The use of cryptocurrency is steadily rising, attracting financial institutions and everyday investors. In order to buy, sell, and trade cryptocurrencies safely, users need a reliable platform. That’s where crypto exchanges come in.
The crypto exchange market has boomed with both centralized exchanges (CEX) and decentralized exchanges (DEX) competing to provide crypto traders with the easiest and most convenient platform to interact with cryptocurrencies.
Both CEX and DEX are platforms for the buying, selling, and exchanging of crypto, they have fundamental differences. CEX is a centralized exchange created and owned by a central organization. They act in much the same way as a traditional stock exchange, as a middleman between buyers and sellers.
Coinbase, Kraken, Binance, and Gemini are popular centralized exchanges. They can offer guaranteed liquidity, crypto to fiat exchange, and are easy to use for beginners to crypto. They are custodial though, which means as a CEX, you’ll be responsible for the security of the users’ private keys.
SushiSwap, Uniswap and Compound are all examples of DEX platforms— they are a decentralized peer-to-peer network that directly connects traders. They are also non-custodial which many more experienced crypto users prefer as it allows them to keep control over their own private keys and have complete anonymity.
Although users can’t interact on a DEX platform using fiat, they do have many benefits such as a greater variety of crypto, faster transactions, and the possibility of governance tokens.
No matter which type of crypto exchange you plan on creating, Crypto APIs can support both with our powerful unified API endpoints for multiple use cases.
Crypto APIs full product suite has everything you need to create a high-quality cryptocurrency trading app with a flexible infrastructure that gives a competitive edge in a thriving market.
We offer crypto exchanges the ability to securely scale operations at a much greater pace, roll out new features quickly, and expand token support while saving on operational and development costs.
Utilizing our quantum secure technology and having instant access to live and historical blockchain data, crypto exchanges can offer their users a fair and frictionless way to interact with their cryptocurrency and digital assets.
Some of the world’s leading crypto exchanges are already implementing our solutions to provide their customers with a safe and secure platform to buy, sell, or exchange a wide range of crypto assets.
Using our Wallet as a Service centralized crypto exchanges can allocate secure wallets to their users, organize the deposit and withdrawal processes, and support multiple cryptocurrencies and tokens. All of this can be done without the need to host a single node or multiple integrations.
In fact, the only integration necessary is the one with Crypto APIs.
Our unified APIs support all assets secured by all of the major blockchain networks with newly introduced chains added all the time. Our unified endpoints return enriched blockchain data ensuring the most comprehensive crypto exchange.
Crypto APIs WaaS is easy to implement and scale. With our multi-layered security including MPC security, governance layer, and whitelisting capabilities, you can deliver maximum security to customers without compromising operational efficiency or user experience.
MPC stands for Multi-Party Computation which is a cryptography technology utilized for key management on the blockchain. MPC doesn’t just simplify key management, it replaces it entirely by replacing the private key with individual and separately generated key shares. This process is done off-chain, with only the final signature being broadcast on-chain.
The main advantage of this keyless system is that it offers absolute protection of assets from external hacks and insider threats.
But it is also much more efficient— less data to be verified means faster transactions and lower fees. In fact, crypto exchanges utilizing our MPC Wallet can save up to 90% on network fees.
With governance layer, you can create as many custom rules and policies as you like and apply them to different situations. For example, you can request a minimum number of approvers for specific transaction amounts or apply no approvals necessary for certain addresses.
Setting up well defined rules means that not a single transaction can be executed without the stipulated approval of appointed team members.
Whitelisting is a useful feature that allows users to grant access and privileges to specific addresses or entities. Easily whitelist addresses in Crypto APIs Wallet as a Service gives additional knowledge and control over transactions and their destinations.
As well as the battle-proof security, the Crypto APIs Wallet as a Service gives crypto exchanges access to other useful tools.
Crypto exchanges work with a large volume of transactions and requests for information such as the authenticity of blocks, confirmed / unconfirmed transactions, crypto price changes and the movement of funds in a wallet.
Crypto APIs can help both CEX and DEX crypto exchanges track happenings on the blockchain with our Blockchain Events that work using webhooks (also called web callbacks or HTTP push APIs) with an average delivery time of 100ms.
You can provide your applications with real-time information by subscribing for certain events and get a callback notification only when they occur. It allows you to track operational information without constant polling or the need to host or maintain any node.
Storing, maintaining and tracking blockchain data is a labor-intensive task with huge infrastructure costs— there are literally millions of transactions and events happening on the blockchain every day.
Crypto APIs simplify this process for crypto exchanges with Blockchain Data. Through REST APIs, we provide unified, synced, and indexed data from top blockchain protocols.
You can also get transaction details for all the UTXO based protocols we support, sync HD Wallets (xPub, yPub, zPub), broadcast a locally signed transaction and get fee recommendations based on Mempool data. You can find all useful API endpoints in our technical documentation.
Read more: Everything You Need to Know About HD Wallets
Of course, there are some centralized crypto exchanges who prefer to implement their own wallets, and in this case, they can still make use of our Blockchain Data and Blockchain Events.
To find out more about how Crypto APIs WaaS and full product suite can assist your crypto exchange, contact us today.