There’s no doubt that cryptocurrency is a complex and divisive topic in the modern financial landscape. There are those who are convinced that it’s nothing more than a bubble, but both who are well-informed are able to see the ways in which cryptocurrency can help them both build their fortune and change the way that they use money in their day-to-day lives.
If you’re looking to become a part of that wave, something that you might well have considered is creating your own decentralized exchange. Of course, the idea of doing that probably sounds pretty intimidating. After all, from consensus mechanism to Loopring price, the world of crypto can be complicated. To help dispel some confusion around it, here are 6 tips for setting up a decentralized exchange.
Understand the features of crypto exchange
If you want to create a crypto exchange, the first thing you need to do is understand how they work. A crypto exchange is an incredibly complicated platform. Much like any other platform, you need to be sure that you’re creating the best possible software product. That’s why you should familiarize yourself with the basic features of any decentralized exchange.
- User authorization and verification. The connection process should be simple and verification is essential if you want to avoid the possibility of fraud.
- The trading engine. The users of your platform need real-time data. This means that your processing speed needs to be as fast as possible.
- You need to ensure that the interface is clear and easy to use. No matter what your intentions for your platform are.
Identify potential UX problems
The user experience is an essential part of any digital platform and your exchange is no different. During development, make sure that you’re considering the ways in which people are actually going to be using your platform. When it comes to your target audience, you need to remember that they are likely very tech-savvy. They aren’t likely to pay much attention to a platform that doesn’t provide a simple, easy-to-understand, and straightforward user experience. Make sure that, during the planning stage, you’re putting effort into using visualizations in order to get the best possible perspective on how your design informs user experience.
Focus on the front-end
In the same way that design can have a huge impact on user experience, your front-end development is focused on a similar area. Front-end development is the implementation of your user interface and user experience design. It’s part of development that impacts the look and feel of your platform. This is the point where you go beyond just the design phase and create a user-visible side of your exchange. If you’re looking to engage your users as much as possible, you need to be sure that the front-end development is pulling its weight.
Don’t neglect the back-end
Of course, just because the front end is the area of development that gets seen by the majority of your users, that doesn’t mean that you can get away with ignoring the development that happens behind the scenes. Back-end development is responsible for the logic that powers your exchange. Typical best practices inform the structure of an exchange. It will also be informed by whatever you specifically want your platform to provide to users.
It’s also important to remember that there are plenty of third-party resources. These are available to integrate into the back end of your platform. They can improve everything from functionality to performance.
Make sure that your security features hold up
Security is an essential part of any platform. However, there’s no doubt that there are few circumstances where it’s more important than in a decentralized exchange. When creating a platform that deals in large amounts of digital money, even the slightest security flaw can have devastating consequences. Because of that, you need to make sure that you have the most advanced security functions possible, including an encrypted database and password-protected user access.
Know which currencies you’ll be using
When designing an exchange, one of the most important things that you need to keep in mind is that there are a number of different cryptocurrencies out there and you need to decide which currencies you want to list on your exchange. Your development team needs that information in order to add the necessary coins to the platform. That way, your users can buy and sell the different currencies freely. Consider carefully which currencies your target audience will be looking for. The last thing you want is for your exchange to lack users as a result of you not considering which currencies would be the most valuable to them.
A decentralized, anonymous cryptocurrency exchange is an incredible way to keep your money, and the money of many others free of interference by government and corporate interests, but trying to create an exchange with no information can be incredibly challenging. Hopefully, with these tips and the wealth of information available online, you’ll be one step closer to turning your ambitions of a decentralized exchange into a reality.