How To Start Your Bitcoin Exchange App in 2021

Cryptocurrencies as a medium of exchange are gaining immense popularity worldwide. Moreover, the most well-known crypto: Bitcoin, continues to grow with value and with fame every passing month. In such an extraordinary market, business enthusiasts and entrepreneurs want to leverage this opportunity. Individuals with the sense and will of business are thriving to enter the market with a crypto product. Additionally, in this state of extensive hype, nothing can be better than knowing how to start your Bitcoin Exchange app. Idea Usher experts bring you an exciting insight on the same.

The interest in cryptocurrency exchange apps will keep on ascending with the developing exchanging volumes around the world. In such a situation, dispatching a top-of-the-line crypto exchange app is a much better decision than considering approaches to mine bitcoin tokens. By being a delegate and dealing with transactions effectively, a business person can acquire gigantically. Truth be told,

The bitcoin exchange was the most lucrative cryptocurrency business in 2017 with a 55% share in the bitcoin business industry.

What is a Bitcoin exchange?

• A Bitcoin Exchange is a marketplace to sell or buy Bitcoins. One can carry out this exchange using unstable fiat currencies or Altcoins depending on the options available. You can deposit the money through bank transfer or other means. However, there is a transaction fee that the institution you choose might charge. In addition, if you trade another cryptocurrency to buy Bitcoin, there will take a conversion charge as applicable when exchanging currencies of different countries.
• The exchange acts as a brokerage where to buy or sell the bitcoin. You place a market order or a limit order. 

Types of Bitcoin Exchanges

Ideally, there are three kinds of exchanges; namely: 

• Centralized, 
• Decentralized, and 
• Hybrid. 

It is essential to know the difference between the three to best suit your operations. 

The Rise of Bitcoin Exchanges

As bitcoins acquired high popularity, businesses overall looked for approaches to exchange bitcoins. This prompted the improvement of a huge chance in the cryptocurrency exchange section. A crypto exchange works with exchanging cryptocurrencies utilizing fiat monetary forms like Dollar (USD), Rupee (INR), Yen, and so on. Using an exchange, clients can purchase or sell cryptocurrencies effectively and book benefits in the short and long haul.

Cryptocurrency Trends

The constant and unimaginable rise of Bitcoin is clearly visible in the trends. Even though there are a few big players in the market currently, it doesn’t affect the potential. The constantly increasing market size for cryptocurrency ensures: 

• The number of transactions are increasing drastically each day
• Current platforms are only capable of serving 5% of the estimated transactions by 2025; 
• 0.05, that’s a very low captured market

Master card vs Crypto: A comparison

Let’s consider the case of Mastercard, a worldwide popular debit /credit card brand. When Mastercard was launched for the first time, consumers weren’t quite sure about it. They were concerned regarding security and reliability. We all know what happened later, as Mastercard went on to become one of the biggest organizations in its domain. The core idea was to stick to the principle of providing easiness to consumers. Moreover, believing in and sustaining innovation are both equally important for building big businesses.

The cryptocurrency market represents a very similar weave (although faster) currently and it’s very certain that if a business stays consistent, it will undoubtedly rule in the market very soon.

• Crypto trends continue to rise exponentially
• Mastercard (debit/credit cards) showed similar results in the beginning
• Users were overwhelmed with the technology in both the cases
• Hence the demand for a crypto exchange platform will surely increase exquisitely
• Therefore, there is no saturation level possible

User Flow of Bitcoin Exchange App

The Tech Stack you should consider for knowing how to start your Bitcoin Exchange app

A Bitcoin Exchange tech stack comprises a set of vital tools to construct and power the Bitcoin exchange app. 

It can include everything from software applications, frameworks to programming languages. 

A tech stack has two essential elements:

1. Firstly, the one that is client-side. This is the side that interacts with the users of the app.
2. Lastly, we consider the server-side or backend. 

It is where the programming and structuring of the design lies.

Moreover, choosing a tech stack poses another requirement. Before choosing a tech stack, you should consider its capability:

Scalability

Additionally, it has two types which can determine your product growth: Vertical and Horizontal.

