P2P Cryptocurrency Exchange Development: A Complete Guide
Cryptocurrencies have become the buzzword since the evolution of Bitcoin. People around the world are intrigued by a new form of currency that is not controlled by the banks. It became more popular when tech celebrities like Elon Musk started tweeting about them, which created a fluctuation in their valuation. With P2P cryptocurrency exchange development, there is now more than 1000 cryptocurrency prevailing in the world. People are now more interested in decentralized finance, machine-to-machine transaction, and more as it promises immense opportunities.
Since Bitcoin, various cryptocurrencies have come into the limelight and have been doing extremely well in terms of valuation. This became the reason for various enterprises to invest in it and earn significant profit for their organization.
In current times, there are more P2P cryptocurrency exchanges than ever. Enterprises are now shifting their focus to develop these exchange platforms to earn revenues and other perks involved with these digital currencies. The reason behind peer-to peer exchange of cryptocurrencies’ success is the decreasing credibility of centralized crypto exchanges, which have a list of vulnerabilities. The market of P2P exchange development seems promising as it delivers extreme flexibility and a good ROI. Before starting the process of development, let’s get to know the P2P cryptocurrency exchange platform and its working.
What is P2P Cryptocurrency Exchange?
Peer-to-peer cryptocurrency exchange can be described as a platform where traders from around the world trade directly with each other. In other terms, it is a decentralized software-based platform and doesn’t involve any third party to monitor the transactions.
Since there are no third parties involved, users don’t have to pay any kind of transaction fee. Removal of the brokers/middlemen made transactions more accessible to the participants and delivered a next-level of security. Apart from these advantages, since there are only two involved in a transaction, the speed of the transactions increased drastically.
The Mechanism Behind P2P Cryptocurrency Exchange
When you signup on for any Peer-to-peer crypto exchange, you are asked to verify your details. Once verified, you can conduct asset trading with other verified buyers or sellers without any hassle. These platforms are backed up with robust technologies that match a seller to the perfect buyer based on their requirements and vice versa. Any buyer or seller can create their own orders or just browse the existing ones to find their match.
The transactions on P2P exchanges are extremely fair as buyers and sellers can chat with each other to discuss any discount or rise in the price; once they agree on a trade, funds or assets are supposed to be transferred within the decided time frame. Users have the option of adding their wallets and addresses with their accounts for easier trading. In terms of security, these platforms deliver the option of escrow to transfer assets security. In comparison with a centralized exchange, the process of P2P exchanges is extremely easy to understand.
Why Invest in P2P Cryptocurrency Exchange Development?
At this point, you are aware of the working and the basic idea behind P2P crypto exchange platforms. The next step involves being sure about investment in the genre. It’s more than natural to question the outcome one can get by investing in something. Let’s start with the market stats.
P2P exchanges have extended their reach to the frontier markets; not many centralized crypto exchanges have made it there, which resulted in the dominance of P2P exchanges. In the year 2020, a couple of major P2P crypto exchanges have received a trade of more than 75 million USD in a single week. Talking about the cryptocurrency market, it was valued at 1.49 billion USD in the year 2020 and is expected to cross the mark of 4.94 billion USD by the year 2030.
More than 35 percent of the trade-in P2P crypto exchange market comes from North America alone. However, a large chunk of transactions is being made from Latin America and sub-Saharan Africa. These figures and trends dictate the popularity and the promising future of these P2P exchanges. The benefits that come along with these exchanges are countless, but here are some of the top advantages.
Independent of Banks:
P2P exchanges don’t rely on banks for making a crypto transaction. They allow users to buy cryptocurrencies with gift cards, Paypal, cash, and much more
In recent years, centralized crypto exchanges have faced the wrath of government authorities in the form of a complete ban. With P2P, a person can transact from anywhere on the planet as they need not be present physically; hence, they can’t be censored.
The elimination of the third party made transactions cheaper as they don’t have to pay any kind of transaction fee. The enterprise that owns the platform has experienced a major drop in the operational fees with P2P exchanges.
There is an escrow option, but users don’t need to hold their assets or money on these platforms; hence, the level of threat decreases significantly.
Users on P2P platforms don’t have to produce any confidential details apart from verifying them. In case of a transaction, they don’t need to provide their banking details, social security number, etc.
P2P Cryptocurrency Exchange Development Timeline
Platforms that deal with finance in any manner are strikes as complex to people. In reality, the development process of these platforms is not that complicated as they think. With a result-oriented plan, you can execute the process with extreme efficiency. Apart from a perfect plan, you will also need a reliable software development company with experienced resources and verified experience to help you in the journey. Let’s start with the initial step.
