Why Cryptocurrency Exchange Development from Scratch is better than other methods?
Cryptocurrency is a prominent term in the digital era, ruling the entire digital trading platform with great dominance. It is a virtual digital asset and is considered an alternative form of payment for all financial transactions. Crypto assets are created by using encryption algorithms and blockchain technology. Therefore, cryptocurrency works both as a currency and a virtual accounting system. As per the current market, some crypto assets are popular among traders and investors like Bitcoin, ethereum, Tron, Cardano, etc. For trading or investing in crypto, one needs a secure platform. This is where the cryptocurrency exchange comes into the picture.
A cryptocurrency exchange is a trading platform where anyone can buy and sell their desired virtual cryptocurrencies without any difficulties. As we can see plenty of individuals are using crypto coins and tokens for reaping profits. So there is a huge spike in user traffic on the trading platforms and this made a great demand for crypto exchanges. On the flip side, the cryptocurrency exchange is deemed as the ideal profit-yielding business model for a startup/entrepreneur to generate an enormous amount of revenue. By seeing the massive adoption and profits involved in the exchange, several startups showed interest in starting a cryptocurrency exchange business.
If you are a budding startup or an entrepreneur having an idea of starting a business in the crypto field, then creating a crypto exchange will be the ultimate choice right now. But you need to notice that developing and deploying a fully functional cryptocurrency exchange is quite tough than you think!!
Before initiating your crypto exchange business, you must be aware of the development methodologies currently emerging in the crypto ecosystem. So let us quickly dive into…
Cryptocurrency Exchange Development Methodologies
A startup or an entrepreneur who is planning to start a crypto exchange business might gather all essential details on insights, crypto exchange types, developing procedures, and security features. While collecting the information regarding procedures, you might have come across the cryptocurrency exchange development methodologies. There are three different types of development methods that are followed by most people to build a cryptocurrency exchange.
From Open-source
The term Open-source refers to the open-source code which can be accessed by anyone. Since it is publicly accessible, any individual can modify, download, or distribute the code as per their wish. When it comes to crypto exchange development, some people are utilizing open source codes from unauthorized websites. Using open-source codes would ruin and eradicate the entire project with many glitches. The major drawback of this method is no guarantee for security which finally results in getting hacked by anonymous hackers. Since the code is publicly accessible, anyone can insert bugs on the code which would be very complex to find. Besides, you can not claim any ownership.
Development from scratch
Creating a cryptocurrency exchange platform from scratch will help you to implement your own ideology. You can enable each trading function as per your desire. Also, you can design the architecture of your exchange with the latest technology. So that you can deploy a feature-rich crypto exchange in a way that exactly you imagine in your mind. The development cost and time involved in this method might be high but you can get an incomparable product outcome that would make your exchange stand unique in the global crypto marketplace.
White label software/clone scripts
White label software/clone script is a pre-fabricated software that holds all the basic trading features and security attributes that an exchange needs. By using the white-label software/clone script, you can create and deploy a function-rich crypto trading platform within a few days at a parsimonious price. It comes with various customization options so you can alter visuals, features, and more.
The above-mentioned are cryptocurrency exchange development methodologies that are popular in the crypto sector. This may bring you a small clarity about the development methods. Choose the right way to build a crypto exchange. If you have chosen a white label/clone script or an open-source is an efficient way by considering cost and time factor, then I fear that you are going on a flimsy road that looks like a sturdy one. So it is highly advisable to analyze and implement your own ideology by developing an exchange from scratch.
I’ve just given a glimpse of the concept. Now, let us see why creating a crypto exchange from scratch is highly beneficial by comparing the significant drawbacks of other cryptocurrency exchange development methods.
Why Developing a Cryptocurrency Exchange From Scratch is more Efficient?
Many crypto entrepreneurs and young startups are entering the crypto ecosystem to gain a huge amount of profits. But only a few tasted success and others failed due to the method they choose and the trading service they offer for the users. To overcome this and run a crypto exchange in a unique way on your own concept, you need to create a cryptocurrency exchange from scratch with elite trading functions.
Why from scratch? Why it is efficient than other development methods?
These queries might be squeezing your mind right now. So, let me say you some mind-blowing reasons for initiating a cryptocurrency exchange software from scratch.
