Why White Label? Reasons To Choose A White Label Solution for Your Crypto Exchange

Cryptocurrencies surely deserve their credit for being a marvel in terms of technology and for revolutionizing the concept of payments, transactions, and finance. However, cryptocurrency has only served as a mere demonstrator for this new technology, and it has not found its acceptance as a mainstream method for transactions.

The non-acceptance can be attributed to the extreme degree of volatility in cryptocurrencies. Even the Numero Uno cryptocurrency, the Bitcoin, hasn’t been spared from this effect of volatility. The Bitcoin, during its inception, was not even worth a cent, and suddenly, its value skyrocketed to about $20,000 by the end of 2017. Today, it averages around $5000 and this degree of fluctuation in values might not be a good sign for any currency to be used in transactions.

This volatility, however, has cracked open a new revenue of making a profit from the cryptocurrency universe – cryptocurrency trading. Just like foreign exchange trading, the fluctuating value between the different cryptocurrencies can be used to the advantage of a person who would like to trade between cryptocurrencies.

Building a cryptocurrency exchange, however, can be a complicated task if you have to do it from scratch. It is true that there are a few open source solutions but they may not always be reliable and could be susceptible to malicious attacks. The most dependable workaround, in this case, is to make use of a white label cryptocurrency exchange platform.

What is a white label cryptocurrency exchange?

A white label cryptocurrency exchange solution is a readymade product that is designed to be deployed as early as possible. It is made possible by the fact that it has been tested even before it is made available in the market.

Benefits of a white label cryptocurrency exchange:

Unless and until there is a marked difference of benefits brought about by anything new, people will not be ready to embrace it! White label cryptocurrency exchanges bring about a plethora of advantages that are bound to attract any aspiring crypto entrepreneur.

• White label cryptocurrency exchange platforms ensure faster deployment. The deployment is swift and hassle-free and it is quite obvious as all the models are integrated and ready to be deployed to go live. Since it is more of a ‘product’ than a service, but can be resolved easily if we talk there exist.
• White label solutions cost considerably less than developing your exchange from scratch. Development time directly translates to development costs, and since you do not spend a lot of time in development, it is going to cost relatively less. Since you invest less time, you can hit the market faster, resulting in better profits.
• White label exchange solutions are easy to customize. They can be considered the IKEA furniture of exchange solutions, and they have been built with the focus of being extremely customizable. You can customize the exchange platform according to your business requirements, regulatory needs, and the type of exchange that you would like to create.
• You do not need to have any technical expertise in overseeing the development. This means that you can focus on your business and not on the auxiliary aspects of your business like development. This also means that the exchange solution is open to be adopted even by people who might not be completely aware of crypto and associated technologies.

The Components of a Crypto Exchange:

Irrespective of the method you build your exchange –  whether it’s developing from scratch or using white label solutions –  every exchange needs to have certain features in place to ensure proper functioning.

Your cryptocurrency exchange needs to have a proper wallet to help with transactions. The wall should accommodate multiple nodes and methods of payment including but not limited to credit cards, debit cards, and internet banking to load them with fiat currency. Needless to say, your exchange should also be flexible enough to accommodate multiple cryptocurrencies.

Your exchange needs to have a powerful and robust matching engine. The matching engine can be considered the heart and soul of your cryptocurrency exchange. It matches your buying always with the perfect selling orders, so your exchange is affected without any hassle and trouble. It is to be remembered that if your matching engine is programmed properly, your exchange development process is almost done!

The cryptocurrency exchange that you build needs to be garnished with an intuitive and interactive user interface. It should not be forgotten that people who use your cryptocurrency exchange might not be people who are well versed in programming and coding. Therefore, it is essential to make your crypto exchange extremely simple and innovative to use, even for common people.

Although it cannot be considered a hardcore feature, liquidity is one of the most important aspects of any exchange. Classically, liquidity is defined as the ease with which an asset can be converted to cash. In the context of a crypto exchange, liquidity is defined as the measure of the number of transactions that happen in the exchange. To enhance liquidity, you can consider tied up your exchange with an already existing exchange for a ghost or you can consider simulating transactions using bot accounts within your exchange. There are third-party liquidity providers that you can consider deploying for this task.

Above everything, your exchange needs to be legally compliant. Sadly, not every country and not every jurisdiction has been quite welcoming towards blockchain and its associated manifestations. While some countries like the United States, Malta, Gibraltar, and Australia have been known to be extremely crypto-friendly, some countries like India and China have been averse to the idea of anything even coming close to the blockchain. There might be a few unexplored avenues like a country following the functioning of exchange in its territory but forbidding its citizens from participating. Therefore, it is important to completely understand all the legal aspects because legal trouble is the last thing you would want to face when running a capital intensive business like a cryptocurrency exchange.

Conclusion:

Today, there might be a few stumbling blocks for cryptocurrency in terms of acceptance, but it cannot be denied that even the economic uncertainties fuelled by the coronavirus crisis have been contributing to its possibility of acceptance. In the crypto scene of business, it is always better to start ahead and start early.

Crypto exchanges could very well be the business model of the future, and if you are one of the Aspiring entrepreneurs, it is highly recommended that you start embarking on your endeavor with the help of a white label crypto exchange.

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