Crypto payment gateways abound, yet few boast a top-tier matching engine. Users can suffer from delays and order processing backlogs without this crucial feature. To ensure timely and efficient order execution and accommodate market demand, a robust matching engine capable of handling a high volume of trades is essential. Avoid frustrating wait times and lagging orders by choosing an exchange with a superior matching engine.
A high-performing crypto Matching engine should possess several key features. Firstly, it should process many orders per second to accommodate more users. Additionally, it should handle a considerable number of users and maintain low latency while prioritizing high reliability to prevent downtime.
Compared to traditional financial markets like stocks and Forex, a key difference is the number of orders the engine must process. The cryptocurrency exchange requires handling more trades and responding within seconds, as the trade prices fluctuate rapidly. For instance, on Binance, ten million trades usually occur daily, 40 times more than the NYSE, processing 250,000 trades per day. Any delays occurring while matching the order could result in the trade no longer being profitable.
Exchange Matching Engine vs. traditional financial markets
The volume of orders that must be processed is the primary distinction between traditional markets and crypto payment solutions. The processing capacity of the engine in a crypto payment platform must be 40 times greater than that of the New York Stock Exchange, and latency is measured in seconds. This is due to the fact that prices are subject to sudden change, and if it takes too long to match an order, the trade may not be profitable.
Factors Influencing the Matching Process
The number of orders per second that a matching engine can handle is the most important factor that influences its performance. The higher the number of orders per second, the better the engine’s performance. Latency, reliability, and scalability are other factors that can affect a matching engine’s performance.
Matching engines are critical for crypto payment gateway in order to increase market efficiency by facilitating more trades and providing better price discovery. More sophisticated and efficient matching engines are the way of the future.