Cryptocurrency Exchange Platform: Architecture, Security, and Features

Posted by MuBlockchain on December 30th, 2020

Existing cryptocurrency exchange platforms often find it challenging to cope up with increasing market requirements such as efficient handling of large transaction volumes, advanced user-experience features, and smooth trading experience.


The need of the hour is to develop simple and minimalistic crypto exchange platforms. They must support fast fiat withdrawals to include a large portion of the world population that deals in fiat money. Most importantly, they need to be safeguarded with high-level security to establish trust in the network.

So, let’s start with basic aspects to consider while developing a modern cryptocurrency exchange platform.

Cryptocurrency Exchange Platform: Architecture Essentials

The development of a cryptocurrency exchange platform must include these following four components.

1) The trading engine should always be at the core of any exchange. It provides access to the order book, matches buy/sell orders, executes transactions and calculates balances.

2) UI (user interface) or the outlook of your exchange website must be excellent, and user-intuitive. It is a window to how users see your exchange. Also, mobile accessibility should be at the top of the list as the majority of users use their smartphones to access the web. Fast and efficient mobile-optimized exchange platforms experience a better audience adoption rate.

In a nutshell, the UI of the website should enable your users to;

Register and access their account

Deposit, view and withdraw cryptocurrencies and fiat currencies

View existing order book, past transactions, stats, balances, charts, etc

Place sell and purchase orders

Enable access to the support mechanism

3) An efficient cryptocurrency wallet stores and manages cryptocurrencies on the exchange server with maximum security. For any exchange platform to prevent hacks it must have a hot/cold crypto wallet system to diversify risk. (explain wallets in detail)

4) An advanced admin panel is necessary for exchange platforms. It works like business intelligence and management software.

Necessary Admin Panel Features

Alteration of liquidity

Option to edit the spread and trading

Approval of user accounts for trading, after the verification of KYC and other regulatory requirements

Management of currencies like BTC, USD, ETH, etc. and exchange pairs like USD/BTC, BTC/ETH, etc

Crediting fiat deposits, debiting fiat withdrawal requests of users

Security Considerations

Google Two-Factor Authentication

Google 2FA ensures that only valid users get access to the accounts created on the exchange. It requires two-factor authentication at every login and withdrawal request to protect the platform

Encryption and Authorization System

Both encryption and authorization are critical for a cryptocurrency exchange to keep track of user activities on the platform.

Hot Wallet Protection

The use of multiple private keys rather than a single private key prevents wallet attacks.

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Joined: October 27th, 2020
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