How to start a cryptocurrency exchange app like coinbase

Crypto-curious? You’ve come to the right place. Crypto exchange platforms are becoming a rage these days. The whole concept of digital currency has caught on like wildfire. People are using it for trading goods and services and are even investing in them. With digital currency exchanges like Coinbase, Kraken, Bitstamp, etc. gaining popularity, more and more people want to know how to start a digital currency exchange like Coinbase? But before we get into the details of cryptocurrency exchange app development and build apps like Coinbase, let’s first understand what exactly a digital currency exchange is.

What is a Cryptocurrency Exchange?

Cryptocurrency exchange

A crypto exchange platform is basically a marketplace where people can buy, sell or trade cryptocurrencies for other cryptocurrencies or fiat money. You can buy your Bitcoin or Ethereum from the exchange with the help of fiat currencies like USD, Euro, etc., or with other cryptocurrencies like Ripple XRP or Litecoin LTC. There are several apps for performing exchanges and more are under development.

If you have a passion for cryptocurrencies, starting your own digital currency exchange can be quite lucrative. Are you ready to start your own app like Coinbase? 

Read also:  Step by step guide: How to build a cryptocurrency exchange website?

Here’s what you need to know:

About Coinbase Exchange

Coinbase Interface

Coinbase is a digital currency exchange based in San Francisco, California, United States. Founded in 2012 by Brian Armstrong and Fred Ehrsam with an aim to provide an easy way for people to buy and sell digital currencies around the world by using a secure platform. It operates exchanges of Bitcoin and other digital assets with fiat currencies in over 190 countries around the world.

It is one of the most popular global exchanges with 30 million+ users, $150 million+ trading volume and $8 Billion+ valuation. Coinbase is a platform where merchants and consumers can transact with new digital currencies like Bitcoin, Ethereum, and Litecoin. Coinbase charges a 1% fee for U.S. transactions from a bank account or Coinbase USD wallet. Purchases with a credit or debit card add on a 2.49% fixed fee.

Coinbase is sometimes described as the PayPal of cryptocurrencies because of its user-friendliness compared to other exchanges, which often require users to have extensive technical knowledge in order to begin trading cryptocurrencies.

Why to develop a Cryptocurrency Exchange App like Coinbase?

User base of Coinbase

Coinbase is one of the biggest success stories in the tech world. While we aren’t going to see a Bitcoin ATM on every corner any time soon, cryptocurrencies have achieved a kind of legitimacy that many people thought they would never see.

Coinbase has been at the forefront of this development. In fact, if you’ve ever bought Bitcoin in the US, there’s a good chance you did so on Coinbase. It has more than 20 million users and over 150 billion dollars’ worth of cryptocurrency in circulation. So how did it get to become such a big player?

First things first: let’s talk about why this is even a good idea in the first place.

Cryptocurrency is on the rise. App like the Bitcoin exchange app is becoming household name, and there are constantly new coins hitting the market—so it’s a good time to get involved! There are more and more people who want to invest, but they’re not sure where to start. That’s where you come in. Your digital currency exchange will be able to provide that valuable service for your clients, and help them get started buying their first crypto.

Said that Coinbase exchange is also growing at an absolutely staggering rate. Here’s a quick overview of numbers that justify why developing cryptocurrency exchange app like Coinbase is highly profitable:

Website visits3.9 million
Annual revenue$ 1 billion
Annual trading volume$ 213 billion
Daily trading volume$ 5.6 billion
Daily revenue$ 1.78 billion
Countries100+
Funding$ 547.3 million
Trading pairs100+

Not only that, but it’s an amazing opportunity for you to make a difference in your community. Cryptocurrency can be so confusing for new investors, and they often lack direction when they’re looking into buying their first crypto tokens. That’s where you can guide them through their investment experience with your exchange, giving them all the information they need to feel confident about making those first steps into the world of crypto investing.

How Does Coinbase Clone Script Works?

Coinbase makes it easy to start buying, selling and managing different cryptocurrencies. With a Coinbase account you can trade more than 50 cryptocurrencies including Bitcoin, Litecoin and Ethereum. 

