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Revealed: How to Develop a Cryptocurrency Exchange Application and Its Cost Implications

 

Current trends reveal a rising demand for mobile cryptocurrency exchange applications, considering increasing popularity of banking operations involving some virtual currencies with relatively cheaper transaction costs.

 

Trading platforms are fast becoming one of the viable ways for profiting from cryptocurrencies. The need to create cryptocurrency exchange applications has not been this dire. In this article, I will walk you through how to build a cryptocurrency exchange application and how much such a project will cost you.

 

How cryptocurrency exchange application functions (in money transfers)

The user is required to register within the system, allowing the user to create his/her a personal cryptocurrency wallet. The wallet may be for any specified currency.

 

When sending money, the user will need to make a transaction into the system. Then the money is loaded to his account within the system on the app server. The user will be required to specify where he wants to send money and in what currency.

 

The cryptocurrency purchase is done automatically by the system on the server side without involving the end user. The cryptocurrency is sold and foreign currency is purchased. The final step is visible to the user as the currency received is automatically withdrawn to user`s bank account.

 

A transaction is considered to have been successfully if the foreign currency is transferred to account with native currency. After a short delay of “account set up”, the user marks his account as “confirmed”. Finally, the transaction is finished up automatically. It however becomes a bit complicated if money is sent from the confirmed account. The best option in this instance is to partner with cryptocurrencies debit card issuers such that these debit cards will be loaded directly with cryptocurrency.

 

With specific reference to the first option where money is transferred to the national currency, the following things are implemented to the cryptocurrency exchange application (as explained earlier):

 

Login/Register page of the cryptocurrency exchange application where user creates his account or enters with already existing credentials

 

Account ID verification with wallets available

Loading money to the chosen account

Transactions history screen

Cryptocurrency conversion screen

A backend service that will provide its own API to the website and both Android and iOS cryptocurrency exchange application will have API for the following:

 

• Accounts creation

• Money deposit request

• Money sending requests

• Cryptocurrency > Currency exchange proxy APIs

• Bank accounts management

 

The next step for exchange application implementation is a backend portal where the user is able to manage his profile information.

 

The final stage in the implementation process is referred to as cryptocurrency exchange application multiplatforming. iOS app has the same functionality as an Android application.

 

Project Implementation

 

There are two main project implementation routes. The first route is the smartphone cryptocurrency exchange application installed to the device of the user and web based application that looks exactly like iOS or Android app and duplicates app functions.

 

The second route aims at reducing implementation cost. Startups may begin with only mobile application development. This one usually comes with a simple basic website. A web-based cryptocurrency exchange application may be created much later. Below are two budget estimates reflecting the costs of implementation for the two routes respectively.

 

Development of a Cryptocurrency Exchange Mobile Application and Web Based Application

 

 1 Full-Time Backend developer during 6 months at $65/hr to build the backend service, DB, etc. = $62 000

 1 Android Developer for 6 months at $65/hr to build an Android application = $62 000

 1 iOS Developer for 6 month at $70/hr to build iOS application = $67 000

 1 Frontend Web Developer to create frontend and backend websites at $55/hr = $52 000

 1 Graphic Designer during 4 months at $40/hr to create designs for all the apps and website = $38 000

 2 QA Engineers during all 6 months at $35/hr who will start testing ASAP = $67 000

 1 PM who coordinates all the work during all 6 months at $55/hr = $52 000

Estimated total budget for estimate for this project = $400 000

Development of the Cryptocurrency Exchange Mobile Application and Basic Web Portal with only basic functions

 1 Full-Time Backend Developer during 6 months at $65/hr to build the backend service, DB, etc = $62 000

 1 Android Developer for 6 months at $65/hr to build Android application = $62 000

 1 iOS Developer for 6 month at $70/hr to build iOS application = $67 000

 1 QA Engineer during all 6 months at $35/hr to start testing ASAP = $33 000

 1 PM who coordinates all the work during all 6 mo at $55/hr = $52 000

Estimated total budget for estimate for this project = $288 000

 

Comparison of the Onshore and Offshore Development Expenses

 

The prices mentioned above are relatively cheap for a project of cryptocurrency exchange application with such time frames. Also, we have included estimated costs for the same project outsourced for development in Western European countries such as Ukraine or Belarus for comparison.

 

Conclusion

 

It will appear that the estimated budgets presented in this article are quite exorbitant and may not be a wise option. However, the development of a cryptocurrency exchange application will pay off in the long-term. Its success is not dependent on the cryptocurrency state and exchange rate. The interest to cryptocurrency will last for a long while and with such platforms experiencing growing popularity, cryptocurrency exchange applications are sure to gain wider acceptability.

 

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