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The Changes to Watch Out in Cryptocurrency Exchange Development in 2020

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The dynamics of Cryptocurrency exchange development has changed a lot in the last few years. As firms look to implement their operations in an easy manner, the concept of centralization has been replaced by the advent of decentralization. It also gives the participants more control over their digital assets standing true to the philosophy of blockchain technology.

The Changes to Watch Out in Cryptocurrency Exchange Development in 2020

As time progresses and we see more of a digitized world, blockchain has a major role in the functioning of several industries. Let us know more about the future of Cryptocurrency exchange development.

The trends to take note in Cryptocurrency exchange development are

  • It plays a crucial role in managing funds through wallet integration. Effective storage of digital coins is facilitated. Traders can also exchange one digital coin with another based on the prevailing market value. Exchange owners have recognized the growing interest in cryptocurrencies by accepting various fiat currencies and permitting trade of different cryptos.
  • While Centralized cryptocurrency exchanges have dominated the scene so far with its authoritative control and a higher level of safety, they are slowly replaced by Decentralized exchanges. Since centralized exchanges are prone to incidents of hacking, decentralized networks offer more anonymity and privacy for users.
  • Exchanges have different sources of revenue, such as trading fees, transaction charges, commission, deposit, and withdrawal charges. Unlike fiat exchanges where there is a pre-established market price, Cryptocurrency exchanges execute deals faster if two parties agree on a specific price.
  • Apart from promoting trading, they also fund platforms that act as investment pools for businesses to buy and hold virtual assets.

Some of the must-have features in every platform for successful Cryptocurrency Exchange Development are

● Trading Engine – It plays an important role in matching the orders raised by different parties. While having real-time charts on the market movement, displaying prices of various cryptocurrencies is essential, the key factor behind smooth trading operations lies in the smart contract. It consists of a set of codes directly embedded into the blockchain and acts as a self-executing program by fulfilling the conditions mentioned in the contract. Every exchange needs to have a solid verifying protocol to ensure integrity in its operations.

● Presence of liquidity – Liquidity helps in the conversion of assets into cash and vice-versa without influencing the market price. It helps in effective fund management irrespective of whether the exchange or the people control the funds. The importance of liquidity increases with a rise in the trading volume of the exchange. The exchange can form API with other 3rd party exchanges for boosting liquidity. The creation of valuable tokens also ensured liquidity.

● Wallets – Apart from storing the coins or tokens of the users securely, wallets help in seamless transfer of funds to and from an exchange. This can generate a greater trading volume in a short time. Wallets should be built, keeping the highest level security in mind as hackers will target them to swindle funds. Make sure that it supports trading of the leading crypto and fiat currencies.

● User interface – A comfortable user interface with easy navigation is the key to client satisfaction. While cutting-edge technology is necessary, a firm must make its UI appeal to the masses. Basic tasks such as account creation, accepting deposits, and authorizing withdrawals should be easily accomplished. Separate menus should be created for different functions. A round-the-clock support desk in multiple languages should be created to resolve queries. It must be flexible enough to operate hassle-free on multiple devices and operating platforms.

● Security practices – Threats such as hacking and phishing should be nullified by investing in top-notch security measures. While cryptocurrency exchanges are not new to fund misappropriation and disappearance of coins, centralized exchanges are considered to be riskier as they have a single point of control. Decentralized exchanges have a higher fault tolerance as users do not disclose too many personal details. Steps like two-factor authentication, end-to-end encryption, jail login, and password-protected user access can go a long way in preserving security.

● Regulatory compliance – Since the cryptocurrency industry is not welcome in every country of the world, exchanges must follow the guidelines laid down by certified authorities in every jurisdiction. It will vary from one territory to another. Governments are skeptical about virtual currencies due to the associated risks and volatility. Hence they will try their best to restrict its operations. Some friendly regimes have recognized its potential and opted to regulate the industry. They have enforced regulations in the form of CSS (Cryptocurrency Security Standards). It is essential to fulfill these requirements to prevent any obstacle to daily operations.

Follow the guidelines mentioned above for successful Cryptocurrency exchange development. Make sure to select a suitable blockchain platform developer according to your business requirements. Customized solutions are also available in the market now with all the needed features included in the package. Do your research thoroughly before venturing into this business. Keep your developmental costs under control and offer a safe and secure trading experience for your clients.

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Shirley is a passionate blogger. She writes about her life experiences in the form of words. She had done masters in technology & working with a leading technology organization as an analyst. Moreover, if you want to follow her, then subscribe to the feeds.

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