Beginners Guide To Know About How To Build A Cryptocurrency Trading App

You may have heard of Blockchain technology, which is an emerging technology that is motivating businesses to move towards building Cryptocurrency trading apps. If you are also thinking about building a cryptocurrency trading application then there are different ways to do so. This blog would help you know the technical as well as the business aspects of cryptocurrency app development. So, let us get started.

What Is A Cryptocurrency? How Does It Work?

It can be described as a digital currency used to buy services and goods. Well, to secure several online transactions an online ledger with robust cryptography is used today.

In short, a cryptocurrency is a type of payment exchanged to buy services and goods. Blockchain technology is used to manage Cryptocurrencies. Blockchain is defined as a decentralized technology setup over several computers to record and manage transactions. This technology offers complete security.

How Does A Cryptocurrency Trading Application Function?

With some knowledge of Cryptocurrency, you can start cryptocurrencies trading and earning. You will be assigned public & private keys to get cryptocurrencies & approve the currencies transferred to your wallet. The keys are the secure passwords assigned by your cryptocurrency wallet.

Insights To Cryptocurrency Trading Apps and Market Trends

Time is a crucial element in the Cryptocurrency sector and things are prone to change faster because of unstable market conditions. To know how the Cryptocurrency market works, let us look at the statistics below.

As per the market survey, it is predicted that the worldwide Blockchain market will grow to $23.3 billion by 2023. According to the statistics in 2018, the size of the cryptocurrency market was predicted to be $1.2 billion. The growth accelerated in 2019 to $2.2 and its annual growth is predicted to grow.

Nearly, 65% of cryptocurrency users possess bitcoins. Talking about Bitcoin, it is one of the major digital currencies.

As per the stats of Cryptocurrency users for 2021, it possesses nearly 70% of the ownership.

What Are The Popular Cryptocurrency Apps?

While building your Cryptocurrency trading application, make sure you pick the type of app you want to go with. So, let us explore the list of popular Cryptocurrency applications.

1. Cryptocurrency Trading App

It comprises of

• Basic Cryptocurrency exchanges ( Kraken, Bitstamp)
• Decentralized exchanges ( Uniswap, Compound)
• Peer-to-peer trading platforms like Paxful or LocalBitcoins

The crypto exchange app development for such apps is time-consuming and an expensive affair as you need to develop a mobile app accompanied by a related back-end.

2. Cryptocurrency Wallet

It is software that holds the public and private keys for the customers. A Cryptocurrency wallet app helps people to track expenses, sign transactions, and store their respective passwords in one place safely.

3. Statistics Aggregation Platform

These platforms don’t need any special attention while building such a cryptocurrency application except that you need to focus on UI/UX design along with functionality that manages the data collection.

4. E-commerce App

Suppose you own an e-commerce store or exchange service and wish to accept payments in Ether and Bitcoin. Well, you will need to process such payments manually since there are no dedicated payment gateways available in the market that can be included with popular e-commerce platforms.

Steps To Consider for Cryptocurrency Exchange App Development

1. Figure Out The Issue And Establish The Goal

Firstly, you need to set the goal for creating the app. It can be done by knowing the common issues faced by the customers and analyzing the present solution. Next, try to determine how the app will work to resolve the issue. These points will help you pick the right Blockchain solution. Also, carry out a cost-benefit analysis to find out if the app is worth investing in and identify the risks associated with it.

2. Select The Relevant Consensus System

As Blockchain systems are decentralized and need users to confirm each transaction, you need to come up with the right consensus system that suits your app needs. You need to keep in mind different criteria while selecting an ideal consensus mechanism like faith in validators and confidentiality of validators.

3. Select The Right Platform

You can build customized apps using the Blockchain platform without the need to write Blockchain code right from scratch. Some examples of basic platforms are

BigChainDB, Ethereum, Quorum, and Hyper-ledger Fabric, etc. you can check out the criteria that allow you to pick the right platform for your app :

• License
• Activity
• Popularity
• Network type

4. App Model Development

You need to choose from the cloud, hybrid, or internal. Also, you need to pick the relevant Blockchain solution to be integrated. Here, you can consider different models like allowed, hybrid, unlimited, public, private blockchain models. Decide on the right tech stack based on the platform you select.

5. App Configuration

One of the crucial elements of Blockchain application development is its configuration as most components cannot be modified post configuration. So, if you are not sure of the accurate configuration for your app, make sure you consult an expert Blockchain development company.

6. Plan Design of User Interface & Admin Console

Once done with the server components, you can pick the perfect external databases, front-end programming language, and servers for your app. Remember, the user interface should offer the necessary features and come with easy navigation.

7. API Creation

You will find plenty of pre-built APIs, but you may want to go with custom APIs for the app. These APIs facilitate key pairs, data validation, managing smart contract interactions, storing & retrieving data, and address generation.

8. Testing and Scaling

It is recommended to utilize the MVP (Minimum Viable Product) model, wherein creating a functional POC (Proof of Concept) solution & testing it to figure out latencies, crashes, performance problems and memory and storage issues, etc.

The Technology Stack Used For Cryptocurrency App Development

After discussing the development process, let us move on to the tech stack used to create a cryptocurrency app.

• BlockChain Development - Ethereum, Bitcoin, Corda, Hyperledger, and more
• Web App Development - Nest.js, Node.JS, Next.js, React.JS, Angular, PHP
• Mobile App Development – Flutter, React Native and Xamarin
• Back-end Development – AWS, MySQL, Firebase, MongoDB

Monetization Models For Cryptocurrency Apps

• Selling data
• Advertising
• Freemium model
• Application subscription
• Paid applications
• Affiliate marketing
• Transaction costs

Features To Be Considered For Cryptocurrency Trading App

To make cryptocurrency trading apps successful, you need to consider must-have features like :

• Easy Sell & Purchase
• Currency Exchange
• Notifications
• User Authentication
• History

The Cost Incurred To Build A Cryptocurrency App

Well, the exact cost incurred to develop a cryptocurrency app depends on a lot of factors that include :

• App complexity
• App features and functionalities
• Tech-stack used
• Location and cost of the developer

Conclusion

Based on your app requirement, an expert company having experience in building Cryptocurrency trading apps in USA or your city can give you an estimate for Cryptocurrency trading application development. So, if you are looking for a reliable Blockchain development services company to build a feature-packed and robust cryptocurrency trading application, get in touch with X-Byte Enterprise Solutions to get a market-ready app.