Crypto is ruling! With the onset of blockchain technology and its unmeasurable use cases, cryptocurrency is gaining the limelight. Looking at the popularity and benefits of cryptocurrencies, many businesses have started investing in cryptocurrency exchange platforms.
Some opt for building a platform from scratch, while others choose one from the list of cryptocurrency exchange platforms to avoid expenditure and time wastage. While dealing in cryptocurrency exchange, factors that should be considered are- liquidity, ease of use, and many more.
Every investor has different requirements. To shed light on the right cryptocurrency exchange platform, this blog is curated for you. Here, you will come to know about some compelling features of the exchange platform and some factors that you may consider before selecting any platform.
Let’s scroll down…
Exciting Features of a Platform for Cryptocurrency Exchange
-
Admin Console
The admin panel on cryptocurrency exchange platforms is in charge of managing user profiles and trade monitoring. The administrator may also be in charge of updating trading fees, adding new cryptocurrencies, and managing cryptocurrency listings.
-
User Experience
A cryptocurrency trading platform’s user interface is made to not only appear good but also provide users with a seamless experience. An experienced cryptocurrency exchange software development company make it easy for users to place orders, check transaction history with filter choices, access visuals or indications, etc.
-
Trading engine
This is one of the primary characteristics of the crypto exchange platform because it is essential for conducting transactions, calculating balances, and maintaining order.
-
User Administration
Many functions are included under user management. Look at what follows:
- Sign up/Sign In: Users sign up by creating an account with quick in and out options to access the site. Because there is no longer a need for so much personal information, the registration process is no longer difficult.
- User creation: Not all cryptocurrency exchange platforms offer this option. In certain platforms, individuals open their own accounts, but in some smaller cryptocurrency exchanges, the administrator has the authority to do so.
- KYC: The most important component of a cryptocurrency trading platform is KYC, or “Know Your Customer.” The SSN, phone number, photo ID, and other personal information are used to verify the customers through this feature.
-
Wallet
Every platform for a cryptocurrency exchange must have wallets to carry out successful transactions. There are many types of wallets that one can incorporate into their platforms, like mobile/desktop wallets, hot/cold wallets, etc.
-
API
The exchange platform is enhanced with additional features and functionalities through multiple APIs, making it the finest place to conduct trades. There are public APIs (for use by third parties) and private APIs (inside the system).
-
Analytics
Analytics is a feature that all cryptocurrency trading systems should offer. Through logs and charts, it aids in the analysis of various platform activities. It helps make your platform more visible throughout the entire world.
-
Database
The platform’s database feature is essential because it contains many vital pieces of information. SQL and REDIS are two different kinds of databases. One is quick but unreliable, and the other is reliable but a little slow.
Now that all the key components have been examined, it’s time to consider how to choose the best cryptocurrency exchange platform.
Factors to consider before selecting any cryptocurrency exchange platform
-
Authority
Find out if the exchange you’re interested in services is the native of the state and nation where you currently reside. If the response is no, you won’t be able to use the exchange because of several restrictions and regulations.
Some exchanges also offer country-specific web addresses. For instance, users in the United States might need to go to “exchange.us” rather than “exchange.com.” Because of certain cryptocurrency regulations, an exchange’s jurisdiction reflects its target market and the locations they are permitted to operate.
-
Usability
How much trading experience do you have? When selecting a crypto exchange, that is a crucial factor. Exchanges that show order books or have a complicated interface with several charts and other information may frighten newer investors. A newbie-friendly exchange might be the greatest choice in that situation. Users can select their layout from “basic” and “advanced” views on some cryptocurrency exchange websites. Others are created especially for those beginning their cryptocurrency investing journey in order to eliminate any confusion.
-
Liquidity
To execute trades at any moment, traders require liquidity which says that a . a sufficient number of orders must flow through an exchange’s order books on a particular dayAn exchange platform either has many users or users who regularly trade large amounts of their assets on the exchange to achieve that volume. In the case of a few number of orders, there is the non-availability of the trading partners. Reduced liquidity can make volatility worse and cause sharp price swings.
-
Asset Choices
There are multiple types of cryptocurrencies available, so there is absolutely no need for an exchange that provides trading pairs for each asset. For instance, the majority of exchanges probably offer trading in popular coins like Bitcoin, Ethereum, Solana, Cardano, and Binance currency, but not all of them might. It is assumed that the coins that form part of the larger market capitalization are more suitable to be traded on popular exchanges.
-
Security
Since several exchanges have experienced security concerns recently, it should go without saying that you should prioritize security while selecting an exchange. In many exchange platforms, security procedures are already defined. Even though no exchange is 100% secure, and it can be difficult to determine which is the most secure cryptocurrency exchange, you might think about looking for the ones that have been operating the longest, have the most users, and have experienced the fewest issues.
-
Reputation
Many individuals read restaurant reviews to finalize their decision when deciding which one to visit on the weekend. People who are browsing cryptocurrency exchange websites might think of doing the same. By reading reviews about any crypto exchange platform, you would come to know how effective the platform is in performing operations.
-
Trading Fees
When buying cryptocurrencies, fees can constitute a hidden expense. Be sure you comprehend the fees associated with any cryptocurrency trade. Similar to how ETH is the native token for the Ethereum blockchain, several exchanges have their own native “exchange tokens.” These tokens are produced by the exchanges, which frequently use them to offer holders reduced trading fees.
-
Customer Support
New users can inquire about cryptocurrency’s fundamentals and how the exchange functions. You will likely experience issues at some point; thus, it’s advantageous for an exchange to offer quick assistance alternatives.
Customer service may be urgently required on occasion if your money is on the line. Investors should therefore research the standing of an exchange’s customer care team. Check to see if they respond immediately, if customers appear to be content overall, and if customer service is prioritized in the exchange.
-
Insurance
Every exchange platform works differently and a few of which insure partial or full funds. This is amazing for investors who prefer to avoid entrusting their money to a corporation they don’t know, may find this as a compelling selling factor. In case of any malicious activity, the exchange platform that provides insurance guards the investors.
The following cryptocurrency exchanges provide various kinds of insurance:
- Coinbase
- Binance
- Bittrex
- Gemini
Be aware that crypto exchanges are not traditional financial institutions and are not protected under the same rules and regulations.
-
Tech Infrastructure
Developers create matching engines to connect buyers and sellers, aiming to provide exchange users with a simple ordering process. An exchange can match orders even during periods of high volume and volatility thanks to a good matching engine. A strong matching engine is merely one component of the infrastructure required to develop new trading pairs and order types, allowing the exchange to more easily satisfy its customers.
Some other Cryptocurrency exchange platforms in the limelight
- Coinbase
- Kraken
- Binance
- Bitsquare
- Bitpanda and many more
Conclusion
Building a crypto exchange platform is not a piece of cake for everyone. It requires clear concepts, thorough knowledge of blockchain technology, and how cryptocurrency exchange platform works. Thus, you need to be wise to find the right cryptocurrency exchange software development company that can provide exceptional services.
However, if you are not interested in building your own exchange platform to carry out a cryptocurrency exchange platform, then you may select the one by going through all the above-listed factors.
