Blockchain technology has had a major impact on the Internet since its creation in 2008. Many companies around the world are trying to incorporate blockchain into their businesses.

But what is the blockchain exactly, and how is it different from what we've seen before?

Blockchain, invented in 2008 by a person or group of individuals, nicknamed Satoshi Nakamoto, was originally allocated the Bitcoin digital currency. Since then, this technology has seen several applications in other fields as well.

In this article, we will discuss how to create a CryptoCurrency Exchange like Binance using a Binance clone script, the main features of this type of platform, and the 5 steps for your future digital currency exchange.

How does BINANCE work?

Before deciding how to create a digital currency exchange, it is worth how the most famous cryptographic platform was built.

In the first step, it is important to mention that the blockchain is basically a database available to the public worldwide.

Not only does it allow anyone in the world to add information to it, it makes the information incorruptible by publishing it across the network. The data is not stored in a specific location or on a server, but is distributed throughout, making it unchangeable and safer than the limitations of any technology before the block. In addition, this source software is open, so you can even create your own block.

"It is a decentralized system, and no party in the world can control it. Also, editing previously sent data, if not impossible, is at least very unlikely. This is achieved because it requires very powerful computing power to customize any information, and will lose its value if Bitcoin is compromised.

So what does the blockchain do for us and how can we benefit from it? For an ordinary user, the use of blockchain won't make much difference in most aspects of life. However, there is one region where the technology is most popular.

This is a digital currency exchange market.

After the invention of Bitcoin alongside Blockchain in 2008, other digital currencies started to develop around the world. At the moment, there are about 700 digital currencies across the network, although not all of them are incredibly popular.

Many people thought about how to start a Bitcoin business or something similar (since in some countries Bitcoin is illegal). To deal with such large numbers of currencies, the sources of exchange have begun to emerge.

While dozens of currency exchange bureaus are currently available on the market, they vary in number of currencies that allow trading, commissions, constraints, and so forth. One of the biggest recent developments was the Binance digital currency exchange market.

History of BINANCE

Binance is a Chinese company that was launched in the summer of 2017 by a group of highly experienced professionals. It is now headed by CEO Chang Pong Zhao.

Mr. Zhao previously worked with Blomberg as well as Blockchain.info in the technology sector, and thus was able to create a very strong team for product development.

The company has launched ICO and its own token to start a business with digital currency trading software. Originally, the information was delivered through a white paper, which they managed to reach the goal of collecting donations by mid-September when China issued a prohibition on collecting funds. Millions of dollars of venture capitalists (VC) were collected during the financing period.

The Binance Coin (BNB) setup was announced to be released at a limit of 200 mm and can be later used within the company to purchase internal services.

Binance also said that they will eventually recover half of the exported tokens and destroy them. At present, ICO has almost completed its course and shows a significant number of more than 40,000 tokens.

How did Binance grow?

Binance is an all-new digital exchange player, but currently worth about $2 billion. Impressive, right? What was in Binance that attracted so many people to start working with them?

Firstly, there is a clear idea created by a highly skilled and experienced team in swap trading. Secondly, numerous initial coin indexes as well as very low trading fees compared to other companies in the industry. One user only receives a 0.01% discount on any transaction, and there are a few charges for currency withdrawals as well.

Binance became a highly profitable company in less than 6 months, with nearly 3 million users worldwide and about 100 digital currencies in business. The value of BNB is steadily increasing due to the number of transactions on the platform.

But that's not the only thing that distinguishes Binance from other money exchange companies. In addition to doing currency exchanges, Binance has created truly unique services such as “Gift” for virtual gifts and a "LaunchPad" token sales program. They also provide support and guidance for new startups, which include indexing and even funding digital currencies, but not limited.

How to Create a Digital Currency Exchange Currency Exchange: 7 Key Features?

Cryptocurrency trading has proven to be highly profitable when it is struck correctly. The number of exchange platforms has increased, but the quality of services of some sources can still be a question. While the exchange rate of digital currencies is not monitored, they have risen to unimaginable levels, but there are no guarantees of they staying there.

On one hand, the massive uproar that arose about how "to make a digital currency exchange" makes the market very competitive.

But the more the market develops, the more it increases user confidence and benefits those who know how to work with it. That's why creating a high-quality digital currency trading program is a wonderful idea. So, let's see what you should pay attention to and how to launch a digital currency exchange service through the app.