1. Market Analysis
Only an idea is not enough to build a platform for numerous enthusiastic crypto traders around the world. You will need an in-depth market analysis to find out the current trends and the expectations of your potential prospects from a new P2P cryptocurrency exchange platform.
Perfect market research should cover all the important points you may need in the process of development. Start with the list of competitors, their strategies, their business plan, etc. Learn more about their process and the reason behind their popularity. Try to find out something that may benefit your platform and gives you an edge over them. Next, get to know your audience, their expectations. Research as much you can about your potential user base, any feature they want in a new platform that makes their experience more smooth, or any other functionality.
You can either hire a diligent marketing company to perform diligent research on your behalf, or you can just assign the task to your in-house team. However, there is a third option; you can just skip the first two options and buy a genre-based research report from any marketing research website on the web. A custom report will be more beneficial as it will only focus on the subjects that you will need in the process ahead.
2. Lay Out the Plan
With the facts in place, move to the next step, where you plan all the processes in detail. This plan will serve as the blueprint for the development of your cryptocurrency P2P exchange platform. Remember to mention everything in the blueprint, from features to budget. Planning ahead always gives you an edge over the process. You can think of other possibilities that are not mentioned in the plan and add them during the process; just mind the chronology.
Features to be Considered
In the finance or trading industry, robust and scalable features attract the attention of users. They don’t want any fancy functionality that serves no purpose; instead, they need something that eases their overall experience. Plan efficient and relevant features with your software development company and ask for their suggestions to improve it further. Here are some of the features that should be considered in the P2P cryptocurrency exchange development.
- Onboarding: Allow users to create an account on the platform and deliver them a quick demo about how the platform works and where they can find each option as per the functionality.
- Multilingual: Allow users from all over the world to use the platform as a single language option can create difficulty in understanding for people from other countries.
- Multiple Cryptocurrency: Allow users to trade more than one currency as the market is rising and people have different preferences.
- Enhanced Security: Allow users to trade safely on the platform; you can integrate a two-factor authentication for added security.
- Easy KYC: Allow users to authenticate themselves on the platforms with minimum details possible.
- Feasible Payments: Allow users to transact easily with multiple payment options such as credit cards, gift cards, etc.
- Account: Allow users to manage their trades from their account that displays their statistics. They can filter out the data for various parameters like price, date, type, and more.
- Advanced Search: Allow users to search for the perfect buyer/seller on the platform based on various factors.
- Real-time Settlements: Allow users of the platform to receive assets and money within real-time with the help of an escrow system and a robust trade engine.
Technology Stack to be Considered
Any functionality or feature of your P2P cryptocurrency exchange development platform will not be able to work its magic without a robust tech stack. Refer to your market research to find out the tech stack your competitors are using for a specific feature, or just ask the software developers of your development partner to integrate one as per your business needs. Here is a common tech stack all the best P2P cryptocurrency exchange platforms use.
For Application & Data Purposes:
- jQuery UI
For Various Utilities:
- Google Analytics
- Google Tag Manager
- Visual Website Optimizer
For DevOps Purposes:
- New Relic
For Business Tools:
3. Design & Development
While designing the exchange platform, consider following a minimalistic approach; users don’t want a flashy UI design. Apply a minimum number of colors, use light colors for highlighting important elements of the platform. Ask your UI/UX designer for suggestions as they have vast experience in the field. Keep it as simple as possible, focus on the features and functionality for extensive performance.
The next part deals with the iterative testing of the platform. Remember, it is better to remove any kind of error before launching the product in the market. Ask your testing engineers to test the platform from every angle and remove each and every bug/error if possible. A full-fledged development company like SYMSWEB will provide you with highly skilled engineers that will develop a flawless cryptocurrency P2P exchange platform.
The decline in the popularity and usage of the centralized crypto exchanges in the frontier market has created a huge opportunity for P2P crypto exchange platforms. Users are impressed by the idea of no third party in the transaction and the cost-effective transactions. If you are thinking of developing a P2P cryptocurrency exchange platform, SYMSWEB can help you!
At SYMSWEB, we value your ideas and understand your business need to create digital solutions which fit perfectly with your goals. Our team of highly skilled engineers has diverse experience, which gives us an edge to create highly rated applications and software. Our flexible, engaging models are designed to suit your budget needs. Fill the form to book a 30-min consultation call with our experts to proceed ahead with your idea!