Setting Up a Decentralized Cryptocurrency Exchange (DEX); Guidelines and Tips
Crypto owners buy or sell their cryptocurrencies on Exchange platforms. As you know, three categories of crypto exchanges are popular as of now, and there has been no new development on top of that. There are Centralized, Decenter and Peer-to-Peer exchanges. In this article, I will share my research to examine all the details of decentralized crypto exchange platforms and summarize how we evaluate them when it comes to the project context. Let’s start…
What is the Blockchain Decentralized Crypto Exchange Platform?
- Decentralized exchange platforms are the channel that allows trading partners to connect and perform transactions without any centralized management or third-party intervention. Decentralized crypto exchanges are much safer than centralized exchanges because trading partners do not transfer their crypto assets to exchange wallets.
- DEX (Decentralized Crypto Exchange Platform) maintains databases on the distributed network of a blockchain infrastructure, thus avoiding single-point error and vulnerability. Now traders are shifting their preferences to decentralized and P2P crypto exchanges for more security.
The Components of the Decentralized Crypto Exchange Platform (DEX)
Administrator (Admin) Module
The admin module should be designed to be completely user-friendly, so that even people without technical experience should be able to manage it easily. When dealing with exchange platforms, you need to be able to create monthly reports, verify customers, send email notifications, and authorize access to multiple administrators. You must install an easy-to-understand admin module for the crypto exchange platform, this is our sine qua non requirement.
User (User) Module
The exchange platform should have a user module that allows people to buy and sell cryptocurrencies according to the strategies they want. Users may want to implement arbitrage, market creation and reflection strategies. Before launching the exchange platform, test the user module with all its functions.
Trading And Matching Bot
The matching mechanism is considered an important component of the DEX platform. The bot matches order requests on the exchange platform and connects trading peers. The advanced trading mechanism should be designed with automated trading strategies for paid subscribers and users.
Liquidity API
The liquidity of assets is the biggest concern for many crypto users. Therefore, your decentralized crypto exchange platform should be integrated with the liquidity API. Your users can trade within the exchange platform to earn lucrative income by trading cryptocurrencies.
Wallet Integration
Crypto traders receive their traded money from exchange wallets. Therefore, your decentralized exchange platform should be associated with highly secure, multifunctional authorized wallets.
User Face (UI)
Each application should be designed with a functional user interface so that users can perform their operations without any obstacles. the exchange platform should be created with the compatibility of multiple devices such as mobile, desktop, tablet.
In order to design the above-mentioned components, you must be aware of the process on the decentralized exchange platform. Let’s examine together how decentralized crypto exchange transactions take place.
How to Develop a Cryptocurrency Exchange Platform?
I will give you a point-by-point summary without confusing you during the detailed process progress :)
- The user must register on the decentralized exchange platform with the necessary information.
- The crypto owner who wants to sell his asset can send the order request to the trading platform. The owner sends the sale request with the following information:- Number of Coins/Tokens,
- The cost of cryptocurrency,
- It’s time to make an offer.
- When investors are satisfied with the order demand, they can make an offer in accordance with their conditions.
- Transaction orders are executed if the persons making transactions accept each other’s order requests.
- Crypto investors can also create order requests if there are no matching orders on the exchange platform.
Now let’s take a look at the steps to establish a decentralized crypto exchange (DEX) platform. Let’s try to review it with uncomplicated titles without getting confused again.
How to Set Up a Decentralized Cryptocurrency Exchange (DEX) Platform?
Scan the market area well and be sure to examine the transactions. Analyze the characteristics of your competitor such as Changelly, Wavex DEX, EtherDelta, IDEX, Cryptobridge.Centralized and Decentralized Crypto Exchange A decentralized crypto platform (DEX) is an exchange platform that is not managed by any central authority. People use these Sundays to trade and buy crypto. Also, on the DEX platform, a private key is controlled only by the user.
Collect capital It is imperative to establish a relationship with capital funds together in order to start a business. You need to raise the necessary funds to create a decentralized exchange platform by consulting professional people.
Combining a List of Features, create your decentralized cryptocurrency exchange platform with advanced features and an elegant, great user interface. I would like to share with you a list of the features that the community wants within the framework of our business experience and ecosystem. They are missing here and there will of course be substances that need to be added. You can also make additions as you think, the tip is open :)
Some features for a decentralized cryptocurrency platform (DEX) :
- Integrated IEO Module (Integrated Module)
- Margin Trading (Margin Trading)
- Security Token Exchange (Security)
- Mobile Application support for Android, iOS (Mobile Application Support)
- Liquidity API (Liquidity)
- Atomic Swaps (Bartering)
- Multi-currency pairing (Multi-Currency)
- Crypto Wallet Integration (Wallet Integration)
- Admin Console (Admin Panel)
- Issuer Console
- Trading Bot (Trading Bot)
- Cryptocurrency Price Ticker API (Price API)
- Rest API
- Leverage Trading (Leverage Trading)
- Referral Program (Referral Program)
- Multi-language support (Language Support)
- Payment Gateway Integration (Pay Integration)
- Market Making (Market Maker)
- Matching Engine (Matching Mechanism)
- Futuristic CMS
Location (Country) Selection
As you know, not all countries accept crypto payouts. Some governments have designed harsh regulations to restrict crypto transactions. Some of the countries that allow decentralized cryptocurrency trading are the USA, Germany, Switzerland, Brazil, Luxembourg, Hong Kong, Malta, Estonia and Bermuda. If our country makes initiatives that pave the way in this regard, some of the money that is in motion in the ecosystem will flourish in our country.
Reviewing Legal Regulations and Lawsconforming to judicial laws is an important process of every business setup. Launch your crypto exchange platform by following the rules of law. To be on the safer side, you should work with a legal adviser to check the norms.
Select the Development Team You can select the Crypto platform development team according to their technical expertise, project portfolio and price offer. The team should have a team of blockchain developers, front-end developers, marketing specialists, business analysts and other people to support your project.
And Launch Your Platform! You can launch a decentralized cryptocurrency exchange platform for the target audience! Your decentralized exchange platform should be delivered to the crypto community with innovative marketing techniques. Start marketing your Dec platform on the community portals, search engines, social media and advertising campaigns that are suitable for you.
RESULT
Decentralized crypto exchange platforms have gained great popularity recently due to their anonymity, scalability, security features. I predict that when you set up the exchange platform at the earliest, you will soon be able to gather a large user base. The recent story of the collapse of CEX (Central Platforms) has led the user side to where it should belong. I also believe that such platforms will be able to operate intensively in 2024, and that many CEX (Central Platforms) will make efforts to operate in this area.
I hope I was able to put forward a useful content in a summary nature. There may be places where the work needs to be interpreted in addition, both with the blockchain philosophy and within the framework of financial realities October. I would like to thank everyone who has patiently read my content so far and taken an interest ;)
Note: This article was prepared by Tahsin BÜYÜKYAVUZ on behalf of TriO Blockchain Labs It can be used as open source information.
