The cryptocurrency market is breaking all the records with increasing time. Moreover, you might have noticed the interest of an upcoming generation in crypto. In like manner, the desire for a reliable and long-term store of value is the most important reason to invest in the cryptocurrency market. Equally important, this is because most cryptocurrencies have a limited supply, unlike fiat money. Thus, a bitcoin exchange app development is beneficial.
Similarly, you might be wondering how Bitcoin exchange app development is of use for you as an entrepreneur. To say nothing of the answer is unbelievable but yes there might be chances for you to become a Billionaire. By the same token, there was a rise in the crypto-asset holder to 101 million in 2020 from 5 million in 2016. In 2021 and now this count has touched 300 million. Moreover, as per the same research conducted let’s see the crypto holder demographics:
- 79% male, 21% female
- 58% are aged less than 34
- 82% of people have a Bachelor’s degree or higher
- 36% have an annual income of more than US$100k
Correspondingly, according to the Forbes report, a list of 12 billionaires crushed it through digital currencies of $1 trillion worth and increased fourfold from $250 in Jan 2020. Furthermore, let’s have a look at some of the top-notch Bitcoin tycoon names along with their net worth:
- Sam Bankman-Fried, the 29-year-old founder of FTX Exchange, is the richest billionaire in the cryptocurrency market with a net worth of $8.7 billion.
- Brian Armstrong, CEO of the famous exchange Coinbase with a net worth of $6.5 billion.
- Changpeng Zhao, founder, and CEO of Binance, with a net worth of $1.9 billion.
As a matter of fact, the Bitcoin exchange app is a really good plan for making billions of dollars. Must be remembered it’s a next-generation business thing as more people will become aware of crypto, the more they buy, store, and exchange their digital coins. To say nothing of a trustworthy crypto trading platform with the availability of good exchange offers will be required for this purpose.
Although this may be true, you need guidance from an expert developer to avoid any adversity while developing your Bitcoin exchange app. With this intention, if you are thinking this is the right time, to begin, this project, do it now.
Seeing that a Bitcoin exchange app plays an intermedial role between buyers and sellers. For this reason, it acts as a brokerage enabling users to deposit money. To put it another way, for trading between cryptocurrencies, a currency conversion fee is charged by the exchange app to users. So to understand a transaction on a bitcoin exchange, let’s have a look at the Bitcoin Exchange app working model.
Important to realize a user is required to register first and to authenticate their identity they will need to go through a set of verification steps for any crypto trade on an exchange platform.
Consequently, after the user authentication is done successfully, before buying digital coins the user is given an account to deposit their money.
Debit or credit cards, direct bank transfers, PayPal, etc. are a few different methods offered by various Bitcoin exchange software for deposits and a trader can withdraw their money from the crypto exchange accounts using these same options.
Bitcoin or any crypto exchange platform matches buyers and sellers. Traders decide to buy and sell bitcoin by inserting either a market order (buy or sell immediately without considering the price) or a limit order (buy or sell at a specific price or a better price).
Every Bitcoin exchange app offers funds to transfer fees and charges transactions. Trading volume decides the charges that will be applied on each buy or sell order.
Developing a Bitcoin exchange application will need compliance with all Government security measures and regulations of the particular country or region it will operate in. For making your app more reliable you might require essential licensing and approvals. It is completely up to you to decide if you wish to operate your bitcoin exchange app globally or confine it to a region.
From an intelligent entrepreneur’s point of view, it would be an ideal choice to start the platform within your native area but globally scaling will be as lucrative as risky.
A Bitcoin exchange BitMEX lost its reputation of being the best crypto as it had to go through a $300 million lawsuit in Dec 2019 against operating an unregistered Cryptocurrency Platform and didn’t comply with KYC/AML laws in the U.S. Therefore, to avoid issues regarding law after blooming your exchange in the market, you need to understand the regulatory requirements. This will ensure more security against any civil or criminal charges. So, you need to make sure identification of each trader through government-issued IDs.
