Cryptocurrency has taught the world a new way to earn, invest, and trade. This new medium of exchange has shot to paramount heights recently. We have seen our fellow friends rise from rags to riches in a short span by using this benevolent digital currency smartly. So, if you are planning to develop a crypto trading app, you are on the right track, and it is the right time to pursue a promising world of opportunities.
An app crypto exchange is an excellent way to penetrate this great market. A crypto trader is essentially an intermediary that can earn handsome commissions on each trade done via its platform. It is also a better approach to stay ahead of the race than to find ways of mining Bitcoin tokens.
What is Cryptocurrency?
Cryptocurrency is a decentralized virtual transaction means that can use to purchase goods and services, an alternative form of fiat currency. These currencies are unregulated, and therefore, people trade them for profit. The prices are defined by speculators and depend much on market demand. It is volatile, and market conditions dictate the terms like any stock market trade. To secure online transactions, you have to have a robust online ledger with strong cryptography.
Many companies have already started their cryptocurrencies and trading in their token name. These can be traded for the goods or services provided by the companies. The tokens are something similar to the stock share script ID. You will have to spend fiat currencies to buy a cryptocurrency.
Cryptocurrencies are programmed with blockchain technology which is an impregnable algorithm. Blockchain is a decentralized technology that spreads online to manage and record transactions. This technology is very safe and secure.
Why Create an App for Crypto Trading?
A mobile crypto trade application can help produce more traders, investors, and merchants in the market. A good app should have easy to navigate interface, advanced safety features, and be able to solve the problems that other apps cannot solve.
A crypto trading app helps to trade quickly and smartly with its intrusive features. It provides a real-time and comfortable crypto trading experience and also minimizes the process of logging on a desktop every time you want to trade.
Most clients use smartphones, so your app crypto exchange users will also demand a mobile app. The App can develop more confidence amongst the users. It will increase your potential user base. An app helps improve your brand's credibility as more users will appreciate the mobile interface and indirectly market your platform.
A mobile crypto trade application rules out the drawbacks of lack of availability of a desktop, internet connection, or other issues as it is quick and accessible. It helps double the level of trading done on your platform each second.
Mobile app crypto helps to raise the cash flow of your trading portal. It would also lead to a better user experience and better liquidity on the App. As your app subscriber base increases, you can, in turn, raise the profitability of the portal.
We have already discussed the advantages of developing a crypto trading mobile app; now, we shall go deep into how to create one smartly. In the following content, you can read the process and essential factors to consider for developing a crypto trading application.
There are many crypto mobile Apps currently available for investors. If you also want to create a similar platform, it should have a certain x-factor to make it more appealing.
Components every trading app needs
Here are some components your trading app development process should have.
It will be the core of your exchange app that will run all the operations. Choose a trading engine that can calculate balances, execute transactions, manage an order book, and tally all the transactions done on an exchange.
You need to build a suitable trading and functional engine that can manage all the activities on the backhand. Keep this in mind during your trading app development process.
Front-End User Interface
As the name suggests, this will be the face of your App. It is necessary to have a smooth and easy-to-access interface for users to habituate to your platform. An intuitive interface of your crypto trading application offers an easy trading experience. Remember, a simple app with robust features is better than a fancy app with too much clutter.
The main features of your App should be:
- User Registration/Login
- Fund Deposit/Withdrawal
- Check order book, statistics, charts, transactions, etc.
- Buy/Sell orders
Adding a chatbot to help users solve their queries becomes a value-added feature to your support/help. The chatbot should have additional security features to build more trust between users and the app provider.
Crypto trading applications should have a good wallet with advanced encryption features and bank-grade security to run the show successfully. You will need to embed a good API (Application Programming Interface) in your Wallet to help the users experience an innovative and reliable feature.
As the mob app provider/owner, you will need to manage different aspects of the exchange. While you may choose to add additional features to suit your requirements, every admin console must have the features to manage the listing, adding new currencies, editing trading fees, crediting/debiting funds to wallets, etc.
Name your App
It is imperative to have an easy-to-remember, keyword-centric domain name for your mob app crypto business like any other business. It must be short in length without any confusing characters. A domain with high search volume will help to boost the traffic to your website.
How do I Start My Own Crypto trading app?
The following step-by-step process for developing a crypto trading app will give a good understanding of the subject.
Do Some Market Research
Before developing a crypto trading app, you must do thorough research to know what your competitors offer. Also, engage in a user follow-up to understand their requirements and problems with the existing crypto app that they are using. It will help you create a better app with excellent features that offer a robust, user-friendly experience. While developing your crypto trading app, ensure that it is good enough to survive the competition in the market with a focus on specific segments that other apps fail to offer. It must have an x-factor that will make it more appealing.
Get Legal Counselling to Rule Out Lags in Government Regulations
Before you get into action, it is necessary to seek legal counsel to understand the various government formalities in this field. You will need guidance to get all the essential licenses in this jurisdiction. Bitcoin operators must obtain a Money Transmitter Business License in the US.
