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Tag: Cryptocurrencies

Disaster Recovery Solution for a Multi-Asset Brokerage

About the Client

The client is a Middle-Eastern social trading and multi-asset brokerage company operating worldwide. It provides financial services and copy trading with a broad asset offering, including FX, cryptocurrencies, and stocks.

Business Challenge

The client provides services through its proprietary trading platform, which is sometimes unavailable due to maintenance. During downtimes, the client offers traders workaround software as part of a disaster recovery strategy.

However, this workaround software faces performance limitations, so the client needs an upgraded and scalable solution. The new solution needed to meet the following requirements:

  1. Act as a fallback trading app for end-users when the trading platform is down
  2. Offer a straightforward and seamless way to submit requests to cancel orders and close positions
  3. Help the client’s authorized personnel to process the above-mentioned end-user requests
  4. Sustain a high load reliably for several hours

Solution

The client approached Devexperts with a request to solve the business issue described above. We provided them with an outline of the scope of work and solution architecture. As a result, we landed the project.

In the course of development, we delivered the following:

  1. Front-office web trading app
  2. Server-side software integrated with the client’s database
  3. Back-office web app for the client’s dealing desk employees

We developed the front-office web trading app with a responsive layout. That way, it works smoothly on desktop, tablet, and mobile screens. Following the client’s request, the app can work from an iframe. This allows the client to display it inside another web app or website.

To access accounts, the client’s end-users can use their existing credentials. We achieved this through the integration with the client’s authentication system. They can use the front-office web trading app to close positions and cancel orders.

We connected the front end to the back end via the REST API.

A back-office web app allows the client’s dealing desk employees to see and process end-users’ requests to close positions and cancel orders.

System architecture
System architecture

Security Measures

Availability

The front-office application and its server-side software can be elastically scaled. They can also sustain a load of 500,000 concurrent users for at least four hours. To confirm this number, we conducted load testing before the deployment.

Monitoring

To ensure high availability, scalability, and health check monitoring, we employed the Azure Kubernetes cluster.

Confidentiality and Integrity

All client-server communications and data integrity are encrypted according to industry standards and best practices.

Results

We delivered a disaster recovery solution for the client, so their end-users and dealing desk employees have a workaround when the main trading platform is under maintenance. The fallback solution provides the client’s end-users with a straightforward and seamless way to submit requests to cancel orders and close positions. Meanwhile, the client’s authorized personnel get to process the end-user requests using their back-office web app.

The delivered solution can reliably sustain a high load for several hours, which we were able to confirm through load testing performed before the roll-out.

The client received the source code of the entire solution.

Developing a Spot Cryptocurrency Trading Platform for a Turkish Company

About the Client

The client offers a spot cryptocurrency trading platform based in Türkiye. The platform allows users to immediately exchange cryptocurrencies for crypto and fiat currency–Turkish Lira–and vice versa.

The client’s business adheres to Turkish regulations: it’s registered with the Istanbul Chamber of Commerce and falls under the tax control of the Ministry of Finance.

Business Challenge

To launch the business, the client required a robust and reliable crypto trading solution where their customers can easily exchange currencies and place trades for immediate execution. The Turkish market is very competitive, so the solution had to stand out from the crowd by offering smooth and straightforward trading and simultaneous management of funds through a customer portal.

The crypto trading solution also needed a special risk management feature because the client planned on offering trading pairs with the Turkish Lira. It’s an exotic currency that calls for hedging the risk associated with traders’ orders.

Solution

The client approached Devexperts due to its track record of developing financial software solutions for Turkish companies. Devexperts have relevant expertise and crypto solutions ready to be customized for the client’s needs.

