With over 1.8 million cryptocurrencies making up a market cap exceeding US$1.17 trillion (Source: CoinMarketCap), the crypto space is not short of exceptional resource flow. But there are only 646 cryptocurrency exchanges overseeing this vast space, proving that opportunities for new businesses do exist in this realm. As we progress toward accepting cryptocurrencies into mainstream finances, the need for cryptocurrency exchanges only rises. For entrepreneurs aiming to establish a firm position within a short time, White label cryptocurrency exchange development is the way to go, and that will exactly be the focus of our blog today!
Table of Contents
- Cryptocurrency Exchanges: Where They Are Today!
- Looking into White label Exchange Development
- Supreme Reasons to Choose a White label Cryptocurrency Exchange
- Essential Features of a Ready-made Cryptocurrency Exchange
- Advanced Features of a Premade Cryptocurrency Exchange
- Various Cryptocurrency Exchange Models One Can Use
- How to Launch from a White label Cryptocurrency Exchange?
- How Much Does It Cost to Use a White label Cryptocurrency Exchange Solution?
- Should You Choose an Experienced Company for the Process?
- Conclusion
Cryptocurrency Exchanges: Where They Are Today!
Since the days when BitcoinMarket stormed the then-unknown crypto space, the need for cryptocurrency exchanges has been vital. These platforms fundamentally enable users to purchase crypto coins using fiat and other crypto coins. In a way, these serve as gateways for new crypto enthusiasts who have just discovered the potential of these digital tokens.
Fast forward to today, we have come across numerous cryptocurrency exchanges. While many continue functioning seamlessly, some do not have the same fortune. Irrespective of such failures, cryptocurrency exchanges as a business model have been inspiring business enthusiasts to test the space for long.
Looking Into White Label Exchange Development
White label cryptocurrency exchange development leads us into the world of software solutions built beforehand based on the cryptocurrency exchange business model. Since the platform is ready to launch, a plethora of benefits are on the cards, which we will explore in the following section. These solutions mostly enable small-scale businesses and bigger ones that want to explore this developing space.
The first White label cryptocurrency exchange solutions came into existence when several businesses based on the model achieved profound success. Now, numerous providers, including Blockchain App Factory, offer quality premade cryptocurrency exchange solutions. Aspiring businesses can tap into these solutions to make their dreams come true.
Launch Your New Cryptocurrency Exchange in No Time with the Best Professionals!
Supreme Reasons to Choose a White Label Cryptocurrency Exchange
- White label cryptocurrency exchange development allows you to manage your business budget effectively by getting a prolific solution at economical costs.
- Pre-built cryptocurrency exchange software can be launched to market within days, increasing your chances of success as a business.
- Such solutions can be customized to fit your brand needs, enabling you to have a unique platform while still using premade software.
- Maintaining and upgrading the cryptocurrency exchange can become easier with these solutions, as service providers will assist with the process.
- As a business, you can focus more on marketing and operational aspects of the exchange than technical development.
Essential Features of a Ready-made Cryptocurrency Exchange
- User Registration: The cryptocurrency exchange should have easily accessible user registration portals with verification processes to create their accounts.
- Crypto Wallets: The platform should have a wallet that can help store and transact cryptocurrencies from the exchange.
- Order Books: The exchange should have order books that display all trading pairs available currently, aiding users in making decisions.
- Buy & Sell Orders: Users should be able to buy and sell cryptocurrencies through market orders, limit orders, and stop-limit orders.
- Transaction History: The exchange should show transaction records to users, allowing them to track their trading activity.
- Security Elements: The platform should have safety measures like multi-factor authentication, SSL encryption, and cold storage for funds.
Advanced Features of a Pre-made Cryptocurrency Exchange
- Staking: The staking provision allows users to earn rewards for contributing to the liquidity of cryptocurrencies in the pre-made exchange.
- Advanced Charts: Statistical charts with extensive details enable one to make trading decisions based on real-time market movements.
- Social Trading: Some White label cryptocurrency exchange development solutions allow people to copy trades of expert traders.
- Real-Time Data: The platform offers real-time crypto news in its interface for pro traders to make informed investment decisions.
- Savings Accounts: Some White label solutions offer provisions for crypto savings accounts where traders can earn yearly interest on stored assets.
- Trading Bots: Cryptocurrency exchanges can support trading bots that can automate trades for users based on changing market conditions.
Various Cryptocurrency Exchange Models One Can Use
As far as White label cryptocurrency exchange development is concerned, there are several business models one can adopt. We will discuss each model separately in the upcoming sections.
