First, we must determine what is meant by “the cryptocurrency application.” Their classifications are exhaustively enumerate. This necessitates stating which app not only meets the needs of developers and future cryptocurrency flow controllers but also the audience’s needs. A cryptocurrency app is an app that enables its user to track and manage local or global cryptocurrency fund flows, exchange tokens for fiat funds, and vice versa. There are currently many such apps, but they all fall into two major categories: wallets or exchanges, or a third category known as “exchangers.” People who have chosen to link their prosperity to the world of cryptographic currencies face disadvantages and benefits from each specified group. In addition, each has its unique characteristics, which can be both a step toward success and a push toward failure. Consider each of them in a bit more depth.

Crypto wallet

The first and relatively simple type is a Crypto wallet development. It has been known for some time that converting one’s savings into cryptocurrency or rapidly accumulating many tokens are not simple tasks. Depositing your crypto assets into a particular account, which would be completely secure, is the more difficult task. It is acceptable to create your cryptocurrency wallet as a mobile app compatible with the three most popular operating systems: iOS, Android, and Windows. This wallet’s primary purpose is to function as a new payment instrument that enables diverse digital asset transactions.

It is essential to understand what capabilities this app should possess. Typically, it is design to prevent problems associate with trading and storing funds on exchanges.

Consequently, the following are the primary requirements for the application:

  • Implementation of multiple operations, including direct sales and purchases of digital currency; organization of trading (buying and selling) between users; sending of coins to other wallets; and conversion of crypto coins to bank cards.
  • Paying for goods and services not only with fiat currency wallets but also with cryptocurrency wallets; connecting merchants to ensure payment acceptance; maintaining accounts for multiple crypto coins.

Skillful people can make wallets. If you lack these skills, it’s easier, simpler, and more prudent to hire professionals to create and teach you how to use a cryptocurrency (bitcoin) wallet. Every field has standards. An app should have extensive functionality, a user-friendly interface, the ability to connect to exchange API (including FIX4) and banking API, and encryption, certificates, and passwords to protect against local and global hacker attacks. Two-factor authentication is a useful addition (for example, a confirmation code that is sent via SMS). Sometimes a developing company creates, tests, and promotes a new app. If a client rejects a similar offer, you should ask yourself why. Combining skills with developers can double results and profits.

Development and costs

The total price will depend on a variety of variables. When pursuing objectives such as extensive functionality and a high level of security, we must remember that time and money are directly proportional to the desired outcomes.

So, let’s determine the main stages of developing a classic crypto wallet.

As stated previously, the first step is determining the primary objective: investing or trading, long-term storage, transactions, etc.

Then, the terms of reference should be established. The development of both simple and complex crypto wallets begins with analyzing user-specific data availability.

After that, you should focus on the selection of technology. The simplest and most practical option is to utilize popular technology solutions for platforms like Android, iOS, and Windows. This option will enable the creation of a high-quality product with the most comprehensive set of features possible.

The following steps are prototyping and testing, which will allow controlling all aspects of the app’s functionality and detecting and fixing any errors.

The average cost to develop a cryptocurrency wallet by a skilled and professional developer is between $900 and $1000.

This cost comprises the following expenditures:

  • Creation of a dependable application protect against the most common types of hacker attacks; availability of a wide range of tokens for transactions. They can be both well-known and obscure; website search engine optimization for the most popular and accessible system in the client’s country; typically Google;
  • Possibility of long-term storage of both fiat and cryptographic funds; a functional and user-friendly cryptocurrency converter; future maintenance of the app in its entirety.


Exchange is not merely a more complicate undertaking than cryptocurrency wallets. Not to mention, unlike the wallet, the creation of a platform entails certain risks, as it is a significantly more complex and resource-intensive undertaking. Nevertheless, the active development of cryptocurrencies in the modern era offers the possibility of enormous financial gain for those who follow the trends and keep token flows under control.

A cryptocurrency exchange is essentially a classic online “marketplace” platform that acts as an intermediary between sellers and buyers in trade transactions, which are typically limited to a relatively short list:

  • buying;
  • selling;
  • the exchange between fiat and virtual money.

Given the rapid development of cryptocurrency-relate technologies, it is only natural that a specific classification has emerge in the field of exchanges.

All comparable platforms fall into three categories:

  • Created to facilitate digital currency exchange for fiat currency or other payment methods; platforms – exchangers 
  • where cryptocurrencies are traded: ethers for bitcoins, litecoins, and vice versa. (their conformity with this classification is apparent at first glance, but upon closer inspection, it’s debatable because despite their similarities, these platforms 
  • Exchanges have fundamental differences so they will be discuss in a separate section of this article); platforms where token capabilities are implement only in their various branches.

After deciding on the type of exchange, the only remaining step is to locate competent specialists to create the sale. In this situation, you should not rely solely on your efforts because the risks are incredibly high. Without the active assistance and advice of the professional team, success seems unlikely at best. This is the case because even the most skill expert cannot remember everything alone.

Before beginning, you must define all phases of app development so that nothing is forgotten. The set of actions, or more precisely, the client’s and future mega-objectives, traders are as follows:

It would help if you began by purchasing software or building it from scratch.

Despite its higher cost, the second option is preferable because it allows the client to better understand the crypto market and control each stage of development, from concept design to final release. A cryptocurrency exchange has a trading engine, admin panel, database, user interface, account management center, wallets, and analytics. This approach offers increased security, an exclusive product, and the ability to continuously improve the exchange. Launching a new business may take longer with a custom-built platform. Turnkey exchanges are more expensive than ready-made solutions.

