Decentralized Crypto Trading Development in Detail

By Suffescom Solutions

July 05, 2022

Trading became complicated with a centralized system. People are not aware of the authenticity of these tradings and do not even have the power to manage them on their own. Many of you might have been into centralized exchanges so far which proved to be unsuccessful. 

Considering this problem of users, a new decentralized exchange platform has taken a front seat and put the traditional exchange market at bay. Through this decentralized platform, traders can directly deal with each other; thus, making the platform transparent and safer for making transactions. There is no doubt that decentralized exchange technology will be accelerating the way we do transactions and give a boost to our existing financial systems, allowing people to trade directly without any middlemen.

This emerging use case of decentralized trade platforms arises the need for decentralized trading platform development. There are several companies competing in the market to develop decentralized crypto trading platforms, but Suffescom is the most reliable firm dealing in crypto trading. We have a team of analysts who look after your requirements and provide suggestions if required.

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Get some deep insight into decentralized trading platforms!

What do you know about Decentralized Exchange (DEX)?

Decentralized Exchange is the platform where trading of digital currency is done. Being this platform is decentralized, it allows peer-to-peer transactions, eliminating the need for intermediaries. While in traditional centralized exchange platforms, intermediaries are involved who regulate the whole process of transactions between buyers and sellers. 

Also Read: Understanding Crypto Artribage Trading & Bot Development

Decentralized trading platform is built on cryptocurrency technology. The whole process of this decentralization revolves around smart contracts. All the rules or processes to be followed for transactions are stored in these smart contracts. All the assets or digital currency is stored in blockchain and consumers become the owner of all their deposits. That is transparent transactions without any single point of failure.

Before knowing more about DEX, it is also crucial to know the difference between decentralized and centralized platforms.

Difference between DEX and CEX

DEXCEX
Decentralized exchangeCentralized exchange
Not based on internal serversIt is based on internal servers
Exchange is regulated using smart contractsExchange is regulated through third parties
The custody of private keys remain in possession of the usersNo control over their private keys
High-security levelLess secured against hacks or attacks
Minimal trading feeHigh trading fee
DEXs are autonomous and do not require registrationKYC and AML are necessary
NO government regulationsGovernment regulations prohibit users from certain areas

Decentralized crypto trading platform development

The development of blockchain-powered crypto exchange platform has become a necessity after the failure of traditional exchange platforms. Since this platform is regulated through smart contracts, it is also possible to do trading between 2 different cryptocurrencies. Decentralized exchange platforms, make users realize the true potential of peer-to-peer transactions. Build a remarkable decentralized trading platform by hiring expert developers.

Any skilled team of the crypto platform will begin the development process by thoroughly examining the market, competitor list, requirements of the business, and the type of exchange platform. Below listed are a few common steps that are involved in the development process of a decentralized trading platform.

Steps involved in decentralized crypto trading platform development

Step 1- Research and analysis

The first and foremost step in the development process is the research. The team of developers and engineers listens to your business requirements and analyzes the market accordingly.

Step 2- UX/UI design

Designers then come into play. They design compelling visuals based on your specifications and market research. A highly interactive UX/UI design will assist in more user engagement.

Step 3- Development

The development team builds a robust decentralized exchanging platform customized to meet your needs, using blockchain technology and smart contracts.

Step 4- Enhanced security functions 

Some dedicated service providers also add security safeguards to ensure that the platform is reliable for you as well as your users.

Step 5- Placement of digital currency 

During the development process, the digital currency is added to your decentralized exchange platform, based on your selection of cryptocurrency list.

Step 6- Testing

After development, thorough testing is carried out to remove any bugs or glitches from the decentralized platform.

Step 7- Deployment

After rigorous testing, your decentralized trading platform is ready to be deployed on the blockchain network to carry out crypto exchange operations.

Step 8- Support

Post deployment, DEX service providers conduct periodic checks to ensure the smooth functioning of the platform.

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Exclusive features of a Decentralized Exchange (DEX) platform

A decentralized crypto exchange platform comprises exclusive features. When you are planning to build a DEX platform, there might be some characteristics that you would like to have in your platform. In addition to all the features that you might have in your mind for your DEX platform, below listed are some of the common characteristics included in a crypto exchange:

  1. Admin panel and user dashboard

A robust admin panel will assist the product owner in keeping a vigil eye over the daily business operations to regulate them better.

  1. Verification of users

Verification of users is done to ensure the reliability of users and make the process as transparent as possible.

  1. Analytics

Analytics allows DEX owners to stay up-to-date with the latest industry trends and develop business strategies accordingly.

  1. User interface (UI)

A user-friendly and feature-rich interface is all you need to engage the audience. If you succeed in attracting customers, you may take our business to the next level.