Ownership
Purchasing a white label software/clone script is like buying an apple pie that is half-baked and crummy. You might get the white label software/clone script without any testing which results in several technical and non-technical crashes. Therefore, the glitches that acquire on your exchange will affect the quality of the exchange which breaks the expectation and trust of your users. You can not get ownership of the code because the white label software/clone script is under the control of developers. But when it comes to development from scratch, you have full ownership of the source code. Therefore, you are the sole owner of the code.
No Hacking Issues
Security threats are rising day by day in the crypto sector. It is due to the inappropriate features that are enabled in the exchange. Launching an exchange with a hack-free environment will help you to reach a great height in the crypto market. When you use a white label software/clone script, your exchange might easily get hacked. Some influencers in the social media/digital platforms are claiming that creating an exchange using the clone script will be safe and unhackable. But it is not really secure. Let me give an example for your clear understanding. Consider that 10 startups are creating a crypto exchange using the same clone script/software. If any of those clone exchanges is hacked, then other exchanges which are launched using the same clone script might be easily attacked by the hackers. One can’t prevent this miserable situation by adding many security modules. This is because the same source code is used by all clone exchanges.
In case, you develop a crypto exchange from scratch then you can build a well-protected crypto exchange with state-of-the-art security features based on your business needs. By having a unique source code, you can safeguard your exchange from hackers and phishing activities.
Brand identity
Brand identity is the most important factor to attract more users and sustain in the crypto market. By using the white-label software/clone script, you can not build the brand identity easily and it will not give the recognition that you deserve. Due to the same framework and architecture, users can’t differentiate white label/clone script without the name and logo. This will confuse the users. If you are creating a crypto exchange by using the clone script/white label software, then building a unique brand identification is similar to finding a lost key in a dark place.
If you develop a crypto exchange from scratch, then you can implement your own architecture and frameworks based on your business concept. Therefore, your exchange platform will stand unique in the crowd and get enough credibility without having to duplicate others.
Unlimited Customizations
Having a white label software/clone script will permit you only to do a basic level of customizations. Any important modifications or alterations will require assistance from the software providers or developers. Even though you get a white label software/clone script at an affordable cost, you need to pay extra money for every single add-on module and other trading features you enable in the platform. When compared to this scenario, developing a cryptocurrency exchange software from the base is highly beneficial and it will never lower your expectation level.
Scalability
In the cryptocurrency exchange business, you need to be a master in providing the latest updates to your users and ready for growth. It is vital to measure the number of users and you need to be able to adjust the architecture of the exchange to it. In case, your users count increases rapidly in the platform, then the architecture of white-label software/clone script will not let you handle it. So that it leads to a big crash. To avoid this complexity, you need to develop a crypto exchange from scratch which will help you to handle a million users at the same time in a trouble-free way. If your exchange did not face any crash or lag during the high user traffic, then definitely your platform will be spoken by all users in the crypto ecosystem. That’s why developing an exchange from scratch is always a recommendable one.
No Exclusion from App Store
As per the current market, having a stunning crypto trading mobile app for your exchange platform is more essential. This is because smartphone users are increasing day by day and many crypto traders are preferring mobile applications for exchanging crypto assets. To stay in the competition, you must launch a user-friendly crypto exchange mobile app that should not have any flaws. As we know, the Apple store and google play store will not allow low-quality apps or products to be active on their platform. Currently, the App store is taking serious actions to clean the platform from ineffectively tested applications with lots of bugs, spam apps, and clone applications with the same source code. Therefore, it might be a ‘catastrophe’ if Apple or Google wipe out your app from the store after you’ve invested your dream ideology & hard-earned money in developing a trading app by using a white-label software/clone script.
The above-mentioned are the significant reasons to create a crypto exchange from the base and drawbacks of white-label software/clone script. You need to keep in mind that before starting a crypto exchange business, you shouldn’t be alarmed when considering the cost and time factor. Considering only these two factors for your business will not make you a successful entrepreneur in the crypto industry. By considering the various advantages, Building a cryptocurrency exchange platform from scratch will be the optimum choice.
Wrapping up
Good things will take time. Likewise, creating a cryptocurrency exchange software from scratch with exemplary features will require ample time. To get a tamper-proof exchange product from scratch, you need excellent guidance from a professional Cryptocurrency exchange software development company in the blockchain space. Presently, the crypto market is flooded with many imposters who are claiming themselves as an ideal software provider. So be cautious! Do your own market analysis and connect with a well-experienced development firm that can make your dream exchange into reality.
