Cryptocurrency has become a preferred instrument for investors as well as technology experts. Since the advent of this technology, a lot of people have got associated with it and the number of token holders is growing rapidly. In the past couple of years, we have seen a massive rise in the number of crypto users, the value of bitcoin also touched its all-time high and become one of the most promising investment options. We did see some downtrend in its price lately, however, the technology has retained the ground and people did not lose the trust in the decentralized currency.
For facilitating the buying and selling of crypto coins, exchange platforms have surfaced. These are digital marketplaces where you can exchange the different cryptos in return of another or fiat. They can be accessed through websites and mobile apps by users across the globe.
Coinbase is one of the most successful crypto exchange and many aspirants have tried to emulate its framework to deliver uber services to their users too. However, most of them have not been so lucky in getting things right as it has a complex structure. In this article, we have tried to decode the mechanism of Coinbase.
About Coinbase
In the year 2011, Coinbase was launched as a Bitcoin trading platform. Back then, Bitcoin was the only cryptocurrency that only a handful of people knew about. Therefore, Coinbase started its operation just with one single digital currency and today, its operations have become exemplarily behemoth. It started adding other cryptocurrencies in the years 2016 and 2017.
Today, Coinbase has become one of the largest crypto exchanges with a huge user-base that involves coin holders from several countries including Australia, Canada, Singapore, the UK, and the US. Its feasible and robust interface has helped the digital currency holders to buy and sell various assets such as Ethereum, Litecoin, Bitcoin, and many more. It makes the purchase of coins easy by allowing the users to do it with a credit card, debit card, wire transfer, and many other payment gateways.
There are some salient features that make Coinbase a favorite of many:-
- Involvement of cryptos such as BTC, LTC, ETH
- The interface is highly user-friendly
- Easy process of signing up
- Transfers and deposits are instant as well as easy
- Multiple payment gateways such as debit card, credit card, PayPal and bank transfer are available.
- Extended limits for buying and high liquidity
How can we develop an exchange like Coinbase?
Before you even designing the layout, it is essential to do the due research and analysis for understanding the mechanism.
Once you are done with the homework, then it is time to prepare the blueprint and also decide the phases of development.
The first phase would involve making the blueprint and determining how you would shape up the application. This stage may involve some more research on the options and their scope.
Initial Phase
During this stage, thorough research has to be conducted. It involves analysis of your potential competitors and engulfs the identification of the basic requisites too. Conducting surveys and finding out the experiences of different users is a very fruitful practice in this phase.
Thus, you should have the following questions that you need to find the answers of:
Am I offering something different from my competitors and is it good?
What would be the exclusive things that the users will get on my platform only?
Is my exchange offering any solution to the existing issues?
Unless you do a comprehensive analysis of the market and the factors that make a difference in the crypto sphere, you cannot really come up with an adaptable solution.
Second Phase
The second and subsequent phase involves planning after you have gathered facts from your research. In this stage, you make a strategy to implement all the methods on the designs and it is the next step that you take towards the development of the exchange.
Here are the functional aspects that you need to consider while working out the blueprint if you want to match the performance of your exchange with Coinbase’s:-
- Sending and Receiving transactions
- Management of Accounts
- Support for multiple currencies
- Integration of Wallet
- Optimization of functions
- Updating the rates of crypto real-time
- Maintaining the history of transactions
- Inducting different features and making them feasible
While making the layout, you also need to determine whether you want to make your platform only for website users, mobile users or for both. That is because it would impact the cost and there would be many changes in the processes and methods you take in the course of development. Once you determine that, you also have to figure out the specific requirements as per the platform you decide to develop the exchange on.
At the same time, you need to figure out the legal regulations of all the jurisdictions where your exchange would be operational. And to do that right, you will have to take the help of a professional legal counsel. It is very important that you take this seriously for if something goes wrong, later on, the repercussions could be very drastic and counterproductive for your exchange.
Review of Technical Aspects
Choosing the right programming language and other resources is very important to come up with the most desired results. The configuration of different backend and frontend elements becomes a major challenge and your team has to be deft enough to come up with innovative solutions to execute that. You also need to know about various frameworks and libraries to make your platform a perfect example.
To getting the best results, it is recommended to use React or Angular. Both of the programs give you a conducive environment and are also cost-efficient.
Team Formation
This is when you need to tackle manpower and choose the best resources for yourself. At the same time, there is an aspect of the budget as well that you also need to think about. However, you will have to hire the following:-
- Product Manager
- QA Engineer
- Graphic Designer
- Frontend Developer
- Android Developer
- iOS Developer
- Back-end Developer
In order to select suitable professionals in your team, you may have to associate with a development company. That’s because they already have a team of seasoned experts from whom you can choose and they can also conduct full-fledged recruitment if you want.
MVP/POC
Before developing a full-grown version of the platform, you need to test its feasibility and to that, you need to first come up with a Minimum Viable Product (MVP) or Proof of Concept (POC) which are a small-scale embodiment of your project.
There are various tools and applications that can help you prepare a perfect MVP or POC. It acts as a prototype and helps you demonstrate the efficacy of your vision when materialized. The development companies that help you hire developers can also help you develop such a prototype for your project.
Development Phase
Once you are satisfied with the MVP or POC, you can start working on the development of the project. In this particular stage, the coordination among the entire team is essential, every team member needs to understand the vision and should be fully dedicated to produce a great outcome.
The best way to optimize the development process is to take a strategic approach and to develop things one by one. It is important that you deliberately discuss the details among the team members and to make the features very conducive. Your team must have a profound understanding of different protocols according to which, coins are made. Coin Developer India gives you highly skilled developers and makes it easy for you to launch your exchange platform. With us, you can materialize your vision of crypto exchange and become a reliable trading platform for thousands of crypto users.