To use Coinbase you’ll need to add a payment method to your account. This can be a bank account, debit card or PayPal account (or an Apple Pay wallet). 

You can buy and sell cryptocurrency through your Coinbase.com account easily with the desktop version of the site: 

  • Just sign into your account and select Buy/Sell on the upper right-hand side of the screen. 
  • Once your profile is complete, you can browse the cryptocurrency options on offer.
  • Click Buy to choose which crypto asset you want to purchase, enter the amount you want to buy and then select your payment method. 
  • After confirming your order, click Buy to complete it.

The basic Coinbase service is completely free to use (there are no sign-up or maintenance fees). If you’re looking for more advanced features such as trading history and open orders then you can try Coinbase Pro instead. 

If you’re trading through the app:

  • Log in, then tap Buy and select the asset you’d like to buy. 
  • Enter the amount you wish to buy, double-check your details, and then hit Buy Now. 

That’s all it takes to buy cryptocurrency via the Coinbase app. All of this comes standard with a Coinbase account. If you want more features, you can upgrade to Coinbase Pro. You can track the market, see open orders and trading history, and use an industry-leading API with Coinbase Pro.

As you can see, starting a crypto exchange like Coinbase is not as easy as it sounds but white label crypto solutions have made it very easy for crypto enthusiasts who are interested in launching their own bitcoin exchanges!

Key Features and Characteristics of Coinbase Exchanges

We’re going to walk you through everything you need to know about Coinbase digital exchange that will help you keep your crypto exchange application development process highly functional and customer  centric.

Features of Coinbase

Where Coinbase Shines:

Feature 1: Easy to use interface

The key feature of CoinBase is its highly user-friendly interface that makes buying, selling and managing cryptocurrency very easy, fast and safe. All it needs is a bank account or debit card. Also, the users don’t need to switch between currencies to buy crypto. They simply can use GBP(British pound) wallets in Coinbase and do the transactions. It has a very straightforward interface and requires nothing to download to get started with it. 

Feature 2: Multiple Cryptocurrencies

Coinbase offers trading in several currencies that include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), 0x (ZRX), USD Coin (USDC), Basic Attention Token (BAT), etc. It also allows users to move funds between two wallets on Coinbase in any supported currency, which is great if you want to trade one type of coin for another.

Feature 3: Security

Coinbase accounts are protected by two-step verification and email alerts, which is helpful when it comes to making sure your account doesn’t get hacked and all your crypto gets stolen. Also, Coinbase is insured, which means in the event the website gets hacked the cryptocurrency is entirely safe.

Feature 4: Digital Wallet

The Coinbase Exchange is a hot wallet with multi-coin support and ways to earn cryptocurrency (which you don’t need to be a Coinbase user to access). It also provides a knowledge base of video tutorials, how-to articles, and guides with market updates.

Feature 5: Smart Tools 

Coinbase exchange application has several inbuilt smart tools to make users a pro in crypto trading. 

The tools include:

  • Crypto news and articles: To keep up with the newest developments and expand your crypto expertise.
  • Portfolio management: You get insights of everything from market insights to automatic buys to price alerts.
  • Crypto tracker and dashboard: The tracker allows you to get insights of crypto prices and asset values at any time.
  • Cryptocurrency watchlist: It allows you to see live prices and trends, add Bitcoin, Ethereum, and other cryptocurrencies to your watchlist.
  • Bitcoin ticker: Keep up with the newest Bitcoin news. In the previous 24 hours, see which cryptocurrencies have moved the most.

Where CoinBase Falls Short:

Fees 

Fees are a big deal for traders, and the fees on Coinbase may knock your socks off. They charge 1.49% for transactions under $200. If you’re paying with a bank account, that fee is waived for the first purchase. They also charge 3.99% for credit card purchases of crypto. You can also store your digital currency in a Coinbase wallet—but it’s not free: they charge 0.99%. Coinbase charges more fees as compared to the other crypto currency exchanges. 

Customer Support

Several users have come up with complaints about the failed customer service and their timely response. 

Roadmap to Start a Cryptocurrency Exchange app Like Coinbase

So you’ve been tossing around the idea of opening a crypto exchange. You’ve got the business plan down, and you just need to find the right people to make it come together. 

