Creating a crypto exchange and exchanger
CREATING AN EXCHANGE
The first places for exchange began to appear - cryptocurrency exchanges, where one could easily exchange his tokens for so-called fiat, which was then withdrawn to bank accounts and cards, as well as electronic wallets.
CONCEPT OF A CRYPTO-EXCHANGE
Initially, crypto-exchanges had a centralized form and there were only crypto-tokens as trading pairs. However, with the further development of the market it became expedient to classify them into such types conditionally:
THE DIFFERENCE BETWEEN AN EXCHANGER AND AN EXCHANGE
Both services exchange tokens. But if the exchanger is a party in trading, in other words, directly involved in transactions, selling or buying, the crypto-exchanges is a whole platform where market participants trade with each other, and the exchange is a regulator and intermediary between them.
In a cryptocurrency exchange, pricing is controlled by its manager; in a cryptocurrency exchange, this factor is influenced by the balance between supply and demand. Some refer this to the positive sides of exchangers, as it is impossible to carry out exchange schemes like "pump and dump". Meanwhile, the exchange market is more democratic, because prices are influenced by many participants, not a particular person.
In the exchanger, the owner sets prices based on the internal rate pegged to the exchange rate. The most well-known cryptocurrency exchanges serve as a reference. Nevertheless, very often the prices in exchangers are quite significantly different from the actual prices presented on major exchanges. Naturally, when working with an exchanger, the user is deprived of the opportunity to choose an acceptable price for him, because the set exchange rate is fixed. While on the exchange, there is an opportunity to create a limit order, which allows you to complete the transaction at a time when the price is satisfactory to the user.
If you want to create an exchanger, it is worth remembering that users appreciate such characteristics:
- Hours of operation;
- no interruptions in operation;
- prompt work in online mode;
- user-friendly interface;
- a variety of currency pairs containing popular coins;
- moderate commission.
WELL-KNOWN CRYPTOCURRENCY EXCHANGES
At the moment there are about three hundred cryptocurrency exchanges. CoinCap.io rating data shows that 68 exchanges can be considered reliable. Below is a list of the largest of them.
BINANCE
This exchange started in 2017 in Hong Kong and then moved to Malta. In 2 years of its existence, it has transformed from a simple crypto exchange into an entire ecosystem containing separate and related projects these days. In addition to blockchain products and trading, the exchange has a lot of research, educational and charitable projects.
This exchange is centralized, but recently launched separately also decentralized form. It uses a native coin Binance Coin and stabelcoin Binance USD. There is also constant support for margin trading.
Takers pay a trading commission of 0.04 to 0.1% and makers pay 0.02 to 0.1%. It varies depending on the volume, in addition there are discounts at the expense of BNB. There is no commission for deposit, but for the withdrawal it is taken on the basis of its type. Users have the opportunity to follow the trades via PC or mobile gadgets.
COINBASE
This is a centralized U.S. exchange registered with FinCEN. It hosts transactions in various tokens, as well as dollar, euro and pound, BTC, ETH coins and USDC, DAI staplecoins.
The trading commission - 0-0,5%, depends on volumes. It is not charged for withdrawal and deposit. Works on all modern operating systems.
BITSTAMP
This exchange appeared 11 years ago in Slovenia, later its representative offices appeared in Luxembourg and Great Britain. The platform provides trading through a standard trading interface via the PRO version, where professional traders and hedge funds carry out their transactions. In addition, there is a service for institutional traders. These are traditional banks, brokers, non-banks and large fintech companies.
Tokens, euros and dollars are used. Bitstamp is a centralized exchange with CSSF registration. Withdrawals and deposits are made not only in tokens, but also through bank cards and accounts. There is no commission for deposits via SEPA and 0.05% via Wire. Withdrawal fees range from €3 in SEPA and 0.1% in Wire. Access via all operating systems on PCs and mobile gadgets.
Any cryptocurrency exchange wants to attract users with special conditions. Bidders choose a platform based on:
- Reliability of currency storage;
- the number of coins and trading pairs that are freely available
- the level of protection of the user's account;
- of the daily trading volume;
- liquidity;
- The amount of commission for deposit and withdrawal of funds and conclusion of a transaction;
- options for depositing and withdrawing money.
EXCHANGE CREATION PROCESS
If you have a desire to create your own cryptocurrency exchange, you can either do it from scratch or buy a ready-made software product.
GREENFIELD DEVELOPMENT
This is quite a complex, but at the same time and competent approach that allows you to better enter the crypto market and go through all the stages of creating a future exchange - from the concept of terms of reference to the final release. The basic version of the crypto exchange contains:
- trading engine;
- user interface that manages analytics, wallets, and accounts;
- database;
- admin panel.
