Owning a cryptocurrency exchange is currently one of the most lucrative businesses thanks to the cryptocurrencies traded there.
If you are thinking of creating your own exchange from scratch, developing it will not be an easy or cheap task. Luckily, there is one method you can use to create your unique personal exchange. In this article we will present pre-made software that helps you make the best white-label cryptocurrency exchange you had ever thought of.
What Is A Cryptocurrency Exchange?
A cryptocurrency exchange is a digital marketplace developed for people to buy and sell cryptocurrencies. Besides trading services, crypto exchanges provide market pricing via trading volumes and crypto storage. Prior to crypto exchanges, people could only obtain cryptocurrency by mining or coordinating money transfers in multiple online forums. Nowadays, there are hundreds of cryptocurrency exchanges that provide a variety of digital assets as well as variable security levels and their unique options.
What comes to the process , cryptocurrency exchanges main task is to connect buyers and sellers. In order to be engaged on crypto exchanges, users must first register, just like with a traditional bank account. After completing the Know-Your-Customer (KYC) process and being verified, a trading account will be opened. Clients will be able to transfer fiat or crypto straight onto the platform, which is then used to finalize purchases.
Categories of Crypto Exchanges
When considering crypto exchange development, you should know that there are two main categories of crypto exchanges. Both are described below:
1) Centralized Cryptocurrency Trading (CEX)
When referring to an online business, the term “centralized cryptocurrency exchange” (CEX) usually refers to one where a third-party supplier handles the investments on the centralized platform.
The team behind CEX basically has extensive control over customer money, so these businesses are typically subject to stringent regulation. They can persuade their customers to connect their savings accounts to fund their CEX accounts because they comply with financial regulations in the nations where they are based. Should you decide to create CEX, you will have to follow the same attitude.
2) Decentralized Crypto Exchanges (DEX)
A decentralized cryptocurrency exchange (DEX) is a trading environment where crypto traders can freely communicate with each other without the involvement of a third party. It is regarded as an effective alternative to traditional centralized exchanges. A DEX is merely a piece of software that operates online and is not governed by any one person or entity. People with experience in the crypto world who don’t want to reveal their identities and are proficient with using such platforms frequently engage in this kind of exchange. Creating DEX could be way more complex and requires significantly more knowledge of this industry.
Why Crypto Exchange Is A Goldmine ?
Why is it worth the effort to begin cryptocurrency exchange development?
1. Additional Revenues
Pre-set commissions have been one of the primary sources of revenue for businesses all over the world since the start of digital trading.
History shows that this business model has persisted due to its functionality and profit growth.
2. You’ll Get Paid for Coin Listings
It can be challenging and time-consuming to offer your cryptocurrency on a reputable exchange. However, coin developers could be willing to publish their assets on your platform for a fee if your exchange has a steady flow of visitors.
Managing various projects online will bring in new users, who will start to look around and possibly make some additional purchases.
3. You Will Attract New Clients
Bitcoin is often considered an inflation hedge, and many people view it as an “alternative to fiat .” Therefore offering these assets will increase the likelihood of new clients coming your way, which could lead to significantly increased traffic and generate more money for everyone involved.
What To Consider Prior When Launching Your New Exchange?
Several key components must be fulfilled prior to setting up any exchange. Take into consideration regulatory, financial, technological, and marketing factors. Remember that every factor will be taken care of if you choose the best white-label cryptocurrency exchange.
- Firstly, consider whether the country or region in which you are planning to do business can give permission to your cryptocurrency exchange.
Before launching your exchange, you should first obtain specific qualifications and ensure that you are not violating the law in your area. You risk a heavy fine if you don’t have it.
- Secondly, as you can understand, creating an exchange from scratch will cost a fortune, including expenses on technology, legal consultation, registration, and so on.
However, thanks to the white label, you will save significant time and money thanks to pre-set settings to run your exchange running on it.
- Thirdly, the software is where people fail due to multiple complications.
If you find building an exchange from ground zero challenging and exhausting, again consider choosing the best white-label crypto exchange software, which will definitely help.
- Lastly, you must offer sufficient liquidity from prominent suppliers to your platform upon debut because filling order books and producing exchange activity will attract clients.
They must be sure that they will have their purchases filled out without delays.
So If You Choose White Label , How It Can Make Your Life Easier?
Technical Knowledge: It takes a lot of time and money to build a cryptocurrency exchange platform from the ground up because of the technical knowledge and manpower needed, but the white-label cryptocurrency exchange software will provide you with a pre-tested, ready-to-go software solution.
Security: It will take several months to attach all of the safety modules and integrate them, not counting diagnostics. The best white-label cryptocurrency exchange software, on the other hand, comes with all of these essential security measures built in.
Personalization: New exchange must be modified before being used for commercial reasons, which is yet another challenging aspect. Instead, you can get a white label exchange customized exactly how you like when you buy it from a developer with all tools and client support 24/7.
Effort/Expense: The majority of cryptocurrency projects need at least a year to be fully developed and running. Moreover, the majority of them end up extending the action plan’s timeframe by a few more months. By implementing white-label crypto exchange software, you can set up the platform quickly and without worrying about these problems. Besides that, the expense of simply buying the white label crypto exchange will cost several times less.
User-Friendly: When developing a platform, creating a user-friendly one from the beginning can be challenging. Using white label products, however, who frequently take inspiration from already-existing online platforms and are user-friendly from the start, this factor is not a problem.
Promotion: Let people know that you’re opening a cryptocurrency exchange. To gain traction and attract more users, ensure you properly advertise your exchange to a group of prioritized audiences. The team of white-label may be able to assist you with marketing. Their skills can create appealing marketing plans to advertise your company.
Bottom Line
Due to the fact that cryptocurrencies have been among the best-performing assets in recent years, it makes sense for businesses to invest their ideas, time, and money in the crypto market.
However, to launch your crypto exchange, you’ll need to invest a lot of time and money. But thanks to the white-label crypto exchange solution, you can start your new business within several days. For that you should identify and contact the best white-label crypto exchange software providers in the industry, for example like B2Broker . They will not just offer products but also a help desk as well as a team that will work on advertising your business online that will make all your business dreams come true !
