Cryptocurrencies are digital currencies wherein a lot of people have put up their stake. With time, more and more people are readily entering the crypto space to invest or trade. The year 2017 witnessed a stunning rise in the prices of cryptocurrency, Bitcoin hit an all-time high of almost $20,000. The fluctuation in crypto prices is normal and the market has managed to keep the people engrossed in it.
Crypto exchanges are the platforms where trading of cryptocurrencies is carried out. These are the online platforms operated through web and mobile apps, allowing traders to buy, sell and transfer cryptocurrencies.
One of the examples of a successful crypto exchange is Coinbase. We will further discuss the salient features of this exchange which may help you to plan your future path to develop a crypto exchange like Coinbase .
About – Coinbase
Coinbase started its operations in 2011 as a Bitcoin trading exchange. Bitcoin was only the notable cryptocurrency prevalent earlier and therefore Coinbase initially supported a single currency only. But gradually in the year 2016 and 2017, Coinbase started adding other cryptocurrencies as well.
Coinbase is one of the largest crypto exchanges with global users from over 30 counties including the US, UK, Singapore, Canada and Australia. The exchange offers a fast and user-friendly way to purchase bitcoins, litecoins, ethereum and others. It also offers the option to buy cryptocurrencies via debit card, bank transfer, credit card, and more.
Salient features of Coinbase
The features of Coinbase exchange are as follows:
- Support to currencies like BTC, ETH, LTC
- User-friendly interface
- Easy on-boarding of users
- Instant deposits and transfer of assets between users
- Option to choose from multiple payment methods like bank transfer, PayPal and credit cards, and debit cards
- High liquidity and buying limits
How to develop a crypto exchange like Coinbase?
For building an exchange platform like Coinbase, you will have to put in a lot of time and do thorough research.
There are different phases involved in building an exchange.
Firstly, the project is in the discovery stage. During this stage, the application of cryptocurrencies is researched and their scope is identified.
Discovery stage
During the initial phase, market research has to be conducted. This includes analyzing the competition and identifying the primary needs of the users. The past experiences of the users can be interviewed to form a clear vision for further implementation.
Therefore, the following questions should be answered during the discovery stage:
- What are my competitors offering?
- What are the niche areas that my exchange will be targeting?
- What solutions I am offering to resolve current user problems?
A comprehensive full study of the market has to be conducted with further defining the target areas which will be aimed.
Planning stage
Now the project has come to a stage where proper planning has to be undergone before taking any other further step. The functionality and scope of your exchange have to be defined.
The following functionality can be included in the exchange if you intend to build a crypto exchange like Coinbase:
- Send/ receive transactions
- Account management
- Multi-currency support
- Wallet integration
- Instant exchange function
- Real-time cryptocurrency rate charts
- Push notifications and alerts
- Transaction history
- On-boarding flow with the introduction to a cryptocurrency exchange and its options
In the process of planning the project, you must be clear whether you wish to develop a web or mobile exchange or both. For the mobile platform, you need to identify whether you wish to build the exchange for iOS or Android or both the platforms. If you build the exchange for both, then you stand a good chance to double your audience.
Simultaneously, you also need to comply with the legal regulations of the various jurisdictions. Legal counsel also needs to be determined due to the ever-changing regulations of various countries. You also need to identify whether you are going to earn commission like Coinbase or go commission-free like the Robinhood exchange.
Technology Stack
The backend of a cryptocurrency exchange is usually created using Java or Node.js. You can also make use of available libraries for quicker development. For bitcoin-specific trading, you may make use of BitcoinJ SDK. You may also check Coinbase libraries that can be used for both iOS and Android.
For developing the platform, you can use angular or react. And mostly React Native is used to save time and costs.
Team
You also need to hire the experts according to the technology stack you will be using. The following will be your team for product development:
- Back-end developer
- iOS developer
- Android developer
- Front end developer with experience in development platform
- Graphic designer
- QA engineer to test the product
- Product manager to coordinate
For organizing a team, you may have in-house experts with the required skill set or you may outsource or hire a team of developers who have expertise in the field.
Prototyping and MVP creation
Before finally making your product go live, it is recommended that you test your working prototype. The prototype or minimum viable product (MVP) will test the hypothesis of your project.
There are many prototyping tools available in the market; you need to choose the one that best suits your purpose. When you are ready with the prototype, you can ask the same person to test your prototype to whom you interviewed in the first phase.
Development stage
After testing the working prototype or MVP, the final step is the development of the product. In this stage developers and professionals need to work in coordination with each other to deliver the quality product.
Going step-wise will simplify your process to build a crypto exchange like Coinbase.
At Antier, we can help you to fulfill your vision to build a Coinbase-like exchange. Our blockchain engineers allow you to benefit from the most acclaimed features of the exchange, like user-friendly interface, quick trading, more liquidity, support to major crypto markets like BTC, ETH, LTC, and more. We combine technology, design thinking-driven approach and intelligent strategies, to navigate your exchange development process, helping you to accomplish your goals.