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How to scale your crypto exchange?

Trading volumes on a successful cryptomarket reach several hundred thousand dollars a day, and the income is estimated in tens of thousands of dollars a day. Only the top 10 cryptocurrency exchanges of the United States bring their owners $ 3 million in revenue per day. What can help a small exchange grow to similar numbers?

Ensure continuous technological development

A well-thought-out implementation of popular functions leads to an increase in key metrics: the number of users, the number of operations, the trade volume, the average deposit amount. We would like to talk on the key metrics for assessing the activities of the exchange and the rules for their calculation in a separate post. This article is dedicated to the features that help to bring new users and ensuring profit growth.

But first, we would like to warn you! In the course of the introduction of new products, all microservices must function independently of each other so the exchange works without failures. Then the integration of the new solution, its testing and improvement will not affect the availability of others. In our ZeroCore platform, we use only microservice architecture, therefore, we tell about everything through the prism of microservices.

We recommend not to save on technological solutions. The Zerohub team works with products such as the PostgreSQL database for accessing high-load information, Kafka for exchanging messages, and Google Cloud SQL for storing information.

High safety standards

One of the key factors in the attractiveness of the exchange is its security. Сustomer confidence in the security of crypto exchange only will stimulate trading volumes and customer growth. A single detected vulnerability can cause large losses up to the bankruptcy of the exchange if a significant amount is stolen. In addition, the appearance of information about the theft of client funds or their loss reduces the credibility of the exchange. If there is a customer churn due to a security breach, it will be very difficult to regain trust, sometimes even impossible.

To protect exchange and user funds, we recommend using a combination of hot, warm and cold wallets, two-factor authentication, and proactive transaction verification. According to the experience of our clients, checking all suspicious transactions manually, monitoring automated trading algorithms, regularly checking the platform for errors and vulnerabilities ensures security. Ideally, a separate department for ensuring the safety and protection of the site facilities is required. Also, it is necessary to regularly order third-party independent audits.

According to statistics, almost 40% of all hacks and thefts occur due to the fault of stock exchange employees. The reason can be both errors and malice. In order to avoid mistakes, clear regulations are required. Separate access contours for different employees will help to prevent conscious fraud. In this case, only a few employees can do something dangerous by joining in a group. It is much easier to prevent such actions.

Meet B2B requirements

The fastest-growing user segment of the Cryptocurrency Exchange is corporate clients. Comfortable conditions and the integration of important functions for the B2B sector will attract corporate clients to your customers. This will significantly increase trading volumes on the platform.

The business segment can be divided into 2 parts:

  • Institutional investors and traders, those who actively trade. These are mainly funds.
  • Real business, those who use cryptocurrencies for everyday operations. There are also numerous online services and stores that accept digital currencies as payment, and online exchanges, as well as payment providers.

Institutional investors and traders need such features as advanced portfolio analysis, developed reporting systems, and most importantly, the possibility for integrating trading robots. Therefore, you should make your API convenient, understandable and multifunctional. It is also necessary to write detailed documentation on it.

A real business requires to exchange Cryptocurrency for fiat and back. Such an exchange should be fast, convenient and performed at the best rate.

The ideal solution for most of the clients in this group is automated crypto processing. Such a solution can be simply outsourced if the technological stack and architecture of your exchange allows it. If you have not foreseen in advance sufficient adaptability of the system, then you will have to develop the processing yourself.

There are several interesting solutions that can be implemented on the site where one of them is the opportunity for businesses to create their own online exchangers and implement them on their sites as separate widgets. For customers, this is a way of earning and the opportunity to provide additional convenience to its users. For you, this is the growth of turnover without any costs for traffic.

An important competitive advantage for attracting B2B clients requires a legal solution not technical. Large businesses want to have legal security guarantees and be sure that they will not have problems with tax and other authorities. Therefore, you should take care of registering your stock exchange in a jurisdiction that is credible. However, we will write a separate article about the legal side of the issue and work with banks.

Provide new opportunities

Analytical tools, market and limit orders should be available on your site. For this, you need a multifunctional trading terminal. It would be ideal if the transaction can be completed in one click. Users are also attracted by margin trading, a large selection of trading pairs, convenient ways of depositing and withdrawing funds.

All these opportunities are already available on most serious exchanges. To attract users to the new exchange, you need to provide them with more advanced features. For example, transferring money to each other or plastic cards that are linked to customer balances.

For ease of settlement between users inside the site, we recommend implementing a tool such as a voucher. It will allow customers to deposit and withdraw money with minimal losses and transfer value within the platform without commissions. So your customers will start using the service not only for exchanging or trading but also for international transfers. Users themselves will begin to attract new ones in order to be able to transfer money to them quickly and easily.

You can come up with a lot of new and interesting features. Keep up with how classic financial institutions evolve. You can learn a lot of useful things by following them. Watch how competitors evolve too. Communicate more with your users and they will share insights with you. Create new ideas in the format of hypotheses and test them. You can learn how to do it right by reading our article with the highlights from ProductSense 2019.

However, for this, you must first take care of the proper architecture of the exchange. A well-performed platform is key to the smooth development of the site in the future. Take care of the ease of adding new functions, integrating new services, expanding trading tools and platform security. In this case, the scaling will be easy and consistent in line with the growing needs of your customers, increasing their number and trading volume.

Contact us

Do not hesitate to contact us directly. We will respond to you as soon as possible. You will be amazed by our solutions!

Phone: +442038077547

Hong Kong

Unit 1503, 15/F, No. 69, Jervois Street, Sheung Wan, Hong Kong


Office center «Volna». Yevhena Konovaltsia st., 36, Kyiv, Ukraine

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