One of the world’s fastest-growing markets is the cryptocurrency exchange market. The biggest player in this market is Coinbase. It came into existence in 2011. Within this short time, it has become the first unicorn in the cryptocurrency exchange market. It is the leader of this billion-dollar cryptocurrency market and an inspiration for every new company.
Every company that wants to enter this market admires Coinbase and wants to build a platform like that. Coinbase app offers a seamless experience for users that lets thousands of people undertake millions of transactions every day. If you also want to know how to make an app like Coinbase, its cost, and features, then keep reading this blog.
Understanding the Crypto Exchange Market
Cryptocurrency exchanges are online platforms hosted by companies or other entities that facilitate the purchase and sale of cryptocurrencies.
User interfaces evolved to provide a good experience to users. Businessmen realized that only if access is available to every user can the cryptocurrency be adopted at a mass level.
Cryptocurrencies have erupted into a $1.50 trillion asset class, sparking a wave of global disruption through the use of distributed ledger technologies. Like traditional stock and commodities exchanges, cryptocurrency exchanges are platforms by which participants can trade cryptocurrencies.
While certain exchanges allow for the purchasing of cryptocurrency using fiat, such as the Euro or U.S. Dollar, others require participants to strictly trade digital assets in pairs. Some reasons for buying cryptocurrencies include, but are not limited to:
- Paying network fees to power decentralized applications running on a public distributed ledger
- Participating in certain networks’ governance
- Participating in certain networks’ consensus via staking
- Speculating on price
Types of Crypto Currency Exchanges
Before learning about the cost of developing a cryptocurrency exchange platform, it’s important to understand the types of cryptocurrency exchanges. The following are the three types of cryptocurrency exchanges in the world:
1. Centralized exchange
A centralized exchange is like a trusted shop where people bring their digital coins to buy or sell them. The shop (exchange) holds your coins, finds someone to trade with, and charges a small fee for helping. Because the shop stores many coins in one place, trades happen fast and there is more “liquidity” (easy buying and selling. But since your coins are kept by the shop, there’s a risk: if the shop is hacked or mismanaged, you could lose them
2. Decentralized exchange
A decentralized exchange (DEX) is like a magic playground where you trade digital coins directly with others using special rules written in “smart contracts,” instead of relying on a middleman. It gives you more control over your money and you use your own wallet to trade. Building any crypto exchange can be expensive — making one from scratch could cost from $100,000 to over $500,000, depending on how fancy and secure you make it.
3. Hybrid Exchange
A hybrid exchange is like a magical marketplace for cryptocurrencies that mixes two good things: the speed and order-matching of a big central store, and the safety and privacy of a system that doesn’t let a single boss control your money. It uses a fast central database to match trades, but the coins stay in your hands using decentralized storage, so the exchange can’t lock them up.
Factors Affecting Coinbase-Like Crypto Exchange App Development Cost
Before you find a company for Cryptocurrency exchange development services, it’s essential to understand the cost-driving factors for developing a Coinbase-like crypto exchange app:
1. App complexity
The more features you add to a crypto exchange app, the more time and money it needs to build. Simple apps take around 4–6 months and cost $30,000–$50,000. On the other hand, the medium complex apps can take between 4-9 months.
2. Platform choice
A factor that affects the cost of developing a cryptocurrency exchange platform is the type of platform you choose. Whether you choose iOS, Android, or both can increase the cost. If you make the app for one platform, it will cost less. On the other hand, if you make it for multiple platforms, it will eventually cost you more.
3. Developer location
Developers’ pay depends on where they live. Here are some estimated prices for hiring crypto app developers based on their location:
- North America: $40–250/hr
- Australia: $35–150/hr
- Western Europe: $35–180/hr
- South America: $25–120/hr
- Eastern Europe: $25–110/hr
- India and Asia: $20–80/hr
4. Security features
Security is, of course, something that needs to be kept in mind when developing a cryptocurrency exchange platform. This is also a factor that increases the cost of the platform. Implementing security features such as fraud detection, encryption, and two-factor authentication can add to the cost of development. This helps the app to protect the users’ data from cyber threats.