Get your Funding Sorted
You cannot build an app without proper funding. Ask the experts for a rough estimate for the entire venture. You might need approximately $135,000 to launch and operate a crypto exchange app in the US. This cost includes the initial advertising and government registration costs. It is always better to have operation funds planned for the next few years until the business can reach the break-even point and start making a profit, not to halt your progress midway.
Find a Technology Solution Provider
Team up with a good technology solution provider who will do all the app-building work. Tie up with a company that offers regular solutions and takes monthly or annual fees. The App will need constant tweaking, updates, and fixes. It would help if you had a technocrat on your board to track and manage the technical aspects of the App.
Right Stack for your App with your Solution Provider
A top-notch stack will make your App more appealing and powerful. A good tech stack is listed below:
- For IOS – Node JS, ROR, Laravel, Fabric IOS, Swift
- For Android – Java, Node JS, Laravel, ROR, Kotlin
- Database – MySQL, Redis, MongoDB
- Cloud – MS Azure, AWS
- Payment Gateways – Stripe, PayPal, Mangopay, Braintree
- Analytics – Google Analytics, Spark, Gleam IO
- Push Notifications – Amazon SNS, MAP, Twilio
You may not understand these terms, and you may feel that this is the work of your technology solution provider. But it is always better to do a bit of homework and understand these terms to know the exact stacks used to develop your App.
Ensure your App can Sync with Other Existing Apps
Users will love to use the mobile app crypto with an order book to maintain their trading activities. This feature encourages them to use a single robust app that connects their trade with a network of existing businesses, thereby enhancing the liquidity. With a more extensive network of exchanges, liquidity issues will reduce. Get a modern API interface that shares liquidity and trade volume between two trading apps.
Team up with a Payment Processor
Each payment processor will have unique features that will remain as its identity. To keep a competitive edge over other trading apps, you must partner with the lowest transaction rate providers. Also, some payment processors include hidden fees in their contracts. Ask your legal counselor to check the documents carefully before clicking the deal. Ensure that the processors are compatible with the cyber security practices. Check that your payment processor is PCI-compliant to rule out the possibilities of cyber threats.
Implement Maximum Security Practices
Security is the paramount factor in cryptocurrency trading and any other financial transaction App. You have to incorporate the best technologies in the App, and you must host the project on a secured platform. Ask your technology partner to use offline cold storage wallets, two-factor authentications, and encrypted databases. Cryptocurrencies have become a significant target for cybercrime and hacking. So, build your mobile crypto App with the most powerful security feature.
Try Beta Testing First
Once your App is built and you have all your partner features in place, it is time to launch your App in testing mode. It can be done by beta testing. Test the full range of capabilities of your App in beta to rule out errors or bugs.
Start Marketing and PR Campaigning
Once your App is tested, and you are satisfied with the outcome, it is time to let the world know about your crypto mobile App. Connect with crypto news outlets to let them spread the news of your new launch. If you do not have a marketing budget, you can focus on free social media advertising until you gain a good customer base.
Do Not Neglect Customer Support
Your customer support should be on track right from the beginning. Many crypto mobile apps add a chatbot that only answers recorded messages or delayed responses. If you want to genuinely connect with people, ensure that your team is attentive and helpful. They should be able to resolve complaints and technical issues satisfactorily. Respond to your users promptly. You can do so by implementing a ticketing system, as it gives a feeling of trust to your users.
Maintain a Legal Team
Cryptocurrency laws evolve rapidly. You will need a legal team at all levels to maintain compliance and solve disputes. A legal team will be able to follow all national and international jurisdictions to help different users to carry out trading on the App easily. A full-time or in-house legal compliance team can help you function smoothly.
The above steps should be your preliminary action plan to build a crypto trading app. You may find a few roadblocks on the way, but you can always ask your counselor for guidance.
How much does it Cost to Build a Crypto Trading Platform?
A good and reliable crypto trading platform requires a robust app-building partner and an equally robust cyber security feature. The cost of building apps matching the quality of cryptocurrency market players could be between $57,000 to $98,000.
The above-referred figure is an approximate estimate. If you want to build a website for your trading platform, the cost could rise to $135,000. Once you have figured out the initial capital, you also need to keep some aside as working costs and earmark a portion of the fund for marketing expenses. These will help you launch your App smoothly.
Legal Aspects of Developing a Trading App for Cryptocurrency
Creating a cryptocurrency trading app in the US and many other countries is legal. But you will need specific licenses to register your App and to be able to use it publicly. You need to obtain a Money Transmitter Business License to be able to operate the cryptocurrency trading app and permission to operate globally without any territory restrictions.
Before building your crypto trading app, you need to consider the above crucial details. Extensive research is inevitable, and you need to have the entire model and rough graphics of the App in hand to get started on the right note. A good team is also crucial to developing a successful crypto trading app. Ensure that you have partnered with the right people who drive the show and convert the dream into reality.