Cryptocurrency and crypto exchanges are the top trending businesses in the current digitally evolving sphere. Every budding entrepreneur aspires to enter the cryptoverse with their crypto exchange, and the demand and competition are rapidly increasing with each passing day. But one common question that intrigues them and not being addressed often is the cost of building an exchange software. In this article, we are going to quickly learn about all the factors that help determine and decide the cost for cryptocurrency exchange software development.
Factors that help shape the cost of an exchange software:
Deciding the type of exchange
The first step is to choose the type of exchange you want to build for your business. There are different types of crypto exchanges, each with its own characteristics and features. Therefore, the cost of building each platform differs from one another, depending on the requirements. Below is a quick glance at the types of exchanges.
1. Centralized exchanges
A centralized exchange is where a central authority manages the exchange orders and user funds. They will have complete control over the functionalities of the exchange and the transactions that happen on the platform.
2. Decentralized exchanges
With decentralized exchanges, there is no involvement from any third party having control over the transactions in the exchange. Users can conduct direct peer-to-peer transactions in a decentralized platform.
3. Hybrid exchanges
Hybrid exchanges are a combination of both centralized and decentralized exchanges. It eliminates the glitches in both the exchanges and provides a better optimized solution for traders enabling an efficient business experience.
These are the most common crypto exchange types. Other than these, there are also order book exchanges, ad-based exchanges, and binary exchanges which also possess their own characteristics.
Deciding the development method
There are two ways to go about developing a cryptocurrency exchange platform. The first one is,
1. Building from scratch
Building an exchange from scratch requires a ton of effort to gather the requirements for development, deployment, etc and needs technical assistance. This will take up a lot of time and cost you a fortune. Whereas, the second method eliminates these hassles.
2. Obtaining whitelabel cryptocurrency exchange software
The second option is to choose the right company and buy their whitelabel cryptocurrency exchange software. Whitelabel solutions are readily available solutions that are 100% tried and pre-tested. The customers just have to buy and install whitelabel solutions to kickstart the exchange. Whitelabel solutions are easy to deploy and cost way less when compared to building the exchange from the ground up.
Choice of features
Another factor is the features. The cost of the exchange also depends upon the features that the customers choose. However, the essential features that cannot be ignored while building an exchange are as follows,
- Multi-currency support integration
- Multi-language integration
- Secured multi-signature wallet
- Powerful trade matching engine
- Automated KYC/AML
- Integrated Liquidity API
- Investor dashboard
- Admin Backend panel
- Blockchain technology and smart contracts
- High volume TPS
- Payment gateway integration
- Automic swap option
- Trading Bots
- Integrated referral program
- Mobile applications support
- Enhanced security integration
These are the crucial factors that decide the cost of an exchange. Other than this, the personal customization preferences of the user also makes a difference in the cost of an exchange. However, as discussed earlier in this article, whitelabel solutions are comparatively cost-effective than an exchange built from scratch. The price of a whitelabel exchange with every essential feature, technical, security integrations, etc, ranges from $20,000 to $40,000, slightly differing from customer to customer based on their personal requirements.
CES is one of the experienced cryptocurrency exchange software development companies that will offer reliable whitelabel solutions for your exchange that can be launched within a jiffy at the best market prices. You can also avail their crypto exchange scripts that come with 100% source codes and help with quick, efficient deployment at lower costs.
If you are looking to launch your own exchange, get in touch with our team of experts to figure out the explicit quote!
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