Crypto.com is quite a popular cryptocurrency exchange. It has an excellent reputation in the community. The platform offers tools for exchanging and trading cryptos, investing in digital assets, credit programs, metal, and plastic Visa cards. Furthermore, according to the capitalization, the platform has its native coin — CRO, in the TOP-20. During the summer of 2020, it was TOP-9. This article will tell you how to create a Clone Script, Crypto.com — a similar functionality and design crypto exchange.
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What is Crypto.com?
Kris Marszalek founded Crypto.com in 2016 as Monaco Technologies. It was supposed to be a cryptocurrency service that allows using cryptocurrencies as a payment method anywhere. In 2017 they launched its token MCO. The funds were used to develop the network and issue VISA cards with bitcoins on the account.
In 2018 Monaco Technologies rebranded as Crypto.com and changed the approach, logo, functionality, and goals. It is a multifunctional platform where users can use any popular service on the cryptocurrency market. The ground of the project is a cryptocurrency exchange. Here is the shortlist of the Crypto.com functions.
Cryptocurrency exchange. It is a centralized platform with a daily trading volume of 1.7 billion dollars. The platform supports such leading coins as BTC, ETH, ADA, LTC, XRP, MATIC, etc.; it offers high liquidity, excellent performance, and low fees. The exchange has a web, Android, and iOS version. Furthermore, the investors can use margin and leverage trading for spot trades. It offers access to derivative markets, staking, and DeFi farming.
Debit cryptocurrency cards. Crypto.com was one of the first significant projects to issue metal and plastic cards that can be employed everywhere a regular Visa card can be.
Hence, Crypto.com allows paying for goods and services at regular shops, withdrawing money at ATMs, paying at restaurants, etc.
The balance of the Crypto.com debit card is connected to the balance on the user’s wallet, yet these are not direct crypto operations. The money is converted into fiat and then transferred to the banks. One can use the crypto platform’s cards in 31 countries. For instance, Great Britain, Germany, Switzerland, Sweden, Austria, Greece, Italy, Portugal, and Spain.
Credit program. One more crucial solution to implement while developing a cryptocurrency exchange like Crypto.com is cryptocurrency loans. To take a loan on Crypto.com, one will need to download the application and deposit funds in cryptocurrency. The minimum amount is $500, and the loan amount is 50% of the deposit. For example, if you have 20 thousand dollars, you may take a 10 thousand loan. For those who hold MCO on Crypto.com, the interest rates might be decreased.
Payment service. Crypto.com also accepts payments in cryptocurrencies. To receive compensation, the users need to employ a QR code that will contain the payment details.
Types of Crypto.com debit cards and their staking rates. Source.
Crypto.com payment service interface.
Business model and monetization
CRO DAX Limited — an offshore company is managing the Crypto.com cryptocurrency exchange. It is registered in the Cayman Islands. The monetization model of this exchange is various fees and commissions charged from users for using the platform and its services. Crypto.com’s transaction fees on Crypto.com are flexible and depend on the volume and type of operations. According to 15 November 2021, there are ten levels of commission fees on the exchange:
Cryptocurrency exchange Crypto.com commissions and discounts. Source
Holding CRO — platform’s native tokens is another way to lower the fees. In this case, a progressive scale is employed: the more CRO tokens are on the wallet, the higher is the discount. The first discount is 10% for 5000 CRO on the wallet; 10 000 CRO — 20%, 50 000 CRO — 40%, 5 000 000 CRO — 90%. If the wallet holds above 50 million tokens, the user won’t be charged for trading.
Credits to the user's deposit are carried out without commissions from the exchange. Transfers between the trader's wallet and trading balance are also free. But there is a commission for the forced closure of the transaction - 0.50% of the contract amount. For the withdrawal of coins to external wallets, the exchange also charges a fee; for example, to withdraw, bitcoins need to pay 0.0004 BTC, ether - 0.001 ETH.
