How to Develop Your Own Crypto Exchange App like Coinbase?

Let’s understand how to Develop a Crypto Exchange App

Dealing with cryptocurrencies is not a challenge anymore. People are getting more into dealing with digital assets seamlessly. All thanks to crypto trading apps available in the market. 

One prominent name in this industry is Coinbase, which has become popular due to its simple user interface and high-end functionalities. It has made it easier for newcomers to trade crypto like a pro. 

The growing demand has influenced businesses to develop a crypto exchange app like Coinbase. This is why, they seek a complete roadmap to create a crypto trading platform. 

To help you start your own crypto exchange business, we have mentioned steps with different monetization strategies to generate ROI. 

Crypto Exchange Market 2024

It is estimated that the global market for cryptocurrency exchange platforms will be worth $264.32 billion by 2023.

Coinbase has set a new benchmark for new crypto exchange businesses. Its progress has influenced companies to invest in crypto trading app development. 

• In 2023, Coinbase made $3.11 billion.
• In the 2024 Q1, they made $1.64 billion.
• In Q1 2024, $312 billion was traded on Coinbase.
• In March 2024, users had $334.71 billion in assets on Coinbase.
• It has more than 8 million active users.

This growth has influenced businesses to invest in developing a crypto exchange app like Coinbase.

What is a Crypto exchange?

A cryptocurrency exchange is where you can quickly buy and sell cryptocurrencies. You can trade one cryptocurrency for another, like exchanging Ethereum for Bitcoin. 

There are different types of crypto exchanges-

As you can see Coinbase is of Centralized Crypto Exchange platform.

Developing a Coinbase-like crypto trading app requires investment. So you must know the reasons to invest and how it can help your business be profitable.

Reasons to Invest in Crypto Exchange Apps like Coinbase

Here are some reasons.

• Increasing cryptocurrency adoption- Cryptocurrencies go beyond finance. They are getting recognized and adopted across industries like healthcare, real estate, and gaming. Because of this, businesses should invest in crypto apps to reach more industries worldwide.
• Revenue stream generation- with multiple monetization strategies, any business can simply generate diverse revenue streams for better ROI. we will discuss monetization strategies in this blog later.

• Its expanding role in the Fintech Market- Crypto is significantly changing the fintech landscape, as a crypto trading app has made it easier for users to easily deal in cryptocurrencies at any level.

Steps to Develop Your Own Crypto Trading App like Coinbase

Creating a great cryptocurrency exchange is easier if you have a clear plan.

A good plan helps make app development and launch go smoothly and quickly. Let’s look at the steps in this plan.

1. Find the Problem

Start by understanding your customers’ problems and how your crypto exchange can fix them. This means researching common issues and seeing what solutions are already available. Then, figure out how your app can be different and better.

Compare costs and benefits to determine if developing a new app is a good investment. Also, consider any possible risks.

2. Define the Project Scope

Decide what your crypto exchange will do and include detailed features for your app.

It’s risky to start building without a clear plan. Defining the scope helps developers know what to create. It also helps the project team estimate the time and effort needed.

You’ll need to get approvals based on this plan later on.

3. Choose the Type of Exchange

Choosing the right type of crypto exchange is key as it affects how your trading app will function. There are three main types: Centralized, Decentralized, and Hybrid. For a Coinbase-like app, you should go with a Centralized exchange.

4. Design UX/UI

For your cryptocurrency exchange website or app to be engaging and user-friendly, focus on design.

Here’s what you should do:

• Plan Your Brand: Decide on how your app will look and feel.
• Create a Prototype: Build a basic version of your design.
• Test with Users: Get feedback by letting real users try it out.
• Update the Design: Make changes based on the feedback you get.
• Check with Developers: Ensure the design works with blockchain technology.
• Hand Over to Development: Give the final design to your development team.

This step will give you a design that should attract and satisfy users.

5. Front-end and Back-end

Now, it’s time to code.

