How a Cryptocurrency Exchange Software helps entrepreneurs to increase their return on investment

Ever since the introduction of money as a viable replacement to the barter system, the global financial system has progressed by several leaps and bounds. However, the launch of Bitcoin in 2009 as a decentralized virtual currency free from the control of any authorities proved to be a game-changer. 

The current financial system suffers from some limitations like economic and social discrimination, heavy influence of regulatory authorities, inequality, and transaction censorship. Cryptocurrency aims to solve all these problems through affordability, elimination of intermediaries, immutability, and instant execution of transactions at low fees. 

Behind the huge rise in the value of Cryptocurrencies, there exist well-organized Cryptocurrency trading platforms that handle millions of orders (buying and selling) and the processing of transactions effectively. According to data from Coinmarketcap, the leading Cryptocurrency exchanges in the world in terms of liquidity and trading volume are Binance, Huobi, Coinbase, Kraken, and Bitfinex. 

What does a Cryptocurrency Exchange Script imply?

• It is a white label trading solution - that allows investors to buy and sell well-known cryptocurrencies and stablecoins. 

• The Cryptocurrency exchange script will function - based on an order book and a matching engine or operate with the help of an escrow system. 

• It is a customized and feature-packed crypto trading platform - possessing abundant liquidity and high user-friendliness. 

• There are different types of Cryptocurrency exchanges - like Centralized, Decentralized and Peer-to-Peer (P2P). 

How does a Cryptocurrency Exchange Software function?

• The prospective investors register on the crypto trading platform by submitting the required information. 

• The users undergo Know your Customer (KYC) and Anti-Money Laundering (AML) verification. 

• The buyers view the prices of different cryptocurrencies available on the Cryptocurrency exchange software. 

• The crypto buyers initiate a trading request on the platform by mentioning details like the quantity of assets required, price, the accepted payment methods, and the deadline for bidding. 

• The interested sellers accept the buyers’ trading request.

• The escrow holds the cryptocurrency assets securely. 

• The buyer transfers the required amount to the seller.

• The escrow releases the cryptocurrency to the buyers’ digital wallet after the seller receives the payment.

• The crypto trading deal gets completed successfully on the Cryptocurrency Exchange Software. 

How entrepreneurs benefit from massive growth by getting hold of Bitcoin Exchange Software?

• The global market capitalization of the Cryptocurrency industry has increased to $1.99 trillion. It has doubled this year due to huge demand from institutional investors and corporate companies. 

• The top 5 cryptos with the highest returns in 2021 have been Dogecoin (8039%), BitTorrent (2500%), Terra (2348%), Solana (1602%), and Binance Coin (1260%). 

• Coinbase, one of the leading Cryptocurrency exchanges in the USA crossed a whopping $112 billion in market value after launching an Initial Public Offering (IPO) on Nasdaq.

• Bitcoin, Ethereum, Dogecoin, Ripple, and Litecoin are the leading five cryptocurrencies in terms of trading volume. 

• Investors can also get loans on their crypto assets from financial service platforms like Cashaa, EasyFi Network, and Vauld. It provides benefits like flexible repayment options and no particular tenure.

• Many investors are buying cryptocurrencies due to the poor performance of their country’s fiat currency and the risks of hyperinflation.
  
  

Analyzing the various types of Cryptocurrency Exchange Script

Centralized Cryptocurrency Exchange

The investors pledge their assets under the control of a centralized authority. Buying and selling orders are executed by middlemen who pocket a certain percentage for their services. The benefits of Centralized exchanges are sufficient liquidity and a robust operational capacity to handle a large trading volume. The demerits are it can suffer from hacking and phishing attacks compromising the data and funds of the crypto traders. Some examples are Binance, Coinbase, and Kraken. 

Decentralized Cryptocurrency Exchange

It is the opposite of Centralized exchanges as there are no central authorities in the trading platform. The Decentralized Cryptocurrency exchange allows prospective buyers and sellers to directly execute trades without depending on any third party. Atomic swapping of crypto assets is permitted with the help of smart contracts. Decentralized exchanges provide advantages such as top-notch security and complete privacy. DDEX, IDEX, Kyber, and Waves DEX are well-known decentralized cryptocurrency trading platforms. 

Peer-to-Peer Cryptocurrency Exchange

Full freedom is guaranteed to the traders as there are no intermediaries in a Peer-to-Peer (P2P) Cryptocurrency exchange. The buying and selling of orders are executed via P2P transactions in the absence of human intervention. A Peer-to-Peer crypto trading platform allows investors to have 100% control over their digital assets and do not subject them to undergo KYC and AML verification. A few P2P crypto exchanges are Localbitcoins, Paxful, Poloniex, and Remitano. 

The core features of Cryptocurrency Exchange Software 

• Integrated multi-signature digital wallets (Hot and Cold) - for the safe storage of cryptos by the investors.  Hot wallets can be accessed through the Internet. Cold wallets are highly secure as they operate offline. 

