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Creating A P2P Crypto Exchange App Like Paxful: A Major Breakthrough In Crypto Currency Market

Cryptocurrencies are to eliminate the intermediaries and encourage transactions on P2P networks rather than Govt controlled Banks. However, not everyone can afford to mine Bitcoins. Despite open-source software, the process requires specialized mining hardware and equipment. Consequently, people have no choice but to rely on centralized crypto Exchange platforms like Binance and Coinbase. 

At the same time, the tremendous growth of digital currency such as Bitcoin and Ethereum keeps attracting Gen Y to Z to invest in Cryptocurrencies. The market is snowballing and centralized exchanges leverage the same, fading the true nature of the virtual currency. To put an end to this hierarchy, we need startups like you to develop a peer-to-peer exchange platform like Paxful.

Well, it’s not like you will be volunteering, letting users buy-sell crypto on your platform without making money. Rather, by developing a crypto wallet app like Paxful wallet, you can generate revenue via multiple streams. And according to an Indian report

Crypto investors have turned to P2P platforms and groups on Telegram and WhatsApp to facilitate trades which reportedly account for about 60–80% of all transactions.

Seemingly, it’s not so far off when P2P Crypto Exchange will lead the global crypto exchange platforms. And you want your P2P exchange to be the leading one.

This is your guide to go from zero to one. In other words, you will know the prime factors such as business models, features, and cost to develop an app like Paxful. 

So, to begin with, 

Paxful Business Model

Understand Paxful Business Model To Level Up Yours

First thing first, how does Paxful work? Understanding the Paxful working model is essential to recognize if this is similar to your business idea. If so, you want to dig into it and identify how you can bring innovation to your new product. Of course, because the world doesn’t need another Paxful, but they would appreciate the better version of it, for sure.

So, we all know Amazon marketplace and Paxful are somewhat equivalent but with different items. It connects buyers and sellers of bitcoins, ether, dash, and other cryptocurrencies. Though the platform acts as an intermediary, it doesn’t control any transaction; Instead, it has features such as a crypto wallet, in-app chat, and a robust, secured environment to carry out crypto transactions. We can define the whole process in simple steps below.

  • A buyer or seller publishes ads with exchange amount, rate, preferable payment method, and other indications to find the counterparties;
  • Any interested user can respond to such ads regardless of their location;
  • And voila, both parties can contact, agree on the exchange terms, and proceed with it. 

Furthermore, Paxful employs smart contracts with escrow funds to guarantee a safe exchange. People seek convenience in everything. So, Paxful provides 350+ payment methods to let users choose their preferred one. And it facilitates payment on a third-party payment system, using atomic swaps to exchange cryptocurrency for another.

Alright, your role is to analyze the Paxful model thoroughly and come up with an even better version of it.

How Does Paxful Make Money?

How Does Paxful Make Money?

Subtracting expenses from the total revenue is your profit and what you will really have at the end of the day. Besides, profit is a parameter that defines whether your customers are also happy. Thereby, revenue streams have to be clear upfront so you can predict your revenue and manage whole cash flow stuff.

But the question arises, how does a Peer-to-Peer Crypto Marketplace make money? So here are some ways Paxful makes money that you can consider in your business model.

  • Trading fee: Unlike other exchanges, Paxful charges 1.00% per trade. The fun part, only sellers need to pay the service fee, and buyers can trade for free.
  • Withdrawal fees: Paxful doesn’t charge a fixed withdrawal fee. Meaning, the price depends on how much a user withdraws. For example, 0.00008 BTC for BTC-withdrawals between USD 0.00-9.99, and if the amount exceeds USD 20, the withdrawal fee is 0.0004 BTC.
  • Deposit fees: Again, it’s a variable charge that depends on the deposit method. For example, 1% if cash deposit, 0.1% for bank transfers, 1% for digital currencies, and Google Play and iTunes, the commission is 2%.

Despite the above monetization model, native advertising, subscription, or membership can streamline a decent revenue stream. But, for your P2P crypto exchange to earn money, it must have outstanding functionalities that hook users on the exchange.

