Table of Contents

• Hire a solid team :
• Understand how decentralized crypto exchange platform works :
• 1) Order Book System 
• 2) Decentralized Exchange System 
• 3) Top-notch Security 
• 4) Community engagement

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• Ultimate business success factors to know before launching decentralized cryptocurrencies exchange ( DEX )

Decentralization is a concept that can be implemented anywhere. If one has an idea, decentralization is always there to make it more powerful.

Melanie Swan rightly said, “Cryptocurrencies are just one example of decentralized technologies.”

In the world of digital currency, exchanges play a major role, and having a platform to support decentralized crypto exchange business is a great pearl to hustle for. But what’s the perfect recipe to get a platform that gives tastes of successful decentralized cryptocurrency exchange?

Hire a solid team :

The most crucial is to reach first base and the hindrance is the team.

Getting a solid team is what defines the success of the platform. The team can be the owners or workers, or an experienced and specialized agency. No matter which members define the team it should have all the aspects of the business; technical, legal, brand, and customer engagement.

If the team lacks any of the crucial pillars the platform build will have a parallel impact; becoming just one more poor exchange with no demand and business. The team should accommodate a passionate person from every related field; whether a trader, application developer, or blockchain enthusiast; to have a product that customers want and not what the business wants to give.

With a perfect team along, things move on swiftly to have legality concerns resolved and get customer onboarding a delightful experience. It’s important to have a quick and simple regulation complaint procedure in a place like KYC and AML, which rightly balances compliance and user experience.

Understand how a decentralized crypto exchange platform works :

A decentralized crypto exchange business requires a model in which nothing should be controlled by anyone, and this requires extensive research and some amount of creativity to find a model that is beyond good and has something exceptional from the currently available options.

It is must have, all the great and not-so-great cryptocurrencies on the exchange which must be decided based on volume and the uses it has in its bucket. Also, the decentralized exchange should always be peer-to-peer and even the exchange should not become a third party.

The decentralized exchange should provide a well-developed and easy-to-handle platform to bring buyers and sellers together. In addition to this, the exchange should only act as a holder of value until and unless a trade happens.

This makes a true decentralized exchange, everything happens between buyer and seller, exchange just supports and provides safety to both parties.

Ultimate Success factors of decentralized crypto exchange platform :

1) Order Book System 

An order book represents the demand and success of the exchange business. If the exchange is decentralized, then transparency is a must and the exchange should have an open order book revealing some key data like volume, buy price, sale price, and trade details along with open orders and completed orders. This not only increases reliability but also supports the idea of decentralization.

In this method, the buyer and seller have the option to select the most suitable trade offer and enter into it to get it completed; maintaining transparency and decentralization.

2) Decentralized Exchange System 

To be a successful exchange, there should be a system and cautious plans should be made to remove as many intermediaries as possible, including the exchange itself. The common exchange mechanism like having a stablecoin as an exchange medium would boost the platform business and allow freedom to all.

Additionally, providing a solution to buy USDT or TUSD against legal tender money and having an exchange rate based on stablecoins remove barriers of dependency on the banking system and allow avoiding intermediaries. Also, getting the fastest of all is necessary and of great importance when thinking about scaling the crypto exchange business.

Not only the speed and P2P model but also the continuous tweaks, trading fees, and offering of the optimum deposit and withdrawal rates allow drilling deep into the market. Tweaks should include managing available options of cryptocurrencies, enhancing technological aspects, and making more and more payment options available.

3) Top-notch Security 

Despite being at the peak, just a bug or a security flaw could rule out the exchange business out of the market. To avoid such a scenario, the bug should have no place, and security should be top-notch.

A decentralized exchange should always have a decentralized bug and error reporting system, which should be seriously and wisely handled so that the platform remains bug-free and the public image remains undented. A proper security policy should always have a seat reserved for security audit - internal as well as external.

Even a small loophole can give an irrevocable mark on the heart of the business – the customers, which even an astonishing service quality cannot remove. Steps like 2FA or OTP login enhance security level.

The decentralized exchange is a good idea but restrictions like limited areas could turn it into the worst idea. A decentralized exchange should be supported with accessibility across platforms and devices.

A best-decentralized exchange should have an application for mobile devices, supporting the best major operating system which should be the case with a desktop application and the platform should be accessible through a web application as well.

Everything in place makes no change until and unless there is a descriptive website that covers most of the queries; and a supporting blog having key aspects like product description, additional functionality, and articles for community engagement.

4) Community engagement

Community engagement is a great tool to know more about customers’ choices and to set up a dispute redressal system to find and resolve disputes between users in the exchange economy. Things get more easy and more transparent as well as decentralized.

Decentralized exchange only works with the motive to get buyers and sellers to deal with each other directly. It acts as a holder of assets or cryptocurrency during the whole exchange takes place, which should be relieved as soon as seller confirms receipt of money.

This model of exchanges is not only decentralized but is a way to play safe. This not only sidelines all the middle persons but also shreds the volatility risk of cryptocurrency. It’s a great way to achieve both centralization and decentralization which Karl E. Weick showed interest in, through his quote – “The real trick in highly reliable systems is somehow to achieve simultaneous centralization and decentralization.”

If you want to launch the best decentralized crypto exchange platform, contact the team of dApps developers at Alwintechnologies.

Book a demo here