Cryptocurrency has emerged as a new asset class, especially given its quick spike in value earlier this year. For the first time, the total value of the cryptocurrency market surpassed $2 trillion. If you are looking for the top notch white label cryptocurrency exchange development company then Suffescom Solutions is here to assist you with.
As more people embrace cryptocurrencies, it is critical that cryptocurrency exchanges meet their trading demands. This post will teach you how to start a cryptocurrency exchange with a white label crypto exchange solution. Before we get started, let’s review the fundamentals.
What is the definition of a cryptocurrency exchange?
A cryptocurrency exchange is a website where users may buy, sell, and trade different cryptocurrencies. It works similarly to a stock exchange, except you buy and sell crypto assets instead of stocks. On the exchange platform, traders can perform fiat-to-crypto currency and cryptocurrency-to-cryptocurrency exchanges.
Crypto exchange types
Crypto exchanges are roughly grouped into three types based on the nature of their operations. They do,
- Centralised exchanges (CEX)
This cryptocurrency exchange platform will be run by a centralised body, such as a single business. This company will have complete control over all transactions on the platform. Binance, for example, is a controlled cryptocurrency exchange.
- Decentralised exchanges (DEX)
This form of crypto exchange, as the name implies, is an alternative to centralised exchanges. Transactions are regulated by automated systems rather than being centralised. A DEX has no central authority and is based on a peer-to-peer model. Binance DEX, for example, is a completely autonomous decentralised exchange developed by Binance.
- Hybrid exchanges
This sort of cryptocurrency exchange combines the advantages of both centralised and decentralised exchanges. It offers the low latency and rapid transaction speeds of centralised platforms but lacks the central figure of decentralised exchanges. It improves the security of your data. The rise in bitcoin users has resulted in an increase in the number of cryptocurrency platforms. Many companies have even launched bitcoin exchange platforms. TRON, Joyso Joyso is an example of a hybrid exchange.
How do you get started with a bitcoin exchange?
You have two options if you want to launch a cryptocurrency exchange. One possibility is to build the trading platform from the ground up. The second choice is to use a Whitelabel solution.
Building a platform from the ground up is difficult and dangerous. Likewise, if you pay more money, you will have to wait a long time for the execution to take place. The creation of an exchange normally takes 8 to 12 months. However, in many cases, the risks pay off, and if you have the funds to build the product, it becomes a game changer.
When building on your own, you can also specify what you want in the configuration. The organisation will operate exactly as you envisioned. Starting a bitcoin exchange from scratch is a dangerous business if you lack the funds.
White label cryptocurrency exchanges can assist you in getting your firm up and operating much faster. You will be able to launch your company in a few weeks. The most cost-effective way to build a decentralised bitcoin exchange platform is through white label solutions.
What exactly is a white label cryptocurrency exchange?
It would take at least 6-12 months to build a cryptocurrency exchange from the ground up. It would also take 18-24 months to construct an exchange with several features, trading options, and security safeguards. With a Whitelabel crypto exchange solution, you can set up your cryptocurrency exchange in a matter of days. It has the potential to save you a tremendous lot of time, energy, and money.
For example, Coinfactory’s White label crypto exchange is a turnkey crypto exchange platform built with cutting-edge technologies and audited by many security authorities. Several crypto exchanges in the Good Vibes Distributors business are already successfully employing it.
How may a white label solution be used to start a cryptocurrency exchange?
To create a cryptocurrency exchange with a white label solution, you must first grasp the advantages and disadvantages of having a white label cryptocurrency exchange.
- A white label cryptocurrency exchange eliminates the additional time, development, and effort required to construct an exchange from the ground up.
- It can be tailored to your specifications.
- It provides a greater return on investment (ROI).
- Allows you to establish a ready-made exchange platform in minutes.
- To purchase the white label crypto exchange, you will need to make an initial short-term investment.
- Because it is a ready-made solution, extensive customization is difficult.
