The cryptocurrency exchange software has been instrumental in bringing the technological marvel called cryptocurrency from the confines of high-performance systems to almost everyone who has a smart phone in their hand!
The cryptocurrency exchange can be considered the point of transformation of perception for cryptocurrency and multiple tokens. It ensures that people even with a traditional payment instrument like a credit card or a debit card could buy cryptocurrency and trade it.
Volatility which is considered to be one of the most dubious attributes in a market turned out to be a point of great advantage for cryptocurrency trading. People could, with their analytical skills, predict the direction of movement of cryptocurrency and make massive profits out of it. It would not be an exaggeration to say that cryptocurrency trading alone has been responsible for creating crypto millionaires if not billionaires!
Outside all of this, cryptocurrency exchange also finds extreme relevance as a business. It is a one-time investment, and it ensures that the person who invests in cryptocurrency exchange development ensures possibilities of ongoing revenue.
This lucrativeness can be attributed to the fact that every trade on the cryptocurrency exchange fetches a commission. This commission, although might be small in terms of percentage, makes it big if we were to calculate the volume of business that a cryptocurrency exchange generates.
It might come out however, be a cumbersome and daunting affair to start your own cryptocurrency exchange business from scratch. You would, classically, go for either building your own team in the house or partnering with a company that specializes in the development and customization of cryptocurrency exchanges.
In both these cases, you do not have an assurance that the finished product will be free from bugs that might interfere with the basic expected functionality. You might also end up spending a lot of time and money in building your cryptocurrency exchange.
Even if money can be compromised on, time is an aspect of no compromise, especially when successful cryptocurrency exchanges are springing up in all corners of the world left, right, and center.
This demands a cryptocurrency exchange business solution that is perfect at least in its basic functionality, quick to launch, and is garnished with the elements of your business, at least visually.
The effective answer to all these challenges is the white label cryptocurrency exchange.
What is a white label cryptocurrency exchange?
A white label cryptocurrency exchange is, in essence, a product that can be purchased like any other product off-the-shelf. It is a ready-made cryptocurrency script that you can customize according to your requirements.
The script, however, does not compromise on providing the expected basic functionality of any cryptocurrency exchange.
The basic features:
Even if you go for a white label cryptocurrency exchange, you need to ensure that there are a few features that are uncompromisingly in place.
The first and foremost of them is the matching engine. The matching engine can be considered the most important component of the cryptocurrency exchange. The matching engine is the heart and brain of the crypto exchange ecosystem, and it will not be an exaggeration to say that the quality of a crypto exchange is proportional to the quality of its matching engine. Therefore, you will need to ensure that the matching engine flawlessly functions.
The matching engine could be the heart of the crypto exchange but it cannot be denied that the phase of the cryptocurrency exchange is its user interface. The cryptocurrency exchange needs to have a proper, intuitive, and interactive user interface that will enable even the uninitiated crypto users to trade without any hassle. If you can capture the non-crypto crowd and bring them to use your crypto exchange, it can be considered one of the biggest breaking points in making the crypto market more accessible and available.
The probability of a cryptocurrency exchange being adopted by crypto users is contingent upon the number of currency pairs that the exchange can allow trading. Your crypto exchange should be able to accept all major crypto coins like bitcoin, Ethereum, Cardano, and TRX, in addition to fancy coins like Doge and Shiba Inu.
We have been talking about how the cryptocurrency exchange serves as a bridge between the non-crypto users and the crypto world. If a non-crypto user has to buy crypto coins, then it has to happen through a proper and versatile payment gateway. Your cryptocurrency exchange should be tied up with a payment gateway that can accept payments from multiple payment instruments like credit cards, debit cards, Internet banking, and UPI. The greater the spectrum of acceptance of fiat currency in your crypto exchange, higher the possibility of your crypto exchange reaching masses.
One of the strongest points that stand in favor of cryptocurrency and the entire distributed ledger technology is the magnitude of decentralization. The decentralization makes it almost impossible for any malicious force to break the security. Cryptocurrency exchanges, however, are an antithesis of this notion. They are heavily centralized (although there are completely decentralized exchanges slowly springing up.). Therefore, your cryptocurrency exchange should have top-notch security. Dubiously, most of the cryptocurrency hacks have happened on centralized cryptocurrency exchanges. However, with some additional security like two-factor authentication and multi-signature wallet, you can ensure better security for your cryptocurrency exchange users.
The advantages of white label crypto exchange
The first and foremost advantage of a white label exchange is that it saves heavily in terms of both time and money. It is true that you might end up spending a huge chunk of money in one shot but if you were to calculate everything in the long run, you will see that it makes a lot of sense to go for a white label solution because the sooner you hit the market, the greater is your possibility of making a profit.
You can also be assured that you will get a perfect product that does not have any glitches that might interfere with the expected basic functionality. Since the product is already tested, you can, without hesitation, buy the product and launch it.
The white label exchange, however, does not compromise on customizability. You can garnish the white label exchange with your own skins and features, making it look like your homegrown product that has been built from scratch.
It is also possible that the white label crypto exchange will have the essential features such as KYC/AML compliance mechanisms installed within it or can be added without any hassle.
It is evident that the white label cryptocurrency exchange is the best way for any crypto entrepreneur to start their own cryptocurrency exchange business. If you are one among those who would love to start a future-proof profitable business, all that is left for you to do is to get in touch with a company that specializes in the development and customization of white label crypto exchanges. They will take it to understand a requirement or present you with perfect solution that will instantly launch into the territory of profitability.
Martin has been following the crypto space since 2013. He is a passionate advocate for blockchain technology, and believes that it will have a profound impact on how people live their lives. In addition to being an avid blogger, Martin also enjoys writing about developments in the industry as well as providing useful guides to help those who are new to this exciting frontier of finance and technology.