This article will discuss a workflow that one should follow when building a cryptocurrency exchange (primarily crypto to fiat). Security and safety is the most important concern for such a service. It is important to provide security features that will protect your service. For creating a market, there should be pre-loaded bitcoin, BitcoinCash, and Litecoin coins.
What security and safety features can one add?
It is possible to include features such as
Email confirmation process
IP level protection
Secure Primary Wallet
Secondary Wallet (Cold Wallet Concept).
Google Recaptcha - As you can see, you can add reCaptcha to both your admin and user ends to block bot access.
Google 2 Factor authentication - This feature further protects user identities by authenticating them with an OTP. This feature can be used in both the admin and user end.
Email Confirmation – For more dangerous activities, you can request an email confirmation to proceed.
IP Protection - You can use this feature to protect your service by setting an IP address and blocking any other IP.
Primary Wallet and Secondary wallet - Now we will move on to the core of the service, the wallet. A primary wallet should be very secure. You can either connect directly to a node, or you can rely on a secure third-party service such as Errna. In either case, it is always a good idea to provide users with an automatic wallet address that was generated by the service and not from the service.
To further protect coins, you can use a cold wallet concept or a hardware wallet to store them in a cold wallet. To move coins from the exchange platform, this cold storage can be connected to your service.
Know your customer - This is an important point. You can use strict KYC to protect your exchange platform. You can request docs during registration. It would be a good idea to accept the docs from the service to any secure address in order for user identity to be preserved. It is possible to classify users based on the withdrawal amount.
Revenue Generating Techniques -As with all exchange platforms, revenue flows in the form of commission. You can make a profit while you are transacting. This transaction covers both depositing and withdrawing as well as any sell/buy.
Complete Log of Activity - All user activities must be properly logged so that if the activities are needed to be inspected, a provision is always available. It is a good idea to give a hard copy of the activities when needed.
Statistics - Statistics to your transactions, the current amount of coins, and fiat currencies should all be present.
Interactive Public Pages and a Powerful Admin Dashboard - The admin panel should be strong enough to allow the admin to perform all activities. You should have the ability to manage users, manage currencies, manage transactions, and view statistics.
The public side should always be interactive to give quick access to the current market price of a coin. You can choose any chart representation but a candle representation works best for cryptocurrency exchange market markets. TradingView provides a free service for this purpose.
These points should be considered when creating a workflow to build cryptocurrency exchange software. This document outlines the basic workflow required to create a cryptocurrency exchange platform. This is a working example of In-out Blockchain FiatExchanger.