Introduction
Building an attractive cryptocurrency exchange solution is simple with hand-picked Cryptocurrency Exchange features. Though there are numerous features in the crypto market, as an entrepreneur it’s your responsibility to choose the best cryptocurrency exchange features. You have to consider the key aspects while developing your own exchange to achieve market edge.
To support you with crypto exchange development, we have gathered the most popular cryptocurrency exchanges features list needed to consider for higher efficiency, usability, and future scalability. Whether you are planning to launch your own cryptocurrency exchange platform or you are already into it, try to focus on these key cryptocurrency exchange features to gain the market edge. Offering these essential cryptocurrency exchange platform features to your users will ultimately enhance the user experience and also help to boost the customer retention rate.
On this note, here let us explore the necessary features of crypto exchange that you need to have on your platform.
Trading Engine
Though there are numerous crypto exchange futures, the Trade engine is the heart of the crypto exchange app. Crypto exchange app serves no value without a trade engine. Trade engine tracks the bids, opens orders, develops new trades, balances calculations, manages access to order books, matches bids & offers on the exchange platform, conducts crypto transactions, and more.
In a nutshell, this feature handles:
- Crypto transactions execution.
- Balances calculation.
- Order-books access
- Match the transactions (buy/sell) on the exchange.
Intuitive User Interface
Make sure, your exchange has an intuitive UI. This is because both professional traders and novices utilize crypto exchange apps. Ensure your exchange exhibits a simple UI that hides many complexities of crypto trading.
So, what you need is:
- An UI that confirms that the transactions are conducted efficiently, reduces the trading time.
- A dashboard with fast access to significant features.
- Seamless fund deposits and withdrawals.
- Option to connect with a support team.
One of the important factors in UI is visualization. Most users prefer to have a data chart to depict the price fluctuation and also show the statistics of selected assets.
Authorization & Verification
Generally, users prefer an exchange to get an easy and interactive onboarding experience. During crypto exchange development, make sure your exchange provides a simple and interactive user experience. Likewise, ensure that your exchange’s registration process doesn’t take more time, and also confirm that the onboarding experience is frictionless.
Primarily, whenever new users enter the exchange, user authorization & verification is carried out to verify their identities. For this process, most of the exchanges prefer to use KYC to authenticate the new users. The next mandatory step is User verification, conducted to reduce fraud and ensure transparency of transactions. Moreover, the verification process helps to prevent illegal activities.
Compliance and Security Standards
And last but not least, no crypto exchange can exist without security options. This is a crucial task whenever you wish to create your own exchange. So you have to go beyond 2FA and bio to provide a highly secure crypto exchange platform for your users.
You might have heard about a serious issue faced by CoinBase, a famous exchange. Due to the issue with multi-factor authentication, 6,000 user accounts crashed. I share this news not to threaten you but instead to inform you to be more conscious of security measures, as you have the responsibility to safeguard your exchange’s users.
How to secure the platform? This involves implementing strong encryption protocols, comprehensive security measures, strong access controls, regulatory compliance, and more. Undergoing these security practices, you can establish a fortified crypto exchange platform, assuring users that their assets and information are well protected.
Order Book
An order book shows the list of current buy/seller orders taking place on your exchange platform. The exchange automatically creates this list as soon as the users create new orders. Traders can observe the order book to find suitable offers to close the order. Then, the exchange automatically removes the successful orders from the order book.
Generally, the order book depicts the overall market size for every given price point. It serves as a central point of reference for exchange participants to view and interact with orders. Moreover, the order book not only shows the price the buyer/seller wishes to pay but also shows how many discrete units they have to buy/sell at each price.
So if you wish to incorporate an order book in your exchange? well good. Though it’s hard to incorporate, it offers transparency & real-time view of market activity. So when you are involved in crypto exchange platform development, try to present the order book in a user-friendly to cater to both newbies and seasoned traders.
Liquidity
The success of your exchange greatly depends on liquidity. How soon can exchange become popular? Most users prefer to choose an exchange with good liquidity, which can provide high-speed transactions.
