In recent years, cryptocurrency has become increasingly well-known, and more and more people are discussing whether they work in the tech industry. Bitcoin, Ethereum, and Litecoin have been utilized as frequently as fiat currency in certain digital locations around the globe. The cryptocurrency wallet is capable of handling all transactions.
Despite the widespread use of fiat currency, cryptocurrency may one day replace fiat currency and cause changes to the traditional banking system, just as fiat currency replaced the gold standard. Even though the value of cryptocurrencies fluctuates and has recently exhibited a downward trend, digital currencies such as Bitcoin and Ethereum continue to thrive, nearly reaching a new all-time high and attracting many investors.
If you’re interested in developing your own crypto exchange development, this article will outline the steps and costs involved.
How to develop a cryptocurrency exchange app?
Here are the initial steps to take. Let’s examine in greater detail how to establish a cryptocurrency exchange.
Determine the problem
Research the market’s current trends and users’ concerns. Find a problem already, evaluate the available solutions, and then create a solution that meets the user’s needs.
Investigate the solution’s cost-benefit ratio to determine if developing a new crypto application would be profitable.
Establish the operational scope and budget.
Planning an operational scope is essential, as it will launch your crypto application. In this phase, you can list the functionalities. It also provides developers with an idea of what needs improvement.
Using these standards, the team working on the app can plan and manage the amount of time required for development.
Determine your budget, as failure to do so could result in project failure during the development phase. Set aside sufficient funds for developing and marketing your cryptocurrency exchange app, taking currency rates into account to avoid potential risks.
Choose the type of crypto exchange and technology stack.
The platform you choose for your cryptocurrency exchange app will determine your app’s functionality.
Choose from centralized, decentralized, or hybrid cryptocurrency exchange platforms.
Choosing the right technology stack can prove the success of your app. If you are constructing a web application, you may choose the HTML5 technology stack.
Budget Estimation
You must determine how much money will be necessary for this project to set aside adequate funds for development and marketing, taking exchange rates into account, especially for offshore development.
Legalities Question
Unbeknownst to you, legal compliance requirements must be met when launching a new business, particularly if you intend to build a cryptocurrency exchange. Before proceeding with development, you must ensure that all required permits have been obtained from the appropriate authorities.
Assembling a Team
You can divide tasks between your in-house team and outsourced developers to save money and advance quickly, particularly for MVP development. This type of hybrid development team can be very cost effective and beneficial for your project, as our practice has repeatedly shown.
Technical Launch
This pertains to the product’s architecture, which is all about its work speed and scalability capacity. The right tech stack is also an investment. At Procoders, we pay a great deal of attention and add our expertise to the balance of security and scalability, which is crucial once the product has been released, and to the costs and speed of development during the MVP phase, when you must be faster than your competitors to capture the investments.
Difficulties in Creating a Cryptocurrency Exchange (Based on Our Experience)
There are currently a multitude of cryptocurrency exchanges on the market. However, starting a cryptocurrency exchange is risky and fraught with numerous money-losing risks and opportunities. Let’s discuss the unique challenges businesses seeking to develop a cryptocurrency exchange may face.
Regulatory Compliance
The initial obstacle is regulatory compliance. Numerous nations have regulations regarding cryptocurrencies and ICOs. To conduct business in these countries, you must adhere to these rules and regulations and, if necessary, obtain licenses from them.
Security
Another area for improvement is security, which is always an important factor when conducting financial transactions online or offline, regardless of the amount, because you never know what could occur if you’re not careful enough. You must ensure that your exchange has robust security measures, such as two-factor authentication, encryption, and cold storage.
Technical challenges
A cryptocurrency exchange is a complex system that must facilitate high-volume trading and provide a seamless user experience. Cloud technologies and contemporary software development practices, such as microservices, containers, DevOps, and CI/CD, can accomplish this. ProCoders can provide you with a competent team of developers and engineers for implementation.
How much does it cost to develop a cryptocurrency app?
The cost of developing an app for a cryptocurrency exchange varies based on the platform’s features and functionalities, size, APIs, and business strategy.
For instance:
Complex API functionality implementation requires more time and resources, so the development cost is proportional to the number of currencies supported.
There may be costs of up to USD 350,000 associated with developing a Crypto Exchange app with advanced features. If you’re looking for a low-cost solution, you can opt for a decentralized exchange, whose development will cost approximately $50,000.
Conclusion
The development cost of a cryptocurrency exchange platform will depend on several factors, such as the platform’s complexity, the location of your development team, and the development schedule. Before beginning the development process, it is crucial to consider these cost-controlling factors. You can create a high-quality cryptocurrency exchange platform within your budget with the team’s help at a blockchain app development company.