Here’s a quick roadmap of how you can develop your own crypto exchange app like Coinbase:

Roadmap to develop a cryptocurrency exchange

Step 1: Market Research

When you’re starting a digital currency exchange, market research is the first thing you should do before anything else. What’s your crypto focus? How does it relate to current trends in cryptocurrency?

You’ll want to understand how your business relates to the current trends in cryptocurrency technology. With the emergence of advanced technologies such as NFT, your digital currency exchange platform should include many features and provide a one-stop shop for all crypto needs.

Step 2: Select the Operational Region

This is probably one of the most important things you’ll do when setting up your crypto business. The laws surrounding cryptocurrency are different in every country, so it’s important to choose a country that allows you to run a successful crypto business with as few interruptions as possible. If your home country has strict regulations, it might be better to choose another country that’s more welcoming to cryptocurrency businesses as your headquarters. 

Also, you must be very considerate about getting a license before starting the digital currency exchange. You are required to obtain both national and international licenses for running a successful cryptocurrency company in any country you prefer. 

Step 3: Choose the Type of Crypto Exchange Platform

Next you must choose the type of crypto exchange platform you need. You can either go for the centralized or decentralized platform. The former type of platform allows you to trade crypto with other users, and it has a centralized database that records all transactions. Users’ funds are stored on the database as well, which means that if the database is hacked or corrupted, all of the users’ money could be in danger. If your main focus is security, this may not be the best option for you.

Decentralized exchange platforms are another available option. These platforms allow users to trade crypto directly with one another using smart contracts that execute once set conditions have been met. This type of platform creates a peer-to-peer network where information can be exchanged without any third party interference; in other words, no single person or entity has control over the data or transactions being made.

Step 4: Exchange Architecture

Before starting any development process, you should first understand the architecture of a digital currency exchange platform. The architecture will help you choose which type of platform you want to design and launch it in the market. You can either choose centralized or decentralized mode as per your preferences.

When you’re ready to create a digital exchange platform, the first thing you need is an architecture that can enable your users to quickly and easily trade coins and tokens. You’ll need to gather high-end technology tools, put together an excellent team that includes professional blockchain, smart contract developers, designers, and quality testing engineers. 

If your goal is to launch your own exchange platform quickly, you might want to consider starting with a popular clone script. This will allow you to kickstart your crypto business instantly.

Step 5: Find the Development Solution Provider

Now it’s time to develop the platform itself. This is where you’ll need both developers who can create traditional apps and blockchain developers for back-end and front ends.

We’ll break this down into two parts: the front end and back end.

  • The front end is what users see when they interact with your application. It’s the interface that will allow them to buy, sell, or trade cryptocurrency using your service.
  • The back end is what powers everything that happens on the front end — it’s where all of your transactions take place.

Step 6: Partner with Payment Providers

Partnering with a payment processor is one of the most important decisions you’re going to make when building your own platform.

That’s because the payment processor is what enables your users to deposit and trade on all kinds of cryptocurrencies. A great cryptocurrency payment processor will allow you to integrate up to 300 different payment systems into your digital currency exchange platform, and easily modify that number as your business grows.

Step 7: Generating Liquidity

When it comes to liquidity in a business, it refers to the ability to buy or sell an asset without any impact on its price. A crypto exchange should have enough liquidity to sustain in the market and provide a smooth trading experience. This makes customers more confident and increases their trust in the business as they know they will always get a fair price for their investment.

On the other hand, users tend to be reluctant when they see low activity on an exchange as they fear getting trapped. 

There are various ways, but here are some ways that have proved to be trusted:

  • Stimulate trading between two artificial host accounts within your exchange: This can help create some buzz around your business within your exchange itself!
  • API can help establish a connection between your exchange and an already thriving exchange: By connecting your exchange’s API with a popular exchange already established

Step 8: Security and Protection

When you’re building a digital currency exchange platform, there are a lot of features that you need to keep in mind. You have to build in the ability to exchange different types of cryptocurrencies and fiat currencies, the ability to set up wallets and accounts, the ability to set up buy orders and sell orders, and so much more.

