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How can you build a cryptocurrency exchange service?

How can you build a cryptocurrency exchange service?

Friday September 21, 2018,

2 min Read

cryptocurrency exchange service
cryptocurrency exchange service

At the outset, let me tell what is a cryptocurrency exchange platform. It is simply a platform where you can carryout a trade with cryptocurrencies, the trading may be between crypto to fiat/ crypto to crypto. For the either of them this article would come in use.

While developing such a script, one should really focus on security and safety features so as to safeguard the script. Some of the options to add safety features may be - Google Re-Captcha, Google 2 factor authentication, Email verification, IP level protection etc.

Moving on to wallet address, which is again another significant feature regarding the script, you can adopt a 3rd party API service, or directly generate address from the node. Both the ideas are good enough, though the first one may be secure and easy to implement. Apart from the primary wallet you can use a secondary wallet for protect further beyond from the primary wallet. It is always good to provide automatic address generating technique for users within the script.

Next topic would be to include a good method to know your customer. You can classify your users to different levels. And thereby request to submit some id proofs so that the platform really get to know the users. It is a good practice to keep the documents outside the script to preserve user identity.

The public pages should be made interactive so that one could quickly navigate through the values like last trade value, Ask/Bid rate, no. of transactions per day etc. You can think about giving a chart representation for the trade that happens in the platform, so that an user again gets a quick idea about the current market trend. A candle representation fits best for this purpose, you could rely on any 3rd party API service for the same.

The admin side also need to be interactive and powerful, so that admin can never miss any of his up-to-date activities. And should notify all activities to the admin's email if needed.

This is a general work flow for building a cryptocurrency exchange script. One can build an exchange platform using this workflow or even add some more features.

Or if you want to straight away start an exchange platform you can go for any readymade script.The work flow is in reference to Inout Blockchain FiatExchanger which is a readymade script serving the same purpose.

Reference - http://www.inoutscripts.com/products/inout-blockchain-fiatexchanger/