Cryptocurrency- An Overview
Cryptocurrency is a type of payment that is used to exchange different types of online goods and services. There are several companies that have their own currencies issued which are known as tokens. These tokens are traded specifically for the service or good that the company offers.
Cryptocurrency can also be defined as a digital payment system. This type of digital payment system does not rely on any financial institutions like banks to verify the transactions. It is more like a peer-to-peer system that enables any individual to send payments and receive payments from any part of the globe.
In place of the physical money that is carried around the globe and also exchanged, the existence of cryptocurrency payments is completely digital entries to a specific online database that specifies specific transactions. Where there is any transfer of cryptocurrency funds all the records of transactions are stored in a public ledger. Cryptocurrencies are stored in digital wallets. There are various cryptocurrency exchange app available which offers a secured path for transactions,
Cryptocurrency got its name only because it uses an encrypted mode to verify the transactions. This refers to an advanced level of coding involved in the whole process from transmitting or cryptocurrency data between public ledgers and digital wallets. The objective of encryption is for providing security and safety.
Cryptocurrency completely works using a specific technology known as the blockchain. Blockchain can be defined as a decentralized technology that is spread across several computers that have the option of managing and recording all the transactions made. The main attraction of this technology is the security that it has to offer.
Some Salient Points:
- Cryptocurrency is a type of digital asset which is based on a specified network. It is shared across a huge number of computers. This decentralized formation gives them the scope to reside outside the authority of central authorities and governments.
- The term “cryptocurrency” is obtained from the various techniques of encryption that are used in securing networks.
- Blockchains, which are regarded as directorial methods for securing the integrity of all the transactional data, are regarded as essential elements of several cryptocurrencies.
- Several experts have a strong belief that blockchain and other related technologies might disturb various institutions which include finance and law.
- Cryptocurrencies sometimes face disapproval for a plenty of reasons including their exchange rate volatility, susceptibilities of the infrastructure, and their use in illegal activities.
- Nevertheless, they are also appreciated and are highly praised for their inflation resistance, divisibility, portability, and transparency.
Is Cryptocurrency really secure?
As mentioned previously cryptocurrencies are primarily built by using the technology of blockchain. Blockchain further describes the method of transactions that are recorded into ‘blocks’ with time-stamped. It is a complete technical process that is fairly complex. But the best part is even though it is complex, this digital record of cryptocurrency transactions is hard for the hackers to carry out any tampering.
Also, all the transactions of cryptocurrencies require a two-factor authentication process. For example, you might be needed to enter a username with a password to start with a transaction. Then you may be asked for a secret code to enter which may be sent to you on your mobile or email. In a cryptocurrency exchange app you get this two factor authentication process.
However, even though all these securities are in place it does not mean that the cryptocurrencies are un-hackable. Rather a number of high dollar hacks had cost cryptocurrencies startups to a great extent. In 2018 hackers had hit Coincheck to the extent of $534 million, and $195 million for BitGrail. As per Investopedia, these two were the biggest cryptocurrency hacks that took place in 2018.
Why are Cryptocurrencies regarded to be so popular?
Cryptocurrencies attract their users for several reasons. Some of the popular reasons are as follows:
- Cryptocurrency believers see cryptocurrencies like Bitcoin as the currency that will rule in the future so they are now in a race to buy them now with the presumption that they become more valuable than now
- Few other believers like the view that the cryptocurrency mode will gradually remove the central banks from the role of managing the supply of money, after all with time all of these banks are in a tendency to reduce the value of money through inflation.
- Other believers like the technology that is taking the lead in cryptocurrencies like the blockchain. This is because it is a completely decentralized recording and processing system that can be much more secure than any other mode of the traditional payment system.
- There are few speculators who like cryptocurrencies because the value of cryptocurrencies is going high with time and they have no interest in the currencies prolong acceptance as one of the ways to transfer money.