• Front-End Development: This is what users see and interact with.
• Back-End Development: This handles the behind-the-scenes functions.

You’ll start seeing results as the first versions of your app are ready to test. Give feedback during this stage to fix any issues early.

You’ll need two types of developers:

• App Developers: For traditional app functions.
• Blockchain Developers: For handling the cryptocurrency features.

6. Pick a Location

Decide if your app will be global or regional. You’ll need the right licenses and approvals to run your crypto exchange smoothly. Laws about crypto vary by location. Some places have no rules, while others have strict regulations. Keep an eye on new laws or changes that might affect your app.

7. Partner with a Payment Processor or Bank

You’ll need a payment processor or bank to handle payments in regular currencies. Find a bank that offers online services. This is especially important if you’re in a country where banks don’t process instant transactions, which can take days to complete. Customers prefer banks that provide quick transactions and fast fund transfers.

8. Get a Liquidity Provider

Liquidity is crucial for your crypto exchange. The success of your platform depends on how quickly assets can be exchanged. Users prefer exchanges with good liquidity and tight spreads.

To improve liquidity:

• Connect your exchange with other businesses using APIs to share liquidity and trade volumes.
• Join an exchange network to boost your liquidity.

9. Ensure Strong Security

Crypto exchanges are prime targets for hackers. It’s important to have strong security measures. Use features like two-factor authentication and multi-signature wallets to protect your platform.

Keep users’ funds and records in secure cold wallets. Transfer funds between hot and cold wallets quickly but securely, without compromising traceability. Also, set up a solid KYC process to ensure safety for everyone.

10. Test Your Exchange

After developing your crypto exchange site or app, it’s time to test it thoroughly before launching.

Here’s what to do:

• Testing: Start testing during development. This final QA step checks if everything works as it should.
• Release and Deployment: Set up DevOps to keep your app running smoothly and make updates without causing downtime.

The goal is to ensure your app remains online and functional at all times.

This is a basic outline of the crypto exchange development process. Expect some changes based on your specific needs.

Features to Consider for Your Crypto Trading App Like Coinbase

Having advanced features with an easy interface can help your crypto trading app to stand out. You must focus on what features you must have to create an app like Coinbase. To help you, we have listed a must-have list of features for outstanding user experience and seamless trading.

Trading Engine

The trading engine is the core of a crypto exchange. It handles:

• Executing trades
• Calculating balances
• Accessing order books
• Matching buy and sell orders

User Interface

It should be simple and easy to use, that must include

• Let users place orders
• Show transaction history with filters
• Provide access to charts and indicators
• Allow easy fund deposits and withdrawals

User Management

For a large user base, seamless user management is key. Important aspects include:

• Sign up/In: Keep the registration process quick and simple.
• User Creation: Decide if users can create accounts themselves or if admins handle this.
• User Verification: Implement KYC (Know Your Customer) checks for verifying identities and setting account limits.

Admin Panel

Admins need tools to manage users and trades. The panel should let admins:

• View user details and transactions
• Changing trade fees
• Handle and list cryptocurrencies
• Handle support issues and fund accounts

Crypto Wallet

A crypto wallet is essential for sending and receiving digital currencies. Key features include:

• Types of Wallets: Offer various wallets like hot, cold, desktop, and mobile.
• Withdrawals and Deposits: Allow users to handle transactions via email, QR code, and other methods.
• Transaction Creation: Ensure smooth buying and selling of cryptocurrencies.

Analytics

Analytics help track and understand exchange activity. It includes:

• Logs: For monitoring activities
• Charts: For visualizing data

Database

Your crypto trading app needs the following databases:

• REDIS: for fast processing
• SQL: Reliable and secure to store crucial data.

Cryptocurrency Support

Your crypto trading app must support various cryptocurrencies. This attracts more users and offers multiple trading options. Coinbase supports 240+ assets.

• Fiat Integration

Allow users to add and withdraw old currency like USD, EUR, INR, or GBP. This helps new users shift from old banking to crypto trading.

