Peer-to-peer (P2P) cryptocurrency exchanges are decentralized platforms that allow users to trade directly with each other. In addition, P2P exchanges don’t require a third party to hold or manage user funds, which makes them more secure and private than traditional centralized exchanges.
If you’re interested in developing your P2P crypto exchange, there are a few things you need to know before getting started. This article will give you an overview of P2P exchanges development and streamline the complete process.
Essential features to consider in P2P crypto exchange development:
As there could be a large number of users trading on your exchange simultaneously, it’s essential to have these features to ensure a seamless experience for everyone:
High-liquidity order book:
A high-liquidity order book is necessary to ensure that there are always enough buyers and sellers to match trades. This feature is essential for large trades that need to be executed quickly.
Advanced security features:
P2P exchanges handle large amounts of money, so it’s essential to have robust security measures in place to protect user funds. Some features you should consider are two-factor authentication, cold storage for user funds, and IP safelisting.
Automated 3rd Party KYC:
To comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations, you’ll need to verify the identity of your users. An automated 3rd party KYC solution will help you quickly and easily verify user identities without having to do it manually.
If you want your exchange to be accessible to a broader audience, you’ll need to offer fiat-to-crypto and crypto-to-fiat trading pairs. In addition, it will require you to partner with a payment processor that supports fiat currencies.
An escrow system is a critical component of any P2P exchange. It holds user funds in a secure, neutral account until the trade is completed successfully. As a result, it protects buyers and sellers from fraud and ensures that trades are executed smoothly.
Crypto swapping is a feature that allows users to trade one cryptocurrency for another without having to go through a third-party exchange. It is a convenient way for users to trade altcoins that may not be listed on major exchanges.
These are some essential features you must consider when developing a P2P crypto exchange. So now, let’s jump into the development process.
How to get started with P1P exchange development?
Getting started with P2P exchange development can seem daunting, but it doesn’t have to be. By following these steps, you can streamline the process:
Do your market research:
Before you start development, you must do your market research and understand the needs of your target users. It will help you determine which features to include in your exchange and ensure that it appeals to your target audience.
Check with consultants for legal feasibility:
There are a lot of legal considerations to take into account when developing a P2P exchange. Therefore, it’s essential to check with consultants to ensure that your exchange complies with all applicable laws and regulations.
Define target audience:
As we mentioned earlier, it’s essential to understand your target audience clearly. It will help you determine which features to include in your exchange and ensure that it appeals to your target users. Additionally, perform competitor analysis as it will give insights on what works in the market and the current trend.
Create a detailed development plan:
Once you clearly understand your goals and the legal landscape, you can start creating a detailed development plan. It should include everything from the features you want to have to the timeline for development. Moreover, develop smaller milestones for better development management.
Hire the best P2P crypto exchange, development team:
Hiring the right development team is one of the most critical steps in developing a P2P exchange. Make sure to do your research and hire a team with the skills and experience necessary to build a high-quality exchange. In addition, consider hiring dedicated developers from a reputed P2P crypto exchange development company to boost the turn-around time.
Robust testing and deployment:
After the exchange is developed, testing it thoroughly before launching it is essential. This will help you identify any bugs or errors and ensure that everything is working. Then, once you’re confident that the exchange is ready for launch, you can deploy it and start trading!
Get started with Seven Bits!
Seven Bits is a leading P2P crypto exchange development company offering a wide range of development services. Our team of experienced developers can build a custom exchange tailored to your specific needs and requirements. In addition, our Blockchain Center of Excellence (CoE) can develop solutions on multiple Blockchain platforms.
Moreover, we can help with the entire development process from start to finish, including market research, UI/UX design, development, testing, and deployment. Hire our virtual developers’ team to get started with your P2P crypto exchange development project with accelerated turn-around time and seamless communication.