Blockchain
How to Launch a Cryptocurrency Exchange Using White-Label Cryptocurrency Solutions | nasscom
Cryptocurrency has emerged as a new asset class, especially in light of its rapid spike in value earlier this year. For the first time, the total value of the cryptocurrency market has surpassed $2 trillion.
The cryptocurrency realm is becoming increasingly popular as more and more people see it as an investment opportunity. Increased traffic and the rise of NFTs as a new source of income have increased the demand for reliable cryptocurrency trading software. This demand has driven the establishment of more cryptocurrency exchanges. There is always a demand for reliable cryptocurrency trading software, so many companies want to create and establish their own.
Usually, it takes a lot of time, effort, and money to develop a cryptocurrency exchange software. A creative strategy was needed to overcome this obstacle, and this difficulty led to the creation of a white-label cryptocurrency exchange. White-label exchange solutions offer various advantages over traditional cryptocurrency exchange software. As a result, companies are already investing in the development of a white-label cryptocurrency exchange. So, this blog will describe the hidden corners of white-label cryptocurrency exchange and its importance. Let’s get straight to the topic…
Cryptocurrency exchange and its types
A cryptocurrency exchange is a platform that allows users to buy/sell or trade various cryptocurrencies. It is similar to a stock market, but instead of stocks, users can buy or sell cryptocurrencies. The exchange platform allows traders to conduct fiat-to-cryptocurrency and cryptocurrency-to-cryptocurrency transactions.
Cryptocurrency exchanges are roughly grouped into three types based on the nature of their operations. They do,
- Centralized Exchange (CEX)
This cryptocurrency exchange platform will be managed by a centralized entity, like a single organization. This exchange will have complete control over all the transactions that happen on the platform. For example, Binance is one of the centralized exchange platforms.
- Decentralized Exchange (DEX)
As the name suggests, this type of cryptocurrency exchange is an alternative to centralized exchanges. Transactions are handled by automated processes rather than centralized controls in this case. A DEX has no central authority and operates on a peer-to-peer model. Binance DEX, for example, is a decentralized exchange developed by Binance that is completely autonomous.
This type of cryptocurrency exchange combines the merits of both centralized and decentralized exchanges. It offers the low latency and fast transaction speeds of centralized platforms, but lacks the central figure of decentralized exchanges. It improves the security of your information. The increase in cryptocurrency users has increased the number of cryptocurrency platforms. Many companies have launched cryptocurrency exchange platforms. TRON Joyso, Joyso is a great example of a hybrid exchange.
How do you get started with a cryptocurrency exchange?
Cryptocurrency trading is mostly done online because the core of the business is the exchange of digital assets. The software used, as with any internet platform, is a sign of its potential. The more adaptable, secure and adjustable the software is, the easier it will be to run your business.
Building software is difficult, and building a cryptocurrency exchange is no exception. Also, unlike most software products on the market, software products that use cryptocurrency and blockchain technology are very new, with little precedent. Also, public blockchain technology is a young topic that has only been around for a decade. The Internet, on the other hand, has been around for nearly forty years.
Before we get into the creative part, let’s take a look at the two main styles of software development.
- Developing a cryptocurrency exchange from scratch.
- Using a White-Label Cryptocurrency Exchange.
In the first situation, creating a new cryptocurrency exchange is a time-consuming and resource-intensive endeavor. It requires a tremendous amount of money, time, equipment, and energy to build a platform from scratch. Not to mention, the level of technical expertise required to pull it off would be too much for a single person or even a small institution. Finding the right people for the job would also be difficult.
A white label cryptocurrency exchange software, on the other hand, is a ready-made and fully customizable software that can be purchased and installed. This software includes all the basic trading and security features needed to run a cryptocurrency exchange. You can also customize it further and add unique modifications that you think will suit your business needs.
White label cryptocurrency exchange
White label exchange is a better option than typical cryptocurrency exchange software development. For starters, developing white label cryptocurrency exchange software requires less time and money. Also, a company can launch its exchange platform in much less time. These platforms can meet additional standards and run on any network. Before releasing the product on the preferred blockchain, white label exchange software developers test it numerous times.
How to start a cryptocurrency exchange using a white-label solution?
To start a cryptocurrency exchange with a White-Label solution, you must first understand the advantages and disadvantages of having a White-Label cryptocurrency exchange.
