There is an exorbitant amount of factors that drive investors’ interest in cryptocurrency businesses. Ever since the advent, cryptocurrencies have come a long way, and we have seen rapid experimentation and implementation of cryptos in major industries over the years. Crypto exchanges play a vital role in the cryptosphere. It is the portal that connects global investors to exchange their cryptocurrencies in the most seamless way. The demand and popularity for crypto exchanges are over-the-top that every budding entrepreneur aspires to create their own cryptocurrency exchange.
But, with too much fuss around, the real question that intrigues them is how to go about their cryptocurrency exchange development and the cost to develop one. In this blog, we are going to cover all you need to know about, from that perspective. Let’s discuss briefly the factors that determine the cost of building your crypto exchange.
Key Factors that determine the crypto exchange development cost
- Type of Exchange
- Centralized exchanges
- Decentralized exchanges
- Hybrid Exchanges
- Figuring out the time and budget constraints
The first and foremost factor that decides the cost is the type of exchange you want to build. The cost of development varies for each type of exchange. Here is a quick glance of each type for your understanding,
Centralized exchanges are platforms that operate depending on a centralized authority. The transactions commence only after the approval of a central body, and they control the users’ funds. In simple terms, every action is in the control of the exchange when it comes to centralized exchanges. The users tend to forget their passwords often, which will lead to confusion. Centralized exchanges help avoid them as the exchange takes over the entire control.
With decentralized exchanges, there is no such involvement from any third party. The users get complete control over their funds, and they can conduct direct, peer-to-peer transactions without needing approval from any intermediary. Users get enhanced reliability and security in decentralized exchanges.
As the name itself implies, hybrid exchanges are a mix of both centralized and decentralized exchanges. Hybrid exchanges are basically an enhanced version that has resolved the glitches from both centralized and decentralized exchanges and helps with a more effective and efficient trading platform for the customers.
It is very important that you figure out the duration within which you want your exchange developed. This is because the time taken reflects on the budget to build your exchange. The sooner you want your exchange developed, the more it costs comparatively. Also, when you plan your budget, your future requirements should be kept in mind. For instance, if your exchange encounters any trouble, you should be able to resolve it with proper resources within a short period of time, which requires a backup amount.
Another crucial factor that decides the cost is the features you choose for your exchange. The preference of features varies from customer to customer, and so does the cost accordingly. However, here’s a list of features that you cannot miss while building your exchange,
- Technical Features
- Powerful trading engine with High Volume TPS
- KYC/AML integration
- User-Friendly interface
- High-volume Liquidity API
- Admin Panel
- Investor Panel
- Secure, multi-signature wallet with multi-currency support
- Order Book
- Multiple payment gateways integration
- Trading BOTS
- Crypto price ticker
- Integrated referral program
- Market making tool
- Mobile application support
Security should be the top priority while developing to gain sustainability for your exchange over the long run. Here are some crucial security integrations you need to consider,
- HTTPS Authentication
- Encryption of Data
- Jail login
- Anti Distributed Denial of Service ( DDoS)
- Cross-Site Request Forgery Protection( CSRF)
- Server-Side Request Forgery Protection ( SSRF)
- HTTP Parameter Pollution Protection
- Escrow System
- Two-Factor Authentication
Approach towards development
The second factor that decides the cost to build a crypto exchange is how you choose to do it. There are different ways that you can go about, to build your exchange,
- Building from scratch
The first method is building from scratch. To build an exchange from scratch, you need to undergo certain steps such as,
- Deciding the location that the exchange is going to operate in and abiding by the local regulations.
- Acquiring the necessary licenses for the exchange according to the geographical area.
- Partnering with a bank or a payment processor.
- Boosting liquidity for the exchange.
- Implementing required features and security protocols for the exchange.
- Constant maintenance and customer support.
All of these above-mentioned procedures will take a lot of time to get over with, and cost you a fortune. As we discussed earlier, the demand is rapidly growing with each passing day. So if you want to get your exchange up to speed in the market, building the exchange from the ground up will not be a viable option.
An alternative and also comparatively a better option is to obtain a whitelabel exchange software.In a whitelabel exchange software, the modules required for the exchange are already inbuilt and pre-tested before delivery, making it 100% reliable. As they are readily available, they deprive you of the development costs and the whole tedious process and are reasonably priced compared to apps built from scratch.
Whitelabel solutions are also highly scalable and customizable. When you choose a company to buy whitelabel solutions, you can explain to them your desired preferences on aspects such as name, logo, brand, UX/UI designs, etc., and get your exchange developed accordingly. Customization preferences differ from customer to customer, which also brings in a slight difference in the cost.
At Infinite Block Tech, we have a team of veteran, skilled developers who will offer a robust, feature-rich whitelabel exchange software for your business at the most reasonable prices. Our unmatched expertise will help you with a fully-functional exchange software with a guarantee of high-performance and sustainability over the long run.
Our Estimated Crypto exchange development cost
As we discussed earlier, the cost to build crypto exchange differs for each customer based on various factors and personal customization preferences. However, to make it easier for you, our dedicated developers offer different packages for each type of exchange that is carefully analyzed and structured. You can choose the one according to your preferences.
The prices of the packages we offer are approximately $21,000, $37,000, and they go upto $50,000 based on your customization requirements and project complexity. Every package includes essential features and integrations that will help the exchange function seamlessly. We strive to build you the most effective crypto exchange software but at the most cost-effective prices. To find out more about the cost of developing your cryptocurrency exchange, get in touch with our team of qualified experts.