About cryptocurrencies investment
Cryptocurrency with time may go up in value, but again there are several investors who see cryptocurrencies as mere speculations and not real investments. Here the question arises what is the reason behind it. And the answer is just like all real currencies, cryptocurrencies generate no cash flow. So for one to profit, another person has to pay more for the currencies than the first person did.
That is what is known as “the greater fool” , the theory of investment. In comparison to a successful business or establishment which multiplies its value with due course of time by letting the profitability grow along with the cash flow of the entire operation.
For those who consider cryptocurrencies to be the currency of the future, they should take into account that a currency requires stability so that traders and the end-user can regulate and consider what would be the fair price for goods. Cryptocurrencies like Bitcoin might have been anything but have been stable all through. For instance, in December 2017 Bitcoin traded approximately $20,000. But again its value dropped a year later to as low as $3,200, but again by end of December 2020 Bitcoin once again started to a record level trading.
This price fluctuation creates a problem. If Bitcoins turn out to be more worth than it is today. It is more likely that people would spend it less or circulate them in today’s date, thus making them less applicable as a currency.
Types of Cryptocurrencies
As per the data provided by CoinMarketCap, there are around 10,000 different cryptocurrencies that are traded globally. According to CoinMarketCap, the net value of all the cryptocurrencies as of August 18, 2021, was calculated to be more than $1.9 trillion. Out of all the cryptocurrencies, available Bitcoin is the most popular one.
The ten largest trading cryptocurrencies that ruling the market as per CoinMarketCap- A Cryptocurrency analytics and data provider are as follows:
- Bitcoin with a market capitalization of $799.3 billion.
- Ethereum with a market capitalization of $341.8 billion.
- Cardano with a market capitalization of$71.5 billion.
- Tether with a market capitalization of $68.7 billion.
- Binance Coin with a market capitalization of $59.2 billion.
- XRP with a market capitalization of $43.6 billion.
- Solana with a market capitalization of $41.3 billion.
- USD Coin with a market capitalization of $30.4 billion.
- Polkadot with a market capitalization of $30.4 billion.
- Dogecoin with a market capitalization of $27.5 billion
How much does it Cost to Build A Cryptocurrency Exchange App
Till now we have learned the basic enterprise mobile app idea of what cryptocurrency is all about, how secure are the cryptocurrencies, and also why cryptocurrencies have gained so much popularity. Now let us look into how the cryptocurrency exchange app does its work from transferring money to converting cryptocurrency into national currency as per your choice.
To start with let’s have a brief description of the Cryptocurrency Exchange App at first.
The working of cryptocurrency exchange app works is as follows:
- To start with, at the very first the user registers so that they can become a part of the system and also get an individual cryptocurrency wallet. Here in this wallet, the user can store all the cryptocurrencies.
- When money is transferred the user manages a transaction via this system. Later, when funds are added to the account of the user on the application server. This is now when the user chooses where the funds will be sent and the currencies they would be sent in.
- Next comes where purchases of cryptocurrencies are done by the systems on the server-side. Here the end user’s involvement is not required. Later, foreign currencies are bought after the cryptocurrencies are sold. The last step requires the end-users’ involvement for receiving the money in the currency of their own choice right into their individual bank account.
- An accomplished transaction engages the foreign currencies from being sent to an individual account with a local currency. As soon as an account is created the end-user confirms their account. Finally, the transaction is completed automatically. In brief, we can say that a cryptocurrency exchange app could be automatic with the peculiarity of a single step, i.e. the recipient is required to designate the cryptocurrency wallet into a new account as confirmed.
- It should be noted that when the money gets transferred from a confirmed account, then the process gets more complicated, and needs to be handled differently. One solution may be to partner with a crypto currency debit card provider. So when the money is not confirmed to be withdrawn, it can be loaded onto the respective debit cards.
- When funds are transferred to any natural currency, here is what is applied in the cryptocurrency exchange app:
- The website will consist of an API through a backend service on which both Android and iOS devices can be used with ease. It will thus allow for the following:
- The establishment of accounts
- Requesting for a certain money deposit.
