The phrases “Cryptocurrency” and ‘DeFi’ rule the entire financial ecosystem and web3.0 like a king with its dominating beneficial factors. Besides, many people are moving towards Crypto payments as they are more secure, reliable, and trustworthy ones to deal with. On the other hand, the usage of virtual currencies is also steadily rising, and people prefer to trade cryptos anonymously without revealing their identities.
Recently many people preferred the DEX platform for trading cryptos rather than CEX. It is due to the anonymity, privacy, security, transparency, and complete control over the cryptos. These factors created a demand for starting a decentralized exchange among startups and enterprises. Not only demand; but also the ROI and trading volume.
The ROI and trading volume of DEX platforms are massive in 2021, which attracted startups to invest in building a decentralized exchange. The significant goal of every startup is to generate revenue & it is a known fact. In that regard, you can also make massive revenue in the DeFi industry by starting a DEX business.
Are you a speculator planning to create a DeFi exchange or DEX platform for your business? Then you’ve reached the perfect spot. Kickstarting a Decentralized exchange business is a dream for many startups as they believe DeFi will play a vital role in web3 shortly. If you are one such startup looking to turn dreams into reality by creating your decentralized exchange, read till the end!
This article covers everything about development process of decentralized exchange, and why to build a DEX platform, the cost of developing a decentralized exchange platform, and other imperative aspects.
Let us start this article.
Overview of Decentralized Exchange Development
The complete process of creating your DeFi crypto exchange for business purposes. Decentralized exchange is a significant type of cryptocurrency exchange that has a separate craze in the market among traders and investors. This type of exchange allows people to swap crypto tokens and DeFi tokens securely without the help of any middleman.
By connecting the crypto wallet or DeFi wallet to the platform, user can swap their desired crypto tokens without hassle. It reduces the risk, and users are free from freezing the assets, which is a primary drawback in most centralized exchange platforms. Therefore, decentralized exchange eradicates all the issues faced by centralized exchanges.
Creating your DeFi crypto exchange is possible when you have a perfect plan to execute them. As the Decentralized exchange runs on one or multiple blockchains, you need to pick the best blockchain network that meets your business demands. You can make a DEX platform easily without any stress when you choose the right DeFi exchange development company – Coinsclone. We are saying this because the development company you choose matters more with DEX software development.
Coinsclone is a leading DeFi exchange development company in the blockchain sector. We prioritize client satisfaction more than anything. And we ensure our product delivery will be on time. We patiently gather the needs of our customers and derive the plan according to the market trend to accomplish them perfectly. If you are a startup planning to be a sovereign in the DeFi industry by creating your decentralized exchange, then leverage our blockchain experts to accelerate your business journey.
Now, let us dig deeper into
Why Create a Decentralized Exchange?
Decentralization is the future, and we can neglect this fact. Recently business people and startups going for DEX business models rather than CEX models, though the centralized exchange has several perks. Because they think decentralized trading platforms would create wonders in the crypto industry. And they believe it is the future of the financial ecosystem. Thus, if you want to make your footprint in this competitive crypto market, starting a DeFi exchange would be more successful than you imagine.
You also need to understand the demand for DEX platforms currently in the blockchain sector. It is due to the security loopholes and instability that users face in centralized exchanges. In the Decentralized Exchange, the transaction occurs between person to person directly using the non-custodial crypto wallet. Both public and private keys are secretly in the hands of individuals. Hence, it reduces the chance of anonymous hacking and freezing assets.
Generally, there are many CEX platforms, but every platform lacks security, privacy, and asset control. So traders realized the need for direct trades instead of an exchange, which collects a fee for every transaction. The need for direct crypto trades without intermediate created a demand for Decentralized exchange in the global marketplace.
In addition, the revenue that you can yield by starting a Decentralized exchange business is lucratively high. You can earn enormous amounts of money by enabling attractive revenue-generating add-on modules. Currently, many DEX platforms reap huge returns just by integrating trending features. Also, the competition is low in the matter of decentralized exchange business.
Considering all these eminent factors, we can say it is the best time for you to build a decentralized trading platform in the crypto space. So, let us see.
How to Build a Decentralized Exchange?
Developing a decentralized platform is no more complex now as we live in the modern era. In the digital world, we have more innovative technologies to construct an ideal decentralized exchange platform. However, there are many challenges that a startup would face when it comes to develop a decentralized exchange.
