Core Architecture of a Crypto Exchange
The heart of any crypto exchange is the matching engine. It processes limit and market orders, maintains the order book, and ensures fair execution. Performance is measured in TPS (transactions per second): a startup exchange needs 10,000+ TPS, while major platforms operate at 1,000,000+ TPS. The engine must support multiple order types: limit, market, stop-limit, and OCO.
The wallet system splits into hot (online, for quick transactions, holding 5-10% of assets) and cold (offline, for long-term storage). Multi-signature wallets require confirmation from multiple authorized signatories before releasing funds from cold storage, providing an essential security layer.
Listing Coins and Sourcing Liquidity
Start with major cryptocurrencies: BTC, ETH, USDT, BNB, SOL. Add altcoins based on user demand. Each coin requires blockchain node integration or API provider connectivity. Secure liquidity through market makers or by aggregating order books from larger exchanges to ensure tight spreads from day one.
The crypto exchange module in MakeTrades supports 50+ blockchains with a built-in matching engine and wallet infrastructure.
