However, all the resources spent can turn into a successful trading business if you have a solid business plan and the product development is done at the proper level. The end result should be flawless, because the exchange works with clients' cryptocurrencies.
When developing your own crypto exchange, you need to implement the following components. Now we will analyze how a cryptocurrency exchange is structured.
• Trading engine
Open orders are placed in the order book, where buy and sell nigeria number data orders are sorted by price and time. Thus, a trade can be executed if the supply matches the demand, otherwise it can be cancelled.
How does the trading engine work? Algorithms collect information about all open orders, and if two opposite orders are equal, they are executed and the transaction is made. These algorithms also allow you to place market, limit and stop-limit orders.
The engine can use different algorithms to match buy and sell orders. The most common is the first-in-first-out (FIFO) algorithm, which prioritizes orders by time. For example, if there are two identical orders, the engine will choose the one that entered the system first.
A trading engine is a complex, integrated software that collects and instantly synchronizes data from different trading pairs. Developing a reliable engine that can process orders in a few microseconds is a very labor-intensive process that only experts in the field can handle.
Engine performance determines the overall efficiency and reliability of the exchange, its characteristics and order matching system.
It should also be noted that when developing a crypto exchange from scratch, the software update process never ends, and you will have to constantly contact the development team, because the “set it and forget it” principle will not work here: a crypto exchange requires constant development.