Over a million developers have joined DZone.
{{announcement.body}}
{{announcement.title}}

How to Build a Cryptocurrency Exchange Application and How Much It Would Cost

DZone's Guide to

How to Build a Cryptocurrency Exchange Application and How Much It Would Cost

Since Bitcoin was released around a decade ago, it's worth has grown exponentially. Read on to learn how your mobile dev shop can take advantage of this growing market.

· Mobile Zone
Free Resource

Download this comprehensive Mobile Testing Reference Guide to help prioritize which mobile devices and OSs to test against, brought to you in partnership with Sauce Labs.

You probably heard of the most recent trend in the world of cryptocurrency. After all, just about everyone is “mining” these days. However, there aren’t enough GPUs to meet demand. 

Cryptocurrency is attainable even for those who aren’t tech-savvy. At some point, people discover Ethereum, Bitcoin, and Litecoin, all of which can be used just like the Euro and Dollar. Transactions are made with a cryptocurrency wallet. This form of cryptocurrency is alluring: the cost of transactions is minimal in comparison to national currencies.

An abundance of people conducting currency and stock trading for a living are now focusing on cryptocurrencies in hopes of making money with it. People everywhere are talking about this. Some naysayers say it won’t be around forever and that Bitcoin is built to fail, resulting in a crash affecting all miners and traders. In spite of that, cryptocurrencies are thriving, and there is plenty of room for trading operations and startups to get a foothold in this new market. 

About Cryptocurrency

Cryptocurrency is a kind of digital currency. Registration and emission are determined using asymmetric cryptography using various cryptographic protection approaches, like Proof-of-stake and Proof-of-work. Cryptocurrency systems operate on a peer-to-peer network and are decentralized. That said, emissions are not possible. It can’t be counterfeited or destroyed. The biggest benefit, though, is the difficulty that comes with mining. In short, mining with a farm of GPUs will hardly be worthwhile.

Mining Rates

Let’s try to calculate for comparison’s sake. The smallest mining “farm” holding 6 GPUs has a starting price of about $5000. Essentially, the mining scheme is based on a mathematical equation. The more people mine, the more resources for cryptocurrency become attainable, making these equations more troublesome to solve. As such, while Bitcoin is currently the highest it’s ever been, currently sitting at $3000 apiece, it will take a while to locate a single coin and even longer for the tiniest of farm recoupments. Browsing the web, you’ll discover warehouses rented out by fanatics with more GPUs than you have ever seen. As such, the costs to run such places are pricey. Further, a high-performance farm’s work will need to be supported. The electricity bill for maintenance alone is more than the starting price. At some point, the mined Bitcoin exchange will surpass the farm owner’s financial stability. Just another hassle that will make you disinterested in cryptocurrency mining.

The Fundamental Idea of a Cryptocurrency Exchange Application 

Because the odds of making a profit at this point are low, the only way to reap the rewards of cryptocurrency is help people already engaging in cryptocurrency. It can pay to be an intermediary, just as much as it can by being a manufacturer or executor. That’s a difficult to contest business rule. Recent trends indicate that mobile cryptocurrency exchange apps will be in demand, especially with the booming popularity of banking operations using Ethereum and Bitcoin, particularly with alluring features like small transaction fees. An overwhelming amount of people are finding out about cryptocurrencies and its substantially low transaction costs. Most people are using cryptocurrencies for money orders all over the country since it’s quicker and cheaper. It’s just a question of time before Bitcoin is used predominantly by the mass market.

As referenced earlier, trading platforms are the best way to profit using cryptocurrencies. Let’s look into how the cryptocurrency exchange app does things like transfer money in cryptocurrency and convert Bitcoins into a natural currency of your choosing.

Description of the App

The cryptocurrency exchange app works as follows:

To begin with, the user registers to be part of the system and obtains an individual cryptocurrency wallet. Bitcoins and other currencies can be stored in this wallet.

When money is sent, the user conducts a transaction through the system. Afterward, funds are loaded to the user’s account on the app server. The user then chooses where the money will go and the currency it will be sent in.

What happens next can be done without the user’s assistance.

Purchase of the cryptocurrency is completed by the system on the server side, and the end user’s engagement isn’t required either. Afterward, the foreign currency is bought after the cryptocurrency is sold. The final step involves the user receiving the funds in the currency of their choice into their bank account.

That said, studies show that this isn’t feasible to perform the exchange application process automatically because no platforms have an API to have money withdrawn from a bank account. With the exception of ones that permit money transfers into “confirmed” accounts, an exchange is contingent on the money transfer’s direction.

A successful transaction involves the foreign currency being sent to an account with a native currency. Once an account is established, the user confirms their account. Lastly, the transaction is automatically completed. In short, the cryptocurrency exchange app can be automatic with the exception of one step: the recipient needs to designate the wallet in a new account as “confirmed.”

However, if money is transferred from a confirmed account, the process becomes more troublesome and must be conducted differently. The most optimal approach is to team up with those who issue cryptocurrency debit cards. In the event money doesn’t warrant withdrawal, cryptocurrency can be loaded onto these cards.

When funds are sent to the natural currency, here’s what’s implemented in the cryptocurrency exchange application:

Login/Register page of the cryptocurrency exchange application where user creates his account or enters with already existing credentials

Login/Register page of the cryptocurrency exchange application

List of Wallets

Account ID verification with the list of available wallets

Send Money

Money transfer screen

Transaction History

Transactions history screen

Cryptocurrency conversion screen

Cryptocurrency conversion screen

The website will have an API via a backend service that both iOS and Android devices can use. It will allow for:

  • The creation of accounts.
  • Request for a money deposit.
  • Requests to send money.
  • Cryptocurrency > Currency exchange proxy APIs.
  • Management of bank accounts.

