How to Build a Crypto Exchange Platform Like Binance

Do you think cryptocurrency is going mainstream? If you see the market statistics, you will know that it already has!

The crypto market was valued at $910 million in 2021. This figure is expected to cross two billion by 2028, highlighting people’s interest in using convenient exchange services.

While a major part of this niche is controlled by popular platforms like Binance, FXT, Huobi, and Bybit, you can still enter the market. You can develop an exchange app like Binance from scratch and offer something unique to traders.

But do you know how to make crypto exchange app with all the essential features that will satisfy the needs of its audience? Don’t worry; this post has the answers to all of your questions. Today, we will discuss:

Let’s get started!

Main Types of Cryptocurrency Exchange Platforms

There are two main types of crypto exchange platforms, which differ in terms of features, operating specifics, technical aspects, transaction fees, and more:

1. Centralized Exchange Model (CEX)

This is the most common type of exchange, with infrastructure similar to a typical stock market. In a nutshell, CEX keeps the clients' digital money in service. A centralized operator makes sure the platform is safe, up-to-date, and operational. Every transaction order on this kind of platform is kept track of in an order book.

The main advantage of the CEX system is its superior liquidity ratio. However, the CEX model also has a significant disadvantage. Since all of the users' money is kept in the system's online wallets, the security is fairly weak. It increases the possibility of hacker attacks.

Popular examples of centralized exchanges are Binance, FXT, Bybit, Houbi, Crypto.com., OKEx, Kucoin, and more.

2. Decentralized Exchange Model (DEX)

Unlike CEX, decentralized exchange platforms allow users to perform transactions without involving third parties. It means all the transactions are independent of the exchange system. This model reduces the risk of security breaches and hacking.

However, DEX has several disadvantages as well. For instance, they lack third-party involvement. It means users will need to take full responsibility for any risks related to transactions. Likewise, DEX also has unstable exchange rates and poor liquidity.

Popular examples of decentralized exchanges are Uniswap, dYdX, PancakeSwap, Serum DEX, and more.

Key Features of the Crypto Exchange Platform

Below is the list of features that every crypto trading platform usually has:

1. Cryptocurrency Trading Engine

An exchange's central component is its trading engine, which facilitates day-to-day operations. You must include this feature in your trading platform to match all buy and sell transactions on cryptocurrency exchanges, execute transactions, compute balances, and access the order book.

When building a crypto exchange app, you should prioritize setting up a trading engine. An application for cryptocurrencies without a working engine is just an empty shell.

2. User Interface

The user interface (how users see the exchange) is the public face of your exchange app. Be sure to create an intuitive and user-friendly UI while following the minimalist design approach for an amazing cryptocurrency trading experience.

Clear out clutter to improve the app’s simplicity and to make it easier for consumers to execute trade orders. An easy-to-use interface means your app has these features:

3. Wallet Solution

During crypto exchange app development, you must include a wallet solution feature with the help of a crypto exchange script for a crypto exchange. The user's wallet on your app can hold all of the crypto tokens.

You can make customers trust your cryptocurrency platform by creating a wallet solution that is similar to the Binance exchange but has stronger security features.

A wallet is a background function that manages fund transfer requests for crypto purchases and sales. With the help of an appropriate crypto exchange script or API, you may incorporate it into your crypto exchange app.

4. Admin Console

The admin console's function is to help the exchange operator oversee different operational aspects of trading cryptocurrencies and other platforms.

You can alter the admin console's functionalities to meet certain business requirements. But every decent admin panel can add new currencies, credit or debit funds to wallets, handle smart contracts, record transaction history, change trading fees, and investigate support concerns.

5. Push Notifications

You must include a push notification feature in your crypto exchange app to inform users of the most recent events, platform upgrades, exclusive deals, market trends, and cryptocurrency rates.

You can further enhance the user experience and make your exchange more beneficial by allowing your users to manage notifications.

6. Security System

Did you know that there has been a 41% annual growth in Bitcoin hacks and breaches? That’s why you must focus on keeping your cryptocurrency trading platform as safe as possible.

You must take into account all potential threats, especially if you are interested in building a CEX model. Luckily, there are numerous ways to improve servers, databases, HTTP, and other components to create a robust security system.

7. Order Book

An order book is a list of actual transactions that includes an individual’s recent purchases and sales. Traders can keep an eye on when a good offer is made and an order is closed. An order book's successful orders are automatically deleted by the system.

8. History of Transactions

The transaction of history feature contains all the closed orders. Each user can access necessary data on their prior orders, compare prices, see the time, and estimate their activity on your platform.

Advanced Features of a Crypto Exchange

Besides the aforementioned key features, you must also include advanced features in your Binance clone app to make it user-friendly:

1. Crypto Staking

Staking cryptocurrency lets you lock in a certain number of coins and start earning interest. Compared to other DeFi choices, the rates are not too profitable. But it's an excellent substitute that offers users comfort when they're not trading actively.

2. Cold Wallet Integration

Tech-savvy consumers want an option to link hot crypto wallets with hardware wallets that aren't connected to the internet. Wondering why? Because it is safer to store a large sum of cryptocurrency.

This is a necessity and not an option that you can provide investors. The incorporation of cold wallets is an essential feature, especially if your goal is to create a cryptocurrency exchange that operates on centralized servers.

