What are the challenges when selecting a cryptocurrency platform?

What are the challenges when selecting a cryptocurrency platform?

In the past few years, crypto popularity has increased. There have been new announcements in terms of venues, platforms and market makers funded by ICOs and STOs, etc.
The currencies traded as well as the business models may be innovative, however the importance of technology remains the key common requirement.

For the success of any new initiative, the choice of which trading platform technology to build the business on is crucial.

The crypto market is varied and there are many interesting ideas, some of which are more developed and others remain at more of a prototype stage. Many players can produce a compelling prototype when it comes to a Graphical User Interface (GUI) and slide deck. However, the key day-to-day functionalities of an established platform such as security, stability, performance and scalability, are much harder to replicate.

smartTrade works with a diverse portfolio of clients and have witnessed first-hand, various needs in terms of workflows. So independently from the nature of the business model, the fundamental requirement when it comes to selecting a crypto platform is a proven and robust technology which possesses the flexibility to quickly implement new demands.

As usual, the temptation will remain to build everything from scratch. But experience from similar markets portrays that many requirements may well be commoditized. It will improve the time to market and the cost to focus on adding the clients own Intellectual Property (IP). This buy and build message will in turn lead to a reduced risk for the whole project.

A proven multi-asset platform, such as smartTrade, built from the ground up already caters to 90% of most specifications. The existing technology can easily be extended into the crypto space, with specific features and still meet the quick time to market and costs restrictions of most initiatives.

Without criteria such as flexibility, scalability and security, you ultimately don’t have a platform that you can rely on and therefore, your business is at risk.
For example, in recent times there have been too many well publicized stories involving crypto currencies being stolen from platforms. According to CipherTrace the cost of exchange hacks, in terms of assets lost, reached almost 1 billion USD in 2018 alone.

As is often the case, selecting a cheap crypto platform may initially seem like a good idea, but could later turn out to be very expensive.