First, we developed a crypto trading platform available both on the web and as a mobile app. We equipped it with a customer portal, where the client’s traders can easily deposit and withdraw crypto and fiat currencies. For this client specifically, we integrated the customer portal with:

  1. BitGo–for the sake of custodial wallets that store client’s funds in crypto-assets and for secure processing of customers’ deposits and withdrawals on the blockchain
  2. A time-based one-time password algorithm, resulting in a two-factor authentication via Google Auth and SMS
  3. KYC/AML providers
  4. A payment gateway for processing fiat deposit transfers
  5. A Turkish SMS provider

Then, we implemented a hedge conversion feature developed specifically for the client, since they wanted to offer trading pairs with Turkish Lira (e.g. BTC/TRY), while liquidity on the external market is expressed in FX pairs relative to USD and other major currencies (e.g. BTC/USD).

The hedge conversion feature does the following:

  1. Converts the incoming market data (quotes and/or L2 ladder) from USD to TRY, using a controlled USD/TRY conversion rate.
  2. Hedges at least the “major” part of the risk by hedging client orders of BTC/TRY in pre-trade mode with BTC/USD orders to the liquidity provider (or accepting that risk by using B-Book execution here).
  3. Hedges the conversion part of the risk (or accepts this risk by “B-Booking” that conversion).

In 2020 it took us 10 months to complete the project. The client swiftly received the solution, opened the project to the public, and started onboarding customers.

Results

Devexperts delivered a spot cryptocurrency exchange platform where traders can easily exchange their currencies and place trades that are immediately executed. We equipped the platform with a custom client portal and multiple integrations, so traders get to manage their funds seamlessly and securely. This robust solution made the client a competitive player among other crypto exchanges in Türkiye and allowed them to launch their business.

A month after the launch, the client reached the point of seven hundred concurrent users in peak hours, and over seven thousand users registered on the platform. The number of new customers keeps growing.

Cryptocurrency Trading Platform with Leverage for PrimeXBT

About the Customer

PrimeXBT is a Bitcoin-based platform with over $600mln daily trading volume. It was founded in 2018, and since day one, the company has been growing exponentially and currently serves clients in more than 150 countries. PrimeXBT offers leveraged trading for the major cryptocurrencies, which include Bitcoin, Litecoin, Ethereum, and Ripple.

Business Challenge

As of October 2018, there was a limited offer of cryptocurrency platforms with leveraged trading. PrimeXBT set out to satisfy this unmet demand.
The challenge was to be one of the first to launch such a platform, with a tough launch date set for only three months.

The client needed a software vendor who already had some developments to speed up the process, or could offer them an existing solution at a reasonable price. Another demand was to find the software development team ready to collaborate with the in-house developers to embed the platform into the existing infrastructure, as PrimeXBT by that time had already been working on the design of the rest system, that included client portal, payment integration, CRM, etc.

No other vendor, except Devexperts, was ready to address this challenge under the client’s terms within this time frame and the allocated project budget.
As the window of opportunity was closing rapidly, PrimeXBT selected Devexperts for their existing customizable solution, DXtrade Enterprise that could be slightly customized for PrimeXBT’s needs and be rolled out in three months.

Solution

As time played the critical role, Devexperts took their flagship solution for brokers, DXtrade Enterprise, and started to modify it according to the client’s requirements.

DXtrade Enterprise is a modular trading platform that includes a vast array of brokerage business functions (OMS/EMS, risk management, pricing, on-boarding, trading analytics, and compliance). The solution consists of the order management system, the dealing terminal, web, and iOS/Android trading terminals – all white-labeled and customized for crypto trading to the client’s specifications.

Devexperts made the PrimeXBT platform to be multi-asset and not limited to crypto. Apart from cryptocurrencies margin trading, the users can trade FX, CFDs on commodities and indices, all from a single Bitcoin-funded account.

For the front-end terminal, the client wanted to make the platform simplified yet savvy. This kind of positioning would make Prime XBT’s platform a great option for beginners to start leveraged trading in cryptocurrencies. PrimeXBT declutters the user interface as much as possible and makes it easier for traders to concentrate.

