Providing a major shift to the traditional financial paradigm, cryptocurrency has revolutionized the meaning of monetary transactions. It is believed to be one of the most advanced, secure and convenient forms of exchange. Secured by cryptography, this currency is digital and does not lie under the control of any single entity.
Cryptocurrency has been one of the very common mediums of exchange in these past few years. Something as significant and valuable as it would require the safest transferring mediums.
So how should one go on with a transaction involving cryptocurrency? What are some of the reliable transfer options?
Let’s have a look at the environment of cryptocurrency and how it is exchanged in India!
With the upcoming crypto investors in our country, peer-to-peer transfers are getting a lot of traction. Other forms of transfer are- via Whatsapp, spot transfers, crypto wallet, telegram groups, etc.
Quoted by The Economic Times in one of their articles, “Industry trackers say P2P crypto exchanges have seen a spurt in other methods such as spot trading, direct buy-and-sell, selling and buying through WhatsApp/Telegram groups and direct buying through mutual friends.”
More than 80% of crypto transfers happen via a P2P structure.
What is a peer-to-peer transaction?
A P2P structure does not involve any middlemen. As a result, a direct transfer can happen between the individuals on both ends. This system gives complete freedom and control over the funds to the users. The popularity of P2P methods is due to the following advantages:
- Secure and safe channel
- Provision for worldwide transactions
- No commission
- No invasion of privacy
- Transaction Censorship
- Convenient payment terms
P2P is an utmost hassle-free solution that serves the purpose most effectively. P2P helps in converting fiat into crypto, and hence, is widely used.
There are tons of software like Binance, WazirX, CoinDCX, CoinSwitch, Zebpay, Unocoin, etc., in India that support P2P transfer of cryptocurrency. All of these aim to provide a smooth user experience and safe transactions.
Entering the world of crypto with efficient P2P software is a great idea! With the help of reliable software, the users can trade easily without any intervention from a third party. Being a crypto exchange software developer sounds like a tedious task, but it is not. In the further paragraphs, we will break down the software developing process that would help you create amazing results.
A crucial step you need to remember before developing any software is researching its target audience. Analyse the people who would use your software.
Once it is clear, consider other factors such as –
- Price fluctuations of cryptocurrency
- Jurisdiction of the country ( legal feasibility)
- Potential competitors in the crypto space
Process of developing a P2P crypto exchange software:
- Initial layout: Have a clear vision of the software you want to produce. The features you would like to include, the kind of coding, gathering adequate resources and more.
- Design for the platform: Once the core idea is decided, it is now time to design the platform. The design should reflect the purpose of the software. It should be eye-catchy, convenient and free from unnecessary complexities. Designing should be done in such a way that it hits all the boxes of a “good” P2P exchange software. The result should be easy to operate and understandable, by both, developer and user!
- Developing: Layout? Done! Designing? Done! What is the next step? It’s bringing these two along with trading engine and integration. So that, a solution can be formulated. It should be effective, functional and easy to understand. A trading engine is an electronic system that collects the open orders and carries on the trade by matching them up with potential end-user. The performance of the engine determines the fate of your developed software because it is a complex piece of software that requires a lot of attention.
- Integration: The process of integration involves a solution that is both, technologically advanced and capable of competing in the market. It is highly recommended to use blockchain for integration because not only does it enhance security, but also maintains the trust between both the trading parties.
- Listing of Tokens: Since transactions are performed in more than just one currency, it is important to keep the data up-to-date, and precise. Token Listing is done so that tokens are listed properly on the respective P2P cryptocurrency exchanging platform.
Costs involved in P2P Crypto Exchange Development and factors affecting it:
The cost involved to develop a P2P software for exchanging cryptocurrency could go above than assumed or determined. Being one of the most commonly used online forms of currency, it takes time and could get costly to launch an online business for the same!
In case you were wondering, what causes such a high cost?
Well, here are some factors that determine the final and operating costs of your developed software:
- TRADING KERNEL: It is one of the essential pieces of an exchanging platform. What happens in Trading Kernel is- a request book is made; the exchanges are controlled and balances are updated from time to time.
- HIGH-SECURITY MECHANISM: Security and privacy are some things that one, as a platform holder, shouldn’t compromise on. From their time of origin, cryptocurrencies have been a victim of cyberattacks. And disregarding the need to secure the platform will have some major consequences. Some features that could be a part of your exchange software are-
- Jail login
- Server-side Request Forgery (CSRF) protection
- Data Encryption
and many more
- ADMIN ACCOUNT MANAGEMENT: An account that keeps a check on client records, virtual deposits and withdrawals is necessary. And that is what an Admin account is!
Some other factors which contribute to the costing are-
- Changes and customization
- Consistent performance of your platform
- Amount paid to the developer, crypto exchange solution provider and other representatives
- Time taken to develop the software
The cost for every cryptocurrency exchange development software differs. Irrespective of the cost, there are some necessary things. Like-
- An expert team
Now that you are well-versed with how a P2P Cryptocurrency software is developed and operated, it would assist you to start. The crypto market is expanding more and more and now is the right time to get into it. With the right knowledge of the process and costing it takes to start a peer-to-peer transaction platform, you can stay in the market for a long duration!