The concept of exchanging cash and digital currency is now going to be declined with the increased popularity of cryptocurrencies. Cryptocurrency is a digital currency that can be used in the form of a payment option in an encrypted algorithm that does not require assistance from a bank or government body.
The cryptocurrency exchange platform is becoming the most preferred way for buying and selling cryptocurrencies and digital assets. The trading of other crypto assets like digital and fiat currencies has become easy and secure with the help of cryptocurrencies. Crypto exchange apps generate unimaginable revenue for mobile app development companies, that’s the reason why companies are keen to develop cryptocurrency apps.
When it comes to cryptocurrency exchange apps, the first name which strikes our mind is Binance, the best example of a cryptocurrency exchange app. Before moving towards how to create a cryptocurrency exchange app like Binance, let’s have a brief introduction to the cryptocurrency exchange platform as well as the Binance app.
The market for cryptocurrency exchange platforms was estimated to be worth USD 30.18 billion in 2021, and from 2022 to 2030, it is anticipated to increase at a CAGR of 27.8%.
Top Cryptocurrency Exchange Platform
The cryptocurrency exchange platform is an app for buying and selling cryptocurrencies. The market for cryptocurrency exchange platforms is expected to rise as digital assets like cryptocurrencies and Non-Fungible Tokens (NFTs) become increasingly popular.
Digital currency is quickly being accepted by people in developed nations like the U.S. because of its adaptability and ease of transaction. Creating cryptocurrency exchange apps is becoming popular among the companies of mobile app development as the unique characteristics of these apps and fewer transaction fees attract and engage users.
Crypto apps charge a little transaction fee for every transaction, that’s how mobile app development companies make a profit and receive success.
Centralized Cryptocurrency Exchanges (“CEX”)
Centralized cryptocurrency exchanges (CEX) work like a bridge between a seller & a buyer. It is quite similar to the stock exchange but it is neither for stocks nor for digital assets. The CEX platform earns from the charges applied to transactions.
Binance is also a popular example of Centralized crypto exchange app. It enables buyers and sellers to exchange their assets in a secure environment. Recently, CEX is growing significantly, hence for the successful completion of transactions, CEX is a highly preferred crypto exchange platform.
Decentralized Cryptocurrency Exchanges (“DEX”)
Another cryptocurrency exchange app type is DEX (decentralized cryptocurrency exchange). This platform enables transactions via digital wallets directly with the help of a mediator. DEXs are designed to provide lower transaction fees, allowing consumers to maintain their assets directly, and eliminate some regulatory requirements.
Apps like dYdX, Uniswap, Kyber, etc are examples of decentralized cryptocurrency exchange apps that are comparatively cheap from centralized crypto exchanges as well as allow more privacy and safety.
Build an App Like the Binance
Want to build an app like Binance? Firstly we must know how the Binance app exactly works and what are its basic and advanced features.
How does Binance work?
Binance app is a centralized cryptocurrency exchange app that enables its users to trade cryptocurrencies on an online platform it offers hundreds of cryptocurrencies to conduct many transactions quickly and securely. With the use of internal Binance coin, it costs a low transaction charge covering the commission.
It is considered CEX because of its KYC feature. KYC registration is mandatory for new users. Binance provides wallets to its users to deposit their funds in the Binance wallet for easy exchange. The user only has to create an account in Binance and complete verification along with KYC and can start exchanging and trading cryptocurrencies with their electronic funds.
Basic features of Binance:
- Spot Trading
- Crypto Derivatives
- Binance Earn
- Binance smart pool
- Binance Visa card
- Finance Launchpad
- Binance Smart Chain (BSC)
- The Binance API
- Binance Dex Clone Script
How to create the best Cryptocurrency exchange app like Binance?
Here’s the list of to-do things for creating your crypto exchange app. Let us explore.
The initial step of app creation is the functional scope. This is important because your cryptocurrency exchange app needs the required approvals in order to operate. Also, you must consider the cryptocurrency exchange’s license and registration under the relevant laws.
Rules and regulations
Cryptocurrency exchanges are trending as well as it requires high security and consists of many rules and regulations to satisfy users in terms of security. It has KYC regulations, your business should be registered on KYC and for its terms of service. Users must provide valid information by filling out online forms and this data will be stored with the app for eliminating the risk of tax fraud through exchanges or the trade of cryptocurrencies.