Even if hackers break your first line of defense, all digital currencies on your exchange will be stored in cold cryptocurrency wallets and unavailable to them.

3. Credit Card Integration

Similar to leading crypto exchange platforms, you can also allow your customers to pay for everyday expenses with the digital currency of their choice. Users can get crypto cashback and other benefits.

4. P2P Crypto Trading

Your exchange platform can take on the role of escrow and perform direct cryptocurrency trades between customers globally. This option makes sense for uncommon digital goods that users might store in their private wallets.

Your role is to freeze payments until both sides accept the exchange and provide your platform with user ratings and reviews. A large number of reputable exchanges offer this feature to customers with a good trading experience.

How to Develop a Binance Clone Platform?

Follow these easy steps to develop a crypto exchange like Binance:

1. Identify the Problem

You need to determine the purpose of your app by identifying the problems that users face, assessing the current solution, and outlining how your crypto exchange app will address the issue.

With this analysis, you can choose the ideal kind of blockchain for your app. Next, evaluate the possible risks associated with your app and perform a cost-benefit analysis to see whether it is truly worth the expenditure.

[Also Read- How Blockchain Technology Can Revolutionize the Fintech Industry]

2. Right Consensus Mechanism

Blockchain systems need users to confirm the transactions. They are not for centralized exchanges. Therefore, it is necessary to evaluate and select a consensus technique that best suits the requirements of your app. When choosing a consensus process for your exchange platform, you must consider factors like validators' anonymity and your level of trust in them.

3. Choose an Ideal Platform

You must select an appropriate blockchain platform for your app. That’s because it will allow you to create a custom web app without writing blockchain code from scratch. Here are some common blockchain platforms:

4. Develop a Model

Next, do some research on different blockchain models. You can choose from unlimited, private, public, hybrid, or allowed blockchain models.

Following this, look into your blockchain’s configuration. It's a crucial step because components cannot be changed after they are configured. You can consult an expert for better understanding.

5. User Interface

Your web app's user interface acts as the public face of your crypto exchange platform. After setting up the server components, you must choose the programming language, external databases, and servers for your app. The user interface should be simple to use and include all relevant features.

6. API Creation

There are several pre-built APIs, but you must create a custom one for your exchange platform. Key trading pairings, address generation, data validation, intelligent contract interactions, and data storage & retrieval are all possible with APIs.

7. Test the App

When testing your app, you must use the MVP approach. It includes building a viable POC solution and testing it to find issues with latencies, memory & storage, system crashes, and performance limitations. Once the issue has been resolved, you can test your application for more flaws and continue working on it until the cryptocurrency exchange application is fully operational.

Cost to Develop a Cryptocurrency Platform Like Binance

Since you know how to build a cryptocurrency exchange app, let’s discuss the development cost.

Developing a crypto app with basic features will cost you between $15000 and $50000. In contrast, developing a complex app with advanced features will cost you anywhere between $50000 and $100000.

Talking about the time involved, a rough time estimate to develop a cryptocurrency exchange app can be from 700 to 1500 hours or even more.

Best Monetization Strategies for Crypto Exchange Platforms

Here are six best monetization strategies for crypto exchange platforms:

1. In-App Advertising

One of the most popular monetization strategies is in-app advertising, but it requires thorough market analysis. Those who are learning how to create their crypto trading app must understand that this approach can be used as a source of income. Through this model, you can allow third-party partners to share their banner advertisements, features, and videos on your app.

2. Freemium Model

Under this model, you can provide a limited set of functions to users without charge. Later on, customers can pay a small fee to use extra features and advanced functionalities.

3. Subscriptions

This model is almost the same as the freemium model. But it allows users to try out your mobile app before purchasing it. This model is better suited for web apps with more user engagement for services that provide exclusive content and services for trading cryptos.

To develop this monetization strategy, you must conduct market research on several centralized cryptocurrency exchanges, CFD trading, and other cryptocurrency exchanges.

4. Affiliate Marketing

You can start affiliate marketing campaigns with your cryptocurrency app to generate income. As a part of an affiliate marketing scheme, you offer links to the product or service pages of different advertisers.

Many people have questions regarding the kinds of goods or services they can affiliate with. However, there are always a few choices available based on the objectives of your cryptocurrency application.

5. Transaction Fees

Another way you can make money with your crypto trading platform is by asking traders to pay transaction fees in exchange for starting transactions or bank transfers. Carefully check the costs that other businesses are charging before deciding whether to increase or decrease your fee.

6. Sell Data

You can generate and receive huge amounts of data from third parties by developing a user-focused crypto trading platform where you profit from users' transactions and learning courses. It isn't about selling consumers' personal information. But it's about sharing customer behavior data with marketing automation platforms so they can utilize it for advertising or account-based marketing.

How Can Protonshub Help You Develop a Crypto Exchange Platform Like Binance?

With everything discussed above, you might have got the answer to your question, “how to make a crypto exchange app.” The next step?

Well, you can get in touch with our team of developers at Protonshub Technologies. Our skilled experts go above and beyond to create robust crypto exchange platforms like Binance.

Hurry and contact us today!

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Tushar Pal

"President and Co-Founder"

Tushar Pal is a captivating wordsmith who weaves intricate narratives and thought-provoking tales. With a passion for exploring the depths of human emotion and the complexities of the human experience, he effortlessly guides readers through richly textured worlds that linger in the mind long after the final page is turned.