It is kind of an obvious fact that if you’re reading this blog, you are fascinated by cryptocurrency exchanges and are aspiring to build and launch your own crypto trading platform. It is also understandable that you are confused about where to start, what are the essential factors to consider when building an exchange, and what is the cost of building an exchange. With cryptocurrency exchanges being the prime focus of the cryptosphere and with the demand and competition intensifying with each passing day, it might be overwhelming. This blog is to help you with that.
Here, we are going to discuss the major elements that add up to the cost of building your crypto exchange software to help you gain an understanding and decide on your required budget. So, let’s go ahead and find out.
Factors that contribute to the cost of building your cryptocurrency exchange
The first factor is the type of cryptocurrency exchange platform development you choose to execute. There are different types of cryptocurrency exchanges, and the cost of building each exchange will vary depending upon their attributes and tools required to build them. To determine the type of exchanges that fits your needs, here is a quick glance,
1.Centralized Exchange- A centralized exchange is the most commonly used type of exchange, where the exchange operations and the user funds are controlled and managed by a central authority. The reason for it being the most preferred is because in case users forget their passwords, they can always easily retrieve them back as the control is with the central authority, and also because of many other benefits involved.
2. Decentralized Exchange- A decentralized exchange, contrasting with a centralized exchange, eliminates the need for third parties and facilitates direct transactions between users. This brings in more speedy, secure transactions and several other benefits for the users.
3. Hybrid Exchange- A hybrid exchange is a modified version, eliminating the glitches in both centralized and decentralized exchange, and combining the benefits of both.
4. Peer to Peer Exchange- A peer to peer exchange is the most significant example of decentralization, as it allows direct global transactions between users without any third party involvement.
It is important for you to figure out the time and budget constraints for your cryptocurrency exchange development. The cost depends upon the duration within which you want your crypto exchange software to be built and launched. For example, if you want to build it faster, the cost will be more, and if you are okay with taking a bit more time, then the cost is comparatively less.
Next up on the list is your budget. You need to carefully analyze all the essentials you will need for building your exchange and set a budget accordingly. But it is important that you keep your future requirements in mind while doing so. Say, your exchange encounters any issues, you should be having a certain amount of money to be able to resolve it immediately and get your exchange running again in no time. Other than this, the budget involves legal procedures, features and tools implementation, due diligence, employee wages, etc.
The cost of building your cryptocurrency exchange also depends upon the features that you choose to integrate for your exchange platform. You can add or remove, and modify the features of your exchange according to your personal preferences. However, here is a list of the must-have features to enable high-performance, and seamless functioning of your exchange,
Another notable factor that determines the cost of building your crypto exchange software is your personal customization preferences. Every aspiring crypto exchange owner would want to launch the exchange in their own desired brand. To achieve that, you will have some customization ideas on aspects such as the name, brand, logo, UX/UI of the exchange platform, color themes, etc. Such customization preferences and the required tools to enable them will decide the cost of building your exchange.
Another most important factor that makes a huge impact on the cost of building your crypto exchange platform is how you choose to build it. There are two common methods to build and launch an exchange,
The first one is building the exchange all the way from scratch. Although it is the common methodology, it involves a ton of procedures, such as
Such procedures might sound easy, but it involves a lot of intricacies, technical factors, and security factors to be given the utmost importance. Also developing an exchange all the way from the ground up incurs a lot of time, money, and resources which is not feasible for this competitive market scenario. So, what is the best alternative?
2) Acquiring a white label crypto exchange
A white label crypto exchange is currently ruling the market, and entrepreneurs are inclining more towards them because they bring in various advantages. A white label exchange is nothing but a readily-available exchange, with every feature and functionalities integrated to ensure smooth performance. It enables quick launch, saving a lot of time, money, and resources. Also, it is often built by experienced developers and is pre-tested before being delivered to the customers. Hence, they are more reliable, secure, and ensure bug-free operations. They are also more flexible, scalable, and customizable. All the customer has to do is purchase, customize, and launch it in their own desired brand.
These are the factors that determine the cost of building a cryptocurrency exchange. If you want to launch your own white label exchange in the shortest time possible, go through deep research and find the best white label exchange solution provider, to quickly effect an entry, become your investors’ choice and pocket million-dollar profits.
It is kind of an obvious fact that if you’re reading this blog, you are fascinated by cryptocurrency exchanges and are aspiring to build and launch your own crypto trading platform.
Written by Saira wo
COINRATECAP