Key Takeaways:
- Learn about how centralized exchange development can propel the use of cryptocurrencies among more people.
- Analyze the key facets of centralized crypto exchange platforms that have a crucial place in driving user adoption.
- Touch upon the possibilities of utilizing the centralized cryptocurrency exchange model for business in the current market.
The cryptocurrency market is going strong currently, with a $2.54 trillion market capitalization that has been primarily driven by news surrounding the Bitcoin network. With crucial events, such as Bitcoin Halving impending, the presence of cryptocurrencies has risen steadily. As more first-timers are expected to tread into the decentralized digital economic space, the need for centralized exchange development is felt strongly. This blog discusses the prospects of centralized crypto exchanges in ramping up crypto adoption among the general public while adhering to the relevant regulatory requirements. Come on, let’s delve deeper into what makes centralized crypto exchange solutions fundamental!
Centralized Cryptocurrency Exchanges: The Fundamentals
As you know, centralized cryptocurrency exchanges are platforms for trading cryptocurrencies that come with intermediary assistance. This kind of exchange has been leading the global market since crypto coins started having tangible values. These platforms come with traditional processes, making them easy to use and access for most people.
- These applications leverage both Web2 and Web3 technologies, making them easy to understand and use for people without needing extra technical skills. Accessing such platforms is also easier, as one can use crypto wallets and email addresses to begin trading cryptocurrencies using fiat currencies without hassles.
- The ventures running these platforms ensure that they meet relevant regulatory requirements in the regions they operate so as to provide optimal and legal crypto trading experiences to people. With such regulatory boundaries, there is less chance of exchanges shutting down randomly without providing adequate compensation to traders locking funds in them.
- Such exchange applications also have stringent policies when it comes to verifying users and crypto projects in an effort to make them extra safe. With mechanisms like Know-Your-Customer (KYC) and Anti-Money Laundering (AML), these platforms ensure that only genuine users are involved in the exchange. Also, they have experts who assess projects to ensure their authenticity before listing them on the platform.
Core Facets of Centralized Exchange Development
The core of centralized exchange development solutions is made of several elements that define them differently from other Web2-based platforms. Centralized crypto exchanges have advanced to unprecedented levels today with initial inspiration from compatriots (fiat currency exchanges). Such advancements exist mainly due to increased adoption levels and people’s belief in alternative forms of investments.
- Buy and Sell Orders: Buy orders let crypto traders place orders to buy cryptocurrencies, while sell orders let traders place orders to sell their cryptocurrency assets.
- Order Types: Crypto exchanging orders consist of different types, including market orders, stop orders, and limit orders. Each of them comes with different execution criteria, diversifying options for traders to capitalize on.
- Order Book: The order book shows all the outstanding orders for buying and selling cryptocurrencies in the centralized exchange, ordered by the best bids and best asks.
- Matching Algorithms: Order matching algorithms contribute to matching buying and selling orders efficiently based on traders’ requirements. These solutions can tap into artificial intelligence (AI) to make the selection process more efficient.
- Time-based Matching: Time-based matching is based on the time orders are placed, meaning traders get preference based on a first-come, first-served approach.
- Price-based Matching: Price-based matching is based on the price orders are placed, meaning traders with the best price requests get their orders processed first.
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Ranking the Top Centralized Exchange Platforms in 2024
There is an ocean of centralized crypto exchanges in the world, with the first among them appearing way back in the early 2010s. However, like any other market, centralized crypto trading platforms have seen their rises and falls, with many ventures gaining stardom and some experiencing unprecedented downfalls.
Here, we aim to focus on the top centralized exchange solutions in 2024 (as of March) based on trading volumes, with some consideration for monthly visits, according to the popular crypto data aggregation portal CoinGecko.
- Binance
- Bybit
- OKX
- Coinbase Exchange
- KuCoin
- Kraken
- Crypto.com Exchange
- Bitstamp
- Bitget
- HTX
Based on the rankings, we can note that most platforms have been in the space for a long time (some even over a decade). What this tells us is that longevity plays a vital role in the cryptocurrency market, as it bolsters the reliability of a venture in a market often plagued by extreme price volatility.
Is Running a Centralized Exchange a Useful Business Option Anymore?
With models like decentralized, hybrid, and peer-to-peer crypto exchanges vying for spots in the global market, one might think centralized exchanges have gone out of context. In reality, centralized exchange development is still a viable option for business, as only a tiny portion of the global population holds crypto assets.
Centralized exchanges tend to serve newbie crypto traders with their user-friendly interfaces, verification mechanisms, security measures, and multi-crypto support. By building a cryptocurrency exchange based on centralized functionality, you can bolster your chances in the competitive industry. You can either opt for full-fledged development or leverage a pre-built solution to launch the centralized exchange platform.
Conclusion
Henceforth, we have seen centralized exchange development and how it could be an optimal business model for some time to come. With reports projecting a spike in crypto investor influx, the need for centralized crypto exchanges providing Web2-like experiences is essential to quicken the process and make things easier for people. If you are planning to create such an exchange application, working with Blockchain App Factory, an esteemed centralized exchange development company, could be crucial. Our expertise in creating sublime trading platforms for cryptocurrencies with sleek user interfaces and seamless experiences can provide you with the perfect leeway to enter the digital economy in style. Contact us now to get started!
