Over the past few years, it has been proved that the best way to make money with cryptocurrency is by exchanging or trading them. This is because the value of Bitcoin has risen by 1000% since 2009.
Basically, a cryptocurrency is an encrypted, decentralized, and secured digital currency. Anyway, it needs to be exchanged, and due to this, the cryptocurrency exchange platform has come into limelight and has become the demand of the holders.
A Crypto exchange platform offers you service to exchange the cryptocurrency into the currency you desire.
In the crypto exchange platform, the process of relieving the fund is fast and straightforward. The user can apply for the process at any time, and the process will be completed in a matter of minutes.
Now, let us discuss the internal architectural components that are used in the crypto exchange platform.
Components of Crypto Exchange Platforms
There are four main components of every exchange platform, and they are the basis of any exchange software.
- Trade engine
- User interface
- Wallet
- Admin panel
Trade engine
The trade engine component accesses the order book and matches the buy and sell orders. It also calculates the current balance and executes the transaction.
It is considered as a core of any exchange because, without a trade engine, the exchange cannot function.
User interface
This is the second component of the exchange platform. It is necessary that the user interface must be friendly, yet professional, and intuitive.
Additionally, as the use of smartphones increases, launching an application for mobile devices makes the exchange more accessible and attracts more users.
Ideally, the user interface should enable some basic features to users namely,
- Register and access an account
- View current order book, past transactions, current balance, statistics, etc
- View market trend
- Place buy and sell orders
- Deposit, withdraw and maintain a portfolio
- Access the support mechanism
The wallet
The crypto wallet is the main component where tokens are stored, and it requires maximum security.
There are various types of wallets available in the market. The hot wallet allows customers to instantly withdraw currencies to their external wallet without the need for approval from the exchange operator. There are other wallets like cold wallets, paper wallets, and desktop wallets.
The admin panel
The admin panel of the crypto exchange operates the management software and business intelligence.
It provides the exchange operator the control to manage the exchange. The primary function of an admin panel should include
- Altering liquidity
- Managing currency like BTC, USD, ETH, etc.
- Crediting fiat deposits or debiting fiat withdrawals requested by the user.
- Editing the spread and trading fees
- Admin panel coin exchange software.
Conclusion
Along with these essential components of a crypto exchange platform, there are more components to be considered, and also they hold the same importance as the previous four. If you need further information on the exchange platform, get in touch with a cryptocurrency exchange development company that develops a highly secure, scalable, and reliable exchange platform.
