8 Steps to consider before launching Your Own Cryptocurrency Exchange Platform

May 24, 2023 my blog

Today,Guest Posting there are many numbers of crypto trading websites available in the market. Everybody is willing to know about the types of cryptocurrency exchanges, the cost to develop, and the basic things related to crypto exchanges.

Let’s discuss what is a crypto exchange? and the steps are taken into it before launching your exchange software.

What is a cryptocurrency exchange platform?

In simple words, it’s an online create your own cryptocurrency marketplace where you can trade your digital assets at market value. It acts as an intermediate between the customers and traders of virtual currencies.

Types of cryptocurrency trading platforms exist in the market place:

You might have heard about the term “centralized (or) decentralized exchange” before. It refers to the different models of the crypto exchange platform. Let’s see, how many models available and what about its advantages.

Centralized cryptocurrency exchanges:

It involves a manager who can handle each user’s funds, while intermediaries can execute the transactions of trading fees. This type of platform has suffered a lot due to a lot of security issues. Even though it provides more sufficient liquidity and significant trading volumes, the data security problem is a major concern in this platform.

Decentralized cryptocurrency exchanges:

It’s a reciprocal of the centralized exchange platform. There are no intermediaries where interfere in the process of transferring funds. This kind of exchange platform is very secure and also users can perform their operations independently. However, liquidity is less but there are no security issues available here.

Hybrid cryptocurrency exchanges:

In this platform, its a combination of both centralized and decentralized exchanges. And also it provides liquidity and security in a balanced manner. It uses a Peer-to-Peer (P2P) networks for trading purposes. Here, the third party plays a major role and a smart contract integrated with the escrow can perform cryptocurrency transactions faster.