The crypto market has been growing at an unprecedented rate. Granted, there have been some bumps in the way, like the $610 million crypto heist and the new US Infrastructure bill. But despite these bumps, the market continues to grow and coins like Bitcoin continue to increase in demand. And to help connect those cryptocurrencies with customers, exchanges like Binance exist.
Crypto exchanges essentially act as gatekeepers to helping people get access to their preferred tokens. While some have more than others, along with certain perks, they all essentially function the same way. And no crypto exchange is quite as popular as Binance. Not only has it managed to create plenty of loyal followers, but they have also managed to be very profitable. So all things considered, let’s talk about how you can make an exchange like Binance.
For one thing, you will first need to decide on what kind of exchange you want. There are three broad types of exchanges to choose from. They can be centralized, decentralized, or a hybrid model. A centralized crypto exchange acts as a bridge between a buyer and a seller. Simply put, almost all day-to-day transactions will go through these types of exchanges.
On the other hand, the decentralized crypto exchange acts as a marketplace for peer-to-peer selling and buying of cryptocurrencies. So unlike a centralized exchange, this exchange is non-custodial, allowing users to remain in control of their private keys.
Next, you will have to look for legal counsel that can guide you through the registration process. In order to open an exchange, you will need a license. Most governments and regulatory bodies of a country require this license for you to start operation. Your legal counsel will explain best what you should be doing to ensure the success of your exchange.
Moving on, you will also need to properly design the platform making use of prototypes and wireframes. If you don’t know how to design a website properly, best not to be stingy during this stage. You want to set yourself apart from the competition from the very beginning.
You will also need a payment processer for your exchange. These applications can help defend against cyber-attacks on your business, which are quite common. An exchange without a good payment processor is like throwing meat into a shark tank; the sharks can sniff it out from a mile away.
Implementing a good Back-end API is essential to a good exchange, as it manages the logistics of your website. While no one will obviously see it, it will manage how well your servers work and how users will interact with your website. If this is not up to standard, you might have some very frustrated customers on your hands.