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A Detailed Guide to Cryptocurrency Exchange

May 20, 2022

Cryptocurrency has turned to be the buzzword in digital finance with the rising popularity of top Cryptocurrencies like Bitcoin and Ethereum. With a wide array of cryptocurrencies entering the crypto world, the cryptocurrency exchange development is gaining traction.

What is a Cryptocurrency Exchange Platform?

Cryptocurrency Exchanges are defined as platforms facilitating seamless trading of Cryptocurrencies for digital assets or fiat currencies. The Cryptocurrency Exchange Platform acts as an intermediary between the buyers and the sellers. The platform makes money through transaction fees and commissions.

What is White Label Cryptocurrency Exchange?

A white label cryptocurrency exchange is a ready-to-deploy protocol with a market-ready backend and a customizable front-end. The white label cryptocurrency exchange development facilitates customizing UI/UX based on the business requirements enabling the application to be launched quickly in the market.

What are the features of Cryptocurrency Exchanges?

1. Multiple Cryptocurrency Support

The flexibility offered by the Cryptocurrency exchange platform enables the clients to switch between multiple currencies and trade with the currency of their choice.

2. Intuitive Interface

A Cryptocurrency exchange platform should be self-explanatory allowing seamless trading of cryptocurrencies for both the beginner and the professional.

3. Wallet Integration

Wallet integration enables easy storing, managing, and controlling of cryptocurrencies, enabling the users to seamlessly retrieve and transact the funds with the private key.

4. Heightened Security

Two-factor authentication and SSL implementation offer additional login security and encrypted user access delivering robust security for crypto trading

5. Mobile Trading Application

Mobile trading application developed for both iOS and Android offers a seamless trading experience from anywhere, anytime, and on any device.

What are the Types of Crypto Exchange?

1. Centralized Cryptocurrency Exchange (CEX)
Centralized Exchanges are defined as platforms that act as a third party between the buyer and seller. These exchange platforms are controlled by a central authority or a company and thus offer more reliable trading services.

2. Decentralized Cryptocurrency Exchange (DEX)
Decentralized Cryptocurrency Exchange is a platform where there is no central point of failure i.e. it facilitates crypto trading without the involvement of a third party thus eliminating the commission fees. The platform automates transactions and trades through smart contracts and decentralized applications.

3. Peer-to-Peer Exchange (P2P)
Peer-to-peer exchange is based on the concept of decentralized exchange enabling direct trading without the involvement of a third party or central authority. The major difference between DEX and P2P is the escrow, which plays a vital role and the escrow wallet is controlled by the admin.

What Makes Cryptocurrency Exchange Platform a Lucrative Business opportunity?

The Cryptocurrency exchange platform acts as a middleman between the traders. Every time the trade is executed, the owners of the exchange platform earn a commission.

In addition, the platform owners charge a fee to withdraw the cryptocurrency. The charges are based on per crypto withdrawal. Cryptocurrency exchanges offering margin trading, charge additional fees based on the amount borrowed and an interest rate applied by the total supply of funds accessible to all the traders.

Wrap Up

Cryptocurrency Exchange Development is defined as crafting a platform that enables seamless trading of cryptocurrencies between buyers and sellers. Cryptocurrency exchanges are gaining momentum with the increasing value of cryptocurrencies like Bitcoin and Ethereum. If you are a novice to Cryptocurrency Exchange, the above article is a perfect guide to help you explore Cryptocurrency Exchange Development in-depth.

If you are looking for a Cryptocurrency Exchange Development Company then take a moment and explore the services offered by RWaltz.

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