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Steps Involved In Building A Cryptocurrency Exchange Like Binance

Steps Involved In Building A Cryptocurrency Exchange Like Binance

If the blockchain technology is like fire, then cryptocurrency exchanges, like Prometheus, should be credited with the amazing transformation of bringing it to every person. Until the creation of cryptocurrency exchanges, anything related to the blockchain was confined just to the small set of people with the required technical expertise.

With a Cryptocurrency exchange, the technology, its manifestation, and its monetary benefits become accessible to a common investor. A person who processes the knowledge of the different patterns of fluctuation when it comes to the volatile values of different crypto coins can now make a profit by trading. In addition to being a breakthrough in the blockchain world, A Cryptocurrency exchange also doubles up as an amazing business opportunity.

This has prompted a lot of crypto entrepreneurs into considering a Cryptocurrency exchange business as one of the options. It is understandable that a crypto trading activity is quite similar to a foreign exchange.

Enter Binance

Although not the pioneer, Binance has established an undeniable synonymy when it comes to cryptocurrency exchanges. Binance is to cryptocurrency exchanges what Xerox is to photocopiers. Binance is the leader when it comes to the number of traders, the exchange volume, and every other measurable aspect of a crypto exchange. Binance has also extended its services into the realm of decentralized trading.

What makes Binance special?

There are a lot of distinct attributes that make Binance special. Any person with knowledge of crypto exchanges will acknowledge that the matching engine is the heart and soul of the platform. Binance has an incredibly high-performing matching engine.

No longer can we visualize a person dealing with crypto as someone who is sitting in a room in front of a high-performance desktop. Binance is accessible as a desktop application, as a web app, and also as a mobile app for both leading mobile platforms.

Anything that deals with blockchain is global, and cryptocurrency exchange is not an exception. Keeping in mind that there are users of Binance all across the world, Binance offers support in multiple languages.

Binance offers a highly secure wallet for storing your digital coins. As most of you may have known, a Cryptocurrency exchange is considered to be the most vulnerable point in the entire crypto ecosystem, being susceptible to hacks and attacks. Binance has been quite successful in defending these attacks by maintaining top-notch security.

Perhaps one of the most resounding facts that establish the supremacy of Binance is that they have released their own coin called the Binance Coin [BNB]. Binance has even gone on to establish its own blockchain.

The relevance of a Binance Clone

The promising profitability has prompted a lot of entrepreneurs to go on a spree of building cryptocurrency exchange platforms like Binance. There are multiple ways to build a crypto exchange like Binance. You can choose to hire your own team of blockchain developers or outsource your development process to a blockchain development company.

A simpler and surer way would be to consider using a white label Binance exchange Clone script. A Binance Clone script is easy to customize and also eliminates the possibility of finding bugs that might interfere with the basic functionality.

Essential features of Binance Clone Script

Even if you were to go for a white label Binance Clone, you will need to be aware of the features that make your end product marketable. Among all the features, security is, without question, the top priority.

Your exchange should have an administrator who is in charge of all the operations of the exchange including but not limited to the exchange rates, the commissions, the payments, the security, and the contents of the interface. The other entity involved is the user who intends to trade on the exchange platform.

The user should be able to sign up without any hassle. The sign-up and sign in functionalities should be securely maintained. Including features like two-factor authentication, magic wand to test, and secret questions and answers to identify users will strengthen security to a considerable extent.

A Cryptocurrency exchange business, at its core, is a financial business. Therefore, it is strongly recommended that you have a KYC/AML formality in place. The KYC method ensures that scam traders are filtered by a good distance. The administrator can consider integrating the KYC verification software to automate the entire process.

The wallet integrated with your cryptocurrency exchange should support multiple crypto coins. The trailer should be able to easily deposit any type of digital coin into a trusted multi-currency wallet in accordance with the rules set in the AML validation process.

Most of the time that a user spends on your cryptocurrency exchange will be spent on the transaction dashboard. The dashboard should be integrated with a payment gateway that supports multiple payment methods for fast and safe transactions. The administrator can charge a small fee for every transaction as a commission. It is to be remembered that that might be a few legal complications because the business involves dealing with crypto. Therefore it is important for you to tie up with the right banks and the right payment gateway.

Any trader would require some technical assistance from the platform. You can consider presenting trade analytics report to the trader, so they can use that data to predict the movement of price for a particular crypto asset. They should also be able to download the report in a popular format like a PDF.

Although abstract, liquidity is one of the most important features for any crypto exchange. In the context of an exchange, liquidity refers to the volume of transactions that happen on the exchange. To kickstart liquidity, you can consider tying up with another exchange using an API or emulating trade within an exchange by using bot accounts. You can also consider buying liquidity from market makers.

Building your crypto exchange like Binance

It is to be remembered that a cryptocurrency exchange is a grand culmination of intuitive and immersive front-end, a robust backend, and top-notch security. Even if you were to go for a white label solution, it is important to consider a lot of factors before you buy one.

Conclusion

The mark of a good company when it comes to the creation and customization of a white label Cryptocurrency exchange is there 360° expertise. They will not only need to know the technology but also the market, the expectations of the users, the elements of design, the science of quality assurance, and above everything, business requirement analysis and planning.

When you partner with a company that processes this magnitude of caliber, it is just a matter of very short time before you launch your own cryptocurrency exchange business like Binance.

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