- Requesting to send the money.
- Currency exchange proxy APIs.
- Management of various bank accounts.
How to Implement the Project
The project’s planned and calculated functionality is able to be accomplished in related ways regarding UX and backend. The very first choice is to get the mobile cryptocurrency exchange app installed on an end user’s mobile device or a web-based application development. The next choice is to make a cost-cutting in the development fees and reduce the go-to-market time. Any new business should start with the building of a mobile application and then come back for making a web-based cryptocurrency exchange app.
How long will it take to launch your Cryptocurrency Exchange App
Generally, it takes around 24 weeks to complete a full fledged Cryptocurrency Exchange App. Also to note that Cryptocurrency Exchange Apps are grossly run in two distinct formats in the market. There will be different specialists who are needed to be involved in each format of the project according to the need of the project. Let’s start analyzing their roles.
- Format 1: Exchange Web-Based App and Mobile App
This format contains a web-based app that is generally run on desktops (and also tablet PCs) and a Mobile App that runs on mobile devices (that is mobile phones). The breakdown of effort and resources are as follows
- A backend .NET developer employed in full time manner, who will stay involved with the project for the whole duration of the project; that is 24 weeks.
- A iPhone mobile application developer employed in full time manner, who will stay involved with the project for the whole duration of the project; that is 24 weeks.
It should be noted that there are several technologies for Mobile development. Such as the classical native app development where technologies like Android, IOS are involved. Or maybe Hybrid technologies are employed such as React Native, Flutters, Ionics or Vue JS.
It is noteworthy that every approach and their respective choices of technology have its own advantages as well as disadvantages. And the cost for the resources also varies significantly based on the technology.
- A front end web developer who also should be employed in a full time manner, and who will stay involved with the project for the whole duration of the project; that is 24 weeks. He /She should be working in tandem with the backend developer, creating the full cycle for the web based application for the Cryptocurrency Exchange App.
- A graphics designer employed on an as needed basis, staying involved during the prototype creation phase of the development process.
- Two Quality Assurance Engineers employed in full time manner; starting their work once the development phase is complete.
- A project Manager employed in full time manner, who will stay involved with the project for the whole duration of the project; that is 24 weeks.
He will be responsible to keep the whole project in line. He will also be convening meetings for the team. He will be resolving the bottlenecks that arise during the development process.
- Format 2: A Basic Web Portal and Mobile App
This format is greatly similar to the previous ones with certain differences in the core areas. In this format there will be a Web Portal, only accessible through a Desktop PC having a good internet connection. Along with it there will be a Mobile App that runs on the mobile devices (that is the mobile phones). The breakdown of effort and resources are as follows
- A backend developer employed in full time manner, who will stay involved with the project for the whole duration of the project; that is 24 weeks.
- A android mobile application developer employed in full time manner, who will stay involved with the project for the whole duration of the project; that is 24 weeks.
Like the previous format this one too may be developed in one of the many technologies that are available for Mobile development. Including the classical native mobile app development and the Hybrid technologies based app development.
- Quality Assurance Engineers employed in full time manner; starting their work once the development phase is complete.
- A project Manager employed in full time manner, who will stay involved with the project for the whole duration of the project; that is 24 weeks. He will have the same responsibilities and duties like the other format.
Till now we have understood what cryptocurrency is all about, the various types of cryptocurrencies available, whether cryptocurrencies are good investments, also why cryptocurrencies are becoming so popular with time.
The success is nowhere, by chance or accidental on the cryptocurrency state and exchange rate. It is never easy to speculate about any currency’s course. The only assurance is that the admiration of cryptocurrency will keep on rising over the upcoming years, and the market tendencies present whether negative or positive will always result in much higher interests in these existing platforms.
To summarize the whole thing in one line is “cryptocurrency exchange app is not contingent on cryptocurrencies fluctuating course as it only depends on transactions of trade that will remain unbroken forever.