Sign up

The registration page or login is the first thing the user sees, but the main point is not just allowing people to enter after registration, but also protecting the system from any unauthorized entry, hacking attacks, or any other manipulation. For this reason, it should be well-developed and comply with the highest standards. In addition to the common sign-in/password combination, there is also a 2FA to provide users with additional security.

User Verification

One of the reasons why cryptographic exchanges are so reliable among users is that each user is fully approved. Depending on the type of authentication, authenticated users generally have more features. For example, harvesting restrictions will be more for authenticated users than non-approved ones. Verification is important to ensure the transparency of transactions and to minimize the possibility of fraud.

Deposit/Withdrawal

This feature allows traders to deposit their money into the internal wallet provided by the digital currency exchange software and also withdraw the money to the off-software bags due to restrictions set by the company.

Create deals

Every user must be able to buy or sell the currency to other users in the system. It is very important that all transactions be done quickly and without any system errors. The system must have multiple options to create an order that allows the user to select the option that is most appropriate for him at this time.

Analytics

A very useful feature that makes it possible to create different charts and statistics for a better view.

Internal API

The API itself currency exchange is required to allow users to create their own automated trading systems or exchange data among approved devices using the digital currency exchange script.

Management panel

With the help of the Management Panel, the employees of the Exchange Company will be able to monitor transactions and manage the measures taken at the exchange company based on their access level.

These are just the main features that each program needs of this type. There's more to implement in the app than it can use and is safe and user-friendly.

5 steps to create a digital currency exchange

It's no secret that most of the development processes of the programs have recently been broken down into aspects that are done separately. Different aspects are developed by different teams in general with each other. Such moments can include API, the web interface, and so on. The number and change depend on the complexity of the program.

A trading system such as Binance requires attention to the following planning aspects:

Pattern

This is the first thing a customer sees before starting to use the app. In order to create a harmonic design that combines beauty and usability, we recommend you follow the best ways of the day and consider product features. Design creation consists of the following steps.

1. Wireframes - Future design base where its key features are implemented.

2. Prototype - Visualizing the exact user interaction with the application allows to the prevention of possible problems associated with UX.

Client-side development

The Web Part of the application contains the client-side logic of all web pages and is created based on the previous design. Front End developers usually do design using HTML, CSS markup and JavaScript programming language including frameworks Angular.

The client side logic preserves all the web pages and is created based on the previous design. Front End developers usually do design using HTML, CSS markup and JavaScript programming language including frameworks Angular.js, React.js, Vue.js.

API

API is a backup part of the application that is not visible to the end user. The App Server section is responsible for running the internal logic of the program and managing basic functions:

1. Authentication and User License

2. Server-side performance Management panel

3. Newsletter

4. Cryptocurrency Transactions and Betting

5. API that can be used by third-party organizations

Blockchain

The section that is responsible for the actual processing and storage of data about transactions between users in a secure environment (any changes by any side due to blockchain are impossible).

Test

Compulsory section of modern program development. This is very important because it allows for further detection and deletion of bugs in logic as well as in the UI before actually running the program.

Security

Because the app stores its users' sensitive information, it must be properly secured to prevent possible hacking and data leaks. We recommend that you secure user information in the following way:

Secure Architecture - While developing the program's backup section, consider creating a secure way to store and exchange confidential information.

1. Key components of exchange are located on different servers and interact through dedicated channels

2. Encryption keys are also safe on dedicated servers

User authentication - In order to prevent possible unauthorized access to your account, it is best to run two-step authentication by generating a single-use token. In addition, users receive notifications about signing in to their account, which identifies the location and IP address.

Encrypted data exchange is performed with the help of the newest SHA-256 algorithm, which is currently impossible to hack. This creates a hash - a unique signature from the text that changes every time the original message is edited. This allows you to check whether the submitted hash matches the incoming hash and whether the data has been edited or not. Since the hash is not encryption, the original message can't be decrypted

Conclusion

Due to the popularity of the Cryptocurrency exchange worldwide now, it is understandable why more and more people are engaging in these systems.

"The digital currency exchange reserve offers good opportunities to those who have recently become familiar with the market, as well as those who have extensive experience in it. But the market still has very few restrictions, depending on the country or currency offered, and this always means the potential for growth.

In RADINDEV, creating a high-quality website/application similar to Binance for your cryptocurrency exchange platform can bring you a lot of profit in a very short time.