How Does Your Cryptocurrency Exchange Compare To The Leading Exchanges? Even the top exchanges saw a number of failures amid an increase in trade activity. Some of the exchanges had to suspend the withdrawals as a result of these problems. After three similar disruptions in January 2021, a Thai exchange received a warning from the Thai SEC to shut down operations and address the problems. It makes sense that crypto exchanges that continue to expand will experience early problems.
However, in order to survive in such a cutthroat market, the white label cryptocurrency exchange development service provider must make sure that the following features are optimized:
Higher transaction per second (TPS) Better trading experiences are supported by a higher TPS value, particularly during periods of significant market volatility. The optimum exchange for the current market condition has a TPS value of over 80,000. The exchange must have a potent trading engine in addition to increased TPS. This makes it possible to match buy and sell orders quickly and with little latency. A measure of an exchange's capacity to process significant numbers of transactions in its order books is latency.
Traders can process their orders on time with the help of an exchange platform with a high TPS and low latency. They can thereby take full advantage of price fluctuations.
Also read: How Do Cryptocurrency Exchanges Help To Grow Your Business?
Multi-layer Security Over $286,933,760 worth of cryptocurrency were stolen from 4 crypto exchanges in 2020. Exchanges need to improve their security as a result of hackers' increasing sophistication over time. The majority of the following security requirements must be included into the exchange using crypto exchange software solutions:
SSL implantation To prevent low-level hackers, Secure Sockets Layer implementation and two-factor authentication are essential.
HTTP Authentication HTTP authentication offers a new level of security to the exchange website when there is a secure connection between the web client and the server.
Jail Login Jail Login places a cap on how many failed login attempts a person is allowed to make. If a user tries to log in using the wrong ID or password, this stops the exchange log in. The user may be locked out until he uses another method of authentication to reset his credentials, such as a few security questions, or this may happen for a fixed period of time.
Anti-Denial of Service (DoS) In the cryptosphere, denial-of-service attacks are fairly common. An anti-DoS layer is necessary to prevent an attacker who wants to shut down the exchange from making many requests to the exchange website.
CSRF and SSRF Protection An accidental action may result from the Cross-Site Request Forgery (CSRF) attack. For instance, the user can decide to modify the email address. It is crucial to have a layer of defense against it.
The server is the target of the Server-Side Request Forgery (SSRF) attack. The server responds to malicious requests as a result.
Multi-sig Wallet The crypto assets are further secured using a multi-sig wallet. To send a transaction in these wallets, two or more private keys are needed. It is comparable to a bank vault that needs more than two keys to open. This wallet must be used by cryptocurrency exchanges as a secure place to save their money.
In addition to the aforementioned features, the development of crypto-exchange software also has some sophisticated features that could increase its appeal. As follows:
Support major fiat currencies For any cryptocurrency user, having a Fiat on-ramp is crucial. Thus, the crypto exchanges can increase their awareness among cryptocurrency users by supporting major fiat currencies like USD, EURO, etc., as well as credit cards.
Scalability enhancement Blockchain scalability problems are another growing discomfort that the cryptocurrency markets experience. The exchanges can aid in accelerating transaction speed by enabling SegWit for Bitcoin and other similar techniques. The separation of the signature data from Bitcoin transactions is essentially what SegWit enables. As a result, a Bitcoin block can now contain more transactions, which improves the network's scalability.
Block confirmation tracking If the cryptocurrency exchange incorporates the block confirmation tracking module, a trader may quickly track the transaction. Higher transparency between the exchange and exchange users is thus guaranteed.
Scalable modular architecture Scalability is the most crucial requirement for crypto exchange development services. This is due to the fact that the market is still developing and that we have reached the point of mass acceptance. The crypto exchange needs to have the necessary infrastructure to support such a significant disruption.
Types of Cryptocurrency exchanges built using White label solutions A white label solution is made to provide both fundamental and sophisticated modules in order to create a fully functional exchange. The kinds of exchanges that can be created are listed below.
• Spot Trading Crypto exchange
• Leverage or Margin Trading exchange
• Derivatives trading exchange (Futures, Perpetual, and more)
• Copy Trading exchange
• Over-the-Counter (OTC) exchange
Conclusions If you are planning to build a crypto exchange, Then You can take help from a reputable cryptocurrency exchange development company. Who can offer customized crypto exchange development services to build an exchange as per your business needs Whether you need a spot trading exchange, a margin trading exchange, or a derivatives exchange. Schedule a free demo of the white label crypto exchange or connect with subject matter experts to share your needs for a custom exchange.
Read more: How Does Cryptocurrency Exchanges Boost Your Business Growth?