Afterward, a backend portal will be implemented into the exchange application, which will allow the user to modify the information on his profile.

Lastly, there are multiple platforms for the cryptocurrency exchange app. Both Android and iOS apps operate the same way and execute the same functions.

For the complete implementation of a project, it is worthwhile to develop an exchange application that is web-based for the most optimal user experience.

Project Implementation Methods

The project’s intended functionality can be accomplished in similar ways regarding backend and UX. The initial choice is to install the mobile cryptocurrency exchange app on a user’s web-based application or mobile device that resembles an Android or iOS app and copies the app’s functions. Another choice is to minimize the development fees and decrease the go-to market time. Startups must begin with the development of a mobile app and return to making a web-based cryptocurrency exchange app afterward. 

We’ve calculated some of the approximate durations, human resources, and budgets required for both instances: developing a mobile exchange app and a web-based version simultaneously and a mobile app with a basic site.

Duration for Cryptocurrency Exchange App Development

Based on our calculations, it should only take half a year to finish this project. We will display more information for the team and the interaction duration for all specialists individually.

Team Required for the Cryptocurrency Exchange Web-Based App and Mobile App Development

  • One backend developer working full time for half a year charging $65/hour to develop the backend service, database, etc. = $62,000
  • 1 Android developer working half a year at $65/hour to develop an Android application = $62,000
  • 1 iOS developer for half a year at $70/hour to develop an iOS application = $67,000
  • 1 front end web developer to develop backend and frontend websites at $55/hour = $52,000
  • 1 graphic designer, a quarter of a year at $40/hour to develop designs for the website and apps = $38,000
  • 2 QA engineers for half a year at $35/hour who will begin testing immediately = $67,000
  • 1 PM who organizes all the work within half a year at $55/hour = $52,000

This project’s budget is approximately $400,000 USD.

Team Required to Have the Cryptocurrency Exchange Basic Web Portal and Mobile App Developed

Let’s assess the resources and team required to launch the project with the basic-function web portal. The single way to transfer funds will be to use the cryptocurrency exchange app.

  • 1 full-time backend developer for half a year at $65/hour to develop the backend service, database, etc. = $62,000
  • 1 Android developer for half a year at $65/hour to develop an Android application = $62,000
  • 1 iOS developer for half a year at $70/hour to develop an iOS application = $67,000
  • 1 QA engineer for half a year at $35/hour to begin testing immediately = $33,000
  • 1 PM who organizes all the work within half a year at $55/hour = $52,000 

The cost for this would be approximately $288,000 USD

Project Expenses, Offshore and Onshore Development Cost Comparison

The rates shown above are inexpensive for a cryptocurrency exchange app project to be done in that window of time. For comparison’s sake, we have shown approximate rates for an identical project outsourced for development into Eastern European countries like Ukraine or Belarus. Have a look at our 2017 Global Custom Software Development Rates Gude for more information about global outsourcing rates.

Mobile App and Web Based Application Development Costs Table 


Specialist

Number of Devs

Months of Engagement

US Hourly Rate

Europe Hourly Rate

Back-End Developer

1 6 $65/h $35/h

Android Developer

1 6 $65/h $35/h
iOS Developer 1 6 $70/h $40/h
Frontend Web Developer 1 6 $55/h $35/h
Graphic Designer 1 4 $40/h $20/h
QA Engineer 2 6 $35/h $15/h

Project Manager

1 6 $55/h $25/h
Total Cost

$403 200

$196 800

Mobile App and Basic Web Portal Development Costs Table


Specialist

Number of Devs

Months of Engagement

US Hourly Rate

Europe Hourly Rate

Back-End Developer 1 6 $65/h $35/h
Android Developer 1 6 $65/h $35/h
iOS Developer 1 6 $70/h $40/h
QA Engineer 1 6 $35/h $15/h
Project Manager 1 6 $55/h $25/h
Total Cost $278 400 $144 000


In Closing

Keeping the above prices in mind, it may seem expensive at first, but if you look into the future, the deposit required to produce a cryptocurrency exchange app will offer substantial profit earnings. Its success isn’t contingent on the exchange rate and cryptocurrency state. It’s difficult to predict any currency’s course. The only certainty is that the popularity of cryptocurrency will continue to rise over the next several years, and all market tendencies, be it positive or negative, will result in greater interest in these platforms. To summarize, this cryptocurrency exchange app isn’t contingent on cryptocurrency vacillating course since it is only dependent on transactions of trade which will remain intact forever.

Cryptocurrencies have never received more attention than they are currently. The market is still new and has a lot of potential for exciting new concepts. We at Existek believe that there are many accomplishments in the industry to be had. If you have any thoughts about blockchain, cryptocurrencies, or something else relevant to this article, leave a comment below. Our team highly appreciates your contributions!

Analysts agree that a mix of emulators/simulators and real devices are necessary to optimize your mobile app testing - learn more in this white paper, brought to you in partnership with Sauce Labs.

Topics:
bitcoin ,block chain ,blockchain ,cryptocurrency ,mobile application development ,banking apps ,custom software development ,outsourcing

Published at DZone with permission of Victor Osetskyi, DZone MVB. See the original article here.

Opinions expressed by DZone contributors are their own.

{{ parent.title || parent.header.title}}

{{ parent.tldr }}

{{ parent.urlSource.name }}