Build Your Own Crypto Exchange | Trends, Real Cost & Must-Have Features

The pandemic slowed many industries down, but not the fintech sector. As it actually experienced a boom and growth in the investment and adoption of its services. But that doesn’t mean that every fintech startup survives in the business. 

Want to learn how to build a FinTech app and have an edge over competitors? Having vast experience with creating FinTech development, OmiSoft is going to share industry insight on building crypto exchanges, current trends, costs, and must-have features. Use our step-by-step guide to overcome challenges and build a business that brings millions in revenue.

Crypto Exchange Basics | Recap

Crypto who?

Crypto exchange—a site, app, or platform that is developed with the functions of buying, selling and exchanging cryptocurrencies.

Key benefits:

• Security
• Transparency
• Enhanced speed of transactions 

Therefore, the more safe, swift, and easy to use your product is, the higher the chances to catch the attention of potential users. And more users mean higher profit.

Types of crypto trading platforms

There is not just one type of crypto trading platform, but there are 5 different kinds of exchange platforms that are worth exploring before you make a final decision that you want to build your own FinTech app.

#1 Classic cryptocurrency exchange

Cryptocurrency exchanges help you trade crypto by putting a limit order that would be later placed in an order book waiting there until matched. You can also exchange assets by matching with a user’s request in the exchange’s depth of market ( DOM).

#2 Peer-to-Peer cryptocurrency exchange platform (P2P)

Probably the most popular type of crypto exchange. They allow people to buy or sell digital assets with confidentiality from some other customers or companies with no middleman. P2P exchange doesn’t allow an order book and doesn’t affect the cost of the asset directly.

#3 Brokers & CFDs cryptocurrency platforms

This type of crypto exchange involves a broker, also known as the middleman. They take a fee for the trade but get extra safety and security for both parties.

#4 Derivatives cryptocurrency trading platform

Another type of crypto exchange platform is derivatives. It allows trading the underlying token price, therefore maximizing your profit (if done correctly). Also, this type of crypto exchange provides specialized instruments for trading like endless swaps.

How to build the best crypto trading platform?

Developing a cryptocurrency trading app can be challenging, but with the right product development team, it’s very rewarding. Let’s take a closer look at what it takes to build a successful crypto exchange in 2022.

Step 1. Do Market Research

The first and essential step of any software of product development is market research. Why do you need it?

• To keep an eye on your competition 
• To find the latest trends
• To get inspo for extra features that will attract advanced users
• See if it’s the right time to enter the space

The in-depth analysis is really something you need to consider, as it will help you to get a better understanding of the current situation in the market, as well as, help you form a better RFP.

Step 2. Choose CEX or DEX

You have already recapped all of the types of crypto exchanges. But you should also remember the importance of choosing from centralized exchanges (CEXes) or decentralized exchanges (DEXes). What’s the difference? See the table below!

The availability of fiat currencies and no liquidity problems are the main advantages of CEX platforms. But DEXs offer lower fees and the user is the coin holder.

Step 3. Design the Architecture of the Crypto Exchange App or Site

After you choose the type of crypto exchange app or site, the next step is to design the architecture. What do you need for that?

• Engine for trading
• Crypto wallet
• User-friendly interface
• Admin panel

Step 4. Hire FinTech Development Experts

Choosing the right people for FinTech app development services is key, as it will influence the quality, budget, and time you spend on the project. Hiring a dedicated development team for your project makes sure that it has the right talents with experience in FinTech and the right tech stack for your needs.

Step 5. Add Must-Haves to Get The Best Crypto Trading App

When you’re building a cryptocurrency exchange website or platform, there are some must-have features you should include in it. Read on to find out!

Authorization & Verification

1. Authorization. To let users create and log into their exchange profiles.
2. Verification. It will help ensure transparency of every transaction and reduce the risk of attacks, which is why we recommend adding anti-bot verification and 2FA.

Engine for Trading

The trading engine is the core of your platform. It will be responsible for how your system works. For instance, your system can check if a user has enough funds to make a trade and calculate the possible risks involved with it.

Crypto Wallet

Multicurrency crypto wallet will allow users to store and transfer their digital money. E-wallets provide secure transactions for your crypto exchange.

Orders & Transactions Log

The order book stores the actual buy and sell orders separately in lists. Every time there is a match, the exchange automatically creates a deal.

Push Notifications

Notifications and alerts provide value to the users and facilitate communication between them. Alerts can be set for trend news, price changes, etc.

Analytical Tools

And last but definitely not least feature to include is the internal analytical system. With it, users can get additional info on the latest trends and build their trading strategies.

Can you create cryptocurrency exchanges?

Yes! The global market of new crypto-exchanging platforms is thirsty for new and better places for trading. But before you jump into developing your FinTech app, check out the most common challenges you may face.

Key challenges of crypto exchange development 

• Usability & Market Acceptance. Cryptocurrencies are not yet globally used for regular payments, as they are hard for a traditional payment system. Yet, more and more shops, hotels, and airlines accept crypto payments.
• Scalability. Today Bitcoin and Etherium cryptocurrencies have growth limitations, as when a specific level of user activity is reached, the performance of the system drops immediately and fees also rise.
• Microtransactions. To provide microtransactions, like buying a cup of coffee, you’ll need to make a payment system that delivers high speed and really low cut.
• Security. Hacker attacks in the crypto world are growing like a rapid fire. Even though blockchain provides security, there are still ways to protect your crypto service: biometric authentication, artificial Intelligence solutions, and transition to the DEX platform.

Omi Case Study

In the dynamic realm of decentralized cryptocurrency exchange solutions, Omi Soft took on the challenge of developing decentralized exchange software for our client, Planetex-DEX. The main challenge lay in shaping a clear vision and feature requirements, which required several brainstorming sessions with our experts. To meet market demands and generate revenue early on, we divided the project scope into phases. 

The first phase focused on essential features and liquidity pool development, allowing for a revenue stream even before full completion. Currently in the second stage, our aim is to enhance functionalities, user experience, and security measures in response to the ever-evolving blockchain and NFT marketplace. Our adaptable approach ensures we deliver a strong and user-friendly DEX solution while staying agile in the volatile decentralized exchange market.

The bottom line

As you can see, building a FinTech app is not just a trend right now, but an opportunity to build a successful business. If you are curious about crypto exchange development or have an idea for a FinTech app, book a free consultation with an OmiSoft developer.

Our FinTech app developer has vast experience in building solutions that prioritize the security and convenience of user experience.

By Dmytro Romaniuk

CEO & Founder

Dec 15, 2022

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