How to Create an Exchange of Cryptocurrencies and Bitcoin

The first thing you should know is that the growth of Bitcoin specially in its popularity is increasing every time and you probably want to know how to start a Bitcoin exchange. Analysts show people that cryptocurrencies correspond to the popularity of Bitcoin and is the new sensation. However, the entire planet uses it in protected transactions. The Bitcoin exchange rate is USD 4,242 = 1 BTC.

What cryptocurrencies to allow?

The more coins you provide to users, the greater the audience coverage and more interest for the cryptocurrency exchange platform. Contrary to the wrong view, 50 cryptocurrencies are not much harder to maintain than 3. But keep in mind that all cryptocurrencies such as Ripple, Litecoin, Ethereum, Dash, Dogecoin and others must be integrated manually.

Cryptocurrency exchange platform

The preparation and planning are, in fact, important phases of web development before launching almost anything, either as complex as the exchange platform, the SaaS platform or the website of your company.

Characteristics that the cryptocurrency exchange platform should have

  • Flexibility to customize and scale
  • Security
  • Easy operation
  • Incredibly low delay time for the user In addition, each platform consists of separate modules, called layers.

Each of them works independently depending on the data received and the exchange interface. APIs and inter-layer requests organize connections. In general, each of them is located on a separate machine / server.

BINANCE EXCHANGE EXAMPLE

Protection and security

First let’s find out what common problems and setbacks you may face in the security of the system.

  • Unauthorized access to the administrator account (piracy)
  • Violation of access to the server
  • The dishonest process due to privileges
  • Security problems in external platforms

Hosting of the users

The security of personal data comes first; In addition, access to the system must be strictly regulated. Popular tools to protect this layer:

  • Use of secure and protected libraries and frames
  • Two-factor authentication (2FA) with Google access code.
  • Request documents from users (KYC and AML). This item is mainly related to exchanges with cryptocurrency to FIAT pairs and vice versa. For the cryptocurrency to the cryptocurrency pairs it is not necessary at this moment to upload documents.
  • Manual confirmation of the transaction manager of large volume and / or large quantities

Privileges of the administrator

Whether in the exchange of crypto-currency built with blockchain technology, which among other things in the mobile application development trends. Any trading platform requires administrators. To protect yourself and the system, see the following list:

  • Delimit the responsibilities and privileges of administrators; create additional groups and roles. Each person handles only his small part and does not have access to more.
  • Equipment solution. Administrators of different groups must confirm the especially important characteristics.
  • Development and production are at least two separate areas. Limited access to each group. Manual database transfer, which is controlled by executives, CTO for example.

Malicious processes

Caused by malicious software due to an intruder.

  • DDoS attacks. Applications must go through certain servers and be clean for the final project.
  • Vulnerability of the firewall. They solve quite simply: have a professional system administrator or an excellent hosting. AWS is probably the best solution at least if your government allows the hosting platform in the cloud. Otherwise, you should take a closer look at the dedicated server (or servers) with load balancing.
  • Authorized and protected access.
  • Notification to administrators about suspicious activities.

Technical problems

Sometimes things break down. Software problems or damaged hardware. Everything must be monitored and have Plan B, as well as a backup in a safe place.

The changes, the exchange and the commercial transactions are calculated, and if something is wrong, there is a return of the operations.

  • Sum validation.
  • Regular backups
  • User registration files available.
  • Administrative notifications in case of inappropriate activity.

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