The platform received all necessary widgets: a chart with lots of technical indicators and line studies, watchlist, dashboard, positions and order history widgets. Apart from the usual order types such as market, limit, stop, the platform offers advanced OCO Orders.
The layout is enhanced with the linking function: to improve response times, the chart and watchlist widgets can be linked, so when the user switches an instrument in the watchlist, the chart instantly updates. To boost trading volumes, traders are able to trade directly from the watchlist, dashboard, and chart.

When the user accesses the trading terminal for the first time, he sees it in Guest mode. It is accessed under a paper money account with a “fake” balance and positions and gives a proper look and feel of the platform. It was done to improve conversion.

Devexperts made several more tweaks:

  • Implemented a number of custom reports for PrimeXBT related to account metrics.
  • Changed the speedbump logic to finetune the execution policies on a per order type basis.
  • Added a credit line functionality. The credit funds are separated from the balance to make it clear for the traders.

Results

PrimeXBT received the full-fledged trading platform for margin trading of Cryptocurrencies, Stock indexes, Commodities, and Forex.

The client terminals are white labeled to coincide with the client’s brand identity. The system is flexible and scalable and ready for the influx of new users and trading volumes.

Margin Trading Functionality for a Popular Crypto Exchange

About the client

CEX.IO is a multi-functional crypto exchange that was established in 2013. It was originally known as the first cloud mining provider and has since evolved to offer cross-platform trading services via website, mobile app, WebSocket, and REST API. With over a million users, CEX.IO has gained a reputation for being a trusted exchange with a high liquidity order-book for top currency pairs on the market.

One of the unique features of CEX.IO is the availability of instant Bitcoin buying and selling via a simplified bundle interface. Additionally, the exchange has developed a multi-level account system that caters to the needs of individual customers, from beginners to institutional traders.

CEX.IO has a global presence and offers multiple payment options to users. The exchange is also known for providing 24/7 support to its customers. The platform has a time-proven stability, ensuring the safety of assets and data for its users.

Business challenge

Having already established a cryptocurrency exchange, CEX.IO went on to introduce margin cryptocurrency trading. The solution CEX.IO was targeting had to be a complex product combining back-end components, an admin interface, and trading terminals to be run in web browsers and on mobile devices of all sorts. As they already gained recognition as a trusted crypto exchange with stable volatility, they wanted to keep the leadership in the FinTech competition and exploit the revenue from cryptocurrency trading. They wanted to add margin trading and be among the firsts to provide end-users with crypto trading functionality. Creating such a product from scratch would have required a lot of resources so CEX.IO’s decision was to reach out to Devexperts, the veterans of conventional trading software.

Solution

After CEX.IO approached Devexperts and explained their needs, the viable option was to customize DXtrade Enterprise, a flagship platform of Devexperts, so that it complies with specifics of crypto trading and the CEX.IO exchange. DXtrade Enterprise is a multi-asset trading solution that can be adapted to a client’s existing infrastructure.

Devexperts backend integrated with CEX.IO’s environment is responsible for order execution, including sending out offset orders, receiving quotes via the FIX gate, and facilitating deposit/withdrawal. User on-boarding and settings management are done via REST API integration.

The dealing interface was based on an existing desktop dealing solution developed by Devexperts. The web-based admin interface includes specific settings management: commission calculation and crypto-specific rollover in every 4 hours.

The end users of the product are provided with trading terminals based on Devexperts DXtrade Enterprise solution. The terminals allow for Web and mobile trading on both Android and iOS. The original solution fit the specifications almost completely, requiring subtle customization in terms of visuals.

We’ve done quite a lot of heavy lifting to blend these two heterogeneous system designs – a crypto exchange and an FX platform. We succeeded in stitching these two distinct worlds together seamlessly despite the challenge to achieve zero  performance degradation while handling all the corner cases. We found further complications related to the crypto specifics, such as fractional order size requirements or the price precision of 12 decimal places. This level of accuracy required changes in many parts of the software, from the back end and databases to the UI. The project’s completion was a fantastic springboard to many other crypto projects for our team.