Vertical scalability governs the ease of adding more elements to the app.

On the other hand, Horizontal scalability dictates the app’s capability to run on multiple devices.

Performance

Performance needs depend on the speed of the system to process the requests and the number of requests it can process.

How to start your Bitcoin Exchange App? Step-by-Step guide

Step 1 – Consider the basics

Before you jump on to the technical aspects of how to start your Bitcoin exchange app, there are a few basics to consider. These basics serve as essential and external components that affect your business just as much as the tech. This guide lists out those components with a deeper dwelling

The Scope

Defining the scope for where your app will be made available to operate is the first important thing to consider. Ideally, you can confine your app to a region, a country, a continent, or globally. However, with expanding scope, the need for licensing increases. Moreover, with expanding borders, the laws of the countries vary. To operate an app across various regions and borders, it is best to take expert advice on local and national laws.

It would certainly save you from finding legal notice in your mail and ensure the smooth running of the app. Further, there will be no law enforcement knocking on your door with unexpected trouble.

Regulations and Litigations

The world is distributed in borders and governments. And all these governments require certain compliances when it comes to financial matters and money exchanges. Most institutions need businesses to comply with the Know Your Customers (KYC) policy. 

Under these policies, any customer interacting with a business has to verify themselves by providing their identity documents. The purpose here is to discourage money laundering and corruption. Given the decentralized nature of Bitcoin exchanges, it, indeed, becomes even more necessary. 

Consequently, incorporating a system for customer verification is a must for the smooth running of your app. Also, make sure this system is smooth and doesn’t include a lot of hassle. Otherwise, it might discourage the customer from indulging at all or give up halfway.

Partner Payments

It is important to give your customers as many options as you can when it comes to payment options—withstanding that these payment options run smoothly and dictate the least errors. 

Although there are options for PayPal, credit cards, or other online wallets, it is best to provide traditional options as well. Besides giving customers more variety, these options ensure more security. With online wallets and Credit cards, there is a risk of chargeback, as the payment can be stopped or reversed. 

While it is true that bank transfers and wire provide more protection against risk, in developing countries, these transfers might run slow. 

To ensure a smooth ride, make sure the banks you choose to partner with, offer impeccable online services. The bank must host online transactions and should have fast clearance and settlement options.

Apart from fiat currency options, one can provide options for altcoins too. For instance, Ethereum, another cryptocurrency, can be paid to buy Bitcoins.

Generating Liquidity 

It is instilling trust and confidence in customers to make any business venture a success. Especially when it is about money, it becomes even more crucial. Managing and creating liquidity can solve the problem and spark confidence. Any customer would be hesitant to interact or place orders unless they see more activity. 

To showcase transaction and win the trust of the users, there certain trusted ways:

• Stimulate trading between two artificial host accounts within your exchange.
• API can help establish a connection between your exchange and an already thriving exchange.

Security and Protection

Where there’s money involved, everyone becomes extra cautious

With platforms like a Bitcoin exchange, which is an investment commodity, users’ data is important to keep safe. 

Efficient security and protection ensure that the funds of the trader and the operator are secure. There have been reports of hacking at various exchanges. 

Your customers are likely to keep coming back to your exchange if they have faith in your security systems.

Customer Support Channel

Taking care of your customers and their troubles is important. In addition, regular, follow-up and feedback are vital to regulate. Once the business starts thriving, the operators usually forget about their customers’ problems. This is a common mistake that dumps many successful businesses in a whiff.

The key to resolving all this is to establish a foolproof customer spot channel.

Besides, the staff is important for regulating your customers’ KYC processions. Further, they can explain to the users how your exchange works and solve other trading queries.

A swift and smooth customer channel ensures your users a clarity that would generate revenue for you.

The Variety of Cryptocurrency

Most of the successful exchanges work with various cryptocurrencies. Establishing a system where users can trade one crypto for another provides a streamlined experience.

In addition, it exposes your exchange to more users across various altcoin bases. 

