In this article, I refer to a general workflow to consider when setting up a crypto exchange service (a crypto for mainly fiat).
The most demanding concern of this type of service is, as always, the security and safety features. Therefore, it should be very important to provide slim features to protect your service. There should be preloaded coins like Bitcoin, BitcoinCash, Litecoin, Ethereum, etc. to fit fiat currencies, to create a market.
What can be the security and safety features that can be added?
You can think of features like,
Google reCaptchaGoogle 2-F-AE Email Confirmation Process IP Level Protection Secure Primary Wallet Secondary Wallet (Cold Wallet Concept) Google reCpatcha – As you can see everywhere to avoid cleaning access, you can think about adding ReCaptcha for your users and administrator.
Google 2 Factor Authentication: This feature can further protect a user’s authentication with a real-time OTP. This feature could be added to both the user and the administrator.
Email Confirmation: For more risky activities, you can request an email confirmation to continue.
IP protection: If you want to set an IP address and block any other IP, you can further protect the service.
Main wallet and secondary wallet: continue to the main part of the service: the wallet. It should be a very secure main portfolio. The main portfolio could be linked directly to a node or rely on any third-party secure service like CoinBase. But in any case, it would always be nice to give the user an automated wallet address that is generated from the service itself and not outside the service. CoinBase offers an API to secure this.
Now think about securing the coins to a hardware wallet/cold wallet concept to further secure your main portfolio. This cold purchase could connect to your service (the exchange platform) to take and secure coins from the service.
Know your client: This point is also very important, you can adopt a strict KYC method to protect your exchange platform. You can request that documents be sent during registration. Now it would be nice if you can accept these documents from the service to a secure e-mail address so that the identity of the user is preserved. You can think about the use of rankings over the withdrawal amount.
Income Generation Techniques: As with any exchange platform, flow income and commission form, you can think about commissions in every transaction. The scope of transaction includes: on deposit, on withdrawal, during a sale/purchase.
Full activity log – User activities should be properly logged, so that whenever activities need to be checked, a provision is always present. It is good to offer a hard copy option for activities when needed.
Statistics: Statistics of your transactions, current number of currencies, fiat currencies, all must be present.
Powerful admin panel and interactive public pages: The admin panel must be strong enough for the admin to never miss an activity. There should be an option for managing users, managing currencies, managing transactions, basic settings, security settings, statistics, etc.
And the public side needs to stay interactive by giving quick access to the current market value of a coin. You can choose any chart representation, especially a candlestick is best for cryptocurrency exchanges. You can rely on any third party service like TradingView for this (they offer a free service from now on for this purpose).
All of these points should be considered when preparing a workflow to build a c