Do you plan to start a cryptocurrency exchange business? If so, now is the perfect time. The easiest and safest way to make money from cryptocurrencies is to create a crypto-exchange application. Regardless of whether traders and investors make or lose money, the cryptocurrency exchange will remain a winner in any case.

But, how to open a cryptocurrency exchange app? So, let’s look at the main stages of the process.

Choose Option to Create a Cryptocurrency Exchange App

If you want to build an Android or iOS crypto exchange app but lack the technical skills to handle it on your own, there are many ways to go about it. We recommend starting with these options:

	Purchase a white-label solution	Develop a custom app from scratch
Pros	- Quick time to market - The relatively simple setup	- Building an iterative and responsive solution with a team of professionals - Full access to the technical support team - Full control over the development process - You own the rights to the source code - You can rebuild your entire app or parts of it if necessary
Cons	- Non-upgradable functionality - Significant time for your team to get acquainted with the code - Requirement for a full security audit from a third party to ensure the existing code is safe - High upfront costs	- Cost extra

How to Build a Cryptocurrency Exchange App from Scratch

Choose Cryptocurrency Exchange Type

Source: CryptoWisser

There are three different types of cryptocurrency exchanges: CEX, DEX and Hybrid.

Criteria	Centralized crypto exchange (CEX)	Decentralized crypto asset exchange (DEX)	Hybrid option
Liquidity	High	Low	Low
UI & UX	Easy to use	Hard to use	Easy to use
Matching speed	Very fast	Slow	Fast
Custody	Users trust CEX	Users own their funds	Users own their funds
Trading volume	High	Low	Low
Features	Unlimited	Limited	Limited
Fiat gateway	Yes	No	Yes

Choose a Jurisdiction

Jurisdictions under which to start a crypto exchange app vary greatly from region to region, from a clear set of regulations to a complete lack of regulation. For example, Malta, Gibraltar, Switzerland, or Singapore now stand out as attractive countries for those wishing to open a cryptocurrency exchange. However, you will still need to keep an eye on legislative changes.

Think about Architecture, Technology Stack, and API

An exchange architecture usually refers to a platform structure that helps define the relationship and the way all the components of an exchange interact: the login screen, trading engine, user interface, security features, APIs, databases, etc.

Find a Liquidity Provider

The success and competitiveness of your exchange business will greatly depend on liquidity: how long it takes to exchange an asset for its money equivalent. As you know, customers will always choose an exchange with good liquidity that can offer a narrower spread.

Take Care of Transparency & Security

The cryptocurrency market attracts not only new members, but also scammers. Even the largest exchanges, like Binance or Poloniex, aren't always able to resist hacking attacks.

Therefore, owners of cryptocurrency exchanges should constantly improve the security of their apps by methods like two-factor authentication, cold and hot wallets, database encryption, anti-phishing features, etc.

Test your Crypto Exchange

Keep in mind to test your application. The scope of testing should cover an assessment of overall system performance, functionality, speed, and security. Also, collect user feedback and make necessary improvements to ensure smooth operation and improve the UX.

Ensure the Sustainability of Business Processes

In addition to preparing for the launch and gaining an initial customer base, you should implement processes that will improve user loyalty. For example, you can provide ongoing customer support and take care of your asset management strategy.

Read the full article to find out more examples, explanations, and development costs for the most popular cryptocurrency exchange apps like Binance Crypto.com and Coinbase.

How to Build a Cryptocurrency Exchange App in 2022