As per crystalblockchain.com, despite the FATF’s announcement of plans to tighten regulations on P2P platforms, transferred P2P exchange amounts remained relatively stable over the two years before increasing by the end of 2020. The amounts received and sent by P2P exchanges in December 2020 were 164% and 197% higher, respectively, than in January 2019.
Two major peer-to-peer cryptocurrency exchanges received a trade worth more than USD 75 million in a single week in 2020. By 2030, the cryptocurrency market is expected to be worth USD 4.94 billion, up from USD 1.49 billion in 2020.
It’s evident that you are about to go for P2P cryptocurrency exchange development. This article discusses the cost and features of developing a P2P cryptocurrency exchange. You will perceive knowledge about the key features of a successful exchange and what is involved in developing one.
White-label Exchange Vs. P2P Exchange
When it comes to cryptocurrency exchanges, there are two main types: white-label exchanges and peer-to-peer (P2P) exchanges. Both have advantages and disadvantages, so which one is right for you?
White-label Exchanges
- White-label exchanges are turnkey solutions that allow you to launch your exchange quickly and with little hassle.
- They come with all the features and functionality you need to get started, and you can brand them as your own.
- The disadvantage is that they can be expensive, and you may have less control over the platform than you would like.
P2P Exchanges
- P2P exchanges, on the other hand, are more customizable and often less expensive.
- However, they require more technical knowledge to set up and maintain.
So which one is better? It depends on your needs and preferences. A white-label exchange might be suitable if you want a quick and easy solution ready to go out of the box. If you’re looking for something more customizable or affordable, a P2P exchange could be a better option.
How to Build a P2P Cryptocurrency Exchange?
If you are looking to develop a P2P cryptocurrency exchange, there are a few aspects you need to keep in mind.
- Decide which cryptocurrencies you want to support.
- Ensure your exchange is secure and compliant.
- Choose a development team that has experience building P2P exchanges.
Here are some brief tips on how to build a P2P cryptocurrency exchange
- Decide Which Cryptocurrencies You Want to Support
The first step is to decide which cryptocurrencies you want to support on your exchange. There are many different options available, so it is essential to research and choose the ones that best fit your needs. Consider factors like liquidity, trading volume, and market capitalization when deciding.
- Make Sure the Exchange Is Secure & Compliant
It is essential to ensure your exchange is secure so that users can trade confidently. Implement robust security measures like two-factor authentication and cold storage for user funds. You should also ensure that your platform complies with all relevant regulations in the jurisdictions where it operates.
- Choose an Experienced Cryptocurrency Exchange Development Team
When choosing a development team, picking one with experience building P2P exchanges is important. This will help ensure that the platform is built correctly and meets your requirements. Ask for examples of previous work and get references from satisfied clients.
Key Features of a P2P Crypto Exchange
Key features of a P2P crypto exchange include
Robust Trading Engine
A P2P crypto exchange must have a robust trading engine that can easily handle a high volume of trades.
Multilingual Support
An exchange must support multiple languages to appeal to a global audience.
Support for Multiple Cryptocurrencies
It must support a wide range of cryptocurrencies to offer its users a variety of trading pairs.
Advanced Security Features
A P2P crypto exchange must have advanced security features to protect user funds and data.
Crypto Swap
The exchange must offer a crypto swap facility to allow users to convert one cryptocurrency into another.
Fiat On-Ramp
The platform must offer a fiat on-ramp to allow users to buy cryptocurrencies with fiat currencies.
Automated KYC /AML Processes
A P2P crypto exchange must have automated KYC/AML processes to onboard new users quickly and securely.
Multifactor Authentication
It must offer multifactor authentication to add an extra layer of privacy and security for users.
Preferred Trading Partners
A P2P crypto exchange must offer a preferred trading partners feature to allow users to connect with other users that they trust.
P2P Cryptocurrency Exchange Software Development Cost
The development cost of a P2P crypto exchange depends on many factors, including the size and complexity of the exchange, the number of features it offers, and the developers’ experience.
A simple exchange with only a few basic features may cost as little as $5,000 to develop. A more complex exchange with multiple features and a high degree of security may cost upward of $100,000.
The key factors that will impact your exchange’s development cost include:
Security
Exchange security is crucial in protecting users’ funds and ensuring the platform’s integrity. A higher level of security will require more resources and thus increase the development cost.
Scalability
The ability to handle sudden traffic and transactions is essential for any successful exchange. More scalable exchanges will be able to handle more traffic and grow more quickly than those that are not scalable.
UI/UX
An excellent user interface and experience are vital for attracting and keeping users on your platform. A good UI/UX can be costly but worth the investment.
Trading Tools
Depending on the type of trading you want to enable on your exchange, you will need different trading tools. Some standard trading tools include order books, charts, and price tickers.
Wrapping Up
P2P crypto exchanges are becoming increasingly popular as they offer several advantages over traditional exchanges. If you’re considering developing your P2P crypto exchange, it’s important to know the development cost and key features that will make it successful. With careful ideation and execution, you can create a P2P crypto exchange that meets users’ needs and stands out from the competition.
As a top-grade cryptocurrency exchange development company, Pyramidion Solutions offers the development of P2P crypto exchanges at a cost-effective price with all the essential features. Our experts have ample experience in developing crypto exchanges of all types. So, feel free to contact us for your P2P crypto exchange development needs!
