With the new-found interest in cryptocurrencies and Bitcoins, in particular, creating cryptocurrency exchange scripts might seem like a fanciful idea. The understanding of Bitcoins and cryptocurrencies is nascent at its best, let alone the idea of exchange platforms and exchange scripts. This has pushed a lot of companies to jump to premature conclusions regarding cryptocurrency exchange scripts that might seem great initially but might not even have the basic features. In an endeavor to democratize cryptocurrency and cryptocurrency exchanges, we present here, the basic requirements that you should look for in a cryptocurrency exchange script.
The architecture of the cryptocurrency exchange script is considered to be the most basic feature that will determine the speed, security and overall usability of the script. The basic elements of any cryptocurrency exchange script should include the wallet module, the trading engine, the administrator panel, and the user interface. There are a lot of secondary aspects that need to be considered when you look for the architecture.
Separation of Concerns:
The separation of concerns is a bit of a misnomer, although the phrase finds mainstream usage. A sound cryptocurrency exchange script should be module-based, and the modules should be separated from each other with just a single channel for communication and with no other access to the internal working of each module. We can extend this notion of separation even to the physical realm meaning that the modules should, as a part of the best practices prescribed, be hosted on different servers with their own unique IP addresses.
To explain why the separation of concerns makes sense, any concern or issue regarding the cryptocurrency exchange should be separated in such a way that it does not affect any other modules. The separation of concern has to be effected from both a hardware and software perspective. While the software is a mandatory component, the hardware being separated is a great practice for enhancing security.
From an investment perspective, another major consideration for a cryptocurrency exchange is liquidity. An empty order book might not appeal to the investors – after all, they are here to reap their return on investment.
Most of the exchange scripts have a native method for generating liquidity. However, the greater task is to understand what liabilities it puts you under. Generally, there are two liquidity generation options. One is to link your exchange to an account that exists on a larger exchange, and the other is to create bots within your cryptocurrency exchange that buy and sell currencies that the exchange owner puts up with one another. Both these circulations of currency create an order history which increases the credibility of the cryptocurrency exchange engine.
One of the most important aspects of a cryptocurrency exchange is to keep it legal. For this, it is important to comply with the regulatory requirements. The regulatory requirements might vary depending on your geographic location but there are a few common requirements like KYC (Know your customer) and AML (Anti-money laundering). These basic requirements ensure that the instances of malicious occurrences are kept to the minimum. A good cryptocurrency exchange script will have room to integrate KYC and AML.
Outside all the coding and technicalities that go into creating a cryptocurrency exchange, what the user faces is the UI of the product. Design elements like access to basic and relevant information, intuitive navigation and customizability are crucial factors that keep your customers continually engaged in your cryptocurrency exchange. The cryptocurrency exchange script should also provide a facility for the integration of external APIs that provide real-time trading information.
The Bitcoin might be to cryptocurrencies as what iPhone is to Apple – it is the most well-known cryptocurrency. However, your cryptocurrency exchange should also provide support for other cryptocurrencies. As an extension, it can be said that the wallet module in the exchange script needs to be a universal wallet that is capable of directing and holding different types of cryptocurrencies like Ether and Litecoin.
User Function and Features:
Any good cryptocurrency exchange script should be able to ensure that the users are able to perform a few basic functions.
- In the event of fiat currency support, there should be an option for users to transfer or deposit local currencies on an online platform.
- Support for buying and selling of cryptocurrencies in popular trading pairs like Bitcoin and Ether.
- Facilitating a smooth withdrawal of fiat currencies for the profits reaped.
- Transferring of cryptocurrencies to a private wallet for personal transactions or for cold storage.
- Depositing of cryptocurrencies from an outside wallet for trading purposes.
- Complete transparency in trade history.
The features might seem very basic but it is important to ensure that your cryptocurrency exchange script does not miss out on the basic features as well!
Administrator Panel Features:
An administrator should have certain privileges that entitle you to manage the exchange effectively. Setting up gateways to banks and managing deposits and withdrawals should be an intrinsic feature that is built into the exchange script while simultaneously boasting of an intuitive interface.
One of the key features of an administrator interface is to provide customer support. There should be a way for users to contact you over email or a private messaging platform in case of any challenges or issues. The exchange is bound to grow and you might need additional staff support, and the exchange script should be able to facilitate the addition of new administrators or different levels of delegated users who will be able to perform a few assigned tasks but not everything that an administrator can.
Free Demo and Full Documentation:
It is said that the proof of the pudding is in its taste,. Many cryptocurrency exchanges might look fascinating and spellbinding on paper but might not be as effective when it comes to real-life functionalities. A demo of the cryptocurrency exchange might help gauge its capabilities and functionalities. In addition to this, reading the complete documentation on its features and functionality will help you understand if the cryptocurrency exchange script fits your requirements.
The Different Types of Exchange Scripts Available:
Cryptocurrency exchange scripts might be complicated and complex to code but that has not, in any way, slowed down the market both in terms of demand and supply. There are different types of cryptocurrency exchange scripts that are available which fall into four broad categories.
Open Source – There are a few free open source projects that are available to the public. However, like any other open-source platform like Linux, it requires technical expertise to implement them and modify the elements of the code according to your needs. There are chances that the money that you save by using an open-source script is spent either in terms of time or in compromising good documentation.
Cheap Scripts – Just imagine paying a little price for an exchange script that is at the same levels of quality and documentation as the open-source! This is the world of cheap cryptocurrency exchange scripts for you.
White Label Cryptocurrency Exchange Script – This is one massive leap not only in terms of price but also in terms of quality and documentation. White label cryptocurrency exchange scripts are easier to set up and use, and you can also expect support from the development company. Another advantage of white label cryptocurrency exchange scripts is that they are highly customizable and can be altered to your requirements even in the most trivial elements.
Full-Custom Cryptocurrency Exchange – This cryptocurrency exchange can be considered the Zenith of what you can get! unlike white label cryptocurrency exchanges that use the same base level code, the fully customized cryptocurrency exchange is built for you from scratch which would mean that you design and command all the elements of the cryptocurrency exchange. While some of them might say that it would be a waste of money, it works really well if you work with a new concept or a new business model.
It is true that cryptocurrency exchanges might be complicated but it is also to be understood that in all the complications, there should not be any compromise on the basic features that are required. What can be considered ‘basic’ with respect to the features completely depend on your requirements? So, why not build your own Bitcoin exchange Website? That solves a lot of issues, right?
It is important to interest your cryptocurrency exchange script creation to a company like Blockchain App Factory which has its expertise in multiple industries and also in all the aspects surrounding a cryptocurrency exchange like the market, technology, liquidity, and security.