquidity providers backup, second one is third party Liquidity API from Binance, Coinbase or Use the in-built liquidity API embedded in crypto exchange script.

The higher liquidity means you have a better position as the crypto exchange in the market. Because, users will rely on low volatile price markets that have high liquidity in it. Ensure to go for these options when building a reliable exchange. 

5. Getting Regulation and compliance

The most complex part for crypto exchange owners is obtaining compliance. To run the exchange in some geographical region, it is mandatory one. 

By getting regulation from authorities, you can position your exchange as the trustable in the market. Moreover, the best marketing tagline you can say is “Compliance standard Crypto Exchange”. 

You can bring transparency and reliability directly without spending much on influencer marketing like others do.

Every country is taking their individual stand against cryptocurrency and digital assets. You should adhere to the respective country policies and prepare your legal team to get the license for operation.

6. Marketing the exchange

Millions of dollars are being spent by even popular crypto exchanges to dominate in the market. Exchanges like Binance, Coinbase have a separate user base that should be tough to compete with. 

Ask yourself the purpose of the exchange? 

  1. You just want to add an exchange as an additional offering for the crypto project 
  2. Release exchange for publishing tokens alone 
  3. Launch an exchange for swapping/trading

The purpose of your exchange determines the marketing budget. Marketing for limited communities can be done via discord, telegram and forums.

But if you want to reach millions of audience, you should allocate budgets in online ads, Organic growth, Social media, Influencers, Offline events, attending summits and CTV advertising.

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