5. Regulatory compliance
Another factor that affects the cost of developing a cryptocurrency exchange app is the number and type of regulatory compliance one has to meet. Depending on the country, you will have to comply with a particular set of regulations to launch a cryptocurrency exchange platform. Some common regulations are GDPR (General Data Protection Regulation), PCI DSS, and KYC (Know Your Customer).
6. Integration with third-party services
The type of integrations you need in your cryptocurrency exchange platform can also take the costs up or down. It is an important cost-driving factor. Third-party services integrations, such as analytics tools, payment gateways, and external API, can affect the development cost. Integration of third-party services requires extra coding, which means extra money.
7. Tech stack
Choosing the right tools is important. Otherwise, you will end up wasting a lot of time, effort, and money. Nobody wants that. So the next step is to choose the right technologies. A simple stack is cheaper at first, but may not work well if many people use the app later. Choosing carefully helps the app last longer.
The cost to build a crypto exchange app depends on many important parts, and the final price is only known after planning the whole project.
Features of Cryptocurrency Exchange App like Coinbase
Now we know the factors that affect the cost of developing a cryptocurrency exchange. The following are some of the features of a cryptocurrency exchange app like Coinbase:
1. Trading engine
The basics of any cryptocurrency exchange platform is the trading engine. It plays an essential role in the working of a cryptocurrency exchange platform. It handles many things, such as executing transactions, calculating balances, and making calls to access order books.
2. User interface
A user interface (UI) for a crypto exchange website should look nice and be easy to use. It helps people make orders, check their past actions, and see useful charts. Users can find everything they need on one dashboard, and they can easily take out or put in money. A good UI makes trading simple for everyone.
3. User management
User management in a crypto exchange means making it easy and safe for people to join and use the platform. Signing up should be quick and not ask for too much data at first. Users should be able to create their own accounts, and the platform checks their information to keep things secure. This often includes using IDs, phone numbers, or photos to make sure everyone is real and safe.
4. Admin panel
Admins are the ones responsible for managing the transactions on the platform. Depending on their access level, they will be able to see the name, email ID, etc. The panel should allow admins to change trading fees, manage cryptocurrency listings, and add new cryptocurrencies.
5. Crypto wallet
A crypto wallet is like a special digital wallet that holds your cryptocurrencies, such as Bitcoin. Instead of coins or dollar bills, it safely stores passwords called “private keys” that let you send or receive digital money. You can use it to check your balance, get paid by others, or buy things with crypto. Keeping your private keys safe is very important, just like you protect the keys to your house
6. Analytics
Analytics is one of the most integral features of cryptocurrency exchange apps. It consists of – Logs and Charts. While the former helps with the analysis of activities on the cryptocurrency exchange, the latter helps in the creation of charts for proper visibility.
7. API
On a crypto exchange, APIs help other apps or services connect to the exchange automatically. For example, traders can use APIs to buy or sell coins faster without doing everything by hand. It’s like telling a robot exactly what you want it to do in the crypto exchange.
8. Database
A database is like a big digital filing cabinet that stores lots of information safely. The database is where every user’s record is kept. Details such as account details, name, and balance are stored there.
9. QR Codes
As cryptocurrencies become accepted at more outlets globally, implementing robust and secure QR Scanners has become a vital element of crypto exchange app development.
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How to Build an App like Coinbase?
Till now, you have understood the factors that affect the cost of crypto exchange development services and their features. Now comes the time to understand how to create an app like Coinbase. Here is the step-by-step process on how you can build a crypto exchange app like Coinbase:
1. Define the goals
The first step in developing a Coinbase-like app is to define your objectives. What is it that you want to achieve with this application? When you know the purpose of the app, you can move in the right direction. Ask yourself what the pain points you will be solving with this app are.
2. Choose the right tech stack
The next step in creating a crypto exchange app is to choose the right tools and technologies. There are many tools and technologies available in the market. You have to choose the one that best suits your app’s needs. Choosing wrong won’t only waste your time and money, but it will also won’t be able to meet the requirements of the app.
3. Design user interface and user experience
After choosing the right tech stack, design an appealing user interface so that more and more people will come to it. The user experience must be delightful enough will make people keep coming back for more. The app must be strong enough to handle multiple queries at a single time.