Advantages
- A white-label cryptocurrency exchange eliminates the additional time, development, and effort required to build an exchange from scratch.
- It can be customized according to your specifications.
- It offers a higher return on investment (ROI).
- It allows you to create a ready-to-use trading platform in minutes.
Disadvantages
- To buy white-label cryptocurrency exchange, you will need short-term funds.
- Since this is a ready-made solution, it is difficult to customize it in depth.
Once you choose a software provider, you will be able to set up your own white-label cryptocurrency exchange in just a few weeks. The provider will provide all the security features and customer support. This means you can focus on more important things rather than the headache of designing and running your cryptocurrency exchange.
Benefits of Using a White-Label Cryptocurrency Exchange
Let’s take a look at the many benefits of using white-label solutions when developing bitcoin exchanges. For starters, it eliminates the need for endless hours of software development and saves money. White-labeling allows businesses to focus on only the core elements, allowing them to spend more time managing and growing their operations.
The best benefit of a white-label solution is the security it provides. White-label cryptocurrency exchanges provide anti-phishing features, two-factor authentication, and superior data encryption. These platforms can be implemented in a matter of days.
Creating a White-Label Cryptocurrency Exchange
Below are some of the key steps involved in developing a white-label cryptocurrency exchange:
Why is White Label Crypto Exchange Software Better?
Entrepreneurs who want to start a new business, any new business, will do so based on their idea and skill set. A cryptocurrency exchange business requires a unique blend of talents, knowledge, and vision. And that is where the following factors come into play to show you why White label cryptocurrency exchange software is the best option.
Analysis: Building a cryptocurrency exchange platform from the bottom up is a tough task. Market research is a must. You will need to do a lot of research on the type of platform you want to design. Order Book models, AMM models, P2P models, OTC models, aggregator models, and so on. You need to understand the subtle differences between them and also how to code the methods. When it comes to cryptocurrency exchange scripts, however, you can select the type of platform you want and get that specific product. The developer will automatically install whatever features and functions you require in the cryptocurrency exchange platform.
Technical Expertise: The quality of any cryptocurrency exchange platform is ultimately determined by the technical specialists who assisted in its design. Blockchain technology includes layer 1 blockchains, layer 2 blockchains, interoperability, decentralized apps, smart contract creation, and security subsystems. All of this requires specialized experts who work around the clock to design each individual software module before carefully stitching them together to make them work effortlessly. The technical knowledge required to build a cryptocurrency exchange platform from the ground up is a nightmare. A white-label bitcoin exchange software, on the other hand, is a pre-tested, ready-to-use software solution.
Security: Creating security mechanisms for an online platform is an art form, a challenging task because it involves both the user and the administrator. HTTPS authentication, jail access, two-factor authentication, ADoS, ADDoS, data encryption and more… A platform requires all these features and creating each of these as independent modules and then integrating them will take months of work, not to mention stress testing. While with white-label cryptocurrency exchange software, all these critical security protections are integrated as part of the offering.
Customizations: Before using a software for business purposes, you need to customize it a little. Customization can be difficult when developing a cryptocurrency exchange platform from scratch. Although it is not a daunting task, it is time-consuming. A white-label cryptocurrency exchange software is purchased from a developer who has all the necessary tools and experience. So, you can have it tailored exactly to your specifications before purchasing it from them. It is an excellent approach to saving time.
User-friendly – As a developer, it can be difficult to imagine a user-friendly platform during development. When new online platforms are released, they are never user-friendly; however, as more users use and review them, they become easier to use. This is a normal part of the process during the first launch. This is not an issue with white-label products, which are often built after established web platforms and therefore are often user-friendly from the start.
Add-ons: Another major hurdle for developers is the availability of additional features. Once the product is released, adding new features is a major undertaking that must be completed with each update period. It must be developed first, so the program must be closed to the public for a while before being updated. However, adding new features to the white-label cryptocurrency exchange software is a fairly simple task. Since the add-on has already been built and tested, an update can be booked within a few hours.
Final words
A business is the ultimate ambition of every entrepreneur. With cryptocurrency being the best performing asset in the last decade, it is natural that entrepreneurs want to invest their ideas, time and money in the cryptocurrency market. However, investing is not the same as setting up a cryptocurrency exchange and a white label cryptocurrency exchange script It is one of the best ways to get started as soon as possible.