• QR Codes

Integrate secure QR code scanners for easy transactions. Ensure high-level security with strong encryption measures to secure transactions.

• Real-time Alerts

Use push notifications to keep users updated on market changes, order statuses, and important news. This helps users make real-time decisions and stay informed.

Technology Stack for Developing Crypto Exchange App Like Coinbase

Picking the right technology is key for your app to run well and grow.

Using advanced tech with strong frameworks, scalable databases, and fast servers might cost more at first but will perform better and handle growth over time. Here’s a quick look at the technology used for apps like Coinbase.

The cost of building an app like Coinbase isn’t fixed. It depends on several factors, such as:

• Where the developers are located
• How complex the app is
• What platforms does the app need to work on
• The technology and tools used
• The design and user experience requirements

Let’s look at these factors more closely to understand the costs involved in developing a crypto exchange app like Coinbase.

Key Challenges in Coinbase-like Crypto Trading App Development

Developing a crypto trading app is profitable, but offers some challenges that you must consider to stand out.

Rising Competition

To stand out among other rising crypto apps now is challenging. You can witness new apps entering the market daily with strong business propositions, making it hard to compete in the highly evolving crypto market.

Solutions:

• Offer a smooth, and hassle-free user experience.
• Explore opportunities in the mobile crypto market.
• Include different cryptocurrencies to trade.
• Offer different trading options.
• Consider adding a decentralized exchange system to your strategy.

Scalability

Handling thousands of users and transactions can be tricky. Problems might include slow transaction speeds, delayed transfers, and frequent lags.

Solution: Build a strong backend architecture with load balancing to handle high traffic and many transactions efficiently.

Security Risks

Keeping user information and funds secure from breaches is crucial. Your app must guard against hacking and significant fraud.

Solution: Use high-end security measures like encryption, multi-factor authentication, and regular security checks to protect your app and its users.

Keep these challenges in mind to improve your business proposition in the crypto market.

How to Make Money with a Crypto Exchange App

Here are some effective ways to earn revenue from a crypto exchange app, like Coinbase:

• Transaction Fees

Charge Fees on Trades: Collect a fee every time users trade cryptocurrencies. This fee can be a percentage of the trade amount or a fixed amount.

Withdrawal Fees: Also, charge a fee when users withdraw their funds. This adds another revenue stream.

• Premium Memberships Create a membership plan that gives users access to extra features. These could include:

Advanced trading tools

One-on-one sessions with crypto experts

Exclusive educational content

• Lend Money for Interest You can provide loans to users and charge interest as per your requirement.
• Listing Fees- Today, businesses are launching their own cryptocurrency that they want to list on various platforms. They are willing to pay for the listing. You can charge them to list their cryptocurrencies on your exchange. 

You can implement one or more monetization strategies to start earning revenue from your crypto exchange app.

Launch Your Brand Faster with White Label Crypto Trading Platform

You can either choose to start developing your app from scratch or use white-label crypto trading options. However, white-label solutions will help you launch your brand faster than new developments. 

If you go by the off-the-shelf option, then you can leverage the below benefits.

• Quick brand launch
• Low-cost development
• Customization of UI/UX to align with your brand
• 100% Code Ownership
• Latest technologies and integrations
• Advanced features
• One-month free support post-launch
• Top Security

Overall, a white-label crypto platform offers many benefits. Contact a reliable provider to get started quickly and effectively.

Transform Your Crypto Trading App Journey with OnGraph

The cryptocurrency industry is growing quickly. Millions of users are joining from all over the world. This shows that crypto platforms are becoming essential in the digital economy.

If you want your crypto business to succeed and stand out, contact OnGraph. We are a trusted company for building cryptocurrency exchanges.

Our expert developers will help you through every step. From detailed planning to setting budgets, launching, and maintaining your platform, we cover it all. We’ll give you a deailed quote for development costs and timelines before we start.

Get in touch with us today to build a secure and scalable crypto app like Coinbase.