4. Integrate necessary plugins
Now, integrate the essential plugins without which your app is nothing. And not just the basics, install some good ones to make the app experience better than others. Incorporate crucial plugins such as api, payment gateways, and other required plugins.
5. Development
Once the UI/UX design of a Coinbase-like crypto app is ready, the next step is to make it a reality. Integrate the front-end and backend elements in the app, and the development is set. Make sure the elements are like Coinbase only so that your app will look like it.
6. Testing and quality check
Before you jump to announce that you have made a Coinbase-like app, you should test it first. This will help you detect any errors in the app. By correcting these errors, you can make the user experience seamless and smooth. This is the time to check if the app is reliable and safe to use. If not, make the necessary changes and then launch it.
7. Deployment, maintenance, and updation
Finally, you have launched your Coinbase-like cryptocurrency exchange app. Well, you might think the game is over. But it’s not. There is one pending task – to update the app. You need to regularly check the app and maintain it well so that it provides its best output and does not break in between. As the updates come by, you have to install them as soon as they go live.
Challenges in Cryptocurrency Exchange App Development
You might be excited to find a cryptocurrency exchange development company for you. But hold our horses, because there are many challenges in creating a cryptocurrency exchange app. Only after understanding these challenges can you make a cryptocurrency exchange app for your business. Here are the most prominent challenges companies face in cryptocurrency exchange app development:
1. Regulatory Compliance
Following cryptocurrency trading rules can be tricky because regulations vary widely. In the U.S., rules differ at the federal, state, and local levels. In the EU, the new MiCA regulation aims to standardize rules across member countries, but individual nations might have their own rules. It’s particularly hard to follow Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements because they need thorough identity checks to stop illegal activities. If exchanges don’t follow these rules, they can get big penalties or even get shut down.
2. Increase in the competition
Another challenge in cryptocurrency exchange development services is the increase in the number of competitors in the market. Every company wants to enter this market. This lucrative market is attracting every organization. Further, the already established leaders like Coinbase, BitPay, and Exodus make the competition even fiercer.
So now what’s the solution? There are some methods to stand out in this crowd and establish your app as the leader. The following are some methods to ensure you get a competitive edge:
- Make sure the platform has a smooth interface for users on both the app and the website.
- Find out the opportunities in the mobility sector of the cryptocurrency exchange market.
- Offer a variety of cryptocurrencies to attract users.
3. Scalability
Preparing a cryptocurrency exchange platform for the masses and making it work properly is a challenge in cryptocurrency exchange development services. This scalability challenge led to further issues such as slow transaction processing, lags in the platform, and delayed fund transfers.
Now, let’s look at the solution. The solution for this is to make the platform strong enough so that it can handle thousands of customer transactions 24/7. The infrastructure is robust enough that it can manage millions of transactions simultaneously.
5. Security issues
Another common challenge in developing a cryptocurrency exchange platform is to protect it from cybercriminals. The threats can come from anywhere, so the security protocols must be strong enough to protect the app at any time. The app needs to be protected from cyber attacks like malware, spyware, and data breaches.
The solution for this is to implement advanced security measures. Multi-factor authentication should be used to ensure the app is safe every time. By adopting these measures, the utmost safety of users’ data can be ensured.
Also, read: Exploring the Future of AI Agents in Crypto
Conclusion
Now you know the features, cost, and process of making a cryptocurrency exchange platform like Coinbase. By keeping in mind cost-driving factors such as tech stack, integration with third-party services, regulatory compliance, security features, developer location, platform choice, and app complexity, you can keep a check on the cost. If you also want to develop a crypto app, then connect with iTechnolabs. It’s the best cryptocurrency exchange development company.
FAQs
1. What is crypto exchange development?
A cryptocurrency exchange platform allows users to trade digital assets like cryptocurrencies.
2. How long does it take to develop a crypto exchange?
It can take anywhere between 6 to 12 months.
3. Can I create my own crypto exchange?
Yes, you can create your own crypto exchange if you meet all local regulations.
4. What crypto exchange is best?
The best cryptocurrency exchange for beginners is Coinbase.
5. Who is a crypto developer?
A crypto developer is the one who develops dApps.