• Access to ICO/IEO launchpads - Users can launch their own crypto token in the market and raise funds easily. The crypto traders can also purchase the new tokens launched recently in the industry. 

• A Margin trading option - The investors can earn high returns by strategically taking short/long positions on their digital assets according to the price fluctuation and market conditions. Margin trading helps cryptocurrency holders to earn an income of up to 100x leverage. 

• Price ticker API - It sends real-time alerts to the traders when there are changes (increase or decrease) in the price of cryptocurrencies. Investors can make the right financial decisions by accessing easy-to-understand charts and graphs.

• Provision of adequate liquidity - With a powerful matching engine, cryptocurrencies get a high level of liquidity as they can be quickly bought and sold by interested investors.

• Multi-layer security measures - The data and funds of the users are completely safeguarded on a Cryptocurrency exchange script. Steps like anti-DDoS protection, cross-site request forgery protection, end-to-end encryption, jail login, regional firewall protection, server-side request forgery protection, and two-factor authentication are implemented. 

• Acceptance of several payment methods - The crypto traders must be able to execute buy and sell orders by paying through debit cards, credit cards, digital wallets, net banking, wire transfers, and UPI.

• Availability of 24x7 technical support - Round-the-clock customers support is provided in numerous languages to deal with any issues faced by the crypto traders.

• Other features - The Cryptocurrency exchange software also consists of extra features like a trading bot, a live chat option, fingerprint authentication, over the counter trading (OTC) facilities, an integrated referral program, crypto to fiat currency conversion mechanism, and access to transaction history for the investors. 

Some crucial factors that entrepreneurs must consider before developing Bitcoin Exchange Software

• Security - It should be given maximum priority as the reputation of the Cryptocurrency exchange is at stake when the data and funds of the traders get compromised due to hacking and phishing attacks. Additional safety measures like email verification, facial ID authentication, IP tracking, and SMS verification can be introduced to prevent unnecessary risks. Investors lose confidence to deal in cryptos when there are security loopholes in trading platforms. 

• Compliance with regulations - Many authorities and governments across the world are passing various guidelines related to cryptocurrency trading, transactions, and digital asset management. Hence, entrepreneurs must comply with regulations to avoid legal scrutiny. 

• Liquidity management - A smooth trading experience is offered for the investors through efficient management of liquidity. Quick conversion of crypto assets into cash and vice-versa is important. Liquidity can be enhanced by the entrepreneurs by partnering with a big and established cryptocurrency exchange in the market, utilizing automated market making, setting up trading bots, and API integration. High liquidity provides benefits such as competitive prices, greater stability, better credibility, and ensures faster processing of transactions.

The detailed process followed to develop a Cryptocurrency Exchange Script

• Acknowledging the business requirements and operational scope of the client firm. 

• Involving in technical documentation and following different regulations. 

• Hiring the various team members like blockchain developers, smart contract creators, finance managers, marketing specialists, project managers, QA testers, and technical support executives.

• Assembling the required tech stack. It includes technologies like AngularJS, Apache, Express.js, Laravel, MongoDB, MySQL, Node.js, PHP, and Python.

• Preparing a list of features and functionalities to be included in the ready-made Cryptocurrency exchange software. 

• Choosing between the different blockchain networks (Binance Smart Chain, EOS, Ethereum, and TRON).

• Establishing the front-end (UI/UX design) and back-end (setting up of the operational server) of the Bitcoin exchange software.

• Extensively testing the white label crypto trading solution in terms of performance, security, and speed.

• Deploying the final version of the Cryptocurrency exchange script on the operational server.

• Offering additional services like assistance in implementing digital marketing campaigns, the issue of new software updates, and technical support. 

How do entrepreneurs gain by entering the lucrative business of crypto trading?

• A high possibility to generate a greater return on investment - than traditional financial assets like bonds, fixed deposits, mutual funds, and stocks. 

• Minimum operational expenses are spent - by utilizing pre-programmed software for buying and selling cryptocurrencies and by removing intermediaries/ third parties.

• Efficient diversification of investments - by putting money in a variety of cryptocurrencies and stablecoins. 

• The cryptocurrency exchange can be integrated with DeFi platforms - to provide investors additional sources of income through crypto staking and yield farming.

• Affordable entry to the market - is assured through quickly deployable Cryptocurrency exchange software that is customized and white label. It gives a competitive advantage to the entrepreneurs as lesser time is spent when compared to development from scratch. 

• Maintenance of a high level of transparency - as all data related to trading and transactions are stored securely in the distributed ledger.

• Seamless cross-platform compatibility - A Cryptocurrency exchange software can work glitch-free on different operating platforms (Android, iOS, Web, Windows, macOS) 24x7x365.

Final Thoughts

With favourable regulations, Cryptocurrencies will make inroads into the mainstream economy. The competition in the digital currency industry will increase in the future with the entry of more crypto exchanges, cryptocurrency wallets, and digital asset management platforms. 

Amidst the favourable market conditions and optimistic investor demand, entrepreneurs can witness a huge spike in market share and trading volume soon by acquiring a Cryptocurrency Exchange script now.