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5 Comments

Crypto exchange, is that easy to build?

Hey guys,

I'm considering building an exchange for spanish market and found this article http://merehead.com/blog/how-build-cryptocurrency-exchange-software/ does anyone have experience and tips?

  1. 1
    Building a crypto exchange may look straightforward from the user interface, but the underlying architecture is considerably more complex. Order matching, wallet and custody systems, blockchain connectivity, transaction state management, security controls, liquidity integration, rate limiting, fault tolerance, and real-time monitoring all have to work together reliably. The real engineering challenge is making these components secure, consistent, and resilient as transaction volume grows.
  2. 3

    Bitfinex took some really crappy code from other exchange and got started with that. You'd be surprised how many businesses get started and get by with crappy technology. There are many other factors to success and they're often more important. Besides, get ready to get hacked several times -it has happened to almost every exchange- and possibly lose it all. And finally, why the Spanish market? it's a relatively poor country.

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    Yeah to build an actual exchange would be some very serious tech and a massive mountain to climb. Definitely not easy to build and to get it rolling as a business you would have to get people to trust and trade on it which is a whole other story. Most crypto volume happens on a few of the big, very well established exchanges. Tons of scammy buggy ones out there to compete with too. Lots of opportunity to build crypto related apps that aren't exchanges though.

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    They can be extremely profitable, but are also huge targets for some of the world's best hackers. I'd strongly advise doing your homework.

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    I don't have any experience in this, but would strongly suggest this is something that you shouldn't endeavour to build unless you have a strong & confident background in crypto and security and you'll also need a serious legal & finance team. The liability concerns would and should scare most people away.

    http://dayssinceacryptocurrencyexchangehaslostmorethan100million.com/