Elements of a p2p crypto exchange software
A new type of exchange has emerged in the cryptocurrency market of late due to the disadvantages associated with centralized and decentralized exchanges. It is none other than peer-to-peer crypto exchange software. It uses decentralization and eliminates the role of intermediaries. Hence, a buyer and seller can connect directly and execute deals with each other.
A smart contract-based escrow solution is used for facilitating transactions that occur between traders. It ensures security, preserves trust, and promotes cost-effectiveness. A third party may be involved in the resolution of disputes which may emerge between parties due to a breach of the agreement.
Benefits of utilizing a p2p crypto exchange software
- Strengthened privacy in transactions — Since there are no intermediaries involved with the presence of an immutable and distributed ledger, transactions are facilitated in an encrypted manner. Hence, privacy is ensured throughout the entire platform.
- Cost-effective operations — Operational costs will shoot up if there are multiple intermediaries involved. The operational costs in a p2p crypto exchange software are negligible in the absence of intermediaries.
- Better security standards — There is no need to worry about the authenticity of the counterparties as the KYC (Know Your Customer) verification process is followed. Hence, the chances of fraud are relatively nominal.
- Speedy processing of transactions — The current method for processing fiat money through international transactions takes several weeks. With P2P crypto exchange software, it can be done quickly, safely, and cost-effectively. Anyone can execute transactions with just the availability of an internet connection.
- A quick solution to disputes — Whenever a dispute arises between a buyer and a seller, it is solved immediately in a p2p crypto exchange software. Parties will be asked to lock in a certain amount in the smart contract escrow before conducting the trade. Once the trade has been properly settled without any discrepancies, the escrow will release the amount from the smart contract.
The essential elements to possess before acquiring a p2p crypto exchange software
- High-performing matching engine — It matches the orders raised by different buyers and sellers quickly, ensuring low latency and maximum efficiency. It acts as the cornerstone of a p2p crypto exchange software.
- Implementation of multi-layer security — Introduce security measures such as two-factor authentication and SSL implementation in your platform. It safeguards the users from hacking and phishing attacks by providing an extra protection layer.
- Quick KYC and AML verification — KYC (Know Your Customer) and AML (Anti Money Laundering) come under the regulatory sphere. They identify the users through various verification mechanisms. They aim to ensure a safe trading experience with the presence of legitimate and authentic users.
- Smart contract-powered escrow system — It acts as an intermediary while the execution of transactions takes place in the platform. It ensures secure, fast, and efficient trading between different users.
- Real-time data analytics — To improve the user’s decision-making, the latest movements in the market and crypto price feeds are provided instantly in the form of interactive graphs and charts.
- Referral program — To bring more traffic to the platform, an integrated referral program is created, giving rewards to users for performing certain activities.
- Admin dashboard — It acts as a single management console for monitoring the operations that take place on a platform. It keeps track of the user’s activity and helps in adding and removing cryptocurrencies at any time.
A typical P2P crypto exchange software should be highly customizable, scalable, and can support and manage large trading volumes depending on the market conditions. It must have API integrations in-built for connecting with other exchanges in the market to boost liquidity. It must be compatible with multiple devices, operating systems, and cross-functional platforms.
The exchange owner should be able to benefit by having the freedom to fix the transaction fees and integrate them into every order processed on the platform. The escrow function must be easily monetized, and the ability to charge customs fees from different users should be given.
Hire an experienced developer team who understands your business requirements, builds a functional platform, undertakes rigorous tests to eliminate any bugs or glitches, and launch it on time.