You require a blockchain development techie to get an off-shelf, white-label Bitcoin exchange software. You have two good options i.e. to hire a mobile app developer or outsource your exchange app development to a well-reputed company. Outsourcing your exchange app development would be a much better option as it is more reliable and secure.
Your Bitcoin exchange platform should be user-friendly with the least complex solution to trade in cryptocurrencies for traders. Hence, for the development of your Bitcoin exchange app, you will require a team of expert developers.
Private data is the top-most concern for a Bitcoin exchange for securing funds of buyers and sellers. Thus, you can easily secure each transaction occurring on your exchange by using blockchain technology. This will help you in gaining your app’s user’s trust and motivate them to trade securely without concern about any cyber attack.
Let’s have a look at four components of the Bitcoin exchange software architecture.
For any crypto platform trade engine is considered the core of it. Furthermore, many things are accessible with a trade engine such as matching buyers or sellers, executing transactions, etc. which is required for operating your exchanges. Therefore, it is essential to set up a robust trade engine.
Crypto trading becomes very easier with the use of a user interface. Moreover, the UI is responsible for the visuals of your exchange app. Thus, due to the increase in trading through smartphones, it has become essential to provide a user-friendly application. An application developed on any platform either iOS or Android can get the job done amazingly.
For a better UI design, wireframing and prototyping techniques are advised by the developers. Your exchange UI must allow traders to:
- Register and access an account
- Deposit, save, and withdraw Crypto and Fiat currencies
- View current order book, transaction history, balances, statistics, etc.
- Analyze daily crypto market cap
- Place buy and sell orders
- Access the customer support
A crypto wallet is essential to facilitate buyers or sellers storing and managing their bitcoins securely. For example, the Coinbase app uses a crypto wallet to transfer directly from a trader’s crypto wallet to the other trader’s wallet. The fee is charged by the exchange app for secure transaction of digital coins
An Admin Panel assists you in managing and controlling the entire processing of an exchange platform. Thus, it becomes a requirement to create an analytical admin panel. A few of the functions that need to be included are:
- Altering liquidity
- Updating the spread and trading fees
- Authenticate user accounts for trading after verifying KYC and other compliance requirements
- Managing markets like USD/BTC, BTC/ETH, etc., and currencies like USD, ETH, BTC, etc.
- Crediting fiat deposits or debiting fiat withdrawals as requested by users
- Charging the fees on transactions
- Provide the support requested by users
To estimate the exact cost of developing a Bitcoin exchange application is quite a challenging task. Moreover, the cost may vary depending on several factors such as your requirements, complexity of an application, development rate of a developer, location of an app development company, and many more. We have short-listed some factors that might affect your budget.
- The bitcoin exchange app business model (centralized, decentralized, or peer-to-peer),
- The number of features to be implemented in your exchange app,
- Technology stack for developing secured exchange
- Platforms (Android, iOS, or Web) to deploy the exchange
- Third-party APIs integration into the platform
For developing a crypto exchange application, you will require a team of developers. This is another major factor that will affect the overall cost of app development. Let’s see a team that you will need includes:
- Project Manager to create and manage project milestones
- Backend & iOS/Android developers
- Frontend developers
- Graphic Designer
- Quality Analysis
We hope this entire guide on Bitcoin exchange app development was of immense use to you and now you are good to start your project. Echoinnovate IT is a promising on-demand app development company with 12+ years of experience. Contact us immediately for your crypto exchange or any type of app development.
FAQs Of Bitcoin Exchange App Development
How does bitcoin work?
Bitcoin is usually a file that is stored in a computer or smartphone in the form of a ‘digital wallet’ app. People can send, receive, and store bitcoins in a digital wallet with a unique address generated by bitcoin software for each transaction. Every transaction is recorded in a public ledger called “blockchain”. Through blockchain, it is possible to track the transaction history of bitcoins to avoid overspending on coins.
Why choose Echoinnovate IT to develop a Bitcoin Exchange App?
Echoinnovate IT is a promising on-demand app development company with 12+ years of experience. We have a skillful team of app developers and use the latest tools and technology to build an application. Contact us immediately for your crypto exchange or any type of app development.