Among the advantages of developing from scratch is the ability to optimize the exchanger and the presence of confidence in the security. However, it is worth mentioning that it will take more time to launch the project than when implementing a ready-made solution, and also the price of the turnkey exchanger will be much higher.
FINISHED PRODUCT
The task was set to create not an ordinary crypto-exchange, but a universal product "all in one". The main goal was to develop a platform that would be popular among professional traders and ordinary ordinary people, who would be able to purchase tokens, with the same convenience as any product online. For this reason, a number of services were added to the initial version to increase the reach of the audience. At the moment, the platform is present:
- An exchange containing a cryptocurrency exchange and a cryptokiosk;
- referral program;
- online wallet;
- portfolio of crypto-assets;
- a blog where news is posted.
All this appeared on the site in stages, which is very pleasant for most customers. They have the ability to control the progress of the work, vary the amount of budget, add new ideas in the process of creating the site. It took about three months for the entire development process.
The first stage was working on the terms of reference. Without it you can not predict the real terms and price of exchange development. This work takes about a hundred working hours and is estimated at 5000$.
CUSTOMIZATION OF THE PRODUCT TO THE BRAND
The use of a crypto exchange on the off-the-shelf engine can be temporary or as an additional service provided to the audience. More often than not, the main activity of a consumer who wants to buy a ready-made product is not directly related to tokenomics, but is somewhere nearby. And the interest in owning such a platform is due to demand and current trends.
The pluses of the platform include quick setup and launch, low costs at the initial stages. On the negative side, we should highlight the lack of access to the source code, which does not guarantee its security, the complexity of optimization to specific requirements, as well as the dependence on third parties.
THE BENEFITS OF OUR ADAPTATION
Prices in our company are at an affordable level. In addition, we are always ready to meet the customer's needs.
We perfectly understand that you can't wait long, that's why all the processes are carried out in the shortest possible time. It is very important to us that the customer receives the finished product on time.
Professionals working in our company are able to solve problems of any level of complexity. Everything will be done according to modern trends and with high quality.
FINANCIAL AND LEGAL ASPECTS
It may seem that the main thing when developing a cryptocurrency exchange will be to find a solution to technological problems, but in fact this is not the main thing, because more than half of the time is spent on financial and legal aspects. We will have to deal with this.
COMPANY REGISTRATION
It would be necessary to choose the jurisdiction that would be the most loyal to cryptoservices, and this is not easy enough. The reason is that tokens are not yet generally recognized by the leadership of many countries. The most loyal are the Maltese, Dutch, Americans, Swiss and Estonians.
LICENSING
In most countries, in order to work with cryptoassets, you need to obtain a license. For example, in Estonia there are two such documents. One applies to storage and the other to exchange it for real money.
There are a number of requirements that are regulated by the fifth directive of the anti-money laundering law. The main ones will be described below.
Each of the users of the exchange is required to undergo the process of identification. It is clear that one can organize the collection of users' documents, identify and check them against various databases. But for this purpose, there are ready-made services that allow you to perform the required checks without unnecessary difficulties and costs. Among the nicknames are the following:
- Veriff
- Trulioo
- Sum & Substance
Among the recent requirements of regulators is the obligation to know one's transaction. The essence is that every crypto-exchange must organize the verification of tokens transferred to it, as well as block their receipt from unreliable sources. It is known that the same bitcoins are also used to pay in the areas of crime, drug trafficking and terrorism.
The law also states that an exchange must have an ICA and ACAMS certified employee to track suspicious transactions, prepare reports on them and then send them to the services involved in monitoring the finances. This person must also have a degree in finance.
It is best to take care of all these requirements before opening a bank account. Otherwise, it will not be possible, and time will be wasted.
ACCOUNT OPENING
This problem is more important for cryptoservices. Banking institutions consider cryptocurrency activities to be very risky processes, that's why you can't open an account in 99% cases in Europe. Even a full set of licenses and compliance with anti-money laundering laws will not save it.
However, there is a way out. You can open a checking account in an electronic money system, which converts fiat money into electronic units. And when you withdraw them from the account, electronic units are also deducted. This method may be a little confusing, but it works. And despite the presence of strict requirements, they are quite feasible. Such systems include:
- Paytah
- Vialet
- Bilderlings
- Clearjunction
COST OF OPERATION
As a rule, developers do not immediately name a fixed price for their work, because it is not clear how much. Without discussing it with the client in advance, it is very difficult to perform calculations because of the different requirements put forward by customers. But they want to understand in advance what it will all cost them. To this end, companies research the market and put up a certain range of costs, so that the client can at least roughly plan the budget.