- Once you’ve decided on a software vendor, you’ll be ready to establish your white label bitcoin exchange in a matter of weeks. The provider will supply all security features and customer support. This means you may devote your attention to more vital matters rather than the headache of designing and executing the bitcoin exchange.
The advantages of utilising a white label bitcoin exchange
Now, evaluate the numerous advantages of adopting white label solutions in the development of bitcoin exchanges. For starters, it removes the need for infinite hours of software development and saves money. The white label solution enables businesses to focus just on core items, allowing them to devote more time to running and expanding their enterprises.
The best characteristic of a white label product is its security. White label bitcoin exchanges incorporate anti-phishing tools, two-factor authentication, and robust data encryption. These systems can be up and running in a matter of days.
Things to think about before investing in a white-label platform
White label products have been available on the market for decades. Furthermore, many startups will be enthralled by the prospect of white labelling their products with those of other firms. Before you begin, ask yourself the following question:
- Investigating competitive advantage
The white label bitcoin exchange market is rapidly increasing because it is a ready-made platform. If you’re starting from scratch, make sure to do a lot of research. Investigate your competitors and ascertain their market value. Examine the market pricing as well.
- Whether white label provides a plausible exit strategy
Traditional markets do not provide exit strategies such as white labelling. White label licensing enables you to find the perfect label partner while also making a living. It also continues to operate without the capital that is frequently required to establish a new business. White labelling is not appropriate for many sorts of businesses, so examine whether it provides a feasible exit strategy for yours.
- Investigating the sales cycle
Examine the sales cycle through the lens of a white label. A bitcoin exchange is a B2B product source. If you have to jump through expensive hoops to prove the quality of a white label, the potential buyer will be less inclined to buy it.
White label cryptocurrency exchange requirements
When looking for a white label cryptocurrency solution, check for the following features:
- A strong trading engine
To boost user engagement, guarantee that high-level transactions can be completed in less than a minute.
- Payment gateway and wallet integration
Using a multi-currency payment gateway or wallet can assist in ensuring that each cryptocurrency exchange token has its own wallet address for depositing and withdrawing funds.
- Customer Understanding (KYC)
Ensure that all KYC and AML standards are in place, and only enable users to exchange money if these forms are filled out correctly. This can aid you in your anti-money laundering (AML) and counter-terrorism financing (CFT) efforts.
- Interactive price movement history charts or graphs
This will give cryptocurrency traders a clear picture of previous and present token prices, allowing them to forecast future prices.
- Large amounts of liquidity
This enables efficient transactions that are not impacted by market price fluctuations.
- Outstanding security features
Because you will be conducting crypto and fiat money transactions, ensure that strong security features such as multi-security encryptions are included, in addition to blockchain technology security measures.
The establishment of a cryptocurrency exchange under a white label
Some of the major stages involved in the construction of a white label cryptocurrency exchange are as follows:
- Choosing the business’s requirements
The first step is to select on the exchange with which you want to conduct business. It must act as a focal point for all opportunities.
- Completing the legal obligations
Following the exchange selection, the next step is to complete all of the legal papers. The norms and regulations vary from location to location. As a result, make certain that you grasp the legal requirements.
- Choosing a Banking Partner
A banking partner is necessary to complete the funds in fiat currency. Similarly, select a respectable bank that provides sufficient digital services to aid the firm.
- Choose a liquidity-rich exchange
Liquidity is essential for a white label bitcoin exchange. Join a network that helps to increase liquidity.
- Assure that the platform goes live after beta testing
First, conduct Beta testing, and then go online. Furthermore, Beta testing aids in the discovery of any problems that may have occurred during the software’s development.
- Keep a customer service team active
In times of need, an active customer support team should be there to assist customers. As the firm grows, so will the support personnel.
Businesses are eager to start their own cryptocurrency exchanges as more crypto enthusiasts enter the industry. However, designing it from scratch can be difficult in terms of cost, deployment time, and work required. We also provide blockchain development services that give you a variety of decentralised solutions while also increasing the security and transparency of your organisation.