  1. History of transactions

The other most promising feature of the DEX platform is that it stores the complete history of transactions, including deposits and withdrawals. In this way, users can keep track of their transactions.

  1. Notifications & Alerts

Push notifications are sent to ensure that you or your users will not miss any important events or announcements.

  1. Two-factor authentication

Security is the top priority of the DEX platform; therefore, 2-factor authentication security protocol is integrated with users' wallets for secure transactions.

  1. Smart contracts

Smart contracts are deployed in the DEX platform for the smooth working of the blockchain-based decentralized exchange platform. Smart contracts ensure the platform's reliability and build trust among users to continue with transactions.

  1. Payment Gateways

DEX platforms are compatible with numerous payment gateways to make the transactions comfortable for users.

  1. Peer-to-Peer trading

The decentralized crypto trading involves peer-to-peer transactions. Thus, a direct communication line is built between both of them.

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Types of decentralized exchanges

  1. Order Book DEXs

Order Book DEX is the earliest version of decentralized exchange development. Some existing Order Book are LoopRing, Gnosis Protocol, and IDEX. An algorithm is used to track trades. These are further distributed into 2 types: 

  1. On-chain Order Books

On-chain order book DEXs are those whose open-order information is stored on the chain.

  1. Off-chain Order Books

These DEXs store the order books off the blockchain networks.

  1. Automated Market Maker DEXs

The next version of DEX is Automated Market Maker (AMM), which removed the intermediaries from the whole process of digital exchange. The trading of cryptocurrencies on AMM DEXs is carried out using liquidity pools. It resulted in reduced labor costs and an efficient decentralized exchange platform.

  1. DEX aggregators

This type of decentralized exchange is new in blockchain technology. A DEX aggregator sources liquidity and provides users with the best swap rates than any single DEX. It ensures high liquidity pools and reduces the probability of failed transactions.

Advantages of Decentralized Crypto Trading Platform

  • Ownership

The beauty of DEX lies in the fact that it is not a central entity. So, the user is the owner of his assets.

  • No KYC

DEX is purely working on tokens or digital assets, i.e., no fiat money is involved. Hence, it does not require any KYC, and your privacy is maintained.

  • Variety of crypto currency

The DEX platform provides a wide range of digital currency and tokens for exchange. Users are free to select any number of crypto to begin the exchange.

  • Governance

Decentralized trading platform offers governance tokens to its users which make them eligible to take part in any sort of decision-making process.

  • Protection of data

DEX ensures no loss or exchange of personal data between the two parties as it works in smart contracts.

  • Low trading cost

The decentralized server network ensures low-cost trading as compared to centralized exchange platforms.

  • Secured

Since it is based on blockchain technology and does not involve any central entity, thus eliminating attacks like hacking or phishing

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Why choose Suffescom for Decentralized crypto trading platform development?

Suffescom is a top-rated service provider in developing decentralized crypto apps. We hold immense experience and broad knowledge in blockchain technology. Our numerous successfully delivered blockchain-powered projects have built our impeccable reputation in the market. We always leverage secure, scalable, and reliable solutions for our clients to make them stand out from the competition.

Bring your project requirements to us and our team will understand the intricacies of the DEX development and work towards perfection!

What else do we offer?

  • 24/7 technical support
  • Customized white label solutions
  • State-of-the-art technology
  • Team of blockchain experts

How much does it cost to develop the DEX platform?

A fully-featured DEX platform would cost anywhere between $ 57000 to $ 1,45,000. However, there are many factors involved in deciding the price of the DEX platform development. Factors contributing towards finalizing the development cost are:

  • Complexity of the app/software
  • No. of features included
  • No. of hours required
  • Size of team
  • Location of the project

Lastly, the selection of the dApp Development company also plays a vital role in deciding the cost of the development. Some prestigious firms with guaranteed services can cost you more, while some new organizations that have just entered into DEX development services may cost less.

Conclusion

When the whole world is moving towards blockchain technology to find a better trading solution in cryptocurrency, decentralized exchange development is becoming their savior. With numerous benefits of the DEX platform, starting one’s own decentralized exchange platform for users would be beneficial. 

It is also an undeniable fact that centralized exchanges still exist in crypto markets. Yet, it comes with many flaws like keeping the privacy of traders and investors at stake, the occurrence of attacks, no tracking of assets, etc. Therefore, to overcome all these issues of CEX platforms, DEX platforms are emerging with high-security levels for traders.

Though it might seem a daunting task to create and build a decentralized crypto trading platform from scratch; however, hiring experts of DEX developers will solve the purpose. At Suffescom solutions, requirements are analyzed thoroughly to provide 100% customized solutions to clients. 

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