Just as the name suggests, a cryptocurrency exchange is a business, online or otherwise, allowing its customers to trade digital as well as traditional fiat currencies. In recent months, starting up this type of company has increasingly become more enticing, as despite the market’s volatility, companies such as Binance have been making good profit, and prominent exchanges like the Tokyo-based Binance are publicly benefiting from extraordinary amounts of success.
Yet replicating such an achievement is not without its challenges, as important security issues must always be borne in mind.
Nevertheless, by understanding the right components and developing a thorough game plan, you can build a successful crypto exchange both iteratively and inexpensively.
A Look at the Main Modules
When broken down into its core components, a crypto exchange is formed of no more than four essential modules: a trading engine, a cryptocurrency wallet, a front-end user interface and an admin console.
The trading engine alone — which includes the order book as well as order processing — is absolutely critical, as without it, your crypto exchange would be reduced to a useless, empty shell. Its raison d’être is executing transactions, calculating balances and matching every individual buy/sell activity within the exchange application. This module will simultaneously process multiple transactions and must thus be error-free and technically efficient.
The cryptocurrency wallet is of similar importance. This is where all the user’s deposits and operation coins are intended to be stored both promptly and securely.. The key term here is “securely,” as for all intents and purposes, online assets should be treated as cash.
Naturally, as the face of your application, the front-end user interface must also be given particular attention, and finally, an admin console is needed in order to assist companies with a variety of operational tasks. This encompasses the options to edit trading fees, manage listings, add or remove currencies, credit and debit funds from a user’s wallet and deal with potential support issues.
In the same way, fraud and security protection modules must also protect the system from unwanted criminal activity.
The Baseline Assumption
For all the values outlined below, it is assumed that your product is slated to be built by a total of three engineers:
Because crypto exchanges are particularly complex applications, there are key pieces of functionality that simply cannot be left out of a minimum viable product, or MVP.
The first of these is the order book, or trading module, which may be delivered in approximately 9 weeks for a team of 3 developers. Next is the deposit and withdrawal module (for a single currency), which can likely be built in around 14 weeks.
An order module for buying and selling, halting and limiting orders will also be needed. This particular requirement can be accomplished in 3 weeks. And finally, a trading view, which is an external component for graphs including candlestick charts and basic indexes. This should comfortably be finalised in as little as 3 weeks.
The total timeline of an MVP, therefore, is of roughly 32 weeks.
Building upon your MVP, additional features may later be implemented. This takes place as and when required, as Agile companies like Software Planet Group are able to gradually enhance their applications in highly flexible iterations prioritised by the customer himself:
So there you have it! All in all, the total time to develop an asset exchange like Binance, for team of 3 developers, runs at approximately 32 weeks.
But as stated at the beginning of this article, if you’re serious about pressing forward — regardless of your current resources — a well-thought-out strategy is undoubtedly a must.
In any case, SPG will always be here to provide your company with the expertise you need to achieve your lofty goals.