The functions of the cryptocurrency exchange
Authorization and verification. If the users want to trade on Crypto.com, they need to create an account and verify it. The users must share their name, surname, date of birth, e-mail, and country for registration. Also, they need to create a strong password. For the verification process, they need to send a selfie with their passport or other identity document having a photo, the name, and surname of the user on it.
User interface. It is what your users will see. The interface must be relatively simple, comfortable, and easy to use. The graphs, buttons, and icons must be intuitive and located on common spots. The traders should be able to search for their preferred trading pairs, set orders for purchase and selling, view the balance, history, and other statistics on the trader’s activity on the market.
The user interface should be customizable. The users should change the design, edit personal information, choose a withdrawal/deposit method, connect the crypto wallet, etc.
Exchange administration interface. Another interface is necessary to implement a Clone Script of Crypto.com. It includes a dashboard for tracking the platform’s current state. The admin should have tools to manage users, monetization, content, marketing, trading pairs.
The trading engine of the cryptocurrency exchange. It will be responsible for the main functions of the cryptocurrency exchange. In particular, matching trading orders, processing transactions, checking the balance in the wallet to make sure it has enough money for the transaction, etc. This functionality must be simple, understandable, convenient and at the same time offer the user ample opportunities to improve his trading efficiency (a choice and adjustment of indicators and strategies, analytical tools, signals, bots, etc.).
The user interface of the Crypto.com mobile application.
Inner cryptocurrency wallet. Since Crypto.com is a centralized platform, one will need to establish an internal wallet to develop a clone script. It will provide the platform’s liquidity, and the traders will have fast and reasonable access to their funds, increasing the effectiveness and profitability of the trades on the platform.
Order book/transaction history. The order book lists open orders for purchase/selling coins. The system creates it automatically. It groups and matches the traders’ sell and buy orders. When the order finds a relevant offer (trading pair, rate), the exchange automatically trades the tokens and closes the deal. Afterward, the trade goes into the users’ transaction history listing.
Analytical instruments for traders. This is supposed to make the trading more straightforward and effective since analytical tools help find additional information on the market, find trends, and create, check, and improve trading strategies. To develop your Crypto.com analog, you will need to decide which analytical instruments you want to add. Let’s say, relative strength index, moving average, and convergence/divergence of moving averages.
Notifications. It will tell the user of significant events on the market. Case in point: a rapid price shift, changes on the balance, closing orders, deposit/withdrawal of funds, promotions, news, and special offers. Do not forget to allow the traders to choose which notifications they want to receive (push notifications, messages via SMS, messengers, social networks, or email).
Managing the liquidity. Cryptocurrency exchange for completing the orders rapidly needs excellent liquidity. In other words, the exchange should offer enough orders on buying or selling of coins to close the transactions at an acceptable price. It can be provided by:
The trading interface of Crypto.com desktop version.
Launching and trading NFTs. This is unnecessary, yet NFTs are now the primary trend in the cryptocurrency world, so it is better when the platform offers it. To develop this solution on your clone script of Crypto.com, you require functionality for creating NFTs and selling them via an auction or a fixed price.
Crypto News. Crypto.com added a news feed to the main screen on the mobile version where users can find recent updates, new products, and offers.
- A 3rd party market maker. It means starting a contract with liquidity providers who offer this service to everyone in exchange for a small commission on each transaction. A good option if you need to provide liquidity at the start of a project;
- Creating an inter-exchange market. In this case, you contract directly with the operator of an external exchange such as Kraken or Crypto.com;
- Liquidity mining. This method implies that you will «force» or reward users for storing their coins on your site. Most large centralized exchanges use this option.
The security of the trading platform
The security on the user-end. Projects related to cryptocurrency assets exchange must be highly secure. The protection on the user-end must be provided initially since now the main threat for the users’ money is not hacking the exchange but phishing and other attacks using social engineering practices.
Here is what will help to provide security for the clients.
