Top Key Features to Elevate Your Cryptocurrency Exchange Development

In today’s digital realm, cryptocurrencies have gained immense importance, in terms of valuation, returns, liquidity rates, and security and transparency. Being operated on blockchain, these do not abide by the rules and regulations of regular assets, like shares, stocks, and many more. Instead, they function independently of any authority, with a decentralized control distribution to multiple users at a time. But what truly makes these digital currencies the revolutionary face of the finance market is the ability to implement immutability and end-to-end visibility of all transactions initiated to date. 

Perhaps that’s why several enterprises have planned to venture into this realm, hoping to get a stance in the market and establish a firm position. However, to do so, the priority task involved is developing an exchange platform where users can easily sell, buy, or trade different cryptocurrencies and enjoy all the functionalities of a regular exchange. Even though it sounds quite tempting, planning and executing such a vast project can be overwhelming and conflicting at times. That’s why developers and project owners need to know the most crucial features of a top-tier and risk-free cryptocurrency exchange development project. 

Categorization Of Cryptocurrency Exchange Platforms

Before delving into the feature list for a cryptocurrency exchange development project, let’s first learn the types of exchanges prevalent in the market. With this, you can easily determine which one to opt for at the very beginning of project planning, ensuring there won’t be any further changes in the plan or roadmap. Besides, you can also modify your project plan on the go based on the exchange platform category you want to develop.

Centralized Cryptocurrency Exchanges (CEX)

Centralized cryptocurrency exchanges are under the sole control of a single entity, usually the platform’s owner or a group of people who initially invested in the project. Although no major restrictions are there, stakeholders can implement governance protocols to prevent scams and fraud.

Examples – Binance, Coinbase Exchange, Kraken, KuCoin, Binance.US, Bitfinex, Gemini, Coincheck.

Decentralized Exchanges (DEX)

Decentralized exchanges for cryptocurrencies do not have any sole controlling body. Instead, the control and management powers are delegated to different authorities at a time. The public ledger is made accessible to everyone with end-to-end encryption logic and data immutability for optimal privacy and security. Since multiple controlling bodies are involved, it’s important to implement high-level authentication layers for better protection.

Examples – Ox, Jupiter, Uniswap, CowSwap, 1inch, Matcha

Hybrid Cryptocurrency Exchanges

Hybrid cryptocurrency exchanges have a user-friendly interface and higher liquidity rates for digital assets like centralized exchanges. Apart from this, they also extend the impeccable security and privacy capabilities of the decentralized exchange platform. Combining the goodness of both categories, hybrid exchanges are more scalable and eliminate the restrictions and limitations with ease.

Peer-to-Peer Crypto Exchanges

Peer-to-Peer (P2P) Crypto Exchanges are decentralized platforms where users can trade cryptocurrencies directly with each other without the need for intermediaries like traditional exchanges. These exchanges connect buyers and sellers, allowing them to set their own terms for transactions.

Examples – LocalBitcoins, Binance P2P, and Paxful.

Business-Based Features Of Cryptocurrency Exchange Development Project

Every cryptocurrency exchange development project should have a list of features listed at the beginning of the planning phase. It will not only help you design an accurate roadmap but also prevent any major failures. Owing to this, we have catered the major business-specific features that the project should have for a higher success rate and seamless execution. 

• Customizability 

The project should be customizable enough to adapt to any changes needed on the go after the commencement of the software development life cycle. Without this, it might be difficult to add any new prospect to the project or change the UI design based on an instantaneous market analysis. Apart from this, it will also give the project owner the power to make alterations that can cater to the specific business requirements for a future-proof strategy. 

• Rigorous Testing Schedule

Every crypto exchange development project should have a dedicated timeline for testing. Whether it’s a waterfall or an agile project, testing must be done rigorously. You must focus on multiple testing approaches, like system integration testing, user acceptance testing, performance testing, and functional testing. Additionally, the plan should also include server load testing, volume and stress testing, and quality assurance testing. This will not only help you detect any underlying anomaly in the functionality and technicality of the software but also get the issues resolved before the final deployment. 

• Automated Deployment Schedules

Another important feature to include in your crypto exchange platform development project is automated deployment schedules. Rather than manually handling the deployment, you can include DevOps tools like Jenkins or Docker to plan for automated schedules and reduce the efforts needed. It will not only decrease the server downtime but ensure the platform is accessible to the users at a much faster rate. Furthermore, it will also help in deploying any further data or security patches without taking down the application from the server. 

