Current Trends in Technical Setup for Exchange Trade
The best case scenario for most Exchange Businesses sprouting throughout is to have a White Label Software Management hired to set up the necessary infrastructure and provide them with customisable solutions for running the exchange business. These provide prepaid and pre-stabilized Exchange Platforms which can be used to manage the Volatility and induce the necessary Scalability in the Exchange Trade.
What does White Label Exchange Platform provide for
White Label Exchange Platform can generally be considered like your regular C-Panel (if you’re acquainted Web Designing) or for that matter in a very diluted context a WordPress Blog Front wherein you’re free to add features, wallet mechanisms, security systems and checkout gateways for exchange services. A kind of Software Suite with various UI/UX Features, Account Management Modules, API Integration, Reporting and Remittance Services and Firewalls for Security.You just register with them and borrow their infrastructure for a preset fee.
But that comes with its limitations. Most of them are not ICO customized which means they don’t have the necessary security enablement to support in case you want to participate in one. Authenticating the credibility of any such White Label Exchange Service is very tricky and is something for which you’d need expert advice (something to talk about, another day!).Security is always a big concern as in case of Mt. Gox Meltdown (a big theft and consumer class action feud for Cryptocurrency Exchange Trade in Ether and Bitcoin). The white label platform holds very less credibility based on the kind of regulations that your state holds over their operations.
Thus Lo and Behold! Set up your own Crypto Exchange Infrastructure
Setting up your own Cryptocurrency business comes with the need to have a robust backend, software and hardware setup, team and investor. But setting up a business of your own in this field comes with necessities to conform to the latest technology trends. With the increase in volatility on a daily basis (Russia, finalizing Federal Law, increasing Consumer trust and Investor inflow, UAE commenting about their consideration to figure out formal policy regarding Cryptocurrency, etc.); new formats of Hedge Trading, AI Trading Ether Bots, Fiat Trading in Bitcoins regular setups of Financial Trading Platforms will have to be changed. Let’s look at the changes required to your current Technical Infrastructure for the CryptoMoney Transfer and Trade.
Imminent Requirements for Bitcoin Exchange Technology
Technology for Bitcoin depends primarily on the kind of Country that you operate from, the kind of regulations that are levied upon your business and the kind of Customers (traders, depositors or fund managers) that you’re able to rake. Security, Scalability and Compliance are the main emphasize points for any such changes.
- API Interface Shielding: Application Programming Interfaces are the backbone of your user interface. Managing automation in transactions, site load and site data runs basically through this show. Do not trust any Service Provider for managing your API unless they have REST APIs based on HTTP Protocol for JSON Responses. JSON responses help in isolating the Encryption responses and API Keys from users. Besides DNS Level (Denial of Service) Level protection in terms of DDOS attacks is necessary for the first level protection against prominent Hacks.
- HSM (High-Security Modules): If you’re aware of the Exchange Business already, Cold Wallets would be most obvious storage measure that you might employ for Inventory Management of your Cryptocurrency. Offline keys make this look more appealing but Hardware Protection is also necessary. HSMs come in form of PCI Card to prevent your Bank of Ether and Bitcoins safe from a physical breach. They safeguard your root seed of each transaction even while catering API exposure, limit the Rate of BTC Exchange by using a Rate Limiter, validate by an internal plugin base on 2FA setup and use UTXO pool to sign your transactions.
- AI Integration in CryptoCurrency Business: Already Bot Trading and Hedge Funding is a rising trend in Bitcoin and Ethereum Business where spreads are great, and possibilities of automated trading are going to demolish the so-called Small Cap Speculative Trading. In such cases Bloomberg and Enigma (MIT Labs) Guy Zyskind has already said that the limitation of Technology to enable Network Speed for Crypto Coin Trade is going to be detrimental for Businesses. In such cases, improvisation of CDN Protocols (Content Delivery Network), DEX Protocols, the introduction of Bitcoin-NG in mainstream infrastructure; are the steps that would enable your Website and Interface to match the levels of World Class Trading Platforms. ICOs today have ranges with 5000 requests per second (even legitimate requests can go that high) and your platform if catering one of those ICOs might not want to crash in the middle of your greatest shot like Kraken Inc. did.
Future need for Preparedness in CryptoCurrency Exchange Trade
Trading techniques on Bitcoins and Speculative Earning in formats of Futures & Options and what not have started to emerge in the Cryptocurrency Exchange Markets. With the kind of volume that this Market trades on International Crypto Exchanges, it’s likely that the effect is going to trickle down to Small cap traders when the future trading in cryptocoins increases in future. Trade volumes may go through the roof, Websites and Exchange applications getting more trade volume than they could have possibly imagined, bot attacks on the wallets and ICOs springing out from anywhere and everywhere. How prepared do you assume your Technical Setup is indeed, to manage all that the Digital Currency Media has to offer; or are you planning to spend your time back at the small table trying to trade coins for meddlers in Ether and Bitcoin? Consult with Market Experts and Technology Leaders, regarding your game plan; look for experts in Bitcoin Trading Engine Startups, and Wallet Management Service Experts; and aim for the most robust Cryptocurrency Exchange Technology Infrastructural support; Exchange platforms need them the most, now that business is at all-time high.