Agreeing with the rules and regulations of the government and maintaining the records of the users in the backend is an important requirement of the app. For making your app legally safe and regulatory you will have to hire a mobile app developer who can collaborate API of user verification to the cryptocurrencies for records tracking and security.
The transformation of money or currency into cryptocurrency requires payment processing partners like bank accounts. Partnership with a proficient payment gateway will help you provide your users with more facilities like depositing and withdrawing funds from their wallets and can also provide purchases from debit and credit cards.
One of the key components to a cryptocurrency exchange app’s success is liquidity. Without a flourishing trading environment, an exchange trading directly affects its liquidity position, and crypto exchanges cannot survive. You must combine your cryptocurrency exchange’s position in liquidity with other established crypto exchange platforms in order to effectively handle liquidity at your crypto exchange platform.
Approach to the best mobile app development company
For the development of a successful cryptocurrency exchange app, you will need to approach the best mobile app development company that is aware of the trending technologies and features that can add unique features to your app to attract the target audience.
It is necessary to add a customer service feature to your app for answering queries and providing 24-hour support to their users. You will need efficient mobile app development services to provide information regarding app features and their working. When it comes to exchanging money people always have many questions, you can help them with uploading informative blogs and posts as well.
Step to Step Develop Cryptocurrency Exchange App
Analyzing the problem
When you choose to develop an app for crypto exchange you will need to be clear about why and how you will implement your idea. It will require deep research regarding the features, updates, successes as well as failures of the crypto apps. After analyzing all the possible problems you can develop an app that will overcome all the failures with new innovations.
On-Demand App Ideas For Startup
The first impression is the last, the user interface is the first impression of your app and it should be attractive as well as engaging and simple & easy to operate at the same time. Make your app user-friendly so that users can enjoy exchanging and trading cryptocurrency through your app.
Creating a wallet solution similar to Binance exchange with increased and robust security features to acquire cryptocurrency would help build trust between your users and the cryptocurrency platform. The wallet enables buyers and sellers to transfer funds on your exchange platform. You can use an applicable API or crypto exchange script to integrate a wallet into your cryptocurrency exchange app.
Cryptocurrency trading engine
A trading engine is the most important part of a cryptocurrency exchange app development. It allows the apps to conduct all the transactions flawlessly. Installing a trading engine in your app will enable it to access all the transactions and maintain transaction records.
Cryptocurrency exchanges can not be developed using APIs that are available in the market, it requires specific API creation. It helps in approving & recovering information, automating trading systems as well as generating addresses using cryptocurrency exchange scripts.
The job of the admin panel is to track and manage the exchange transaction helping the exchange operator. According to the need of the application, features of the admin console are being customized.
The admin panel is used by the cryptocurrency exchange apps in recording transactions, adding new currencies to the wallet, decreasing trading costs, etc. It makes your app more supportive, secure, and user-friendly.
When your app design is ready to compete with the market trends, you must test your app with MVP model to build a working POC. Testing helps in catching bugs, memory problems, and performance issues, and resolving them all.
The purpose of this blog is to specify that in recent times the need for cryptocurrency exchange apps is increasing with the increased popularity and requirement of crypto exchange. Developing your app will make you grow and succeed in competing with others in the cutting-edge market but it won’t be easy, you will need to acquire an experienced mobile app development company for creating a feature-rich and competitive product, but you will not only get an amazing product but hiring mobile app developer will also provide you knowledge about the latest trends and guide you to create the best.
How much time does it take to build a crypto exchange app?
It might take around six to eight months to develop a cryptocurrency exchange app. Still, it is not fixed. It might vary based on the complexity of the project.
Do crypto exchange apps require a license to run?
Yes, In the USA, creating and running a crypto exchange app requires a license for a Money service business and a Money transmitter license from the FINCEN and other state agencies respectively.
What is the cost of creating a cryptocurrency exchange app like Binance?
The average cost of developing an app like Binance is around $12,000 to $25,000 or more depending upon the price of UIUX designs and developers. One can hire an Indian app developer and UI\UX designer for simple and budget-friendly designs and development. Users appreciate simple designs that are easy to use and might also cost less.