This article will describe a typical workflow to consider when building a cryptocurrency-to fiat exchange.
This type of service has always been concerned with security and features of safety. For this reason, you should make sure that your service is protected by tight features. To create a market, it is necessary to preload coins such as Coinpaper BitcoinCash and Litecoin.
Which security and safety measures can be added?
Think about adding such features as
Email confirmation process
IP level protection
Secure Primary Wallet
Cold Wallet Concept – Secondary Wallet
Google reCpatcha (reCaptcha) - To prevent bots access, you should consider adding it to both your user and administrator end.
Google 2 Factor Verification - The feature provides a way to authenticate users with OTPs in real time. It could be enabled on both the admin side and for users.
Email confirmation - If you are doing more risky activity, it is a good idea to ask for an email confirmation before moving forward.
IP Protection- IP protection is a way to further secure the service. You can set an IP and then block other IP addresses.
The Primary Wallet, and the Secondary Wallet Moving on to the main part of the Service - the Wallet. It should have a secure primary wallet. This primary wallet can be connected to a network directly or through a third party secure service. However, in both cases it's always a good idea to generate an automatic wallet from within the service. CoinBase's API allows you to do this securely.
You can now secure your coins by using a hardware wallet/cold storage concept. It will be even safer than a primary wallet. It is possible to connect this cold storage to your service (the platform of exchange) in order to remove coins from the service and secure them.
Know Your Customer –Now, this is also important. To protect your trading platform you can adopt strict KYC. You may ask that documents be provided during the registration. Then it is best if these documents are sent to an email account that you have set up for this purpose. You could classify the users by withdrawal amount.
Techniques to Generate Revenue -As with all exchange platforms the revenue comes in form of commission. You can profit while doing any transactions. Transactions can be made while a deposit is being made, when withdrawing money, and even while selling or buying.
Complete Activity Log -User Activities should all be logged properly so that if the user needs to check their activities, they have a record. If needed, provide the option of a paper copy for all activities.
Stats -Statistics for transactions. The current currency and number of coins are all included.