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How do You Build a Cryptocurrency Exchange Service?

This article will provide a workflow that one can use to build a cryptocurrency service, go here!

As always, the most important concern for this type of service is security and safety. It is important that you have tight security features in place to protect your service. For creating a marketplace, there should be a selection of pre-loaded currencies like Bitcoin, BitcoinCash Litecoin Ethereum, BitcoinCash etc.

How can you improve security and safety?

Include features such as,

Google ReCaptcha

Google 2-F.A

Email confirmation process

IP level protection

Secure Primary Wallet

Second Wallet Concept (Cold Wallet)

Google reCpatcha: As you will see, reCaptcha is a great way to stop bots from accessing your site.

Google Two Factor Authentication (G2FA) – With this feature, you can authenticate a user using a live OTP. The feature can be implemented both at the user end and in admin.

You can request an email confirmation for more dangerous activities.

IP protection – You can protect the service by blocking any IP addresses that are not your own.

Primary and Secondary Wallets -Let’s move on to the heart of the service, the wallet. A very secure wallet should be available. It could either connect directly to the node, or use a secure third-party service such as CoinBase. In either case, it is always better to provide users with an automated wallet generated by the service and not outside of the service. CoinBase offers an API that allows this to be done safely.

Consider securing coins even more with a cold wallet concept or hardware wallet. The cold storage can be linked to your exchange platform to transfer coins to the secure location.

Know your Customer -This point is very important. You can adopt a strict KYC method in order to protect the exchange platform. You can request documents to be sent during registration. It would be best to accept the documents out of service and send them via secure email so as to preserve user identities. Consider classifying users based on withdrawal amounts.

Revenue Generation Techniques –As revenue is generated by commissions on all exchange platforms, you could think about making money from any transaction. This includes when you deposit, withdraw, or sell/buy.

Log Complete of User Activities -Logging all user activities properly is important so that when the need arises to inspect them, a log will be available. To make the activity available in hardcopy, it is a good idea to do so whenever necessary.

Statistic -Statistics of your transactions. Current number coins and fiat currencies should all be included.