With the spread of the first cryptocurrencies (Bitcoin, Litecoin), it became necessary to freely exchange them for traditional (fiat) currencies. The first exchange services appeared – crypto-exchanges, which made it easy to change cryptocurrencies for fiat and withdraw via electronic money, bank cards and accounts. This gave a powerful impetus to the development of cryptocurrencies, which led to a sharp increase in their value. Now everyone knows about cryptocurrencies, especially representatives of businesses related to finance and currencies.

What is a crypto exchange

A crypto exchange is a trading platform that allows you to buy, sell, and exchange various cryptocurrencies. Similar to forex, a crypto exchange brings buyers and sellers of currencies (in this case, cryptographic) together to ensure that transactions are secure. Like any exchange in general, it works on a trading engine, the correctness and speed of operations depends on the optimized code of which. The engine checks the placed orders for the provision of assets, that is, funds on the balance sheet, keeps records of orders in the database, prepares data for display in a web / mobile application or trading terminal.

The first crypto exchanges were centralized and only cryptocurrencies were trading pairs. But with the development of the market, a conditional classification by types began to appear:

  • Bitcoin exchanges or altcoin exchanges – only cryptocurrencies are traded on them, among themselves or in tandem with Bitcoin, without the participation of fiat currencies;
  • Cryptocurrency exchanges with exchange for fiat – on them, cryptocurrencies are traded both among themselves and in tandem with a freely convertible currency (US dollar, euro) or even national currency;
  • Centralized Exchanges (CEX) – they are owned by companies that set the rules for trading and usually operate under a license, which means they are subject to financial regulators;
  • Decentralized exchanges (DEX) – they only create P2P markets and b2b cryptocurrency, but do not mediate, do not store user funds, are not regulated by anyone, here users make transactions anonymously through a distributed ledger;
  • Hybrid Crypto Exchanges (HEX) – combine the best of CEX (functionality and liquidity) and DEX (security and privacy);
  • Cryptocurrency exchanges with margin trading – provide leverage to their users.
  • Many cryptocurrency exchanges can correspond to two or three types at the same time. So these types can be considered simply characteristics by which users can choose a suitable trading platform.

White label solution

Adaptation of an already developed product for your brand. A cryptocurrency exchange on a ready-made engine can become a temporary alternative or an additional service that you decide to offer to your audience. As a rule, the main activity of a buyer of a white label product is not related to cryptocurrencies, but is very similar in terms of topics. And the demand for a cryptocurrency program is managed by the course and order.

Pros:

Minuses:

  • There is no access to the source code, you cannot be sure that it is safe;
  • The complexity of revision for specific requirements, it will cost more than the engine;
  • Dependence on a third party.

 

By Jim O Brien/CEO

CEO and expert in transport and Mobile tech. A fan 20 years, mobile consultant, Nokia Mobile expert, Former Nokia/Microsoft VIP,Multiple forum tech supporter with worldwide top ranking,Working in the background on mobile technology, Weekly radio show, Featured on the RTE consumer show, Cavan TV and on TRT WORLD. Award winning Technology reviewer and blogger. Security and logisitcs Professional.