Centralized Exchange (CEX)
A centralized cryptocurrency exchange (CEX) essentially adopts the traditional money exchange model – an intermediary processes transactions between individuals with exceptional control over the platform. While this model might outright be against the very ethos of cryptocurrency, its user-friendliness is unparalleled, and it quickens the transition from Web2 to Web3.
These platforms have been in existence since cryptocurrencies first erupted, making them create a time-tested business model. Despite the understanding of decentralization increasing over the years, the CEX model seems to go nowhere for quite some time. White label CEX software is also broadly available, given its longevity and central role in the market.
Decentralized Exchange (DEX)
Decentralized cryptocurrency exchanges (DEX) have been on the scene for quite some time, owing to improvements in blockchain technology. These platforms basically eliminate the intermediaries involved in CEXs and replace them with smart contracts that function based on executing agreed terms and conditions.
With smart contracts powering DEXs, this type of White label exchange solution executes transactions faster than CEXs. But businesses should ensure to have the platform busy at all times to ensure sufficient liquidity for the tokens it has listed. Verification processes in these applications are typically automated or performed through a community council based on a Decentralized Autonomous Organization (DAO).
Hybrid Exchange (HEX)
A hybrid cryptocurrency exchange (HEX) is an evolving model where central entities have a role in largely decentralized trading environments. The model offers users the best of both worlds – user-friendliness, and security of CEXs and decentralization and quickness of DEXs. Such provisions make HEXs an attractive business option for cryptopreneurs.
A particularly captivating element of HEXs is they offer different custody options to traders – they can either choose to keep funds in the exchange’s custody or under their own private keys. Since the hybridization of cryptocurrency exchanges is a broad area, a business can slightly recline toward being a CEX or DEX while incorporating significant features of the other.
Peer-to-Peer (P2P) Exchange
While Peer-to-Peer (P2P) cryptocurrency exchanges might look similar to DEXs, there are stark differences between both. P2P cryptocurrency exchanges facilitate crypto transactions between users through an escrow service typically maintained by a central entity. These make a P2P exchange lean more toward a CEX than a DEX.
P2P cryptocurrency exchanges are beneficial as they are censorship-resistant, allowing anyone from anywhere in the world to participate in transactional activities. They also provide numerous payment methods that can encourage crypto adoption among the public. Such attractive elements make White label P2P cryptocurrency exchange solutions a viable business option among crypto-enthusiastic entrepreneurs.
Get an Overview of How Our Cryptocurrency Exchange Development Solutions Work!
How to Launch from a White Label Cryptocurrency Exchange?
Launching a business from a White label crypto exchange is comparatively easy due to the low technicalities involved. The process from the perspective of working with a company like Blockchain App Factory is shown in the image below.
- Define Business Model
- Branding & Design
- Ensure Legal & Regulatory Compliance
- Partner with Liquidity Providers
- Implement Security Setup
- Testing & Quality Assurance
- Launch Marketing Strategy
- Set up Customer Support
- Compliance Testing
- Soft Launch & Beta Testing
- Official Launch
- Ongoing Support & Maintenance
How Much Does It Cost to Use a White Label Cryptocurrency Exchange Solution?
The ultimate cost of using Blockchain App Factory’s ready-made cryptocurrency exchange solution depends on several factors. Firstly, the business model implemented plays a major role in the cost. Also, usual factors like features and functionality integrated with the application contribute immensely to the price.
Anyway, the cost for ready-made cryptocurrency exchange development will be considerably lower compared to building one from scratch. The time taken also decreases proportionately, facilitating the business to launch quickly. If you are interested in getting a quote deciphering the cost to launch your crypto exchange from our solution, we are just a message away!
Should You Choose an Experienced Company for the Process?
As an experienced company in White label cryptocurrency exchange development, we would say a loud YES! While you might think of a different reason for our perspective, a company like ours has the advanced technology to launch such applications. Such a firm can also embrace extensive customization of the pre-made exchange, which might be challenging to integrate if you choose a publicly available program. In our case, we provide comprehensive support throughout the process and even post-deployment, empowering our clients to achieve long-term success. With such reasons to consider, it is undoubtedly wise to choose a professional company to launch your cryptocurrency exchange from pre-built software.
Hence, we have seen everything we need to learn about White label cryptocurrency exchange development. From the basics, features, and functionality to the need for professional support to build a platform – we have seen them in detail. We hope this blog has given more than enough insights on utilizing a pre-built cryptocurrency exchange solution for your business. If you are interested in tapping into our advanced cryptocurrency exchange solution, contact us today by filling out the form below!
