As interest levels in cryptocurrency exchanges soar across the world, it is important to consider the factors that play a major role in developing a successful and long-lasting Cryptocurrency exchange software.
- Local advertisement and trading - Advertisements are gold dust for any cryptocurrency exchange software. It helps users to be calculative and decide the investment alternatives perfect for them. Every exchange must allow investors to post ads for selling cryptocurrency. Local trading in nearby locations offering essential services must be provided as per the user’s experience.
- Transparency and secrecy - High liquidity, which reflects the ease of selling an asset without any changes in price, will improve user retention and ensure that they stay on for a longer time. They will also be comfortable in executing crypto coin transactions. Options such as interactive AI chat platforms, secure wallet facilities can improve the overall user experience. High priority should be given towards the safeguarding of user data. Techniques such as encryption, two-factor authentication, and proactive transaction verification must be used. Independent third-party audits can be ordered to know any vulnerabilities on the cryptocurrency exchange software.
- Security - With the increase in the number of scams, identity thefts, and data breaches, an exchange must devote efforts towards cyber-security. News reports about data leaks can cause huge losses that can be detrimental to the credibility and functioning of the Cryptocurrency exchange software. User’s funds can be protected using options such as cold storage wallets, multi-signature authorization for withdrawal, and transfer of funds to hardware wallets. Investors must also not keep their digital assets on the exchange for long. It is best if they switch between different exchanges for optimum risk management.
- Availability of cryptocurrencies - Successful cryptocurrency exchanges must offer a variety of crypto coins to trade with, such as Bitcoin, Ethereum, and Ripple. Industry-specific cryptocurrencies must also be offered to cater to the niche market. A user will feel more trusted with different cryptocurrencies on the platform. He/she can alter their investment patterns accordingly. Skeptical users can check details with reputed websites and forums which list out the exchanges and their offerings.
- Trading fees - It is one of the important sources of income for a cryptocurrency exchange. High trading fees can affect the quantity of deposits created. Low trading fees can attract a large number of investors and uplift the trading volume. The final rate must be fixed based on the competition in mind. It must be affordable for highly frequent daily traders. The rates for spread fees must also be decided during Cryptocurrency exchange development as it plays a crucial role in attracting investments.
- Location - Since cryptocurrencies are yet to be regulated by most countries, more scrutiny by the media and the financial industry is expected regarding its functioning. Skepticism regarding its use for illegal activities, such as money laundering and drug peddling, must be put to rest through progressive laws by the country. This, in turn, can affect the prices of the exchange and the behaviour of the traders and investors.
- Provision of additional features - Analytical tools during Crypto exchange development that provide deep insights can prove to be an extra benefit for users. A multi-functional trading terminal can be installed for rendering the latest information on margin and leverage trading. Interactive charts that analyze inflow and outflow of coins, trends in price movement, data-driven research on investment can be presented.
CES possesses all the necessary technical knowledge to develop a successful cryptocurrency exchange. Get in touch with their accomplished developers for availing a range of customizable solutions at competitive prices.