Customizing a ready-made product for your brand can be an excellent short-term solution for those who work in a field that is thematically similar to cryptocurrency. Demand and demand trends drive the need to create a platform for buying and selling cryptocurrency. It resembles an additional service more than a standalone endeavor. This solution is superior to turnkey platforms in terms of fast deployment and low startup costs. Still, it is inferior in terms of security (no access to the source code), expensive alignment to requirements (on average, it costs more than the engine itself), and reliance on a third party.

Anyway, a new project needs to include the following components:

  • A personal account with the ability to manage it; distinct gateways to connect users to the marketplace.
  • A large-scale aggregator that produces its cryptocurrency; 
  • A central trading core containing the primary features of the exchange.

Next, the geographical scope and commercial boundaries are outlined. This is a fundamental issue because the complexity of development and control, as well as the earnings and audience growth prospects, increase or decrease base on the territory covered, whether a distinct region, a state or the entire world.

Open a personal account at an accredite bank with an online platform to withdraw real funds. Cryptocurrencies can’t exist without fiat money. Today, this is one of the most complex problems faced by crypto services, as banks consider cryptocurrency activity extremely risky. Therefore, there is a near-100 percent chance that your application to open an account in European countries will be denied. This decision will stand regardless of license acquisition and compliance with AML regulations.

The only way to open a checking account is by registering with an Electronic Money Institution (EMI). When you transfer funds to an EMI, they are automatically converted into digital assets. When funds are withdrawn from an account, the corresponding electronic units are «canceled.» Although it appears to be quite confusing, it is usable. Please be advised that opening an EMIs account does not exempt account holders from strict legal requirements.

Legal and financial matters

Technological objectives associated with creating a cryptocurrency exchange are unquestionably challenging, as only qualified specialists can do so. In reality, however, resolving financial and legal issues consumes over fifty percent of the time and is the most complex and challenging issue.

You must begin by registering your business as a legal entity. The initial step is choosing a jurisdiction most loyal to crypto services. As cryptocurrencies aren’t widely accept, it hasn’t gotten much easier in the past year or two. Malta, the Netherlands, the United States, Switzerland, and Estonia warmly welcome the introduction of tokens. Registering a currency exchange in any of these nations will facilitate its future operation.

Then you must acquire the necessary licenses, as many nations mandate that activities involving storing and exchanging cryptocurrencies be license. In Estonia, the law requires two rights: one for crypto wallet operation (cryptocurrency storage) and another for exchanging cryptocurrencies for fiat currency.

The next principle issue, or the following three regulation issues, is compliance with KYC, KYT, and AML.

First, as a member of a particular state’s financial system, the exchange owner must comply with anti-money-laundering regulations (AML). The 5th AML Directive, which takes effect in Europe on 10 January 2020, requires strict customer and transaction identification.

Second, every new exchange user must provide a personal (and possibly registration) identifier (KYC policy – Know Your Customer). Using databases, you can collect user documents and conduct identification procedures independently. Why spend time on manual labor when you can apply for finished services (Veriff, Sum & Substance, Trulioo) that implement verification processes simple and cost-effective?

Thirdly, a new necessary regulation, KYT, has recently been implement (Know Your Transaction). In essence, it mandates that all cryptocurrency exchanges verify the cryptocurrencies users transfer to them and block transactions from so-called «dirty» sources. This is due to the prevalence of cryptocurrency use in illegal activities such as terrorism financing, drug trafficking, and counterfeiting. Tracker is the most convenient and cost-effective service currently available to perform the tasks you should not be responsible for.

A certified AML officer must track suspicious transactions and submit SARs to financial monitoring authorities. This officer must have a bachelor’s degree in finance and ICA or ACAMS certification (Association of Certified Anti-Money Laundering Specialists).

Cryptocurrency exchanger

In trading or communicating, inexperienced users frequently confuse the exchange with crypto exchangers because both types of services exchange cryptocurrencies. Despite this, they have numerous fundamental differences. Notably, it would be best if you kept in mind that the exchange is both a trading platform and a regulator or middleman between buyers and sellers. And exchangers are different parties in trading, directly involve as sellers or buyers. In this regard, it is identical to standard currency exchange offices.

This fact also governs the token price situation. Supply and demand determine cryptocurrency exchange pricing, making them affordable (almost all participants influence prices). In contrast, exchangers’ fees are distinguish by their owners. Indeed, this could be consider a flaw, but it is precisely this factor that prevents exchangers’ clients from engaging in the «pump» and «dump» schemes (a rapidly induce rise in the price and its reverse, a sharp drop in the price).

The owner binds the exchanger’s internal rate to the exchange rate. In general, he aligns it with Binance, Bittrex, and EXMO, but not always: many exchangers have rates significantly different from the largest companies. The user cannot choose a purchase or sale price for tokens that is acceptable to him because a local exchange rate has been establish. The exchange also allows limit orders and trades when the price is right.

There are nuances when creating an exchanger, which the user may or may not be aware of:

  • operating hours;
  • the rapidness of online support;
  • variety of currency pairs with popular crypto coins;
  • reasonable fees;
  • easy-to-use user interface;
  • smooth functioning.

The app will be successful if all or most of these factors are consider and implement. Implementing everything at once is impossible, so the app should be update and develop in stages.


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