The world of cryptocurrency is increasing in popularity with more and more people switching to digital currencies as an opportunity to invest. The rapid surge in the traffic for NFTs (Non-Fungible Tokens) as a new source of revenue escalated the demand for Crypto Exchange Software. This caused several White Label Crypto Exchange Development companies to emerge.
Need for a reliable and robust Crypto Exchange Platform is necessary to trade digital currencies. It is the reason why many IT businesses have come forward to develop and deploy their exchange software to give a better trading experience.
Generally, it takes a lot of time, capital, resources, etc. for the crypto exchange development process, and accomplishing this challenge requires a creative approach. This is why the concept of White Label Cryptocurrency Exchange solution was introduced that offered greater benefits over any usual crypto exchange platform.
Thereby, more and more businesses, startups or well-established, are investing in White Label Crypto Exchange Development. In this blog, we at LBM Blockchain Solutions will discuss the details of what is white label crypto exchange? What are the different types of crypto exchange platforms? And how white label exchange software is developed? But before that, you need to understand the basics of a typical crypto exchange, so let's dive in!
What Are Cryptocurrency Exchanges?
Cryptocurrency Exchanges are software platform that facilitates buying, selling, or trading of different cryptocurrencies. Unlike any other stock exchange where you trade financial instruments (stock, bonds, commodities, etc.) issued by the company, you purchase or sell digital crypto assets. These exchanges let the users trade their cryptocurrencies for other cryptocurrencies, and exchange traditional money for cryptocurrency or vice versa.
What Are White Label Cryptocurrency Exchanges?
White Label Crypto Exchange comparatively takes lesser time and energy to develop. It is a programming solution that barely involves any programming, which makes the development of a crypto trading platform simple and cheap. So you just need to sign in, customize it and step into the trading market.
Developing and deploying a crypto exchange platform from scratch could take months, and exchanges with robust trading options and features could even go on for years. White Label exchange solutions eliminate this issue and help you launch your crypto exchange in just a matter of days.
For example, LBM Blockchain Solutions has one of the best white label crypto exchange development solutions that use creative art technologies and advanced features. It is a successful tried and tested platform solution used by many leading exchange agencies.
Types of Crypto Exchange Platforms
Your first step to launching a white label crypto exchange is to decide what type of exchange platform you want out of the three that are described below. This will drastically impact the crypto asset’s mechanism and the way to store, liquidity, fiat currency (traditional currency/banknotes), money flow capacity, and transaction speed.
- Centralized Exchange (CEX): Since this mechanism offers greater trading value and high liquidity as compared to the decentralized exchanges, approximately 99% of the cryptocurrency trades take place on Centralized Exchange (CEX). This system is quite similar to traditional exchanges, the process is controlled by one single operator and the trader buys and sells their deposited funds.
- Decentralized Exchange (DEX): These platforms use smart contracts to make transactions instead of a central authority on DEX. They are mostly used by private individuals or big companies where the processes are executed by automatic algorithms. Plus, the traders don not required to deposit their assets over the exchange to allow trading.
- Hybrid Exchange (HEX): These exchanges take the best from both CEX and DEX worlds. It doesn't have any centralized operator like in DEX and has faster transaction speeds and low latency like in CEX. Your information stays highly secured. The rapid surge in the users of digital currencies has caused cryptocurrency platforms to grow in numbers. Many global businesses are deciding to start their very own cryptocurrency exchange development ventures.
Steps To Develop White Label Crypto Exchange
You have two options if you are planning to develop your crypto exchange platform— either you go for building an exchange down from scratch or you choose the White Label solution, the choice is yours!
However, you must be aware of the fact that developing software from scratch involves a lot of difficulties and risks. Likewise, you would have to wait for a longer duration and spend a hefty amount for the complete execution of the project.
On the other hand, choosing a White Label development solution can make your business start much faster at a cheaper rate. You can get your business to run in a matter of weeks. It could be a wise decision to start your crypto exchange development in a decentralized manner. Here are some major steps that are involved to develop a white-label crypto exchange:
Choosing Your Business Needs
The first step is deciding the type of exchange where you will run your business. Thus, it must be a place where all opportunities could come together.
Accomplishing Legal Formalities
After deciding on the exchange comes the fulfillment of all legal formalities. The terms & regulations vary from one place to another, so please ensure that you satisfy all the legal formalities.
Choose Bank Partner
To take care of the fiat currency finances, you would need a banking partner. Likewise, choose a bank that you can rely on to provide digital services for your business growth.
Choose Liquidity Provider Exchange
It is a must to select a White Label Crypto Exchange that provides liquidity features. Thus, joining a liquidity-improving network is a smart move.
Make The Platform Live After Beta Testing Process
Your first task is to make the platform live soon after the completing beta testing process. The beta testing phase will bring out all the bugs and flaws present in the software and thus, will ensure that your exchange platform runs smoothly
Efficient Customer Support
You must be able to form an efficient customer support service team so that the users can directly contact you in case they face any technical difficulty. The customer support team will grow parallel with the regular development of your business.
Since more and more cryptocurrency enthusiasts are joining this industry, many businesses from all around the world are coming forward to launch their in-house crypto exchange software. But since we have already discussed that building it from scratch is quite an overwhelming task, it's all up to you to decide whether you are ready to spend your valuable money and time on developing something from the beginning or choose an easier way, i.e White Label Crypto Exchange solution.