How do I finish my Cryptocurrency Exchange side project?

May 20 10 Comments

I have a side project that I already spent ~$50k on – a cryptocurrency broker that acts as a middleman between a client and other exchanges. User sends me coin A, I deposit Amount minus Fee to exchange X, execute a trade on behalf of a user and withdraw currency B to a user's destination address. I've been working on the project for quite a while. The entire front-end is 100% done, so I only work on the backend now.

My biggest challenge right now is the implementation of the trading part. Say user wants to exchange LTC to ETH. I need to place a sell limit order on the LTCBTC book, wait for the order to be executed and then place another buy order on ETHBTC book. Two questions:

1. What's the best architectural pattern to keep everything synchronized (even if I restart the service)? I talk to other exchanges via websocket connection.
2. Is there anything I can read about strategies on how to place an order? Right now I simply place orders at the front of the orderbook so that it's executed as soon as possible. Once a second I check if my order is not at the front, I update its position and put it back to highest bid/lowest ask.

YoE: 10
TC: $185k

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TOP 10 Comments
  • New / Product cpo3
    My background is in financial engineering if you want to talk
    May 25 3
  • Microsoft
    Chad TCock

    Microsoft

    PRE
    Taco Bell, Campbell Soup, Jack in the Box
    Chad TCockmore
    What exactly is the use case here? Don’t mean to discourage you but your addressable market is near zero.
    May 20 2
    • OP
      Why do you think so?
      May 21
    • OP
      Shapeshift has a market and I won’t?
      May 21
  • Verizon / Eng ComTruis3
    Did you already apply for a license? Something like this is definitely not a one person job, especially when real money is involved.
    May 20 2
    • OP
      No. Going to run it from countries that are less restrictive. I'll consider state licenses when I have revenue to reinvest.
      May 20
    • New / Eng h7j8
      Uhhh, what country will you be in? The US gov isn't going to just leave you alone because you rented servers elsewhere lmao
      May 20