Step 2: Incorporate essential components after market research

Trade Engine

It is the core component of any electronic exchange. These engines use and run algorithms to facilitate trade among competing bids and offers. Further, it processes transactions and allocates trades among the matches.

It can be described as a cloud-based management system. For any exchange to take place, a trading system has to be in place. It configures customer data, manages the orders, executes transactions, and calculates balances. 

User Interface

This is where the man meets the machine. It is the way through which a user interacts and communicates with an app.

While designing the user interface, a UI designer takes care of the aesthetic and smooth navigation of the app.

When it comes to an app, users are radical judges. They will judge an interface based on the following :

• The ability of your app to allow the users to complete intended tasks.
• Elements of gratification where users are congratulated on completing tasks come in handy.
• An emotional design that lets your users associate with a brand increases an app’s likability. 

Ultimately, the whole idea revolves around how easy and pleasurable an app is to use.

There are three formats for a user interface :

1. Graphical User Interface (GUIs): This is where a user interacts with visuals on the app. It configures how it looks. 
2. Voice-controlled interface (VUIs): This is where a user can interact with their voices. These are amazingly famous today, given the faster speed of life. For instance, Siri and Alexa. 
3. Gesture-based Interface: Engagement with 3D design space like Virtual reality games. 

When designing the interface for Bitcoin Exchange, make sure, the users can:

1. Sign up and access their accounts with ease.
2. Easily trade, deposit, withdraw or manage transactions.
3. Easily access their wallets, both altcoin, and fiat currencies.
4. View real-time price drops and rises.
5. Navigate through the customer support channel and help.

Crypto Wallet

A crypto wallet is a digital safe where you can store your Bitcoins or other cryptocurrencies. Though there are online wallets for traditional currencies, it allows users to combine all their accounts in one place. 

On the other hand, digital wallets are necessary for cryptocurrencies like Bitcoin. They are not just vital for storage but essential for exchange and spending.

Satoshi Nakamoto first introduced a crypto wallet in 2009 with Bitcoin. Bitcoin is the first of its kind. However, other wallets using the same technology are operating now. Most crypto wallets these days are capable of holding multiple cryptocurrencies. 

The crypto wallet not only stores the money but also provides a unique address to direct your funds. It functions similarly to a bank account number like your data. 

Further, there are two categories you can offer on your Bitcoin Exchange:

• The hot wallet: It is a tool that allows a user to trade Bitcoins or Altcoins instantly. In contrast to traditional wallets that save your money, hot wallets are mostly available online on the open ledger. These wallets are more prone to viruses and online attacks.
• The cold wallet: It is a digital wallet that stores your cryptocurrency, however, it is stored offline. Your public and private key are stored offline as well. It provides better security, and not everyone can access your wallet balances in contrast to the hot wallets.

Admin Console

An easy-to-access admin panel or console adds to the quality of operation for the exchange. Admin panel serves as the collective business intelligence. It helps the operator of the business with:

1. Creating liquidity
2. Managing transactions 
3. Regulating the transaction fees
4. Managing currencies 
5. Addressing user requests and doubts

Step 3: Connect with professionals to rely on

It is always best to get some experts to rely on. Let the expert take care of their areas. And, you can do what you do best and add value where you can. There is a sea of professionals and expertise you can hire to build the best Bitcoin Exchange. 

Now as you already know how to start your Bitcoin exchange app, you need a competitive team of professionals. The team will generally include:

• App developers

• Quality analysts and testers

• UI/UX designers

• Experienced blockchain developers

• Bitcoin experts

• Associates and managers
• Marketing professionals

To make it even easier, you can look for an app development organization like Idea Usher. We provide comprehensive packages for services starting from prototyping to implementation and, beyond that, marketing your app.Our team consists of multiple professionals from all domains mentioned above. We at Idea Usher thrive to create balanced teams as per relevant project development requirements. Our core aim is to satisfy the clients by overcoming their expectations and technological requirements.

