All You Need to Know About NFT Exchange Development

What Role Does NFT Play in the Development of the Crypto Industry?

NFT is not just another crazy trend in the crypto market, as some users are still suspicious, but a truly new form of digital art. As with many other innovations in the history of mankind, due to its novelty, users tend to underestimate the prospects presented by this type of digital asset. Blockchain technology, which underlies networks such as Ethereum or BNB Chain, provides NFT token standards for the creation and issuance of this type of digital asset.

So What Is an NFT Exchange Platform?

Simply put, the NFT exchange or NFT marketplace is an online sales platform where users post, buy and sell Non Fungible Tokens or crypto collectibles. Some of the most popular NFT exchanges are OpenSea and Rarible. They sell the most popular crypto collectibles, such as Decentraland. Sandbox. Crypto Punks, Bored Ape Yacht Club (BAYC), and Mutant Ape Yacht Club. Just take a look at how high the trading volume is on these sites:

Types of NFT Exchange Software

You’ve probably heard of platforms for trading non-fungible crypto assets such as OpenSea and Binance NFT. Although the operating principle of these two platforms is very similar, they are very different from each other at the software level. There are two main types of platforms: centralized and decentralized NFT exchange platforms.

Centralized NFT Exchange Platforms

Such platforms are managed and fully controlled by a single company, which is also the custodian responsible for the safekeeping of the assets. Users make a deposit on the NFT exchange platform to gain access to trading assets and send a request to the company when they wish to withdraw funds. The method of holding funds came to the crypto market from traditional finance, but it is becoming less important with the rise of DeFi.

Decentralized NFT Exchange Platforms

Most NFT trading platforms are decentralized and run on smart contracts. The advantage of such platforms is obvious: a decentralized exchange platform is able to operate autonomously without the help of humans. All you need to make it work is a team of developers, marketers, moderators and support specialists, and even then, only if you want to.

Why Is Now the Best Time for NFT Exchange Platform Development?

Although the demand for NFTs remains high and continues to grow rapidly, few NFT marketplaces are leaders in this industry, so competition is still low, opening up space for the launch of promising new platforms.

NFT Exchange Platform Development: All You Need to Know

Features of the NFT Exchange Platform

Before starting NFT exchange platform development, create the final picture of the platform:

  • What are its characteristics?
  • What do you want to get as a result?
  • What is special about NFT exchange development?

Secured Transactions

User security should be a top priority for a company developing its own NFT exchange platform. In order for users to conduct safe and secure transactions, your development team must create and deploy a carefully verified smart contract that has no backdoors through which attackers can siphon off users’ assets.

Support for a Multi-Currency Wallet

Depending on the type of the NFT exchange platform, developers either offer their own solution for storing and protecting users’ unique digital assets or add support for existing solutions such as MetaMask or Trust Wallet — through these wallets, users can connect to the NFT exchange platform to access crypto token placement and trading on the marketplace.

Multi-Layer Security

During NFT exchange development, user security should be ensured at all levels of interaction with the platform, from connecting a crypto wallet to a secure API connection when buying/selling crypto tokens on the marketplace or bot-trading.

Advanced Chart Tools

Charts help users track the dynamics of a digital asset and predict its value in the near future. Although advanced charting tools are rarely used for NFT exchanges development, their presence can be an advantage for your project in the crypto space.

Additional Features of NFT Exchange

The more unique and, at the same time, useful features you offer to users, the higher the chances are that your NFT exchange development will be successful. For example, add the ability for traders to buy and sell non-fungible tokens via a market order — this will increase the project’s intrinsic value. Provide traders with a unique multi-cryptocurrency wallet, and expand the functionality of the website by offering DeFi lending for NFTs, staking, token issuance and other ways to generate income with non-fungible tokens.

Instant Liquidity

To successfully launch the NFT exchange platform, you will need to find traders and investors to provide the initial instant liquidity. It will be problematic to attract users if there is no one on your platform to buy and sell digital tokens.