But don’t forget that one of the most important features your site needs is a high level of security. Blockchain technology is an effective way to provide security for your platform when it comes to storing user information and maintaining transaction histories, but blockchain isn’t foolproof. That’s why it’s so important to add additional security features for your site.

Step 9: Testing

Once you complete the development of the app, you should focus on doing beta testing. This will ensure whether your platform functions effectively on any internet service provider and in mobile apps.

Step 10: Customer Support Channel

You should build up a strong customer relationship by integrating a strong customer support channel that can solve the queries of your users and traders who trade in your platform.

Tech Stack Requirements

To develop a Coinbase clone, one needs a high-performance, scalable, secure, and reliable tech stack to serve customers across the globe.

In order to help the users get the best possible experience with cryptocurrency, you must be building over technology that caters to all the requirements in terms of functionality and features.

Below is a quick rundown of some of the technologies required for app development:

Developer Tools for Decentralized App Development:

  • Parity 
  • Truffle
  • EthPM
  • Oyente
  • Remix IDE
  • Zeppelin

Programming Languages for Decentralized App Development:

  • Solidity 
  • Viper
Developer Tools for Decentralized App Development
Programming Languages for Decentralized App Development:

Develop Your Own Cryptocurrency Exchange App Like Coinbase With Idea Usher

This was a rundown of what it takes to start a digital exchange like Coinbase. From setting up the infrastructure, developing custom features and potentially launching your own cryptocurrency. 

If you are still wondering how to start an app like Coinbase then worry not, we have got your back. Idea Usher, your partner for development, is always ready to help crypto fanatics to make their crypto exchange idea a reality!

Idea Usher strives to be at the forefront of technological innovations. Whether you are an individual entrepreneur or an established corporation, we can provide you with a custom and elegant solution that is tailored to meet the needs of your business and clients. With our passion for innovation and enthusiasm for achieving great results, we always find a way to turn complicated ideas into real solutions on time and within your budget. With our unflinching commitment to quality, we ensure that every app we develop for our clients meets their precise needs. 

When you work with us, you can rest assured that your project will be executed without fail. As such, we have built a reputation as one of the most reliable Cryptocurrency exchange app development companies.

For more information and a detailed understanding of the application development process, you can contact them at.

E-mail: [email protected]

Phone Numbers : (+91)9463407140, (+91)8591407140, and (+1)7329624560

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Final Words

Starting a digital currency exchange might seem like rocket science but the concept will be simple, very easy to understand and implement when you hire the right developing partner. If the vision is supplemented, plans executed properly and the path is clear, the crypto exchange business will bring you a huge fortune.

Currently, there are several digital currency exchanges that are run on Coinbase’s platform. This shows that the market for crypto exchange development is getting more competitive. If you are planning to go live with your exchange in near future, we recommend you do not wait because the competition is going to intensify and if you’re not ahead of the curve, it’s going to impact the success of your business in terms of revenue, profitability and growth potential. The bottom line is: If you want to stay ahead of competition, it’s always a good idea being quick off the block.

FAQ

Here are some interesting FAQs on crypto exchange development:

What is Coinbase and Coinbase Pro?

Coinbase and Coinbase Pro are two major platforms, both of which are owned by Coinbase Global Inc. Coinbase is a brokerage with a virtual wallet, but Coinbase Pro is a digital currency exchange where customers can easily buy and sell. Beginners like Coinbase because it makes buying and selling cryptocurrency simple. Also, Coinbase Pro allows people who are familiar with trading to take advantage of a variety of trading options. 

How long does it take to develop a crypto exchange app?

Well, there are a lot of factors that go into answering that question, and it’s not always easy to say. So, depending on the app functionality, design, platform integration, technology stack, and features, the average time taken can vary from 6 to 12 months. 

What’s the biggest challenge to onboarding users to a crypto exchange app?

The biggest bottleneck to onboarding users is the lack of liquidity, or active trading and investing activity on the platform. There needs to be enough activity on your platform to show that there’s trading and investing going on there. One way some exchange businesses solve this problem is by integrating with other exchanges and market makers for liquidity, and using bots to emulate transactions. That should give you an idea of how much friction you’ll encounter in this space if you’re trying to get people to buy in. 

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