Platforms for cryptocurrency exchange have seen numerous improvements over the past few years, with developers contributing to the development of the most efficient, affordable, and user-friendly technologies. Without these platforms, users wouldn’t have the same access to a vast array of coins to diversify their portfolios or to leverage features like automation and stop-loss trades.

However, starting a crypto exchange is far from effortless, as securing safe wallet access and operative trading functions must be perfected to the level of traders’ experience. Protecting users’ funds and private information is among the top features people look for when searching for an exchange. This allows them to spread their asset allocation in a portfolio and invest in the top cryptocurrency by market capitalization on platforms like Binance.

Let’s explore more about cryptocurrency exchange platforms and find what makes them a useful tool for trading or investing.

Every exchange must prove efficiency for these 3 key features

Although cryptocurrency exchanges use decentralized tools built on the blockchain that lack a single point of control, they must still appeal to their audience when establishing products and services. Considering the newness of crypto, accessing it shouldn’t be limited by tacky interfaces, which is why the best exchanges have:

• A proper trading engine for managing orders, matching trades, and securing a smooth exchange process. The engine should be able to process a higher amount of transactions and execute trades without being affected by network congestion;
• A friendly user interface that attracts and retains customers by being intuitive, visually appealing, and easy to navigate. The functionality of the interface should make it easy to invest or trade, which is why user feedback is necessary to improve functions;
• An efficient wallet integration that offers robust security, seamless transactions, and crypto movement, along with a transaction history feature. Wallets should also accept a varied array of coins instead of limiting customers’ choices;

How do crypto exchanges ensure security?

Cybersecurity in cryptocurrency exchanges is a non-negotiable factor in their development, as it offers peace of mind and protects funds. Exchanges with smart contract vulnerabilities can expose users to all kinds of attacks and give hackers the chance to exploit their data. This was the case for a prominent industry exchange, where hackers gained access to customer data to trick people into handing over their crypto assets.

For an exchange to benefit from heightened security, regular audits should be put in place to frequently verify potential vulnerabilities in the system and determine the necessary steps to counter threats. Audits also future-proof the platform against unexpected threats.

Advanced security features are also needed, including multi-factor authentication and data encryption. And encryption protocols. Of course, users should be able to choose the safest wallet for their needs, including one based on cold storage (operating without an internet connection), but the platform should still protect their accounts and funds from unauthorized access.

Mobile optimization is needed in every exchange

People generally spend a good portion of their time on their smartphones, so all products or services should be optimized for mobile use, whether through an application or a well-customized website. This means the design is intuitive and looks natural on different mobile screens, with the following features predominating:

• Speedy and easily navigable dashboard;
• Features for margin, spot, and OTC trading;
• Wallet APIs incorporated into the app;
• Fiat on/off ramp for converting fiat currency to crypto;

When struggling to make the app more efficient, developers must consider the following:

• Performance optimization is needed for low-connectivity crypto users;
• A high navigational interface will reduce cognitive loads;
• Engagement loops, such as rewarding programs, streaks, and milestones, are beneficial;

What are the options for development?

The development process can be done with either regular or customized solutions. Each offers either financial or technological benefits, but choosing one depends on the team’s capabilities and opportunities. For example, white-label solutions are off-the-shelf software products that operate within legal frameworks and have sufficient liquidity providers to be cost-effective. However, since there’s only one provider offering these benefits, the risk of paused support can expose users of the application to data leaks.

Still, using existing infrastructure will reduce development costs, and greater customization can increase brand awareness. But for those who have the capabilities and time, choosing custom development is ideal because it offers more freedom in creating an application.

Developers can create unique user interfaces, improve performance, and support scalability. These tailored features are accessible but might cost the team more time and finances, especially since they will need to balance the contribution for third-party collaborations. At the same time, developers must build everything from scratch, including the trading engine, wallet accessibility, and the admin panel.

Understanding the challenges in crypto exchange mobile development

With the numerous steps involved in developing and marketing a crypto exchange, it is difficult for teams to manage costs while ensuring security and functionality. Moreover, teams can also struggle with the following:

• The regular app stores might implement restrictions for exchanges since their guidelines impose stringent standards for crypto-related applications;
• Adding a varied array of features, such as multi-wallet support, cross-blockchain implementation, or access in multiple languages, can add to the technical complexities of creating the app;
• The lack of proper regulations for cryptocurrency and blockchain can limit developers since they have to adhere to the legal framework that is changing continuously;

In addition, the financial resources required to develop such an app will increase with the number of innovative features needed to truly help others and advance the acceptance of crypto.

Conclusion

The efficiency of cryptocurrency exchanges stands in the balance between security and user-friendly features. These software-based solutions for managing crypto portfolios must be accessible to users, including an interface similar to the financial apps used for fiat money. However, these apps must also approach innovation to keep customers invested, including automation, multi-wallet support, and blockchain-appropriate features. Considering the challenges teams face, from the fast-changing regulations to the high costs of implementation, the struggle of creating a safe and efficient app is understandable.