Fiat Currencies Support

This is an optional item for NFT exchange platform development, but fiat support will provide a serious competitive advantage since not all users are ready to buy cryptocurrency, but some of them will want to buy NFT for fiat.

Multi-Chain Connectivity

It is equally important that your NFT exchange supports multiple platforms and interacts with multiple blockchains and smart contracts. The more popular blockchains you connect, the more users you can attract to trade on the marketplace and the higher the trading volume of the platform will be. Moreover, this will ensure the competitiveness of the NFT exchange platform and differentiate it from other marketplaces.

  • Solana
  • Polygon
  • Fantom
  • Avalanche
  • Cardano
  • Cosmos
  • Near
  • Optimism (2-layer)
  • Arbitrum (2-layer)

Come Up With Futuristic Technology for Your NFT Exchange Platform

You can use artificial intelligence technology for NFT exchange development to provide users with an innovative solution to help them trade rare and unique assets. For example, one of the marketplaces can rate the rarity of each NFT posted on the site. They can even go further and develop an AI that recognizes NFTs based on certain parameters, which can become very expensive in the future. The more unique and innovative your NFT exchange software is, the higher the chances that your platform will be able to take high positions in the marketplaces’ rankings.

How to Create the NFT Exchange Platform of Your Dreams: A Step-By-Step Plan

Here we come to one of the most important questions: what needs to be done to develop the NFT exchange platform. You have to go on a long and difficult journey, starting with a technology stack and ending with a marketing campaign to engage the community. Let us analyze step by step what actions we need to take to launch our own NFT platform for trading unique assets.

Design Your NFT Exchange

It all starts with the design. Consider this: what will be the main functions of the NFT exchange, and what needs to be created first? This is especially important if you have a limited budget: if there is not enough money for everything, you will most likely have to give up some features so that you can launch at least the first version of the NFT exchange platform. Here are the most important functions that should be present in any system:

  • Placement and trading of NFTs. When you launch the platform, users need to be able to post their tokens for sale and buy them from other sellers. You also need to ensure that there is instant liquidity.
  • Fiat support. This item is optional, but it provides additional startup benefits but increases the cost of developing the NFT exchange. You also need to comply with anti-money laundering policy rules, but at the same time, you can offer users a white-label NFT exchange.
  • Security Means. At the initial stage, reliable HTTP authentication, a secure crypto-wallet connection and a smart contract without vulnerabilities (backdoors) are sufficient.
  • Functionality for NFT drops. Token sales will help attract new users as they allow you to buy tokens at a low price and often make quick profits immediately after the event — this will only play into the hands of the NFT exchange development.

NFT Exchange Development.

You can find a development team on your own, but it is best to entrust this issue to an exchange platform development company with an extensive portfolio and successful cases such as ICODA. A team of experienced developers knows all the necessary steps, algorithms and subtleties of creating such platforms, which significantly reduces the development time. Moreover, you will be freed from unnecessary tasks and find time for other important things.

Conduct Private Sales

The formula is simple: the more private investment you attract to the project, the easier and faster you will develop it. Funding will help attract qualified developers to develop the NFT exchange and open new doors to promote the platform. Find experienced advisors or start an ambassador program — this is a common practice for projects not only in the blockchain space. The stronger and bigger the community is at the beginning, the faster and easier the development will be in the future.

Final Stage: Marketing and Promotion

Finally, after NFT exchange development, you will need to conduct a massive marketing campaign to ensure high demand and immediate liquidity. Here’s what you’ll need marketing for:

  • Find distributors and investors who can show impressive trading volume. This allows you to show that your product is in demand, which additionally helps with promotion.
  • Attract funding from large investors and companies. New investments expand the scope of the project and the development of the NFT exchange.

Conclusion

Developing an NFT exchange platform is a complex, expensive, and multi-faceted task that only a strong team with relevant experience can successfully accomplish. To avoid failure and ensure smooth operations, you need to be professional at every stage of developing an NFT exchange: designing a marketplace, launching and immediately providing liquidity, advertising, and initial interactions with users.

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