• Rapid ROI Generation Model

It is imperative to ensure the cryptocurrency exchange platform can generate higher returns at a faster rate once deployed to the users. Several ways are there in which you can structure a formidable and yielding revenue plan, like as including transaction fees, withdrawal and deposit charges, margin trading fees, cross-border transaction fees, and token sales. Ensure you incorporate multiple plans so that there can be more than one revenue-earning channel for the exchange platform. 

• Device-Responsiveness

Also, ensure the cryptocurrency exchange platform is responsive to different devices, including desktops, laptops, mobiles, and many more. It will not only enhance the user experience but also ensure an omnichannel revenue model for the business. Apart from this, it will make the interface user-friendly, thereby providing an optimal functional quality to the end customers. 

Technical And Structural Features Of Crypto Exchange Platform

In technical terms, the cryptocurrency exchange development project should involve multitudinous features for better performance and enhanced brand visibility. 

1. User and admin dashboards: The platform should have different dashboards for the users and the admins. They must have role-based access for higher security and protection. Device responsiveness, easy access, and user-friendliness are the key components of developing a smart and advanced dashboard for users and admins alike. 

2. Advanced chart tools: It’s important to include top-tier and advanced charting tools that will help in viewing the market differently and accurately determine the pricing movements, bullish and bearish trends, and the open and closing positions. 

3. Order types: Users should be able to place orders in different forms on the developed cryptocurrency exchange platform. It will not only make the entire software user-friendly but also cater to the variable customer needs with ease. 

4. User verification portal: Although decentralized exchanges allow users to trade, buy, or sell cryptocurrencies anonymously, it’s important to integrate a user verification portal. It will enhance the security behavior and ensure the platform remains protected from cyber threats. 

5. API documentation: Connecting the backend and frontend using APIs is the key feature of any microservice-based architecture. It would be best to prepare a detailed documentation of all the APIs involved, their programming logic, and other elements. It will act as the source of truth and ensure that further modifications can be introduced with ease. 

6. Multi-lingual support: Since most crypto exchange platforms are dedicated to the global audience, you should integrate support for different languages. The more the merrier! In other words, if you include different versions of the software with language differences, it will help you to target a greater audience section from diverse geographical and cultural sectors. 

7. Multiple trade supports: Ensure the cryptocurrency exchange platform supports different trading approaches, including options trading, futures trading, day trading, and many more. Also, include margin trading since cryptocurrencies have epitomized cross-border transactions, thanks to the decentralized blockchain foundation layer. 

Security Features To Include In The Cryptocurrency Exchange Platform

Lastly, it’s important to list the major features of security and data protection of the cryptocurrency exchange platform. It will help you determine the loopholes in the development plan and ensure the security approaches adopted are at par with the industry’s best practices. 

1. Jail login: It will limit the number of attempts a user makes to log into the cryptocurrency exchange platform, ensuring no anonymous credentials can be used to hack an account or make fraudulent transactions. 

2. Two-factor authentication: It’s very imperative to provide an optimal sense of security to the users, especially when it concerns digital assets like cryptocurrencies. Hence, integrate a two-factor authentication system that will ask for two different passwords or security keys to access the account, private wallet, and so on. 

3. Anti-Denial of Service: Preventing the crypto exchange platform from fake online traffic that can render the server non-functional due to excessive load is crucial. This is where implementing the protocols of the Anti-Denial of Service strategy will come into the picture. These will prevent the users can accessing the platform once the underlying security layer senses any fake traffic or usage of bot IP addresses. 

4. CSRF protection: Also, you need to pay attention to cross-site request forgery actions where the end user is forced to make unwanted actions on the crypto exchange platform. It will enhance the overall user experience and assure them with a higher sense of security. 

Conclusion 

Now that we have discussed the major features to include in the software, planning the cryptocurrency exchange development project won’t be a hassle for you. Ensure you include these points in your project plan so that you won’t have to worry about server downtime, inaccessible exchange, or redundant functionalities post the launch phase. And, if you need a reliable partner for your cryptocurrency exchange development? Let’s collaborate to bring your vision to life with Web 3.0 India‘s top-tier solutions. Reach out today!