There are ways you can opt from:
- Utilizing your own trading bot-market makers
- Connect to other larger exchanges.
Instantly, if you want enough trading volume to conduct the sale/exchange of cryptocurrency, the second option will be the right choice to connect to an external liquidity pool to meet the user’s needs. There are numerous popular exchanges like Binance, Kraken, and more who provide access to their markets.
Multi-lingual support
Language is one of the main barriers for crypto traders. Most of the exchange platforms fail to satisfy global users due to ineffective language communication. Generally, users feel comfortable using their native language on platforms. So whenever you are involved in crypto exchange development, consider the user’s preference and incorporate multi-lingual support into your exchange platform to enhance user engagement and improve the traffic of your exchange.
Staking
Like a bank deposit, staking allows you to lock up a certain amount of cryptocurrency for a specific period, by which users can earn rewards. It is the best alternative that gives users peace of mind while they are inactive.
Staking is gaining attention among traders as it provides passive income and a way to actively participate in blockchain while promoting network stability and decentralization.
Lending & Borrowing
Lending and Borrowing is one of the core features of crypto exchange that allows users to lend their cryptocurrency assets to others in exchange for interest. Similarly, users can borrow assets by putting up collateral. Lenders can earn passive income by making their idle assets available for lending, typically earning interest on the lent amount.
On the other hand, borrowers can access additional cryptocurrency funds without selling their existing holdings by providing collateral and paying interest on the borrowed amount. Moreover, this mechanism allows to improve liquidity crypto within the exchange.
Trade View Chart
A trade view chart is a pictorial representation of historical price movements and trading volume of a cryptocurrency over a time period. Mostly traders and investors prefer to use trade view charts as they can visualize current market prices to make decisions.
Generally, trading charts analyze the price patterns, determine support & resistance levels, and determine the possible entry and exit points. However, technical indicators & overlays can be applied to trading charts to guide decision-making during trading.
Users spend most of their time on trade view charts to learn about crypto prices, exchange rates, trends, and more. As it’s the most preferred feature by the traders while you develop an exchange platform try to keep the trading chart in the main dashboard.
Order Types
Order types are a fundamental feature in crypto exchanges, suggesting traders several approaches to conduct buy/sell orders based on specific conditions and strategies. This allows users to exercise price control over their trades in the volatile crypto market.
There are various order types:
Market Order – used to buy/sell security at the prevailing market price.
Limit Order – You can fix the price at which you wish to sell/buy security.
Stop-loss Order – Limit your losses by exiting a trade once the trigger price is reached.
Order types are the most important tools for traders to execute their trading plans and manage risk in the crypto market. It is better to have a clear understanding of order types for successful trading.
Trading Pairs
Pairing of two cryptocurrencies for easy swapping. Trading pairs allow users to swap one crypto for another for a single transaction fee. It involves two cryptocurrencies, where one serves as the base currency and the other as the quote currency. Base currency is the one users prefer to buy/sell, while quote currency denotes its value in terms of another crypto or fiat currency like BTC/Ethereum, or BTC/USD.
Trading pairs facilitate the users to engage in several trading strategies. The availability of numerous trading pairs is necessary for diversifying portfolios and taking part in the dynamic world of cryptocurrency trading. Whenever you are involved in the crypto exchange development process, consider offering a wide range of trading pairs for both novice and experienced traders as they are key elements of the trading ecosystem, and provide liquidity crypto & flexibility for users seeking to navigate the crypto market.
Push Notifications and Alerts
Push notifications are one of the core features of crypto exchange as they help to generate communication with the exchange users. Push notifications notify and alert your users about price changes for trading pairs, special offers, successfully made trades, coin exchange listings, new, latest trends, and more. In one word it is most necessary to keep your users informed about the platform update and the latest trends in the crypto market. This ultimately enhances the user experience. It is completely the user’s choice to switch on or switch off the notification.
Margin Trading
Margin trading is the most preferred feature by users. As it allows the users to borrow and trade cryptos that they can’t afford. Margin trading allows traders to amplify their profits to trade bigger positions than they can do with their own capital.
