Cryptocurrency has taught the world a new way to earn, invest and trade. This new medium of exchange has recently reached unprecedented heights. We have seen our friends go from rags to riches in a short time by using this benevolent digital currency wisely. So, if you are planning to develop a cryptocurrency trading app, you are on the right track, and now is the perfect time to discover a promising world of possibilities in FinTech software development.
Cryptocurrency exchanges apps are a great way to break into this great market. A crypto trader is essentially an intermediary who can earn hefty commissions for every trade made through their platform. It is also a better approach to stay ahead of the race than looking for ways to mine bitcoin tokens. So let’s talk about developing a mobile crypto trading app.
In this article:
What is cryptocurrency?
Cryptocurrency is a decentralized virtual transaction tool that can be used to purchase goods and services, an alternative form of fiat currency. These currencies are not regulated, and therefore people trade them for profit. Prices are determined by speculators and are largely dependent on market demand. It is unstable, and market conditions dictate the terms, like any transaction in the stock market. You must have a secure online ledger with strong cryptography to secure online transactions.
Many companies have already launched their cryptocurrencies and traded their tokens. They can be exchanged for goods or services provided by companies. Tokens are somewhat similar to the share script identifier. You will have to make fiat currency payments to buy cryptocurrency.
Cryptocurrencies are programmed with blockchain technology, which is an impregnable algorithm. Blockchain is a decentralized technology that spreads over the Internet to manage and record transactions. This technology is very safe and reliable.
Why create a cryptocurrency trading app?
A cryptocurrency trading mobile app can help bring more traders, investors, and sellers to the market. A good application should have a user-friendly mobile and web interface, advanced security features, and solve problems that other applications cannot solve.
Cryptocurrency trading app helps you trade quickly and smartly with their intrusive features. It provides convenient real-time cryptocurrency trading and also minimizes the desktop login process whenever you want to trade.
Most clients use smartphones, so users of your crypto exchange mobile app will also require a mobile app. Cryptocurrency app development can inspire more trust among users. This will increase your potential user base. The app helps build trust in your brand as more users will appreciate the mobile experience and indirectly promote your platform.
The cryptocurrency trading mobile app eliminates the disadvantages of not having a desktop, internet connection, or other issues because it is fast and affordable. This helps to double the level of trading on your platform every second.
The mobile app cryptocurrency helps increase your trading portal's cash flow. It will also improve the user experience and increase the liquidity of the application. As your app's subscriber base grows, you can increase your portal's profitability.
We have already discussed the benefits of developing a crypto exchange application; now, we will delve into how to create it wisely. In the following content, you can read the process and the main factors to consider when developing a cryptocurrency trading application.
There are many crypto mobile apps available for investors at present. If you want to create a similar platform too, it should have a certain x-factor to make it more attractive.
Components required for every trading application
Here are some of the components that should be in your trading app development process.
This will be the core of your exchange platform and will do all the operations. Choose a trading engine that can calculate balances, execute transactions, manage the order book, and count all transactions made on the exchange.
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You must build a suitable trading and functional engine to manage all the backhand actions. Keep this in mind when developing a cryptocurrency app.
External user interface
As the name suggests, this will be the face of your application. You need to have a smooth and easy-to-use interface so that users could get used to your platform. The intuitive interface of your crypto trading app offers an easy trading experience. Remember that a simple app with solid features is better than a fancy app with too much clutter.
The main features of your application should be:
- User Registration/Login
- DepositCheck the order book, statistics, charts, transactions, etc.
- Buy/Sale Orders
Adding a chatbot to help users resolve their issues becomes an additional function of your support/help. The chatbot should have additional security features to build trust between users and the app provider.
Cryptocurrency trading apps need a good wallet with advanced encryption features and bank-grade security to run the show successfully.
As a provider/owner of mobile applications, you will need to manage various aspects of the exchange. While you can add additional features per your requirements, each admin console should have features for listing management, adding new currencies, editing trading fees, crediting/withdrawing funds from wallets, etc.
Name your application
An easy-to-remember, keyword-focused domain name for your mobile app crypto business is essential, just like any other business. It should be short, without any confusing characters. A domain with a high search volume will help increase traffic to your online resource.
How do I launch my crypto trading app?
The following step-by-step process of developing a crypto trading application will give a good understanding of the subject.
1. Collect market data
Before developing a cryptocurrency trading app, you should thoroughly research what your competitors are offering. Also, take part in user follow-up to understand their requirements and issues with the existing crypto application they are using. It will help you create the best app with great features for a reliable and comfortable experience. When developing a cryptocurrency trading app, make sure it is good enough to compete in the marketplace by focusing on certain segments other apps cannot offer. It should have an x-factor that will make it more attractive.
