The popularity of bitcoin is rapidly increasing. The crypto market also witnessed a growing trend of bitcoin mining since bitcoin’s introduction in 2009. However, bitcoin mining has now become a difficult job due to the increased need for higher computing power. Consequently, people are now shifting towards an easier way of making money, thus bitcoin exchange platform development.
Businesses and entrepreneurs across the globe are investing in bitcoin exchange development in anticipation of huge profits, and many individuals with powerful exchange platforms have succeeded in their ventures.
If you are also planning to build your Bitcoin exchange, it is advisable that you follow a structured approach to ensure a smooth-sailing process.
The following are the steps that can efficiently steer your biotin exchange development journey in the right direction.
Starting of a Bitcoin Exchange
For starting a bitcoin exchange platform, make sure you adhere to the rules and regulations that the country where you intend to launch your project has related to bitcoin exchanges. As every country has its own set of rules and regulations, ensure to have an in-depth understanding of updated regulations of your chosen region. For example, Estonia and Malta have favorable rules and regulations for crypto exchange platforms. Venezuela is also trying its hand on increasing its presence in crypto.
Listing of Cryptocurrencies
The next significant step is choosing the crypto assets that you want to list on your bitcoin exchange software. The more the number of crypto assets listed on the exchange, the more are the options available to traders to trade. It increases the interest of traders in your exchange and attracts a new set of audiences towards your exchange platform.
Bitcoin Exchange Trading Platform
The features that you integrate into your exchange play a major role in determining the success of your exchange platform. Whether you plan to launch a complex exchange or a simple website for your business, a lot of features need to be considered. The following are the features that must be integrated into an exchange platform to satisfy the users.
Key Features
Flexibility to customization and scaling- A crypto exchange development company should provide the owners with the flexibility to customize the front-end of the exchange. It allows the owners to offer a better user experience.
Security- It is of the utmost importance to integrate the right security features into the exchange. Due to the increased number of hacks, both owners and customers fear for their money. For such reasons, security features such as SSL implementation, two-factor authentication, encrypted user access and automatic limits for fund withdrawals should be integrated.
Easy management- The exchange should be easy to use. It should be underpinned by a user-friendly interface that enables the users to easily trade cryptocurrencies and manage their portfolio.
Instant transactions- The transactions should be processed with minimum latency. Reinforce your bitcoin exchange software with a powerful matching engine capable of matching buy and sell orders at a lightning speed.
From the above-mentioned features, it has been concluded that the security and safety of transactions are the utmost important requirements that should be considered. Thus, let’s focus a bit more on the security aspect of a bitcoin exchange.
Issues faced in the security and protection of an exchange
Unauthorized access to the administrator account- This is one of the major reasons that led to the hacking of most exchange platforms to date. In this, the hackers gain illegitimate access to the administrative account through any loopholes of the exchange or by following malicious processes.
Violation to the server- This challenge is faced when the requirements for server protection are not met. When there are various teams and admin is not able to coordinate with each other. And hence then loopholes remain.
Rogue process due to privileges- These are affected by any malicious software or by an intruder activity.
Technical issues- These include software issues or any fault in the hardware.
Measures to enhance the security
Geography-based KYC and AML verification processes should be in place. This ensures the identity of the users and ascertains that no duplication of identity is formed. It limits hackers to forge the identity of a user.
Use of secure and protected libraries and framework also protects users’ data in the first place.
A cold wallet may also be integrated personally by the users. Or for huge volume transactions, a manual confirmation from the administration may be required.
For proper administration, the responsibilities and privileges of administrators should be pre-defined. Additional groups or roles may be created for proper accessing.
For server security, development and production should be bifurcated and limited access should be provided to each group.
For the DDoS attacks, requests must pass through certain servers and should be cleaned after every end of the project.
AWS (Amazon Web Services) can be leveraged for firewall security.
Two-factor authentication should be mandatory for authorized and protected user access. You may choose Google Authenticator or SMS or both for better security.
You should enable the notifications about suspicious activities to the administrators.
In terms of technical pain point, regular backups, validation of sum should be maintained.
End Notes
If you are considering building your bitcoin exchange, Antier Solutions can help. As an experienced blockchain development company, having delivered over 25 exchange projects to clients worldwide, we are well-versed with the ins and outs of building a secure and high-performance exchange that can help you stay ahead of the game.
We specialize in white label bitcoin exchange platform development, delivering a secure, scalable exchange to you in just 3 weeks. Our turnkey exchange can process 100,000 transactions in a second and is underpinned by market-leading features to offer world-class security and user experience.
View a demo of our white label exchange or talk to our experts to share your needs with us.