The cryptocurrency market is evolving rapidly, and if you want to stay in the game, you need your exchange platform to be the one that can keep up with the changes. There are many cryptocurrency exchanges capable of providing basic exchange services, yet not all of them offer the same level of quality service — some are more flexible than others, some prioritize security over convenience, and so on. In this article, we’ll look at five essential features that every good exchange must have, and show how to elaborate on these features.
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Building a Crypto Exchange is Not an Easy Task
The crypto exchange business is a very competitive one and could become even tougher in the volatile crypto space. There are many challenges that need to be conquered in order to make a successful crypto exchange that generates profit.
Besides some obvious competitive advantages such as low fees, there are still factors for crypto exchange owners’ consideration. We’ve compiled five of the most important factors affecting cryptocurrency exchange performance.
1. Security: the core crypto value
The security of your crypto exchange is the most important factor in its success and, let’s not dissemble, in any crypto project’s. A lack of security can lead to a loss of funds, which will hurt your reputation and credibility.
Crypto exchanges must be secure from cyber attacks, and they need a good reputation for privacy as well as security. They should have an excellent track record when it comes to preventing hacks, keeping customer information safe, and being transparent about how they protect their users’ funds.
2. Flexibility: the more assets the better
A cryptocurrency exchange that is flexible will be able to add new cryptocurrencies and trading pairs responding to market trends and new launches — in other words, offer more options and opportunities for customers and strengthen the platform. Changes in the market should be easy for a cryptocurrency exchange that wants to stay competitive and profitable.
As a crypto exchange, you want to diversify your trading assets. Not only will this help reduce risk (and mitigate losses), but it also makes your customers more likely to stick around. If they see that they can buy and sell multiple different coins, they’ll likely open up an account with you and keep it open for longer than if there were just one or two options available.
Diversification is important because when one coin has a bad day, another may have a good one which helps balance out the loss in value from its counterpart. This means that while some people might be getting nervous about selling their Bitcoin due to recent news stories about its price fluctuation, others may be buying Ether or Litecoin instead because those are currently going up in value instead of down.
It’s also important for traders not to put all their eggs in one basket — if someone only trades Ethereum Classic (ETC), then if ETC goes down significantly during any given period of time (like during January 2019), then so does all their cash on hand since there isn’t anything else being traded at any other time besides ETH itself… which leads us back again: don’t put all your eggs in one basket.
3. Easy-of-use: good UX and simple registration
Another important factor is the user interface and experience of your platform which will determine whether your customers like using it or not as well as how many new users you’ll attract in future months! For instance, if someone tries using Kraken’s website but gets frustrated by certain things (ease-of-use issues), then they’ll probably switch over to another one instead where everything works fine without any problems whatsoever.
When creating your registration process, you should consider the following:
- The user should be able to sign up with only a few personal details. Ideally, they should be able to fill out the form in less than 30 seconds. The more information you ask for on signup, the longer it’ll take users to complete the process and get their accounts set up.
- The registration process should be quick and easy or, if possible, even not exist. Users shouldn’t have any trouble filling out forms or providing information that is specific only to them (e.g., their email address). In fact, these elements should feel like part of an onboarding flow rather than separate steps within an onboarding flow because they are just as important as other pieces of data like name and ID number when it comes time for KYC checks later on down the line.
4. Reliability: stable and fast service
To gain profit from the crypto exchange, it is important that the exchange has a reliable and uninterrupted infrastructure that helps to increase customer satisfaction and trust.
The second thing you have to consider when choosing a cryptocurrency exchange is its support team. If you are facing any problem or you have any query regarding your account or trading methods then only you will contact them for assistance.
Another factor that needs to be considered is the security system of the exchange. Security means it secures your funds by protecting them from hackers and other cyber crimes like phishing etc.
If an exchange has reliable legal status then definitely it will help in reducing risks related to frauds or scams etc.
5. High-level service: quality support team
The last in this list, but not the list important thing that you want to check your exchange for is its customer support. If an exchange does not have a good customer service team or does not respond to their users on time, it will be hard for them to make any money from the users. And this is why most people prefer using exchanges with 24/7 chat or email support because they know that if something goes wrong with their account, they will be able to reach someone who can help them solve the issue within minutes.
How to Enhance These Factors with One Solution?
As challenging as it could be to build an exchange platform technically, even more challenging it could be to bring it to a high level of success. If the resources are more than finite, yet you are still eager to target the top of the crypto exchange market it is important to find a profitable development solution.
Swapzone offers comprehensive support for cryptocurrency exchanges with our crypto exchange API – an all-in-one solution compiling 20+ reliable providers, 1000+ crypto assets, 99,9% uptime, and high-quality customer support. Not only it’s a great backup opportunity, but also a way to increase your service’s turnover and make additional revenue.