The cryptocurrency exchange has become one of the most profitable and promising segments of the blockchain industry. Modern realities are such that the exchange of fiat funds for cryptocurrency coins has become commonplace, which will not surprise anyone. Such a plan of operation is in great demand among crypto enthusiasts, experienced traders, and casual players. Cryptocurrency online exchanger is a promising niche for businessmen as well. How to create a cryptocurrency exchange is a controversial issue that requires more detailed study. The largest players such as Binance make more than a billion dollars annually. It was launched in 2017. The BNB token was first used to pay a commission when exchanging cryptocurrency, but now the capitalization of this token has grown significantly in the market and brought this token into the top three after Bitcoin and Ethereum. In this article, we will look at what aspects of mobile development you should pay attention to when creating such a cryptocurrency exchanger.
1. Choose Jurisdiction
To start a business related to cryptocurrencies and register a company, you need to choose a jurisdiction where such activities are legally allowed. Choosing a country with a suitable legal framework is the main criterion that novice stockbrokers should be guided by. All countries have different approaches to cryptocurrencies, but many are still in search of optimal legislative structures. An important factor is a taxation, on which the final profit will depend. At the beginning of 2022, the best countries for ICO implementation are Australia, Japan, Argentina, Estonia, Czech Republic, Spain. Soon, Ukraine will also have one of the most favourable jurisdictions for the implementation of ICOs, since now the country is set for business development and taxes for businesses are being reduced, and cryptocurrency is a huge niche that could bring a lot of investment to the country.
2. The Legislative Framework
Be sure to carefully study the laws of the country regarding the crypto business in which you decide to register your company. So, in most jurisdictions, before starting a cryptocurrency exchange, you will need to obtain a license. The duration and details of the process vary by country. Also, for example, in Hong Kong you will not open an account if you register your company for a non-resident, while in Estonia this is quite possible subject to several conditions.
It is better to entrust the study of the intricacies of legal norms regarding the opening of a cryptocurrency exchange to local lawyers who are well acquainted with the law. Mandatory requirements in the vast majority of regions are KYC and AML.
3. Data Security and Integrity
It is definitely more profitable to rent server equipment, however, for a company that works with finance and cryptocurrency, the best choice would be to have their own servers. It is safer and it plays in the long run. The issue of security is something that is clearly not worth saving when developing a currency application, right? By launching a cryptocurrency exchanger, your company will operate not only with money, but also with the personal data of many people, so special attention should be paid to security. Also, you can not ignore the aspects of mobile development. Your application must have a strong back-end, multi-factor authentication, and brute-force password protection to prevent user data from being leaked. Security and safety of user data = the image of your company.
4. Software Development
Mobile development and web development go hand in hand when you want to launch your own cryptocurrency exchange, because most likely you will need not only a mobile application, but also a web version of your exchange. Cryptocurrency exchange requires synchronized software. It necessarily includes a user interface, a trading engine and a wallet. The protection and safety of the latter should be given maximum attention. You can put together your own development team and keep your own staff, or you can turn to a company that has experience in web development, mobile development and blockchain development. It is very important to pay attention to the cases of a blockchain development company and evaluate the quality of the work performed. View Owlab case studies
You will need to decide whether this exchanger will be anonymous or not, which coins it will support, what commission the service will have and of course provide users with 24/7 support. What things to consider in mobile development and web development of your crypto exchanger. More on all of this is below. So, when creating a cryptocurrency exchanger, be sure to consider the most important, fundamental points:
- User-friendly interface that will be intuitive
- The well-established work of the resource (the most significant factor)
- Service commission (it must be adequate and competitive)
- Wide selection of currency pairs
- Immediate response to support requests
- The platform must work 24/7
The following parameters can affect the success of your crypto exchange and its promotion to the top:
- Analytical tools: there should be all the main tools for technical analysis of the course and building trading strategies, their quantity, size and quality should exceed similar fictions on the exchanges.
- Data quality: they should be pulled from exchanges in real-time, while it should be possible to specify which exchange to take information about the rate from, and for each coin (trading pair).
- Additional features: push notifications, integration with cryptocurrency exchanges, newsfeed and other things that will be useful for traders and investors to analyze the state of the cryptocurrency market.
Just by looking at the “successful examples”, you can understand for yourself what is worth considering in mobile development and web development of your own crypto exchange. Many people have a misconception about blockchain development, for them, it is something incomprehensible, but for companies that already have experience in creating high-tech custom solutions for blockchain development, this is a job that requires a creative approach, which Owlab copes with successfully.