September 27, 2020

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Hidden Challenges Developers Face While Developing Crypto Currency Exchanges

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Most people who use the internet know about crypto-currency. Not only has it revolutionised the way we trade, but it has also led to several other technical advancements. There are over 200 crypto-exchange development companies all over the world. Therefore, Xornor Technologies, which is one India’s leading crypto-exchange development company, believes that cryptocurrency is a fast growing trend whose power businesses must harness. However, most companies are too afraid to do so mainly due to two reasons. One being that crypto exchange development companies in India are getting bad publicity, and secondly because it is a technically challenging field. However, most of these challenges have solutions, which in turn, means that running your own crypto-exchange development company in India isn’t all that difficult. So here’s a look at the hidden challenges that developers need to face while developing crypto currency exchanges.

Major Challenges

Lacking Interface:

Most people are used to intuitive and dynamic interfaces nowadays, thanks to personalized advertisements and interactive UIs. Hence, some of them are put off by the seemingly plain and boring interface of crypto exchanges. Most of such systems lack when it comes to user-friendliness and interaction. Since most companies focus all their energy on building a fast, secure and robust system, they fail to come up with intuitive pages which are optimised for the user. A single-page interface that is fluid and dynamic is the best way to retain customer attention, and ensure higher rates of conversion.

Trading Fees:

One of the biggest problems plaguing the exchange industry is the high trading fees involved with currency transfer. In most cases, a small but significant percentage of the total order is taken up as the commission for fulfilling the order. This means that every time you buy or sell something, you lose a little money in the name of fees. When the trading adds up in the end, it results in quite a hefty loss for the individual.

However, this serves as an incentive only for the exchange directly involved, but as a whole, puts the entire industry in bad light. Instead, exchanges should offer incentives to individuals to ensure they keep trading. Such incentives may include discounts, referral programs and even profit sharing schemes. Not only will this bring in revenue for the exchange, but it will also help in ensuring that the industry stays active.

Security:

We often hear news related to security breaches, privacy intrusion and hacks from all over the world. They are becoming a frightening reality, and no industry is affected by it the way crypto-currency is. With people trading in millions on a daily basis, developers need to ensure that they have robust and secure frameworks for their exchange. The leakage of personal information, and value of the stocks is another huge issue that needs to be tackled. One of the best ways to ensure proper security is to utilise two-factor authentication and cold storage, both of which make it more difficult for fraudsters to gain vital information. Furthermore, large companies should try to outsource this function to large companies which focus on security systems management to ensure that their exchanges are rock solid.

Security features:

● Authentication using biometric data

● Usage of AI and quantum entanglement for high-level protection

● Decentralized blockchains

Poor User Support:

Navigating your way through the world of crypto-currency is no easy task, and hence, it is natural to get stuck once in a while. Crypto-exchange development company, Xornor Technologies feel that a major problem within the industry is poor consumer support, which results in fewer people opting to trade and exchange crypto-currency. When consumers get stuck, there’s rarely anyone to help them out or guide them through, making them feel inadequate and helpless. Most exchanges don’t scale fast enough and hence, do not have enough resources to spare when it comes to customer support. The best way to tackle this issue is to allocate some funds towards customer support early on in the development cycle. This will ensure that as the volume of trading increases, the customer support does not lag too far behind. Another option that large exchanges have is outsourcing the problem to a firm specializing in providing support to users. This will help in improving conversion rates and brand value, but might be too expensive an option for start-ups.

Shrinking Liquidity: Bad press affects everyone, and crypto exchanges are no exception to this rule. As the value of crypto currency keeps increasing, the stakes involved in trading increase as well. This coupled by a bout of bad publicity results in users getting scared and backing out of transactions. As a result, the value of each transaction drops and overall liquidity decreases, resulting in server slow-downs and other expenses. These problems become huge concerns for exchanges that have a small user-base, as if that user base fails to trade, they will have no business at all. Furthermore, as soon as exchanges reach a level of activity, their performance drops and time of transaction increases, resulting in poor efficiency. The best way to solve this problem would be for small-time exchanges to pool their resources and utilise a pool server with a shared order book and work together.

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