2. Get Legal Advice to Avoid Delays in Government Regulations
Before proceeding with the case, it is necessary to seek legal advice in order to understand the various state formalities in this area. You will need a guide to obtain all required licenses in this jurisdiction. Bitcoin operators must obtain a license for crypto money transfer activities in the US.
3. Get your finances in order
You cannot build an app without proper funding. Ask experts for a rough estimate of the entire enterprise. You may need around $135,000 to get a US cryptocurrency exchange app up and running. This cost includes initial advertising and government registration costs. It is always better to plan operating funds for the next few years until the business breaks even and starts to turn a profit rather than stop your progress halfway.
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4. Find a technology solution provider
Team up with a good technology solution provider who will do all the work of building applications. Contact a company that offers regular solutions and charges a monthly or yearly fee. The application will need constant tweaking, updates, and fixes. It would be helpful to have a technocrat on your board to oversee and manage the technical aspects of the application.
5. The right stack for your application with your solution provider
A first-class stack will make your application more attractive and powerful. A good tech stack is listed below:
- For IOS — Swift,
- For Android — Kotlin
- API — Java, Net, PHP, Node.js
- Database — MySQL, Redis, MongoDB
- Cloud — AWS, MS Azure
- 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 think that this is the work of your software development partner. But it's always better to find some information and understand these terms.
6. Make sure your app can sync with other existing apps
Users will enjoy using the cryptocurrency of the mobile app with the order book to support their trading activities. This feature encourages them to use one trusted application that links their trading to a network of existing businesses, thus increasing liquidity. With a more extensive network of exchanges, liquidity problems will decrease. Get a modern API that distributes liquidity and trading volume between two trading apps.
7. Team up with a payment processor
Each payment processor will have unique features that will remain its identity. To maintain a competitive edge over other trading applications, you must partner with providers with the lowest transaction rates. In addition, some payment systems include hidden fees in their contracts. Ask your legal adviser to carefully review the documents before closing a deal. Make sure processors are compliant with cybersecurity practices. Make sure your payment processor is PCI-compliant to avoid cyber threats.
8. Implement Maximum Security Practices
Security is paramount in cryptocurrency trading and any other financial transactions. You must use the best technology stack in the application and host the project on a secure platform. Ask your tech partner to use offline cold storage wallets, two-factor authentication, and encrypted databases. Cryptocurrencies have become an important target for cybercriminals and hackers. So, build your mobile crypto app with the most powerful security feature.
9. Try beta testing first
Once your app is built, and you have all the partner features, it's time to run your app in test mode. This can be done through beta testing. Test the full range of features of your app in beta to rule out bugs or bugs.
10. Start marketing and PR campaign
Once your app has been tested, and you are satisfied with the result, it's time to let the world know about your mobile crypto app. Contact crypto news outlets to let them spread the word about your new startup. If you don't have a marketing budget, you can focus on free social media advertising until you build a good client base.
11. Don't Neglect Customer Support
Your customer support needs to be on the right track from the start. Many crypto mobile apps add a chatbot that only responds to recorded messages or delayed responses. If you want to genuinely connect with people and help them with all the system errors — make sure your team is attentive and ready to help. They should be able to resolve complaints and technical problems satisfactorily. Respond promptly to your users. You can do this by implementing a ticketing system, which gives your users a sense of trust.
12. Support the legal team
Cryptocurrency laws are evolving rapidly. You will need a legal development team at all levels to ensure compliance and resolve disputes. The legal team will be able to follow all national and international jurisdictions to help different users easily trade on the app. An in-house Compliance team will help keep you running smoothly.
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The above steps should be your preliminary action plan for building a cryptocurrency trading app. You may encounter a few obstacles along the way, but you can always ask your consultant for help.
How much does it cost to build a crypto trading platform?
A good and reliable cryptocurrency trading platform requires a reliable app-building partner and an equally reliable cyber security feature. The cost of creating crypto trading apps that match the quality of crypto market players can range from $57,000 to $98,000.
The above figure is a rough estimate. If you want to build a website for your trading platform, the cost can go up to $135,000. After you have calculated the initial capital, you also need to set aside a portion of the funds for operating expenses and set aside a portion of the funds for marketing expenses. This will help you run the application smoothly.
Before building your cryptocurrency trading app, consider the above essential details. Extensive research is inevitable, and you'll need a complete model and rough application graphics to start on the right note. A good team is also critical to developing a successful cryptocurrency trading app. Make sure you partner with the right people to run the show and turn the dream into reality.