In exchange, the trader borrows a certain amount of crypto from the exchange using their existing asset as collateral. This borrowed amount is referred to as margin which is used by traders to open larger positions that can’t be done with their own capital.
Futures Trading
Futures are one kind of derivative trading product. These are regulate trading contracts between 2 parties and involve an agreement to buy/sell underlying assets at a fixed price on a specific date.
In crypto exchanges, future trading facilitates traders to speculate on the future price of digital assets without owing the assets. It is the process of buying/selling a specific cryptocurrency at a predetermined price on a specified future date. Futures contracts are derivatives which means their values are derived from the underlying cryptocurrency’s price movements.
User Wallet
User waller is a feature that serves as a secure repository for cryptocurrency and also acts as a gateway to the DEX platform. DEX facilitates the users of the exchange to connect their user wallet like MetaMask wallet, Trust wallet, etc. to the platform. By integrating these wallets, users can control their funds and securely manage their private keys without depending on third parties. This eliminates the risk of centralized custodianship and potential hacks.
User wallet helps individuals store a variety of cryptocurrencies, and manage their balance. Wallet is an interface that is integrated with the DEX platform, facilitating users to execute trades directly with their wallets. Additionally, the user wallet has a feature depicting cryptocurrency holdings and transaction history. This user-centric method empowers users to engage in decentralized trading while maintaining full control and security over their digital assets.
P2P Crypto Trading
Your exchange platform can conduct direct trading between users globally with the help of the p2p trading feature. This means DEXs allow direct p2p trading by connecting sellers and buyers directly. Orders are matched via smart contracts and performed on the blockchain, providing immutability and transparency of the transaction.
This feature of crypto exchange empowers the users with a high degree of autonomy and control over their trades. Moreover, P2P promotes privacy, so users do not need to undergo extensive KYC verification processes. By facilitating direct, trustless transactions, P2P trading features illustrate the decentralized and inclusive nature of cryptocurrency exchanges, empowering users to transact freely on their own terms.
AMM
AMM in decentralized exchange is a critical innovation that fundamentally reshapes how users trade cryptocurrencies. AMM uses liquidity pools to facilitate trades. These pools contain funds provided by liquidity providers. AMM algorithm automates the process of pricing and matching orders on the exchange platform to predict the prices at which buyer & seller can trade assets. This means that users can buy/sell crypto in a trustless, p2p fashion without depending on a third party.
AMM became most famous due to their low fees, ease of use, and simplicity. Traders can easily open & close positions without worrying about the order types, order matching, and other difficulties that arrises with traditional exchange. However, AMM-based exchanges are more secure and faster than their centralized counterparts, as they are powered by smart contracts and safeguarded by blockchain networks.
Permissionless
DEXs are typically open and permissionless, meaning anyone with a compatible wallet and access to the blockchain can participate. This allows for global participation and democratizes access to trading opportunities, without geographic restrictions or the need for intermediary approvals.
Non Custodial
DEXs facilitate the users to control their funds throughout the trading process. This means that by using non custodial feature users can retain their ownership and control of cryptos at all times. Instead of depositing funds in the exchange’s wallet, users can link their personal wallets to the DEX platform through wallet integration.
This feature significantly enhances security and also removes the need for a third party with custody of funds. This is made possible with the use of smart contracts on a blockchain platform, facilitating p2p trading by ensuring the integrity and safety of user’s digital assets.
I hope the above-discussed crypto exchanges features list gives you an idea about the best crypto exchange features to be considered for a successful solution.
Conclusion
The demand for crypto exchange is rising day by day, with a constant surge in users every year. Best crypto currency exchanges will include smart trading features.
So whenever you step into this market, you should have highly reliable, secure, intuitive, and fast solutions to succeed your competitors.
If you have doubts about beginning this journey, contact InnBlockchain leading cryptocurrency exchange development company. who stand in front of the competitive market.
We would help you build crypto currency exchanges with smart trading features for your business. With our technical experience in this domain, we promise to provide customized crypto exchange solutions from scratch.
InnBlockchain is a recognized crypto exchange development company with vast experience in crafting successful solutions for diverse companies. Let’s talk.
