If you're looking for a quick and efficient way to create a crypto exchange, a white label software is the most useful solution to help you build the best exchange imaginable. Utilizing a white label cryptocurrency exchange development service will help you save a considerable amount of money and effort.
In this short-read article, we will describe how to pick the best white-label cryptocurrency exchange solution and discuss why it is so popular nowadays. Let's dive in!
What Is A White Label Crypto Exchange?
A white label exchange is a pre-configured, ready-to-deploy technology solution that can be modified and offered in the business under a new brand name. It is also full of modern features, including a strong matching algorithm, an attractive design, a large selection of digital assets, APIs, a cryptocurrency wallet, effective payment processing capabilities, and more.
How Does It Work?
The main goal of a white label cryptocurrency exchange is to offer a set of features that precisely meet your requirements. However, you will not be able to continue without agreeing to the terms of a white label license agreement.
The best white-label exchange software program should contain every necessary element to run a cryptocurrency exchange and conduct cryptocurrency trading. It would help if you did proper research prior to choosing one.
Benefits Of Using White Label Crypto Exchange
More Affordable and Faster to Implement
Starting from scratch will be very expensive and time-consuming. To avoid these issues, just choose a white label cryptocurrency exchange since it is way less expensive and provides a quicker return on investment than creating an exchange from ground up. Also, all services will be set up in a matter of days.
Smooth Introduction to Your Brand
Building a cryptocurrency exchange from scratch also usually requires endless changes when it first launches and a lot of fixes . A white label product, on the other hand, has already been reviewed and may help to promote your brand right away without the usual bugs of the pre-launch phase.
The main issue with cryptocurrency exchanges is security. Hackers are always present and ready to steal money from vulnerable exchanges. To safeguard your assets, white label solutions provide a variety of security measures, including SQL injection, DoS, HTTP parameters, 2FA, fingerprints, and others.
What Should A WL Cryptocurrency Exchange Include?
A Wide Variety of Features
The white label system should include various essential elements that will streamline trade transactions for users of cryptocurrency exchanges. For instance, digital assets must be capable of being exchanged for fiat money without issues. Another crucial element of a white label cryptocurrency exchange is the matching engine, which matches the bid and ask orders. Additionally, the system may be able to perform leveraged trading, spot trading, OTC trading, money management, market orders, limit orders, and so on.
Computational power is also vital. Before launching a cryptocurrency exchange, it is advisable to consider its transactions per second (TPS) rate; the more customers a platform has, the higher the TPS rate must be endorsed. Besides that, demand for multi-currency wallet, API integration capabilities, etc.
Also, not all cryptocurrency exchanges accept all coins and tokens. This is due to the fact that there are numerous blockchains and that each one supports a different set of currencies. You should contact white-label developers who can assist you with connecting third-party systems.
Sufficient liquidity is always a vital component of every crypto exchange. So the best white-label cryptocurrency exchange provider should deliver sufficient liquidity for buyers and sellers for price stability. You must ensure that the system delivers such a service via a liquidity hub or third-party liquidity providers so that you can give sufficient liquidity to your customers.
The best white label cryptocurrency exchange should be capable of processing a high volume of transactions while not charging overwhelming transaction costs to the customer. The exchange must be sufficiently flexible to cope with any unprecedented growth in trading volume.
Security is another essential aspect of a cryptocurrency exchange that cannot be ignored. The framework necessary to protect user data must be included in the exchange. 2FA, and other indicators are critical for protecting users' assets.
Partnering with the best white-label cryptocurrency exchange will help you enter the market faster and with less effort than it would take to create an exchange from scratch, but keep in mind that many cryptocurrency exchange customers consider platform security features, liquidity, technical aspects, and other criteria which we discussed today in this article when determining which solution to choose.