Step in the Billion-Dollar Bitcoin Exchange Industry with Idea Usher

Do you feel the opportunity for Crypto Exchange business, but need help with mobile Bitcoin Exchange app development? 

Having dozens of successfully launched financial projects behind us, we at Idea Usher can help you with a best in segment app solution. We provide:

• Expert development team
• On-time delivery
• 24 x 7 support and maintenance
• Cost-Effective solutions

What’s in it for you?

Deliver an incredible Bitcoin exchange platform experience to your customers while boosting your growth and revenue

• Handsome Revenue
• Incredible profits
• Global Outreach
• Limitless Potential
• Vast Opportunities
• Readymade Popularity
• Rapid Business Scaling

Hire us to build the perfect Bitcoin Exchange App

For the best Bitcoin Exchange app development you need a team of skilled techies and marketing wizards.

Idea Usher will get all the work done from ideation right down to delivery.

• App developers
• UI/UX Designers
• Quality Testers and Analysts
• Project Manager
• Marketing Professionals
• Business Development Managers 

How much does it cost to develop a Bitcoin Exchange App?

Based on the platform, complexities, or technology used to develop the app, we’ll devise a package for you. However, in order to build the best Bitcoin exchange app, you don’t need to spend big bucks. You just need the best developers from Idea Usher.

Why choose Idea Usher for Crypto Exchange App development?

Idea Usher specialists realize how to start your bitcoin exchange app of any intricacy, so we would be happy to embrace your assignment. With regards to crypto exchange app development, we offer multiple highlights. A few of them relevant to : 

Direct conversion: Trade bitcoin to the cash you need and the other way around in a couple of taps; 

Security: The age of key information happens on the actual device. We approach the client to set a secret phrase to scramble the primary mystery code before putting it away in the data set to get extra insurance. Notwithstanding, it involves an increment in the use of time and energy.

Contact us now for a quote at [email protected] or click here.

Need another reason to choose us? Here are more than a few

You’ll Always Be Our #1 Priority

That’s because you, your business, and the timely completion of your project matter the most to us. Everything else would come second.

We Brew Fresh Ideas For You

So that you can have the perfect sip of success! We don’t just execute plans, we also come up with the best ideas that would drastically improve your profitability, brand recognition, and value.

Unparalleled Expertise and Industry Knowledge

Idea Usher has worked with 1000+ clients, helping them achieve millions of dollars in revenue in a dependable, scalable way. You can grow your venture and online presence, too  with our extensive tactics and experience.

We Know What We’re Doing

How many agencies practice what they preach? Not everyone. But we know our stuff. Our professionals are always on the race with the latest development tech stack, so that your journey kickstarts in a prolific way!

Frequently Asked Question (FAQs)

#1 How much time will it take to build my Bitcoin Exchange app?

If we consider the core features/functionalities of your app, then it might take

anywhere between 800 to 1,200 hours

#2 Can I customize my Bitcoin Exchange app the way I want?

Absolutely! Your originality matters to us. You can add custom features

like “statistical investment reports,” “subscription to get investment suggestions,” and several others.

#3 Which platform should I choose for my Bitcoin Exchange app?

Our development provides you the flexibility of choosing between native and hybrid apps and your app’s operating system, such as Android and iOS, or both.

#4. What is the cost of Bitcoin Exchange app development?

We do not consider the average industrial rates of a Bitcoin Exchange app from conception to launch, our packages are a lot more economical as we believe in scaling up startups.

#6 Why is Cryptocurrency on the hype?

• The money and opportunity to make a lot of money
• The volatility and excitement that comes with that
• News stories from within the crypto space
• Mainstream news

#7 How secure is cryptocurrency?

Blockchain and other cryptocurrencies are becoming more popular. One of the advantages of cryptocurrency is security. You can securely stock and transfer value without any external’s help seems quite phenomenal in 2021. 

#8 Why should I choose Idea Usher?

Idea Usher has helped numerous Bitcoin Exchange startups become dominant players in the industry. We deliver versatile Bitcoin exchange app, effective marketing campaigns, and support and maintenance. Contact us now for a quote!