How Much Does a Cryptocurrency Exchange Development Cost in 2021

Before we begin breaking down the cost and talking numbers. It is important to know what a Cryptocurrency exchange is. Cryptocurrency, as it is well known, is a digital or virtual currency secured by cryptography. If you interested in knowing about cryptocurrency exchange development cost based on idea the best way is to REQUEST A QUOTE & PROPOSAL from leading cryptocurrency exchange development company.

Since it is protected under the cryptographic system, counterfeiting or double-spending is almost impossible. Compared to the usual currency, a cryptocurrency network is generally de-centralized and is based on blockchain technology. Blockchain technology is a distributed ledger that is implemented using different computers’ distributed networks.

Therefore, it functions entirely virtually. It is important to note that it is not issued by any government authority since the cryptocurrency is not centralized. It is highly immune to central government interference or manipulation. A Cryptocurrency Exchange is essentially a platform that enables users to exchange or trade various cryptocurrencies, such as Bitcoin, Ether, and the like.

Types of Crypto Exchange Platforms

There are 2 type of cryptocurrency exchange platforms that exist in the market — Decentralized and Centralized.

While because we are concentrating on Coinbase app in this post, we will be majorly talking about Centralized Cryptocurrency Exchange platforms but it will help to know all the styles so that the difference is obvious to you.

Let us look at them both one by one.

Centralized Cryptocurrency Exchange

The platforms allow you to exchange cryptocurrency to fiat money and other cryptocurrencies. Exchange, throughout this case, has 100 percent control on users finances, while order matching happens off a Blockchain network. The limits and fundings are also regulated by the exchange. In centralized cryptocurrency exchange, although the trading fees are pretty large, there is the facility of high liquidity, ease of use, and an advanced collection of exchange and charting function.

Decentralized Cryptocurrency Exchanges

These peer-to-peer crypto exchange networks are where, via the smart contract layer, users send cryptocurrencies to each other to help promote this. The platforms though being much less vulnerable to hacks and are more open to some degree, they come with less volume and liquidity meaning high volatility and slow order matching.

The Features that go into Making a Successful Cryptocurrency Exchange App

Trading Engine

The trade engine is the foundation of every platform for the exchange of cryptocurrencies. It plays the part of the exchange’s primary functionality by handling:

• Execution of Transactions
• Calculating Balances
• Allows a call to access the Books of Order
• Fit the transaction of purchasing and selling on the exchange

UI/UX

The website’s crypto exchange UI should be designed in such a way that it is not only attractive, but also designed to ensure an amazing user experience. On this front, the design functionality can be challenging as it is simpler for a Crypto exchange app developers to get engaged in the system’s complexity and not concentrate on the design.

• But what you get when you invest in the right agency is a UI that enables users to:
• Create Orders
• See transaction history along with options for filtering
• Access to indicators and illustrations
• Option for exploring all of the dashboard activities
• Quick Withdrawal and Deposit

User Management

Almost every cryptocurrency exchange platform observing an inflow on a regular basis of at least 1,00,000 users, it is of primary importance that the process of user management is on point.

There are three things you will have to take care of now when we discuss the User Management part of your crypto exchange platform.

• Sign up and sign in, although cryptocurrency exchange requests a number of personal user data, at the first stage, refrain from asking users for information. The process of registration should be one which promises the users a quick in and out session.
• User Creation: A number of exchanges allow users to create an account on their own, but there are some small crypto exchanges that give the admin the role of user creation.
• Verification of Users-Know Your Customer is one of the cryptocurrency exchange platform’s most crucial components. To determine the account limits, you can offer a number of different verification types on your platform. Personal information, SSN, phone number, photo ID, etc. may be included in these types of verification.

Admin Panel

Crypto exchange platform administrators are responsible for the management of users and trade monitoring. The provision should be provided on the basis of the access levels to see the user ID, email, name, etc., along with transaction details such as time stamp, transaction ID, description, and amount, etc.

The panel should allow administrators to —

• Switch trading fees
• Cryptocurrency Listing Management
• Add new cryptocurrencies to new ones
• The ability to fund accounts during ticket time and problems with support.

Wallet

As stated in our blockchain digital wallet guide, the crypto wallet is a software program that allows digital currencies to be received and sent by users. There are three things you would have to consider when developing one like Coinbase Wallet App

• System and User Wallets-You can offer various types of wallets to users-hot & cold, desktop and mobile, multiple wallet currencies, etc. The platform’s crypto money would be stored in the wallet of the system.
• Withdrawl & Deposits-Users will be given the facility to withdraw or deposit the amount by email, ATM, QR code, and switch, etc. Trading and depositing of digital currencies usually takes place without verification of the account, but it is important to verify the account of the users in order to withdraw the amount.
• Transaction creation: The facility to purchase and then sell the cryptocurrency to other users should be given to each user. And you’ll have to build something like a Coinbase wallet app that focuses on smoothness and transaction speed in order for it to happen in real time.

API

The collection of processes and functions that, if the operating system is a must-have part of a cryptocurrency exchange platform, allow external applications to access data or features.

There are three items that have to be considered when deciding on the implementation of the API.

• Private and Public API-In the framework, a private API is used, for example. You should write the bot as it will help you trade. On the other hand, the public API is used by third party developers.
• Websockets-The program allows the server to receive an event-based response without the need for a polling server to respond. It is used to submit data related to market movements, shifts in trade, etc.
• FIX Protocol- For any trading site, no matter what asset is traded, it is the standard that is a must-have. It makes it possible to easily integrate various trading sites with the external Coinbase or Binance app developers.

Analytics

Analytics is another must-have feature of a network for crypto-currency trading. It is made up of logs and maps. While the former assists in the study of cryptocurrency exchange operations, the latter helps to build charts for proper visibility.

Database

Normally, the cryptocurrency exchange website includes roughly two forms of databases, REDIS and SQL. One is operational storage in both databases that is fast but not intended for hidden data storage, and another that is persistent, secure, but a little sluggish. Now that we’ve looked at enough stuff to get you started in the exchange domain, it’s time to look in the next section at how much the cryptocurrency exchange app costs.

How Much Does a Cryptocurrency Exchange Cost?

The expense of a platform like Coinbase as a cryptocurrency exchange platform will come somewhere in the range of USD 57,000 to USD 98,000 with the feature set we just attended.If you want to get both the website and the application made for your cryptocurrency exchange platform, the amount you will have to cash out in the name of the cost of the cryptocurrency exchange app will be from USD 1,32,000 to USD 1,45,000 anywhere.

With this, the cryptocurrency trading platform is now 80 percent ready to be launched. There are only two things left for you to look at right now — A. How to make your exchange of cryptocurrencies safe and B. Besides stability, you will have to plan for some other challenges and once you begin your cryptocurrency exchange business.

*Disclaimer: This is an estimated selection only. Only when the scope of work is planned after the review of the entire project will the actual estimate be made.