How to create an exchange like Binance?
Building an exchange like Binance seems to be a promising idea for many entrepreneurs
The cryptocurrency exchange market is known to be a popularly emerging and highly profitable field.This is the reason for being a highly competitive industry.
Building an exchange like Binance seems to be a promising idea for many entrepreneurs but making that possible is a tough job for them due to technical complexity.
We covered every technical silos like API, programming languages, design prototypes, testing phase, security architecture and other technical features in detail in this blog. Before that, let's dive into quick checklist to get you prepare for the development of Binance like exchange.
The foremost thing is the visual interface that users are seeing. It should be appealing, no compromise needed there. This basically involves two steps
- Wireframes: The base of the future design where its key features are implemented.
- Prototype: The detailed visualization of the user’s interaction with the application to prevent UX issues.
Use Of Programming Language
The server part of the application is responsible for performing the application’s internal logic. API implementation needs to be tested in every phase so that users can use the functionality in a seamless way.
- User authentication and authorization
- Server-side function of admin panel
- Cryptocurrency bets and deals of the users
- API that can be used by third-party organization
The part which is responsible for the actual processing and storing of data concerning trades between users in a secure environment. It forms the backbone for the actual processing and storing of data. Every transaction is recorded on the public distributed technology. The platforms like Binance empower blockchain technology to create their NFT marketplaces too.
An ideal part of modern application development. It is extremely important as it allows the development to continuously check bugs within the logic, as well as within the UI before actually launching the application. Agile methodology should be followed to eliminate the errors in every stage of Development instead of checking them on the last day.
Since the application is storing the sensitive information of its users, it has to be properly secured in order to prevent to possible data leaks and hacking attacks. We advise securing the user information in the following way. While developing the back-end part of the application, pay attention to creating a secure way of storing and exchanging confidential information.
1. The key components of the exchange are located at the different servers and dedicated channels
2. The encryption keys are also located at the dedicated secured servers
In order to prevent the possibility of unauthorized login to the user account, it is best to implement two-factor authentication by generating a one-time token. Additionally, the users receive notifications about logins to their account specifying the location and the IP-address.
Features We Offer To Build Exchange Like Binance
Highly scalable cryptocurrency trading exchange app should be developed in a way that it can offer lucrative opportunities for users in all the possible methods. We at Hivelance, can assist you in binance like platform creation with pre-built features deployed in our crypto exchange script as follows.
1. Sign Up
The signup or login page is the first thing a user will do and also protection of the system from any unauthorized logins, hack attacks, or any other kind of manipulations is carried out. The functionality is well developed and corresponds to the highest standards. Besides the general login/password combination, there is also a 2FA to provide additional security for users.
2. User Verification
The crypto exchange market is so recommendable among the users when they think it highly safe. Depending on the type of verification, the verified users generally have more possibilities. The limits for withdrawal for the verified users are higher than for the non-verified. The verification is important to ensure the transparency of trades and to minimize the possibility of a scam.
This feature allows traders to deposit or trade cryptocurrencies into the internal wallet featured by the cryptocurrency exchange platforms and also to draw money to the wallets outside of the exchange. The exchanges have limits and fees attached to this depending on the company’s goal.
4. Order creation
Every user should have the possibility to buy or sell currency to other users in the system. It’s very important that all the trades are happening fast and without any system errors. The system should have some features for order creation in order to allow the user to choose at the moment.
5. Over the counter trading
Over-the-counter (OTC) trading functions like Circle Trade play which is an essential role in the crypto industry. Crypto OTC is simply the trading of crypto assets directly between two parties. A trade can be crypto-to-crypto or fiat-to-crypto. In an OTC trade, two parties agree on a price and then work out the transfer of assets between themselves. This direct medium of exchange is the precise reason such opacity exists within OTC markets.
6. Wallet integration
Binance Chain Extension Wallet is a Crypto Wallet for Binance Chain, Binance Smart Chain. You can send and receive funds on Binance Chain, Binance Smart Chain and cross-chain transfers between both of Binance’s blockchains. These kinds of third party wallet integration or setting up exchange’s own wallet can be done in our script.
7. Referral program
Binance's referral program primarily focuses on trading discounts and commissions. Referrers who suggest a new user to Binance will get a handsome percentage on the fees anytime the new user trades on Binance under this referral program. You can opt-in for this feature to reduce the marketing cost.
8. Liquidity data
Liquidity is used to define the ability to sell or buy an asset without causing big impacts in the market price. It is also related to the idea of how easy it is to convert an asset to fiat currency. Properties or assets that are difficult to convert to cash are not liquid, while the ones that can be exchanged right away are deemed as a liquid asset. We can enable pre-set of transaction data in your exchange using liquidity API and making the users trusted on the platform.
A very useful feature which allows to view the statistics of the user data on how they use the platform, how many transactions happened, how many signups happened for the particular interval of time. You can make informed decisions based on the insights gained from this dashboard. No need to add extra plugins for this feature enabled.
10. Admin Panel
With the help of the admin panel, the employees of the exchange will be able to monitor trades, approve the user signups, handle customer disputes, and can manage the actions made on the exchange based on their access level. You can set up the roles and priorities for your internal employees to access the data.
Hope we covered most of the things that enterprises need to build a reliable exchange like binance. If you have any queries related to this, drop us a line. We try to answer your questions as soon as possible.