What is Cryptocurrency?
Cryptocurrency explained in simple terms, is digital currency. It is more so often used as a medium of exchange for financial transactions. Cryptocurrencies are encrypted using a secure technology known as cryptography that helps to validate the transfers. It has a decentralized control system which means there is a public database working on decentralized ledger technology.
Introduction to Cryptocurrency Exchange App:
With the rising popularity of banking operations using Ethereum and Bitcoin, the trend of cryptocurrency exchange app is soon to blossom. With features like small transaction fees, a lot of people are finding interests in cryptocurrency exchange apps. Many of them are using it as a means of money order as it is cheaper and quicker to use technology. So how does this cryptocurrency exchange app works?
We will find out about how the transfer of money and conversion of Bitcoin into a natural currency takes place using a cryptocurrency exchange app in this article:
How does the cryptocurrency exchange app works?
Registration:
As a first step, the individual user registers into the app and obtains a cryptocurrency wallet. It stores Bitcoins and other related currencies in this wallet.
Validation:
The second step is to validate the login credentials entered by the user. Once the account ID has been validated, the app shows a list of available wallets with balance. It also shows the list of connected bank accounts.
Transfer:
Firstly, the user conducts a transaction for sending money to the app server. This means, funds are loaded into the mobile phone app account and now he can choose where the money will go.
Purchase:
Purchase of cryptocurrency is done by the app on the server side and this process does not require the end user's engagement. The foreign currency can be bought once the cryptocurrency is sold.
Received of currency:
The final step involves user to receive funds into their bank account. The funds are received in form of original currency and the choice for which depends on the end user itself.
The cryptocurrency exchange app will have API as backend service that both Android and iOS devices can use. It will allow the following functionalities:
- Creation of new accounts
- Requests for money deposits
- Requests for sending money
- Cryptocurrency to original currency exchange (using proxy API)
- Management of several bank accounts
- Viewing transaction history
- Alerts about price peaks
- Real-time rate charts of cryptocurrency
Technology Used:
Generally, a cryptocurrency exchange app is created using Java or Node.js in the back-end. The available libraries are used for the most of the wallet functionalities making development easier and quicker. For any app supporting only Bitcoin, BitcoinJ SDK is used. However, this can be used only for Android apps. Coinbase libraries offer support for both iOS and Android apps.
As far as development platforms are concerned, Angular and Native are used in the front-end. For saving time and cost, React Native is also used as it offers support for both iOS and Android without having to write separate code for the two.
For the exchange of cryptocurrency to original currency, integration with PSP (Payment Service Provider) is a must. Some of the popular PSPs are Bitpay and Coinify.
Closure:
A cryptocurrency exchange app may be expensive in the beginning but it returns more margin of profit in the end. These apps are gaining attention from several users as the concept is new in the market and it has a potential for more. Intuitive design, useful functionality, professional development and creative thinking for a cryptocurrency exchange app go a long way to make it work. To know more about cryptocurrency exchange app then contact us.