The cryptocurrency trading is evolving spontaneously and people around are seeking the quality exchange platforms that will hold the features to do secured trading and exchange. Nearly everyone in the Blockchain space has realized the fact that the decentralized exchanges are going to be the future of Cryptocurrency trading. This is because, in today’s scenario, trading digital currencies are neither secure nor simple.
Many Centralized exchanges have faced issues regarding security in recent years. The best solution for all these would be decentralization.
“Decentralization refers to the absence of a centrally controlled server along with the distribution of nodes in a network.”
When the trades are carried out in the peer to peer manner, as on a decentralized exchanges it would become beneficial. This is due to the non-involvement of an intermediary to hold and manage user's funds, thus making the trading processes more secure and simplified.
As crypto exchanges are getting popular so as the Cryptocurrencies among the users, the decentralized exchanges are becoming as the need of the hour. Entrepreneurs have a good opportunity to make an entry in the Crypto space with a top-notch Decentralized Cryptocurrency Exchange.
This article will prove as a guide for your Decentralized Exchange Development.
Decentralized Exchange script- Decentralized exchange script is a website script that enables one to set up a Decentralized Exchange website. As many existing exchanges are centralized, the development of a Decentralized Cryptocurrency exchange will be fruitful. It will enable users to perform a decentralized fast and secure exchange across the globe.
The foremost functions an exchange platform will serve irrespective of their Centralized or Decentralized Statuses include-
Deposit for financial assets as Capital deposits.
Order books or the financial tool that includes the buy and sells orders that are made for specific security and are organized by price level.
Order matching, that includes the process in which the exchanges execute security trade by matching buy orders with sell orders.
The Asset Exchange, where the asset accounts are involved in a transaction.
In a decentralized exchange, all these key functions need to be decentralized. But in major exchanges only asset exchange is decentralized. This is because the transaction will be stored in the Blockchain with no entity controlling them. The other three functions mainly the capital deposits are typically centralized.
Components of Decentralized Exchange
The following attributes are important to set a quality Decentralized Exchange
Trading and Matching Engine- This is an important component of the DEX system. It should also contain Order Books as well as Trading Bot Engine using Blockchain Technology.
Graphical user Interface- This is from the architectural point of view that has to be applied for varied devices like mobile, desktops, etc.
Cryptocurrency Wallet Integration- A secured Wallet with two-factor Authentication and Email Login etc should be imbibed.
Admin Module- As the owner of your Exchange platform you will be able to make desired changes to your platform with the Admin Module.
Liquidity API- Setting up Liquidity API with the external exchange as it will prove to play a greater role in building the Best Decentralized cryptocurrency Exchange Software.
Once a token owner places a sell order to exchange their token digital assets the, platform, the owner will provide the following set of details- The number of Crypto assets, the cost of the asset, total bidding time.
After the selling order is set, the traders can start buying by submitting their bids for the buy order.
As the time for the bid expires, the bids will be reviewed by both the parties and the order gets executed.
Simply, in the best decentralized Crypto Exchange, a user can easily log in to the platform and to their respective Cryptocurrency wallet. Then, they can submit a buy-sell request to the exchange. This is followed by the execution of orders through smart contracts of the DEX.
Set up the Best Decentralized Crypto Exchange (DEX)
The process of setting up a Decentralized Exchange is similar to that of any other exchange platform (centralized/ hybrid). One has to gather required funds and have to come up with unique business requirements to make the exchange a massive success. Then comes the choosing of desired location/ crypto-friendly countries for the launch of your exchange so that their guidelines will be in favor of your exchange business.
Integrate the technical features that are best in class for your DEX cryptocurrency Exchange to stand high as this will attract lots of traders to your platform. Also, include top security mechanisms in your Crypto Exchange Platform that includes-
Anti Distributed Denial of Service (DDoS)
Server Side Request Forgery Protection
HTTP Parameter Pollution Protection
Anti Denial of Service (DoS)
Cross-Site Request Forgery Protection
Last but not least marketing your DEX platform is much important. For all these to be perfect you need to choose the right Cryptocurrency Exchange Development company, so that all your exchange development process can be carried out smoothly and effectively.
Decentralized Exchange Development will be the best choice for the following reasons-Anonymity, Ease of Scalability, Ownership (no intermediary persons), High Security.
This can be said without a doubt that the Decentralized Exchange is going to be the future of the Crypto trading industry. Thus, you can reap huge profits by building your own best DEX platform
Pulsehyip is a top-notch Cryptocurrency Exchange Development Company, that provides you the ready-made script for your Decentralized Exchange Development. Having wide knowledge on the development of secure, reliable and scalable blockchain for start ups and entrepreneurs, we provide the Decentralized exchange script that will help you to launch your DEX effectively and sooner.