Do you know the global cryptocurrency market is expected to hit $4.94 billion by the year 2030?
This massive growth made angel investors to buy cryptocurrencies in bulk manner. Can’t understand? OTC or Over-the-Counter crypto exchange platforms offer established entrepreneurs, experienced traders, and angel investors to invest in digital assets in bulk. This made the demand for the creation of OTC crypto exchanges rapidly among startups. But, venturing into the world of OTC exchange development might feel like preparing for a marathon—it requires strategy, resources, and the determination to reach the destination.
Moreover, for newbie startups, the first hurdle is often the cost estimation for creating an OTC exchange platform. It is essential to know about the technical development phase, licenses, insurance, etc. So, along with the overall cost estimation, let’s dive deep into the other factors that influence the OTC exchange development cost.
First, get a detailed overlook about,
OTC Exchange Development – An Overview
The OTC exchange development is a process of developing an over-the-counter exchange platform that offers bulk trading trading options for cryptocurrencies. The exchange platform provides seamless, reliable, and secure trading and transaction solutions for established entrepreneurs. In addition to that, the OTC exchange platform provides robust multi-currency support, escrow services, and liquidity for it to enhance the transaction experience.
As the crypto world is growing, people have started to invest more in cryptocurrencies, and they have turned out into a profitable asset. Hence, the need for a secure and robust OTC exchange platform has increased recently. When startups tend to develop an OTC exchange, the fear about the cost estimation skyrockets.
So, the next section explains about…
How Much Does It Cost To Build OTC Exchange?
The average cost to build an OTC exchange will range between $15,000 to $35,000. Yet, the price may change based on various factors and considerations. So, It is essential to pick a well-known OTC crypto exchange platform development company to create exchange platform that offers numerous trading options.
Yet, many factors affect or influence the cost of building the OTC exchange platform. By knowing the factors, you can reduce the unnecessary cost in the budget.
Factors Influencing The Cost To Build OTC Exchange
Some of the factors are,
Regulatory Compliance
Firt of all, Each jurisdiction, country, and region has its laws for creating an OTC crypto exchange platform. Hence, regulatory compliance includes obtaining licenses, and certifications, and adhering to AML/KYC factors. The primary cost factor in creating an OTC exchange platform is this. As the exchange offers seamless bulk trading options, it is essential to adhere to proper legal regulators.
The average cost for this regulatory compliance may come around $2000 to $2500.
Infrastructure Designing
A cryptocurrency exchange platform attracts users only when it features a user-friendly dashboard. Moreover, The complexity of integrating catchy themes, branding logos, displays, front-end designing, back-end modulation, plugin creation, etc. The front-end features include the placement of features, security login, displays, etc.
On the contrary, the back-end features include the integration of third-party APIs (crypto payment gateway, crypto wallets, etc), escrow service system, and dispute resolution mechanism will increase the expenses. Integrating these features requires hiring technical developers to minimize bugs and issues within the platform. Overall, This will surely impact the development cost of the OTC exchange platform. Hence,
The average cost for infrastructure designing may be around $4,000 to 6,500.
Tools & Technologies
As blockchain technology is bombarding every industry and sector, a high level of tools needs to be utilized. Moreover, When a robust technology stack and specialized tools are utilized, the chances of bugs, issues, and technical problems reduces drastically.
- For back-end infrastructure Python, Node.js, Java, GoLang, or Ruby are used.
- For front-end infrastructure, frameworks like React.js, Angular, or Vue.js are utilized.
- For Website Development Django (Python), Express.js (Node.js), or Spring Boot (Java) can be used
- To enable trade live chats, and confirmation, Socket.IO, WebSockets, or SignalR are used.
- For trading Engine development, Rust or C++ will be utilized.
- For enhanced security, OpenSSL, AES encryption (Data Security), OAuth, JWT (user authentication), etc are utilized.
Seek help from a technical team to ensure the quality of the OTC exchange platform in the development process. And you can use te tools with free or premium versions.
The average cost for these tools and technologies will be around $2,500 to $3,500.
UI/UX Design
The important factor that affects the cost estimation is the designing of User interface and user experience. Based on the location or region, the integration of the design may change. Also, these are the factors that influence how users interact within the platform. In addition to, the Key components of the UI/UX design may include intuitive navigation, simplified trading interface, mobile responsiveness, accessibility, feedback mechanism, and security-focused UI module.
For UI/UX designing, the cost may range between $1,500 to $2,500.
Location Or Region
When creating an OTC exchange platform, it’s essential to consider the regions you intend to serve. Because the platform has to satisfy the diverse needs of various regional users. For that specialized features, UI/UX design, etc have to be modified. And, Additional features like multi-currency support, multi-lingual adaptation, and interface modulation must be optimized.
