Bitcoin is on the rise in 2024, and so does the cryptocurrency exchange platforms. This happens because exchange platforms are crucial to enable organizations and individuals to trade cryptocurrencies. The growing demand for crypto exchanges provides a great opportunity to serve that audience and achieve greater profitability. By building an exchange platform tailored to customer needs, a company can create a competitive edge.

Planning to build a cryptocurrency exchange? Here is a list of basic features you should have in it. These elements are significant it will attract and retain users for a long time.

Key Features of Cryptocurrency Exchange Script

Staking

Staking is one of the main features where customers can hold their cryptocurrency for a certain period to earn passive income. Nowadays, this feature is gaining popularity among crypto investors. It’s similar to a fixed deposit (FD) where you can earn interest by holding your cryptocurrencies for a certain period. Through the staking feature, asset holders can safely keep their crypto’s while at the same time earning passive income. 

Several of the most established cryptocurrency exchanges offer this feature to the customers; therefore both the companies and the holders make good profits. For better customer retention, the exchange owners can have customized offers to retain them for a long time.

Did you know? With a help of ready-made cryptocurrency exchange script, you can easily launch an exchange platform instantly as these key features are included with the script.

Cryptocurrency Lending

It is a type of decentralized finance (DeFi) in exchange for interest investors lend their crypto’s to borrowers. In a similar sense, crypto lending is now attracting more users like traditional lending of banks and financial institutes. From Bitcoin to Ethereum, Ripple, and other altcoins, people are engaged in lending activities frequently.

Companies can take advantage of this demand and enable this feature in their platform. While our economy is becoming more digital, this trend will certainly gain ground in the future. Registered members of the crypto lending platform can become lenders, while other users can take their crypto assets as loans. The lender will be charged a certain percentage of the interest from the borrower while the owner of the exchange may fix a fee for using the platform. 

Trading Bot 

Crypto trading bots are autonomous programs that follow certain pre-determined parameters to carry out trading strategies in the overall crypto asset markets. It is one of the ongoing trends in the industry that owners are utilizing to grow their customer base. Using a trading bot can help you automate certain trading activities for your clients, and you can also get more payment in the form of recurring income charges. 

They are complex computer programs that use algorithms for automatically executing the purchase and sales orders for traders. Like traditional trading, cryptocurrency trading also requires significant time and demands continuous attention from traders. So having this cryptocurrency trend will attract more users.

Multi-faceted Security

Security is one of the most vital factors to be considered when you are developing your very own cryptocurrency exchange. Besides the usual KYC (know your customer) and AML (anti-money laundering) protocols, you should guard your customers data and system with complex security mechanisms too.

You need to include a high level of security features such as 2FA authentication, multi-sig wallet integration, and protection against DDoS attacks to secure your platform. These are the main points that are highly important in your custom crypto exchange so that you can thrive online and be able to gain more market share.

Crypto Wallet

A cryptocurrency wallet is a mandatory tool for any crypto exchange platform, as it enables users to make transactions with numerous cryptocurrencies by sending, receiving, and storing them. The platforms can use both hot and cold wallets to store crypto.

Hot wallets (online): You can access hot wallets from your browser. Consequently, they’re quicker to operate and more user-friendly, but they are also vulnerable to cyber-attacks.

Cold wallets (offline): They do not need to be online, and hence, they are more secure than hot wallets which are more convenient.

Analytics

Crypto exchange platforms must include efficient analytical tools to enable traders to make data-driven decisions by giving them available trading options. This means that traders can increase their profits by improving the quality of their trading in real time.

These are the main indicators that traders can use to make informed decisions.

• A Moving Average (MA) shows the average price over a given period.
• MACD (Moving Average Convergence Divergence) is used to predict price changes.
• Relative Strength Index (RSI) is a tool that analyzes how quickly the price of a particular cryptocurrency is moving.
• Stochastic RSI is the oscillator that helps to determine if the cryptocurrency is oversold or overbought.

Push Notification

Push notification is one of the important features in developing clear and easy communication with exchange users. Having this feature will ease the process of communicating with users to alert and notify them about crypto news, recent trends, price changes, and crypto coin listings, and the users can choose the push notifications based on their preferences.

Order Book and Transaction History

It is fundamental for any trading platform to provide a transaction history feature that shows the entire history of a user’s transactions over some time. It offers such information as trade rate, time of operation, transaction, and other related details. The order book is crucial because it provides a list of open orders, enabling easy access to current bids.

API

A crypto exchange platform can apply different APIs for performing a variety of functions. Sometimes, FIX protocols, web sockets, and API types may appear to be complex. Hence, it is crucial to understand what they are. Integration of the FIX protocol stands as the main task for any cryptocurrency exchange to integrate different platforms. The usage of the FIX protocol will be done regardless of cryptocurrency type. Through this, various cryptocurrency exchange platforms are capable of getting information about market movements and trading changes through web sockets. 

On top of that, the exchanges might use public APIs or private APIs, depending on their needs. The public APIs provide access to the command that the organization needs to use for data retrieval and the services that are shared with the outside world. It interacts with the public. Whereas, Internal APIs are like an architecture that is open to the development team, also called private APIs. For instance, through the use of private APIs, cryptocurrency exchanges can plug in software, backend systems, and data integration.

Trading Tools

It is a group of highly developed tools and functions which are designed to help professional traders to execute their trades more effectively. Such tools can comprise creative charting features, customizable trading indicators, advanced order types (such as stop-limit orders or trailing stops), access to algorithmic trading options, etc. In general, it is a tool that offers traders beyond the simple trading functionality; it enables users to analyze market trends, manage risk, and execute complicated trading strategies. 

Conclusion

In a nutshell, crypto exchanges are becoming more popular so having these key trending features will elevate your platform in the current trending market. With the ongoing global increase in cryptocurrency trading, launching an exchange platform will provide more benefits and attract users. However, only dedicated cryptocurrency exchanges with user friendly platform can thrive in the trending market. In addition, collaborating with industry experts can provide useful insights and they will help you to ensure the successful launch and operation of your site.