Published in · 7 min read · Nov 20, 2021
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The term cryptocurrency has grabbed the attention of many people across the world due to its beneficial factors and profits driven by traders/investors. Crypto assets are generally created by using blockchain technology which completely works on decentralization. The awareness and usage of blockchain-powered digital currencies are rising day by day in all parts of the world. Therefore, there is massive user traffic for performing crypto trades. This has created a big demand for cryptocurrency exchange development.
Many budding startups, as well as entrepreneurs, took demand as an advantage and it triggered them to begin a cryptocurrency exchange business similar to popular giants like Binance, Coinbase, etc. As of now, starting a crypto exchange is the best revenue-generating cryptocurrency business idea which has the capability of gaining a hefty amount of revenue in a short period.
Before leaping into the crypto exchange business, you must have good clarity about the cryptocurrency exchange development cost. Because it plays a vital role in developing a Crypto exchange like Binance, Coinbase, or LocalBitcoins.
This article covers a few significant factors that majorly impact the cryptocurrency exchange development cost.
The cryptocurrency exchange development cost is determined by two major factors. One is choosing the best method for creating an exchange and implementing Return Of Investment (ROI) features that decide the success rate of your crypto exchange in the crypto industry.
As we know, developing a crypto exchange is a kind of tedious task that requires a lot of research for execution. However, a perfect and secure crypto exchange can be developed in a couple of ways, which is
- Development from scratch
- Start from cryptocurrency exchange clone script
These methods are popular ways to build a cryptocurrency exchange. Now, let me discuss these two methods in detail.
- Developing a crypto exchange from scratch is relatable to taking a splendid route in a long journey. In other words, developing a fully functional exchange from scratch with extraordinary features will require more days and expenses will be high.
- The information and details that need to be included while developing from scratch would prove to be too much for a newbie startup to undergo.
- This development method involves plenty of programming that is backed up by special technical support.
- Building a crypto exchange using a crypto exchange script is recognized as an instant solution when compared to developing an exchange from scratch.
- It is a ready-made solution so entrepreneurs can launch their exchange with required customizations based on their business needs in a cost-efficient way.
- This method includes faster deployment, so time consumption for developing a crypto exchange using a crypto exchange script will be less.
- The crypto exchange clone script is entirely designed, developed, tested, verified, and ready for deployment.
- The premium cryptocurrency exchange clone script comes with all basic trading features as well as high-end security attributes.
I hope now you might have a clear idea of crypto exchange development methodologies. As previously said, ROI features that you enable in the exchange will also shape the crypto exchange development cost. There are some exemplary features that have the ability to bring lucrative revenue to the crypto trading platform. Enabling such revenue-making features will help you to gain a passive income and increase the user count on your trading platform.
Next, let us see the second imperative factor…
The upcoming modules can be utilized for uplifting the annual revenue of your cryptocurrency exchange.
Margin Trading
When it comes to crypto exchange, margin trading comes under borrowing and lending. By using this excellent feature, the user can borrow a certain amount of cryptocurrency for trading. The profit or loss can multiple in margin trading based on the leverage users set.
IEO launchpad
An initial Exchange Offering is considered the easiest crypto crowdfunding method that is used to raise capital for crypto projects. It came into the crypto market as an alternative to ICO and an IEO launchpad allows projects to be listed on the exchange.
Crypto Derivatives
In the crypto space, the derivatives trading option is a trending and expected module by many traders. This feature includes two types such as futures contracts and perpetual contracts. The Crypto derivatives feature is completely based on price calculations and graphical predictions that are used by traders to guess the crypto market’s fluctuation.
Staking
Staking is the process of storing any crypto asset for a long time. In return, the user will receive rewards and interest for it in the form of any cryptocurrency. The admin of the exchange will use the staked crypto coin or token as liquidity.
These are the add-on revenue-generating features that are commonly adopted by many crypto exchanges in the industry. By enabling these features in your platform you can get optional revenues along with extraordinary benefits like an increased user base, high liquidity, and more.
The impact of the enabled features and add-ons will reflect on your cryptocurrency exchange development cost. Once knowing about these essential factors, you might ask me — Which method should I opt for my exchange development and which method would minimize the development cost?
As a crypto startup, going with the premium cryptocurrency exchange clone script will help you to deploy a stunning crypto exchange quickly and experience these trading modules in a cost-efficient way.
The research magnitude and the level of work depth are huge in the cryptocurrency exchange development from scratch. This method can be done only with the unique coding and macro detailing on multiple occasions. So the development cost involved here will be very high. As per the current crypto market, developing an exchange from scratch is not considered an instant or ideal method for startups.
Building a crypto exchange from scratch will throw many technical glitches and difficulties which would cause delays in completing the project. The difficulties that you come across in this method are cryptocurrency wallet integration, lack of beta testing, partnering with banks, and enabling security modules.
The constant technology advancements and improvements in the blockchain sector have made many young startups/entrepreneurs take a distinct approach. That approach must be suitable to the current trend of the crypto market. In that way, starting a cryptocurrency exchange business by using a premium cryptocurrency exchange clone script will be the ultimate solution. This is because even after customization, unique design implementation, testing, and adding all the revenue-making trading modules, the cost of developing a secure crypto exchange like Binance, Coinbase, or Localbitcoins using the exchange clone script will be still low when compared to crypto exchange development from scratch.
The average cost to develop a Crypto exchange starts from $20,000 and can go on upto $1,00,000 based on certain criteria and factors. The Cost of developing a Crypto exchange using a clone script ranges between $7,000 to $12,000. On the other hand, the cost to develop a Crypto exchange from scratch goes above $80,000 comfortably. But it is not a fixed one, it will vary based on the add-ons you enable, business requirements, and urgent needs. Remember, you can always Contact an expert development team to get detailed quotations for your exchange.
Here I have shared some exclusive benefits that you can yield by using the ideal cryptocurrency exchange clone script.
- High customization scope
- Possibility of generating high ROI
- Faster deployment
- Cost-effective
- Constant monitoring facility
- Instant beta module testing
- Highly responsive and bug-free with a user-friendly interface
One can get all these above-mentioned advantages by running a crypto exchange using a ready-made crypto exchange script. It offers the finest and smooth trading experience to your users along with top-level security support.
I hope now, you might have a clear idea about the cost to develop a crypto exchange like Binance, Coinbase, or Localbitcoins for business. The success rate of your crypto exchange will be based on your development standard. The current crypto market is filled with many imposters who are claiming themselves as experienced blockchain developers to misuse the given opportunity for making money. Approaching them will make your entire crypto exchange project a disaster and also shatter your hard-earned money.
To avoid these complications and dilemmas, you must hire a pool of proficient developers from the authentic cryptocurrency exchange clone script provider in the crypto space. Hiring a team of well-skilled developers will help you to create your dream exchange into a real one. Apart from this, having proper guidance from professionals will help you to overcome the technical & non-technical hurdles involved while starting a crypto exchange business.