Our company has already done that, and it turned out that the prices have fallen a little bit this year. Now they are as follows: to create a crypto exchange from scratch on our continent will cost from 50 to 240 thousand euros, and in North America - from 65 to 310 thousand $. A little cheaper will be the cost of cryptoexchange: in Europe - from 30 to 120 thousand euros, and on the North American continent - from 40 to 160 thousand in American currency.
We can also perform ios app development и Creating an application development environment for android. In addition, our specialists deal with developing mobile games from scratch.
What do our clients think of our work?
The reviews were published with the permission of the customers according to p.c. of the site
Advantages of our company
We thoroughly study the problems, consider them from all sides and quickly collect the necessary information. Then we discuss the specifics of each problem with clients and together with them make a work plan, taking into account all the wishes of customers.
There are more than 20 specialists in our team. Most of the team members have higher technical education and have been working in IT for more than three years. And we'll always answer if you have questions or need help.
We help to solve any problem related to IT: we develop programs and applications, issue tokens and develop blockchain networks. Our clients are companies, offices, small and medium-sized businesses, and financial organizations.
We develop programs in popular programming languages: Python, C++, JavaScript. That's why we can create universal solutions for any of your tasks: whether it's a program for the office, a database, an application or a blockchain network.
We are engaged in comprehensive support of ready-made products. We can extend the functionality of ready-made programs and applications, if necessary. We can also help if you need to add something to your ready-made program.
After developing a program or creating a blockchain network, we help you understand how to effectively manage the product. We support customers and help them achieve their goals with our applications.
We take a professional approach to problem solving. We create tokens and help clients bring them to market, help you create your own blockchain for your tokens. We can help if you need to configure the management of tokens you already have.
We turn any of your IT ideas into a finished working project. We have released a large number of programs and applications, provided support to a wide variety of clients and earned their trust. They turn to us for problem solving.
We develop our own blockchain networks for companies. Our programmers have excellent knowledge of Python, C++, JavaScript and can work with any storage systems. We can create a secure network or application to store any data.
We thoroughly study the problems, consider them from all sides and quickly collect the necessary information. Then we discuss the specifics of each problem with our clients, taking into account all the wishes of customers.
There are more than 20 specialists in our team. Most of the team members have higher technical education and have been working in IT for more than three years. And we'll always answer if you have questions or need help.
We develop programs in popular programming languages: Python, C++, JavaScript. That's why we can create universal solutions for any of your tasks: whether it's a program for the office, a database, an application or a blockchain network.
We help to solve any problem related to IT: we develop programs and applications, issue tokens and develop blockchain networks. Our clients are companies, offices, small and medium-sized businesses, and financial organizations.
We are engaged in comprehensive support of ready-made products. We can extend the functionality of ready-made programs and applications, if necessary. We can also help if you need to add something to your ready-made program.
After developing a program or creating a blockchain network, we help you understand how to effectively manage the product. We support customers and help them achieve their goals with our applications.
We develop our own blockchain networks for companies. Our programmers have excellent knowledge of Python, C++, JavaScript and can work with any storage systems. We can create a secure network or storage application.
We turn any of your IT ideas into a finished working project. We have released a large number of programs and applications, provided support to a wide variety of clients and earned their trust. They turn to us for problem solving.
We thoroughly study the problems, consider them from all sides and quickly collect the necessary information. Then we discuss the specifics of each problem with clients and together with them make a work plan, taking into account all the wishes of customers.
There are more than 20 specialists in our team. Most of the team members have higher technical education and have been working in IT for more than three years. And we'll always answer if you have questions or need help.
We help to solve any problem related to IT: we develop programs and applications, issue tokens and develop blockchain networks. Our clients are companies, offices, small and medium-sized businesses, and financial organizations.
After developing a program or creating a blockchain network, we help you understand how to effectively manage the product. We support customers and help them achieve their goals with our applications.
We develop programs in popular programming languages: Python, C++, JavaScript. That's why we can create universal solutions for any of your tasks: whether it's a program for the office, a database, an application or a blockchain network.
We take a professional approach to problem solving. We create tokens and help clients bring them to market, help you create your own blockchain for your tokens. We can help if you need to configure the management of tokens you already have.
We are engaged in comprehensive support of ready-made products. We can extend the functionality of ready-made programs and applications, if necessary. We can also help if you need to add something to your ready-made program.
We develop our own blockchain networks for companies. Our programmers have excellent knowledge of Python, C++, JavaScript and can work with any storage systems. We can create a secure network or application to store any data.
We turn any of your IT ideas into a finished working project. We have released a large number of programs and applications, provided support to a wide variety of clients and earned their trust. They turn to us for problem solving.