- Localization – The localization focuses mainly on the specified regional users, their trading preferences, and their needs. Ensure to offer language support, currency integration, date/time formats, local payment gateway, wallet support, user-based interface, marketing, etc. Overall, These are the important factors that have to be considered when the OTC crypto exchange works on a specified region.
Utilizing limited resources leads to a lower budget estimation.
- Internationalization – The internationalization of the OTC crypto exchange platform focuses on global-level users. Similar to localization, internationalization also includes global language support, modular architecture, scalable regulatory mechanisms, currency-agnostic infrastructure, etc. Hence, the cost factors for adopting an internationalized OTC exchange will be more than expected.
Moreover, This requires hiring a highly skilled and professional development team for enhanced exchange creation.
Hence, the overall cost to build OTC Exchange depending on the location or region will be around $1,500 to $2,000.
Insurance Cost
Insurance cost is a major role-playing factor for OTC crypto exchanges because they operate in a highly risk-prone environment for hacks, scams, and cyber attacks. Hence, obtaining the right insurance mechanism is crucial in developing an enhanced OTC crypto exchange platform. Some of the common insurances for OTC exchange include cyber liability insurance, Professional Liability Insurance, Fidelity Bond, digital asset insurance, etc.
Overall, The average cost for this insurance will be around $2,500 to $3,500. Cost to Build an OTC Crypto Exchange
Payment Mechanism
To ensure smooth and secure mechanisms, payment mechanisms have to be adopted within the platform. This includes the integration of third-party payment gateways for managing international, local, and regional transactions. The cost factors for integrating the payment gateways include,
- Setup Fees – The third-party payment gateway admin will charge setup fees for integration.
- Maintenance Cost – For providing ongoing support, regular updates, and upgradation, maintenance cost is collected.
- Custom Development Cost – This includes the integration of specialized features, mechanisms, and security features additional costs are collected as custom development costs.
These are the primary factors that influence the cost estimation for developing an OTC crypto exchange platform. Moreover, by seeking help from developers, and technicians, unnecessary costs can be reduced gradually.
We hope you have had enough information regarding the cost, and its factors. Then, it’s time to acknowledge the development method of the OTC crypto exchange platform. So that you will get a clear idea of the Cost to build OTC Exchange. Let’s see about it…
Cost Breakdown by Development Method
When the cost factors are analyzed deeply, it is important to know the development process of OTC crypto exchange. Based on the choice of development method, the cost factors may change. Moreover, know the cost to build OTC Exchange in detail based on the methods below,
Custom Solution
Here, you can create OTC crypto exchange platform from scratch. The startup’s ideas will turn into reality from the beginning. From choosing the blockchain network to marketing is done by the developers. For this method, technical developers, technicians, UI/UX designers, testers, and an expert team have to be hired.
Also, it takes 6 months to 1 year to complete the OTC exchange development process. Along with that, while startups tend to create an exchange from scratch, the resources, tools, technologies, etc will exceed the actual budget. Hence, choosing custom solutions for creating an OTC exchange won’t be the best choice for aspiring startups. I will match the ideologies of established entrepreneurs.
The average cost to build OTC exchange from scratch will range between $60,000 to $85,000.
White Label Solutions
For easy development, you can purchase and replicate a white-label OTC exchange solution. The white-label OTC exchange platform will hold the essential features, security protocols, plugins, and functionalities for OTC exchange development.
Considered the easiest method, this approach ensures seamless development of an OTC exchange platform. The features, security mechanisms, functionalities, User interface, etc can be optimized based on the startup’s choice.
The average cost to build OTC exchange platform with the White-Label exchange solution will be around $18,000 to $25,000.
Clone Software Solution
The instant solution to build an OTC exchange platform cost-effectively can be done by adopting an OTC exchange clone script. The OTC clone software exactly replicates the features, security features, and plugins of a successful OTC exchange platform.
For instance, if you want to imitate the features of Coinbase, then the Coinbase Exchange clone script can be adopted and replicated. Like White-label software, the clone script can also allow you to optimize the features and specifications. It nearly takes 15 to 3 months to create an OTC crypto exchange platform flawlessly.
These are the popular development methods for creating an OTC exchange platform without any hassles. You can choose the development method based on the estimated budget.
To Conclude,
As we have reached the conclusion part, it is essential to know about the OTC exchange development partner. Coinsclone is a renowned OTC crypto exchange development company that has delivered nearly 240+ crypto projects successfully. Our developer team is always ready to build the potential OTC exchange platform based on your needs and specifications. Talk to our sales team to know the price estimation, specifications, and our services in detail!!