Security, scalability, verification, operations, legal nuances, system errors, and server issues are the existing challenges that most startups face while creating their DEX platform. But there is no need to worry about these factors if you have the guidance of professionals.
Presently, startups and enterprises follow two methods to develop a decentralized exchange. Such as
Development from Scratch
Developing a decentralized trading platform from the ground level is a traditional way to start a DEX business. Entrepreneurs with potential funds will prefer this development approach as they would not consider money vital. In this method, they can implement their unique business concepts and functionalities in the platform. So there is no need to replicate the existing DEX models.
However, complications and technical hurdles involved in the method will lead you to chaos. In addition, it would take around 12 to 18 months to deploy the DEX platform in your desired blockchain network. If you are ready for all these, you can prefer this method. But think thrice before opting for this method.
White Label Decentralized Exchange Software
It is off-the-rack decentralized exchange software packed with must-have features to operate the DEX in the long run. It holds all the current features and security modules of the DEX platform. When you use this ready-made DEX software, you can develop a decentralized exchange with exceptional features within a week or two.
It comes with multiple customizable options. So, you can modify the software utterly as per your taste and business necessities. Additionally, many startups claim that white-label decentralized exchange software development is the most cost-effective solution for initiating the DEX business.
If you are planning to develop a decentralized exchange platform like one of the reputed DEXs, Coinsclone can assist you in replicating these exchanges. Our software development team is well-versed in building a DeFi exchange on various blockchains like Ethereum, BNB chain, and more to navigate the best DeFi exchange platform development.
Steps to build a Decentralized Exchange Platform
The development way you choose is just a part of initiating the decentralized exchange business. Some imperative factors are there to deem before leaping into this business. So once you select the development method, you must know the steps to start a flourishing DEX business.
- Come up with an outstanding and trending business concept.
- Examining all the nooks and corners of the existing DEX platforms will clarify what you could provide unique to your users.
- Do in-depth market research on current crypto trends.
- Identify the advantages and disadvantages of decentralized exchanges. As soon as you find them, try to rectify them on your DEX platform.
- Check out the jurisdictions in the country where you are planning to develop a decentralized exchange. Because in some major countries, there is a ban on cryptocurrencies. So check out the country laws twice before commencing your DeFi exchange business.
- Make sure you have enough funds to create a decentralized exchange using white-label software or from the base.
- Have a list of the latest trading features you want to equip into your platform.
- Enable impenetrable security systems to shelter your DEX platform from anonymous hacking.
- After all these steps, run a beta test to ensure your DEX software works faultlessly without any defects.
- Once completing the beta test, deploy your decentralized exchange with the support of the leading DeFi exchange development company – Coinsclone.
- Finally, Start promoting your DEX platform to your targeted crypto audience.
These are the essential steps you need to consider for starting your dream decentralized exchange business. Now, let us dive into the next exciting section.
Cost to Build a Decentralized Exchange
As a leading DEX software development company, we craft a function-rich DEX platform with astounding features at an affordable cost. We can’t predict the exact development cost as it involves a lot of criteria when it comes to build a DEX.
For instance, if you are willing to develop a DeFi exchange from the base, the development cost would be around $50,000 – $100,000. For each feature you enable in the platform, you must spend money. It might look expensive to some startups and entrepreneurs as everyone can’t afford this method.
Secondly, if you use a white-label decentralized exchange software to create a DEX platform, the cost of white-label DEX software will range from $8,000 – $14,000. It comes as a complete package, and it’s a one-time investment. So there is no need to hire a separate team for other DEX development processes.
However, the cost we mentioned here is not a fixed price for the software. The final quote is nailed by multiple factors influencing the DEX project, human resources to be allocated, time duration, and your business necessities.
Ok, we hope you got adequate information regarding DEX software development. So, allow us to wrap up this article.
Why Choose Coinsclone to Build a Decentralized Exchange?
Coinsclone is a genuine and trustworthy DeFi exchange development company in the global blockchain market. We have rock-solid experience in DEX platform development. And we conjoin appealing trading features and tightened security modules to stay one step ahead of your rivals. We have 50+ blockchain experts who can help you to build a power-packed DeFi exchange that fits your needs.
Our adroit DEX software development team has a deep knowledge of the blockchain. So the decentralized exchange we construct will be 100% tech-friendly. And our team will carry out rigid testing before DEX deployment to deliver a glitch-free user experience. Whether it is a white-label DEX software or development from scratch, Coinsclone is superior among others. Reach us now and turn your DEX business dream into reality!