Cryptocurrency exchange architecture is way more sophisticated than normal currency exchanges. That’s the reason most of the crypto exchange startups end up in a halfway stage due to the scalability issues when the size of the user volume increases.
To make this clear, we can explain to you how the system works in both frontend and backend. We are the crypto exchange solution provider for years and backing up a number of exchanges that are currently active in the market.
Read this to know more.
The frontend of crypto exchange is accessed by users in a browser on or device with the support of Internet. The main aim of the exchange owner is to give an immersive user experience to the traders.
Infact, the usability of the crypto exchange is the key factor for making the cryptocurrency exchange a successful platform. Make sure to test and launch the frontend by splitting up different milestones.To fulfill this, the developers should be expertise in following technology frameworks.
The technology stacks like Flutter, Kotlin, Swift, Java plays a significant role in the mobile app side and frameworks like AngularJS, Bootstrap contribute to the web browser side.
Other common used software frameworks are Grails, Spock, Selenium, Geb, AngularJS, Jasmine, jQuery, Karma, Protractor, HighCharts, Istanbul, HTML5/CSS3/JS, Grunt, Bower, and Yeoman.
1. User Onboarding - The users signed up into the platforms need to be navigated through a seamless process by implementing “platform tour” as a widget.
2. Profile verification - When completing all the required documents in the user signup method, users should be notified in real time regarding their profile verification status. This is important since most of the centralized crypto exchanges need KYC for further processing.
3. Payment integration - After the profile setup and verification, users should be able to integrate their payment methods as per their choice. Whether it may be cards, wallet, or bank transfer, the crypto exchange should be equipped with all the possibilities.
4. Deposit Crypto / Fiat to Wallets - Users are eligible to deposit their money or crypto in the wallet provided by the exchange.
5. View Order Book / Trading Pairs - When deposit is done, users can see the trading options for their desired crypto pairs.
6. Orders Matching Engine - The advanced trading engine matches the best BID / ASK with the buyer and seller.
7. Orders Completed - Wallet Debited / Credited With Trade success. The users can opt-in to withdraw the fund back to their bank account or holding in the exchange wallet for future transactions.
Even though the frontend is the key driver, backend is the pillar support for the entire process happening across the exchange. Single technical mistake can lead to a huge security threat for the exchange.
Make sure you are working with developers who have profound experience in developing scalable infrastructure.
The technology stacks include Visual Studio 2012, .NET Framework 4.5, MySql, Laravel, RavenDB, IISMongoDB, and NodeJs contribute to the backend frameworks.
1. Profile verification - As the users completed the registration, the backend admin should verify the documents in either manually or automated systems.
2. Payment approval - The admin system verifies the acceptable payment methods and validates the users for trading eligibility.
3. Trade fee settings - Trade fees commission can be controlled by admin that includes the addition of crypto support too.
4. Monitor users - Regularly keep track of the users in real-time to avoid suspicious users entering the platform. The improper format of the users can be easily seen in the dashboard.
5. Choose Number of Pairs / Cryptos that can be traded - Admin can set the limitation on the number of crypto pairs that can be traded on the platform. When new crypto is released in the market, it can be added by means of admin.
6. View Pending / Completed Orders - The pending transactions coming through the dispute system can be resolved here.
7. Approved Withdraw - The admin set the automatic approval process for conducting withdrawal in the platform.
8. Liquidity API - When the new exchange is set to operate, there is no history of data in it. To solve this problem, Liquidity API is introduced and it fetches the historical order book from popular exchanges.
Hope you can now figure out the crypto exchange backend and front end in terms of functionality and technology stack.
There is still more in it. If you want to find out how we solved liquidity problems, scalable issues, payment gateway support in crypto exchanges, schedule a call with our experts.
We can also show you a detailed demonstration on crypto exchange architecture if you are interested. Let us know your thoughts in the comments below.