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
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.
How Does The Bitcoin Exchange Work?
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.
How To Build A Bitcoin Exchange App?
Target a country or region
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.
Review the regulatory requirements of that region
Partner with developers specializing in Crypto exchange
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.
Focus on pulling off the maximum security in your cryptocurrency exchange app
Create the Best Cryptocurrency Trade Architecture
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
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
How Much Does It Cost To Develop A Bitcoin Exchange Application?
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
Project Manager to create and manage project milestones
Backend & iOS/Android developers