Development of a crypto exchange in Python

Against the background of the approaching crisis in the global economy, which, apparently, is already inevitable, the cryptocurrency market has not only not lost ground, but continues to develop rapidly. At the same time, the number of exchange transactions in digital currency has increased, and the demand for crypto exchangers has grown significantly.

In terms of terms, a crypto exchange is a platform where users can buy one crypto for another or convert digital assets into fiat.

Of course, crypto exchanges such as Binance or Coinbase also provide similar services, but exchangers have their own advantages here:

• Ease of use. No order books, orders and other modules related to trading.
• One step exchange. The exchanger works on the “sent-received” principle, without placing orders, converting and withdrawing funds from the system.

• Speed. As a rule, the exchange takes place within an hour and the user does not need to wait for a long withdrawal of funds.
• Working with fiat. Often, exchangers provide a wider selection of fiat currencies for selling crypto.
• Safety. The exchanger does not store customer funds, but transfers directly between users’ wallets. This removes the risk that assets will be frozen or blocked by a third party.
• Transparency. Usually, exchangers immediately show the trading commission for the exchange, while on the exchange you will have to pay for depositing funds, converting, and then withdrawing.

In simple words, if a user just needs to exchange a crypt, he most often chooses an exchanger, and an exchange is, first of all, a tool for trading.

The backend of a cryptocurrency exchange can be built on different technologies, and Python is certainly one of the priority options.

It is a high-level language with automatic memory management that supports several programming paradigms: object-oriented, functional, structural, and imperative. Thanks to this, Python developers can create the most flexible and efficient software solutions.
Other benefits of the language include:

• Support for asynchrony. Python code can execute tasks and processes without having to finish completing them, which improves the performance of the product.

• Minimalism. Python has a very concise syntax. This means that developers need to write fewer lines of code, and therefore the speed of product release is greatly increased.
• Extensive libraries. Libraries are collections of resources. They contain ready-made code blocks with described functions and classes, so that the developer does not have to waste time writing everything from scratch. Popular libraries include Pandas, Matplotlib, Numpy and others.

In addition, Python has the Django and Flask frameworks, which help to further optimize and speed up the development process.

The development of a crypto-exchanger in Python consists of six consecutive stages. Consider what work is performed on each of them.

Stage 1. Gathering information

The life cycle of an exchanger begins with research. At this stage, the development team is faced with the task of studying the requirements and priorities of the client, conducting a thorough market analysis and determining the direction of product development.

Stage 2. Design

During the design, a prototype of the future exchanger is created, which will become the basis for the further implementation of the project. In fact, this stage allows you to test different ideas and hypotheses, find the best technical solutions, minimize risks and reduce the project implementation time.

The prototype includes:

• Schematic visualization of the interface.
• Flowcharts that visualize the logic of the functional part and smart contracts.
• Functional table, in which the text describes the features of each function.
• Mathematics of the project – a table with formulas that will be used in calculations.

To present the prototype to the client, our team also records demo videos. This approach allows the customer to understand exactly how his exchanger will work even before the start of development.

Stage 3. Design development

An attractive and user-friendly interface is a very important component for a successful exchanger. It helps users to easily navigate the functionality of the service and make exchange transactions with a minimum amount of effort.

To achieve the best result, the design of a cryptocurrency exchange is most often created individually, taking into account the rules of usability and corporate style of the company.

Stage 4. Programming

At this stage, the technical implementation of the crypto-exchanger is performed. As a rule, it consists of three parts:

• Frontend development. Creating an interface that users interact with on the client side. To implement this part, static HTML / CSS / JavaScript technologies are used, or reactive ones – Vue.js / React.js.

In short, the frontend includes: layout, creation of animations, transitions, event handlers and other components that make working with the exchanger even more convenient and understandable.

• Backend development. The backend is responsible for storing and processing data on the server. This part of the project is built in Python or its frameworks and includes: writing code for functionality, setting up servers and databases, creating integrations with third-party services, such as fiat wallets and banks.
• Blockchain development. This stage involves the creation of smart contracts – special cryptographic scripts that are published on the blockchain and are responsible for making secure crypto exchange transactions. Smart contracts can be written in languages such as Solidity, Rust, or others, depending on the blockchain that the exchange uses.

Stage 5. Testing

After the development is completed, the crypto-exchanger is thoroughly tested, and only after that it is released. To check the correct operation of smart contracts, blockchain test networks are used – this is important, because after being placed on the main blockchain, they will become immutable.

Stage 6. Technical support and development

The launch of the exchanger is only the first stage in its development.

In order for it to always remain in demand and bring stable profits, then you need to focus on its continuous improvement. To do this, after the release, the project is connected to technical support.

Qualified technical support allows you to quickly eliminate any errors in the operation of the product, as well as timely improve the functionality so that it meets the needs of the market.

Most owners of digital currencies prefer to buy and sell cryptocurrencies not through exchanges, but in specialized exchangers. Therefore, investing in your own crypto exchange is a profitable business, the relevance of which will only grow in the coming years.

We, at AVADA MEDIA, have extensive experience in developing such solutions, and we will help bring a quality product to the market. To implement the exchanger, we can use both the Python language and other innovative technologies – the choice of a stack depends on the characteristics of each specific project.