Eugene, Solution Architect at Devexperts

The entire process of developing the product has taken both companies about 5 months. It is a complex solution, where most of the components were adapted from the DXtrade Enterprise platform and effectively applied to cryptocurrency trading.

Result

CEX.IO received a margin trading crypto exchange platform with the following specifics:

  • currently offers trading of five cryptocurrency-based pairs: BTC/USD, BTC/EUR, ETH/USD, ETH/EUR, and ETH/BTC
  • the basic configuration can support up to 10000 users
  • the solution is scalable and capable of supporting an unlimited number of users in real-time
  • allows for trading with any leverage, the first version of the platform was released with 1:2 and 1:3 leverages

B2C and B2B Crypto Exchange for a Leading FinTech Company

About the client

The client is one of the leading global financial technology companies, who are working toward providing technology and services for a more stable cryptocurrency ecosystem. They are taking advantage of blockchain and traditional technologies, to facilitate the digitization and exchange of all kinds of assets.

In a multi-vendor environment with fierce competition, Devexperts was reliable and flexible. They successfully met the budget base and timeline, were quick to handle our changing requirements, take on extra work and consulting, and participate in demos for business partners. In addition, our partnership has brought us new interest from investors.

Challenge

The client decided to expand their business and to start offering trading services of cryptocurrency assets on B2C markets and cryptocurrency liquidity services on the B2B market. Since many competitors were working on their own trading solutions the client wanted to have a first mover advantage, setting a timeline to launch within 3 months.

For B2C markets, the key competitive advantage was designed to be an advanced trading terminal that outperforms any current offering available to traders on the market. In order to design a leading trading platform, the client needed help in analyzing current brokerage offerings and possible business models. In addition to lacking expertise, the challenge was to connect fragmented cryptocurrency capital markets within a single trading terminal.

For the B2B sector, the client’s team identified that the main market need was to get deep crypto liquidity from a single vendor.

Seeking a technology partner, the client required a software development company, which had successful development projects both in the field of conventional financial markets such as equities or FX and had the same level of confidence with cryptocurrencies.

Solution

Devexperts defined the business model, examined the operations lifecycle, necessary investments, jurisdiction, and many other aspects for the client in order to successfully enter B2C and B2B cryptocurrency brokerage markets. The best option here was to leverage solutions created for the conventional markets and spice them up with the specifics of cryptocurrency.

After consulting with the client over the results of the research, and selecting the right business model, Devexperts utilized the components of its DXtrade Enterprise trading platform to deliver web and mobile terminals for the wide audience of cryptocurrency traders. DXtrade Enterprise was also used as a core of the B2B platform to provide deep cryptocurrency liquidity for institutional brokers.

The idea of a B2C system is to bring order books from multiple crypto-exchanges to one platform, where traders can see the consolidated crypto liquidity ladder in a single window. The project pipeline includes smart order routing, spatial arbitrage algorithms, hidden orders, and portfolio analysis tools.

The B2C terminal contains:

  • An order-entry widget, charts, tools for technical analysis, etc.
  • A cross-exchange limit order book widget
  • A consolidated multi-exchange view on the account balances and portfolio metrics with the ability to drill down and inspect details
  • An ability to route orders to a crypto exchange of the user’s choice to achieve the best execution (the user may take into account price, depth of the ladder, available funds, etc).

The purpose of a B2B system was to equip institutional brokers with an enterprise-grade trading vehicle that interconnects smaller market participants with the deep cryptocurrency liquidity and allows margin trading.

The B2B solution is a full-fledged margin trading platform, consisting of all integral platform components such as web and mobile terminals, OMS, gateways to cryptocurrency exchanges (Bitfinex, HitBTC, Binance, GDAX and others), risk management monitors, etc.

Result

With the help of Devexperts, the client now has a solution for both B2B and B2C segments.

  • A new B2C crypto-trading terminal that outperforms competitor
  • A B2B crypto exchange ready for further white-labeling
  • Short time-to-market: two trading platforms for cryptocurrency markets were launched within three months