Components Of A White label Crypto Exchange You Can’t Ignore

People generally think that exchanging or trading them is one of the best ways to make money with crypto-currency. The fact that the Bitcoin’s value has risen by 10,000 percent since its inception is a pretty lucrative proposition for anyone trying to make money.

The cryptocurrency market is mostly about trading platforms, accounting for about 80 to 90 per cent of the total volume of business. The rapid growth in 2017 and the uncertainty in 2018 gave massive amounts of money to many investors.

It could be an exaggeration to say cryptocurrency is slowly creeping into mainstream transaction culture. Countries like Australia have allowed the payment of bills using Bitcoin and Malta has grown to be one of the best places in the cryptocurrency industry for doing business.

Amid this development of cryptocurrencies, creating a white label cryptocurrency exchange software would be a great business proposition for an enthusiast.

Before you choose a cryptocurrency exchange software, there are a few things to remember.

The Legal Requirements

It is not necessary to implement a cryptocurrency exchange, but it provides a benefit over other companies. Compliance with the KYC (Know Your Customer) and AML (Anti-Money Laundering) standards would be a good practice for any exchange. The legal requirements may vary from one country to another. Some of the best countries you can buy into your cryptocurrency exchange are:

1) Estonia

2) Switzerland

3) Australia

4) Singapore

5) Seychelles

The Manpower Requirements

The days are gone when the company’s revenue and turnover is proportional to the number of employees. It’s not unusual for companies with over a million-dollar turnover to have 10 to a hundred employees. Nonetheless, a few key skills are required when it comes to a cryptocurrency exchange. It should be remembered that manpower does not essentially mean such skills.

1) The managing director shall supervise all the work and ensure that the responsibilities of the staff are conducted in an optimum manner.

2) A marketing manager to ensure the smooth operation of marketing and PR activities. It is the marketing that distinguishes between failure and a good project.

3) A director of collaborations responsible for finding partners and contractors.

4) Support manager who reviews incoming tickets and answers questions about support. The support manager’s initial support is something that will help ground the dominance of your crypto-currency exchange in reacting to customers.

The Cryptocurrency Exchange Architecture

A crypto-currency exchange is supposed to fundamentally do nothing more than bind buyers and sellers. The mechanism can be performed with various architectures.

1) Monolith -An all-in -one system that holds wallets, transfers, accounts and management on the same server. Not ideal for handling large consumer volumes.

2) Modular-Contains easily manageable modules, usually hosted on separate servers, for each task.

3) Distributed -Has independent modules consisting of various submodules. The database can be located in several servers. The level of results is proportional to the efforts in production and maintenance.

It should be noted that any exchange for the cryptocurrency should be scalable. This can be done by increasing server capacity, optimizing scripts, or module recoding.

Any transaction with cryptocurrencies must have the following features –

A graphic user interface
Module wallets
Liquidity
Trading engine
Private administrative system

That architecture has different advantages and disadvantages, so identifying your target is crucial before you start creating your white label cryptocurrency exchange software. Models usually interact with each other internally. In today’s context the most effective API communication with data transfer is in JSON format.

The back end of the cryptocurrency exchange is one of the most important features. This is the heart of the entire system where the operations and calculations are passed through central scripts. While the other aspects of the exchange can take a backseat, utmost importance has to be given to this feature during the design of the project architecture.

The Graphic User Interface

It has to be acknowledged that the end-user doesn’t really care about the intricacies of coding that go into the core development. Breezy and intuitive front end is what matters to them. The first thing that catches the users ‘ eye is this user interface. The number of users of smartphones needs compatibility of the website with mobile screens. Having an application at the beginning might not be necessary, but as time goes by, having apps available for the two main mobile platforms-iOS and Android-would be a good idea.

Wallet

The wallet consists of two pieces, the wallet in cryptocurrency and the wallet in fiat. It helps to bind blockchain with deposit and withdrawal functionalities of the currencies being exchanged.

There are several ways you can incorporate your wallet into the traditional banking system. Direct bank transactions can be done in manual mode, or Visa or MasterCard services may be used in automatic mode. The money gets directly deposited into your bank account.

Liquidity

Liquidity, including traditional stock markets, is one of the most important aspects of any trade. The order book is the indicator of how famous the stock exchange is. Likewise, in order to establish liquidity the cryptocurrency exchange also needs to display something like an order book.

You can either choose to go with a liquidity provider or use bots to simulate trading activity inside the exchange. Using the first option would increase your business fees, and the customers might not be well off.

Trade Engine

The center of your exchange is the trade engine. This puts buyers and sellers back together. The exchange speed and efficiency depends directly on the trading engine. Most p2p cryptocurrency platforms use cap and market orders to prevent the output from suffering. Some systems allow you to position commands for stop-limit and stop-loss. Experienced traders favor these.

Private Administration System

The exchange control center is the private-administration network. The person in charge, as an owner or administrator, should be able to look at all the critical information and conduct key tasks like account management, transfers, wallet management, and auxiliary activities such as KYC and AML. If required and based on your exchange user capacity, you can even delegate positions with limited powers to other users.

Securing Your Cryptocurrency Exchange

Security is of paramount importance for any system which deals with huge amounts of money. Some hackers attempt to incorporate multiple methods to infringe ecosystem security. Most of them include:

1) Hacking the Administrator screen-the Attacker has full system access. This can however be stopped through the use of multi-factor authentication. Another way to secure the funds is to add a combination of cold storage and hot wallets.

2) Hacking a single user-this may not open the exchange as much as it does when hacking an administrator user, but it is nevertheless a weakness. Compared to the administrator stand, providing multi factor authentication would be perfect for the users. This is a growing cause of concern as hackers have been known to target users who have shown they have a lot of money in their crypto wallet, in some way or the other.

3) Social manipulation-this is one of the easiest yet most inescapable approaches to find. The program can’t help you if you have your wallet’s access credentials exposed, either knowingly or unknowingly. The best way to stay secure from these attacks is to realize that even the minutest details might open your wallet to the back door.

4) Hacking the server-this is one of the most lucrative ways for a hacker to gain access to huge sums of money. Investing in a reliable provider is the best way to avoid instances of those assaults. Providers such as Amazon Web Services or Microsoft Azure are considered to safeguard the data from denial-of-service attacks.