A product for a large audience can have all that the creators can afford to give and still fall short of the varied range of expectations of the users. The same is true for cryptocurrency exchanges.
But does that mean there isn’t a checklist to tick off while creating a cryptocurrency exchange (DEX, CEX)? Of course, there is.
Here are the top 5 features that make one cryptocurrency exchange better than the others.
This seems quite obvious, doesn’t it? Yet, the most prominent decentralized (DEX) and centralized (CEX) cryptocurrency exchanges have faced major security breaches and lost double-digit millions. Not to mention that they lost a considerable number of users after the hack.
When we talk money, security is the primary concern. And making a cryptocurrency exchange strong against security breaches instills trust within users.
Hence, this should always be a priority while creating a cryptocurrency exchange.
Due to restrictions from governments, banks across most countries do not allow linking of a cryptocurrency exchange account to a bank account. This creates a gap between today’s mainstream economy and the digital economy, which results in difficulties for traders to buy cryptocurrencies.
The only way to bridge the gap is to provide a peer-to-peer transaction system. This can help traders bring fiat currency on the platform, or at least directly buy major cryptocurrencies or stablecoins which can be later exchanged for other cryptos listed on the platform.
Also, trading pairs with a number of currencies allow users to easily choose between the currencies they trust to hold and take their trades with.
Trading and Transaction Fees
Nobody wants to part with a percentage of their trading profit in the name of trading and transaction fees. Irrespective of how brilliant an exchange platform is, high fees can be the deal-breaker.
Thus, it is of utmost importance to charge a reasonable fee from users, so that users don’t feel cheated trading on an exchange platform.
Cryptocurrency exchanges can also provide a discount on trading fees to users who hold and trade using the platform's native tokens, as in the case of Binance.
While using a new platform, users generally come across various issues and want it quickly resolved. There’s a short window to either retain those users by answering their queries or see them switch to another platform.
This makes it important to have a professional customer support team from the time of launch of your platform.
The reason people spend so much time on social media is that they get to engage with others, share ideas, and critic about various things. But cryptocurrency exchanges are a lone ranger’s thing. There isn’t anybody to interact with, but only charts to view and currencies to trade.
Having a community and planning a strategy to keep them engaged with each other can build long term relations between users and the platform.
It is impossible to land a perfect cryptocurrency exchange in the first go. However, with proper planning and implementation, it can be made sure that it is as close to the best as possible.