Cryptocurrency, a new asset class, has been a hit for a decade and is still growing.
Markets and Markets predicts a 7.1% CAGR for the global cryptocurrency market from 2016 to 2026. USD 1.6 Billion in 2021 to USD 2.2 Billion in 2026. This is attributed to the transparency of distributed ledger technology and the expansion of infrastructure.
As more people use crypto, the demand for efficient cryptocurrency exchanges will grow.
White label crypto exchange development solutions are ideal for exchange owners who want to enter the market with little capital and time.
As an entrepreneur, you may wonder what a white label crypto exchange is, why it is beneficial, and how to start or choose one for your company. Let’s go over each one in detail.
What is the definition of a White Label Crypto Trading Platform?
White label crypto exchange software, also known as white label crypto trading platform, is feature-rich, fully customizable, and ready-to-use crypto exchange software that allows users to buy and sell digital assets. Businesses can set up a crypto exchange with their preferred customizations in a more secure, cost-effective, and timely manner with the multi-tested, prebuilt software than with custom crypto exchange development.
Building a feature-rich, ultra-secure, and multi-trading option enriched cryptocurrency exchange from the ground up could take a lot of time, effort, and money. White label crypto exchange software development allows businesses to save a significant amount of time, effort, and money.
Benefits of Crypto Exchange White Label Software Development for Business
For aspiring cryptopreneurs, robust white label crypto exchange software solutions from reputable technology providers provide a slew of advantages. The following are some of the business advantages of white label crypto exchange solutions:
- Time and cost savings during deployment
- Platform that is tried and true
- Quality Control
- Rapid advancement
- Trust and a positive brand image are built on reliable products.
- Launch a fully functional, advanced crypto exchange with no hassles.
- Simple to customize solution
- There is no requirement for technical expertise to supervise the development.
- Unbreakable security with simple wallet integration
- Companies can concentrate more on marketing and branding.
How can a white label crypto trading platform help you launch your own exchange?
Here are some steps to get started if you want to launch your crypto exchange using a crypto exchange white label software development solution:
Perform thorough market research
Before using an exchange to enter the cryptocurrency market, you should be aware of current market trends. Dedicating your research to prominent crypto exchange features and the best-performing cryptocurrencies of 2022 that are attracting crypto users may also assist you in making the best decisions for your crypto exchange platform.
Find a distinct business niche and audience for your exchange.
Before sharing requirements with a technology provider, it is ideal for businesses to know what they want their business to look like. Know your customers’ pain points, challenges, needs, and habits, and find out how concerned they are about security, liquidity, functionalities, trading options availability, legislations, compliances, volume, and so on.
Choose your crypto exchange software’s operational region.
If you want to target a specific region, you must first learn about its regulatory requirements. Regulation may have an impact on business models, taxation, and the types of trading instruments available to customers. As a result, it’s a good idea to check out the white label cryptocurrency exchange software demos of various solutions before making a decision based on your target region’s regulatory requirements.
Select the type of cryptocurrency exchange.
The type of crypto exchange you want to start will influence the type of white label crypto exchange software you need. Decentralized, centralized, peer-to-peer, hybrid, and derivatives crypto exchange platforms are all popular.
Consider the white label crypto trading platform’s architecture.
There are several factors to consider when determining whether the white label crypto exchange software is worthwhile. The trading engine, clearance and settlement layer, support mechanism, admin control panel, and user interface are the five critical components.
Consider a dependable liquidity management system.
Customers consider liquidity as one of the most important factors when selecting a cryptocurrency exchange. Faster trade executions are guaranteed with better liquidity. You can use a liquidity aggregator solution or a Tier 1 liquidity solution (provided by third-party providers in exchange for commissions) (that offers liquidity collected from different liquidity providers).
Verify that the white label crypto exchange solution adheres to KYC and AML regulations.
Assure that your white label crypto trading platform complies with various security protocols, as your ultimate goal is to provide a secure trading environment for your users. KYC (Know Your Customer), KYT (Know Your Transaction), and AML are all important procedures that your company must follow (Anti-Money Laundering).
Recruit a legal team of advisors.
Launching your cryptocurrency exchange platform comes with a number of regulatory risks. Regulatory aspects of various crypto assets and trading, on the other hand, may vary from country to country. Consider hiring a global legal team of advisory experts and counselors.
Find the best white label cryptocurrency trading platform.
When you search the internet for white-label crypto exchange providers, you will find many, but not all of them are trustworthy. You need to rely on a reliable, professional, and well-known technology provider who can provide a white label solution with technology capabilities that match your company’s growth potential and pace.
Ensure a strong customer service system.
You’ll need a combination of AI bots and human help to ensure that your exchange provides timely customer support. Technical and other platform-related customer support is available 24 hours a day, seven days a week. Best practices for a robust customer support system can be suggested by your crypto exchange white label software development partner.
Join forces with a dependable payment processor.
The payment processor will take the lead in providing the best possible user experience. To provide your customers with a safe, quick, and easy way to pay in fiat currency.
It is always wise to choose a reputable payment processor that provides a wide range of online services and an unrivaled user experience through payment efficiency.
Ensure that your security features are robust.
Due to flaws in security systems and loopholes, many crypto exchanges lose their valuable customer base and thousands of dollars. Consider checking out a white label cryptocurrency exchange software demo to see how secure it is.
Inquire about two-factor authentication, data encryption, HTTPS authentication, registry lock, jail login, SQL injection prevention, and other industry-approved security features.
Put your exchange through its paces.
After you’ve gone above and beyond to ensure that your exchange has all of the advanced features, critical security protocols, and regulatory compliances, the next step is to test everything you’ve put in place. This is where beta testing comes into play to ensure that there are no errors before the launch.
Important Characteristics of a Good White Label Crypto Exchange Software Development Solution
Here are some things to look for when choosing the best white label OTC cryptocurrency trading platform:
A reliable matching engine: Put the matching engine through its paces to see if it delivers on its promises.
Strong technical features and an intuitive user interface/user experience: If the white label crypto trading platform provider does not emphasize both of these aspects, be sure to inquire about the one he overlooks.
Transparent Pricing: Avoid hidden costs by outlining your requirements and requesting a detailed quote. Never fall for an unbelievable low price because it could be a trap. A reputable technology provider will also provide transparent pricing.
Security features mentioned include: Check that the white label exchange software has all of the industry-recognized security features. A white label cryptocurrency exchange can assist businesses in identifying vulnerabilities.
Crypto exchanges will undoubtedly be the biggest beneficiaries of technology if cryptocurrency becomes the next evolution of money and trade.
Outstanding exchanges may even have the potential to dominate global financial markets and render banks obsolete.
Are you a businessperson thinking about starting a cryptocurrency exchange? If this is the case, white label crypto exchange software development is preferable to custom development.