In addition, unique features enhance the chances of your exchange going viral and grabbing the maximum eyeballs.

crypto portfolio

Features & Functionality To Develop An App Like Paxful That Gain Traction

  • Escrow service:  Paxful has one of the best escrow services that ensure your bitcoins are transferred after all the predetermined work and obligations have been fulfilled.
  • Instant Verification: Offering additional benefits on verified accounts, Paxful compels users to verify their ID and address in a few hours.
  • Mobile app: The USA-origin P2P bitcoin marketplace offers iOS and Android apps and the web app to let users carry out transactions from anywhere they prefer hassle-free.
  • Live Chat: It’s an optimal feature that helps Paxful and many business apps ensure effective customer service in real-time, which lasts the user experience.
  • Security tools: Without adequate security assurance, traders hesitate to make transactions. Therefore, Paxful exerts tools that maximize General Data Protection Regulation Compliances and data protection against hacking.
  • Crypto Wallet: Besides exchange, Paxful also offers a mobile wallet that provides users with complete control of their BTC with tracking trades in real-time.
  • Simple Procedure: Paxful has made it easier to send, receive, store, or convert Bitcoin and other virtual currencies, letting users transfer amounts using unique wallet addresses or QR codes across the world. 
  • Payment methods: From gift cards, debit and debit cards, bank transfer, online wallets, as well as purchasing Bitcoins using fiat cash is possible on Paxful. Having hundreds of payment instruments is the USP of this peer-to-peer crypto exchange.
  • Backend admin: The administration panel is created to keep track of bitcoin balance, users’ balances, active trades, trade history, anything that you want to see in real-time.

Click here to know What, Why, & How Of P2P Cryptocurrency Exchange App Development.

Cost To Build An App Like Paxful

Structure Your Budget As Per The Cost To Build An App Like Paxful

First off, I would recommend understanding how to develop a Bitcoin exchange app so you can get a clear idea of the cost structure. 

Now the peer-to-peer crypto exchange app development cost depends on your project size, the complexity of functionalities, and other project requirements. Given these factors predict the time the exchange development would take.

Time is crucial in budgeting for your project. Because the mobile app development company or developers charge hourly. Hence, the more hours, the more the cost. Speaking of which, on a platform, Paxful discussed how much it cost them to build their P2P crypto exchange app and stated,

“It took them 6-8 months working 7 days a week 10+ hours a day to develop Paxful. And the team had at least 5 years of development experience including financial software.”

Furthermore, they added that they planned to complete it in 2-3 months. However, in the software project, having realistic estimations is inconceivable. In the end, they also mentioned that the project price was close to $100k.

However, you must have known that the hourly development rate differs in different countries. So, you want to hire a crypto exchange development company from a country like India where expertise is higher and cost affordable.

Moreover, to cut the cost, you can develop an MVP first, test the market, and attract investors. This way, you can grow steadily without costing much.

BONUS: How To Market Your P2P Crypto Exchange Like A Pro?

Since you have been with us all along, here’s your reward. The secret juice of Paxful to drive more users. So, this American startup offers bitcoin affiliate and peer programs to incentivize its users. 

Bitcoin Affiliate Program lets users earn money every time the people they introduce to Paxful, and the people they invite, buy Bitcoin.

  • 50% Escrow Fee- When the invited people buy Bitcoin on Paxful.
  • 10% Escrow Fee- When invited, people by users’ friends (who invited first) buy Bitcoin on Paxful.

For the peer program, I suggest you check out this chart on the Paxful site.

Now, the point is when you develop a Peer-to-peer crypto exchange app like Paxful, you will require more than just having the app developed. Marketing strategies that tickle your audience are inevitable to ensure you receive a high return on your investment.

Binding Up

There have been crazy incidents of Bitcoin transactions during its initial phase, and Bitcoin Pizza Day is one of the favorites. It was May 22, 2010, when the first real-world Bitcoin transaction took place by Laszlo Hanyecz to buy two pizzas in Jacksonville, Florida, for 10,000 BTC. The amount would surpass $600 million if held in Nov 2021. 

While Bitcoin and other cryptocurrencies tend to expand soon, the world will require more P2P exchanges. Hence, it’s the perfect time to invest in your decentralized crypto exchange and wallet app. 

Pro Tip: Start with targeting a narrow audience and a location where competition is low.

Bring Revolution With A P2P Crypto Exchange!

Call Us!

The post Creating A P2P Crypto Exchange App Like Paxful: A Major Breakthrough In Crypto Currency Market appeared first on kodytechnolab.

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Creating A P2P Crypto Exchange App Like Paxful: A Major Breakthrough In Crypto Currency Market


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