Managing the security on the server-end. It will secure users’ money and personal data from common attacks to hack the exchange, application, or internet-connected servers. To provide maximal safety for your platform, follow the following rules.
- Two-factor authentication. If it is connected, the user will need to specify a login + password and confirm the log in via email, SMS, or Google Authenticator service.
- Use of temporary passwords, pin codes. These are one-time codes that the user can use to block the account for a certain period, reset the settings to a particular "reference" level, or notify support about the possible hacking of his account.
- IP validation for essential activities. Keeping a log of user authorization and then comparing IP addresses to track suspicious activity is another way to improve user account security on your cryptocurrency exchange.
- A mechanism for tracking suspicious activity. What you will check is best to discuss with the developer and never reveal to your users, journalists, or others. If this information becomes public, such protection will be easy to circumvent.
- Managing the time to live (TTL) of a user session. This option involves debugging the account activity and logging out automatically during idle time, such as 5 or 10 minutes.
- Implement the architecture of your cryptocurrency exchange in such a way that each service is responsible for a specific (limited) functionality and has no access to the rest of the system. All interactions between services must occur via secure APIs, and services must have limited access rights to each other. In this way, you will minimize the risk of data theft or leakage when a particular benefit of your marketplace and its application is hacked.
- Implement a backup of all user, transaction, and other activity data in multiple instances and servers. Access to these servers should be strictly limited to your employees responsible for the relevant functionality. This will protect any critical data during a major cyberattack.
- Even when developing your Crypto.com clone, you should think about how to make the system flexible to cope with a sharp increase in the load on the system. This is very critical in the cryptocurrency market because of its extreme volatility, which can cause cryptocurrency traders to start selling their bitcoins altogether overnight, as was the case in March 2020, for example, after the WHO announced the pandemic.
- Last but not least, never forget about the standard means of protection against DDoS attacks, XSS, SQL Injection, CORS, and others, as well as the use of CSRF tokens to identify the request.
The architecture and technological stack
Exchange architecture. This block scheme structure helps to see and logically trace the connections and means of interaction between the critical elements of the upcoming project. Here is an example:
Technological stack. The developers will use various languages for web and mobile, frameworks, libraries, compilers, API, and other program instruments to create your clone script of Crypto.com. Here is an example of the technological stack for a cryptocurrency exchange development:
Qurrex’s architecture — a cryptocurrency exchange. Source.
Cryptocurrency exchange development process
The best solution for developing a platform like Crypto.com is custom development since it is the only way to provide decent security and implement the necessary design and functions. It will help avoid using the same template that 1000 status has employed before you. The article will tell you in detail how to choose a developer for creating a Crypto.com clone from scratch.
When you make your choice upon a technical partner, the development process of a cryptocurrency platform will go the following scenario:
- Signing a contract. You and the development team will work on the concept of the exchange to-be (niche, target audience, design, functions, monetization, unique offers, etc.). You will sign a contract after you are ready to negotiate the details, deadlines, and costs.
- Planning and designing. Next, a business analyst, project manager, designer, and lead developer review the terms of reference and use them to develop user flows, information structure, wireframes, and prototypes for the interface of your Crypto.com exchange clone.
- Coding. On this step, frontend, backend, blockchain, and mobile developers write the code for your platform. This is one of the most complicated and time-consuming steps in development.
- Testing. When the programmers are ready with the first code lines, QA engineers enter the process. They search for bugs, issues, and other malfunctions so that they can fix them.
- Deployment and support. Once the code is written and tested, it's time to deploy it to the project's servers and publish its mobile app on the App Store, Google Play, Microsoft Store, and Amazon App Store.
The cost of developing a cryptocurrency exchange
The cost of developing essential functions of a cryptocurrency exchange like Crypto.com will mostly depend on the developer’s location.
The approximate cost of developing a Crypto.com clone in Northern America (the USA and Canada), West and East Europe.