The popularity of digital assets has been largely driven by cryptocurrency exchanges. The demand for digital currencies and decentralized finance is growing, thus resulting in a lot of interest in cryptocurrency exchange platform development.
According to Fortune Business Insights, global cryptocurrency market revenues are projected to reach $1,902.5 million in 2028, growing at a CAGR of 11.1% between 2021 and 2028. As a result, many startups and entrepreneurs are considering the development of a cryptocurrency exchange platform.
If you’re planning to build one, you probably want to know how much it costs to build a cryptocurrency exchange platform. The cryptocurrency exchange development cost must be well understood before you jump into the crypto exchange business. To get an idea of what goes into building a cryptocurrency exchange platform, let’s discuss a few factors that influence development costs. Let’s first understand what a cryptocurrency exchange is.
What is a cryptocurrency exchange?
A cryptocurrency exchange is a platform that allows users to purchase and sell cryptocurrency online through a company or other entity. The purpose of cryptocurrency exchange platforms is to exchange cryptographic forms of money, including advanced and state-issued currencies, for other resources. Basically, such platforms are middlemen between customers and merchants, earning money through commissions and exchange fees. Similar to a broker, these platforms allow you to buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, and Tether.
Cryptocurrencies were introduced when one had to manually enter a command in a terminal to send a coin. Users were eventually able to access cryptocurrency through easy-to-use interfaces. To make cryptocurrency mainstream, developers simplified the technical aspects so that ordinary people could own and trade it.
Crypto exchange development cost
It is difficult for developers to estimate the cost of work until they know the scope of the project. Because customers have different requirements, it is difficult to make calculations without preliminary negotiations. The cost of cryptocurrency exchange platform development is still something everyone wants to know in advance. To help you plan your budget, we will provide you with the average cryptocurrency exchange development cost.
The price of a basic crypto exchange is usually between $40000 and $50,000, and the cost rises with the addition of features. An advanced cryptocurrency exchange usually costs between $80,000 – $1,00,000 if you want more features and advanced functionality in it.
The cost of developing a cryptocurrency exchange script is similar to that of developing an application. Crypto technology offers a wide range of features, which may affect its cost. A wide range of features is available, including multiple platforms, multiple wallets, and multiple currencies; two-way authentication, chatbots, additional backups, large servers, and much more.
If we talk about the cost of crypto wallet development, it takes around $20,000 to develop a simple crypto wallet on the blockchain, and around $35,000 to $40,000 to create an advanced crypto wallet. If you add additional features, the cost may increase. To calculate the exact cost for your project, we recommend sharing your requirements with our blockchain developers.
Types of crypto exchanges and their costs
There are many factors that affect cryptocurrency exchange development costs. The types of crypto exchange models are one such factor. Cryptocurrency exchanges fall into several categories, so choosing the right crypto exchange is essential when building a cryptocurrency exchange platform.
The following table lists the estimated development costs for various cryptocurrency exchange models. Please note that these are just an approximation of the cost, and they may vary based on the scope and features of the project.
Type of crypto exchange platform | Average cost |
Centralized Crypto Exchange Development Cost | USD 50,000 to USD 75,000 |
Decentralized Crypto Exchange Development Cost | Around USD 1,00,000+ |
Crypto Exchange App Development Cost | USD 50,000 to USD 75,000 |
Centralized Crypto Exchange Development Cost
The capital investment amount required to build a centralized cryptocurrency exchange platform like Binance ranges from USD 50,000 to USD 75,000. In some cases, the price may rise to a significant amount based on the exchange platform’s requirements and the amount of time required.
Decentralized Crypto Exchange Development Cost
The most common type of cryptocurrency exchange is the decentralized one, and its development usually takes around USD 1,00,000+. The cost of any additional or add-on packages, including post-launch support, may vary.
Cryptocurrency Exchange App Development Cost
Cryptocurrency exchange apps such as Coinbase normally cost between USD 50,000 and USD 75,000. Development fees may differ from region to region and also based on other features.
As this was the determining factor in cryptocurrency exchange platform development, let’s look at the other factors that affect the development cost.
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