For those interested in starting a crypto exchange, a white label solution may be an ideal option. Having the same capabilities as other exchanges but under your brand name means that it is simpler and faster than ever to achieve success. A solution like this can be implemented very quickly, allowing you to start immediately, which will be considerably less expensive than having to build your exchange from scratch. In this article, we will look at the pros and cons of white labeling crypto exchanges.
The six reasons you should use a white label software
1) You are in total control of white labels
There are several advantages of white label exchange platform, such as the ability to control every aspect of the platform completely. However, if you lack technical expertise, it may be better for you to get into the habit of focusing on building a great user experience and outsourcing the rest. Your business will stay on track if you are able to keep focused on your main strengths, and you will become less distracted by the more ‘technical’ things.
2) They provide a higher level of security
The majority of white label exchange solutions use standard technology to encrypt your data, such as SSL certificates, cold wallets to store your cryptos remotely, as well as either hot or warm wallet systems (which enable you to send encrypted data to your hot wallet when necessary). Make sure you understand the security features that come with your chosen WL solution.
3) Nothing legal to worry about
When purchasing a WL solution, you don’t have to deal with contracts, licenses, and regulators. You do not have to worry about legal implications since it is not your product but an off-the-shelf component.
4) The time and money they save are substantial
As Your exchange’s development will be outsourced, so you won’t need to hire and manage a development team. Furthermore, you won’t need to spend hours discussing with potential investors how much money you need to create your own exchange. WL allows you to operate your exchange quickly and affordably.
5) Marketing is easy
There’s no doubt you’re going to have to market your exchange in some way, and with WL, it’ll be a lot easier to do. As long as you do not need to create a name for your product and a logo, you will be able to take some of the burdens that come with marketing off your shoulders.
6) Fast implementation
Finally, getting started is a very simple process since you don’t need to reinvent the wheel. Getting started with WL is easy once you have an idea and a developer who knows how to use the APIs for the WL solution you select. Your exchange can be up and running in no time.
Disadvantages
1) Functionality is limited
Despite their greatness, WL solutions have some limitations. The provider may decide to offer certain features based on the demands of their customers, but you will not receive more than that. In some cases, you might be forced to rebuild parts of the exchange if they do not suit your needs exactly, which can take more time and money than hiring extra developers.
2) White labels aren’t all that original
If a solution is WL successful, it will likely be imitated by other companies. In order to avoid confusion, keep this in mind when marketing your cryptocurrency exchange. Otherwise, you’ll find that people begin to ask why your exchange is so similar to another exchange that has just been launched.
3) White labels require extra work during updates
You need to keep up to date with the most recent and most significant updates made to the underlying technology (e.g., new cryptocurrencies, tokens, and blockchain systems), which usually requires updating the entire white label solution you use. Future upgrades are unlikely to have beta versions available to you. Although this shouldn’t be a problem, any changes will need to be approved by you first, so product improvements will be slowed down.
4) Using white labels doesn’t let you become an innovator
As a final point, these solutions might be able to make it much easier and faster for cryptocurrency exchanges to set up. Nevertheless, they also lock you out of the opportunity to be a pioneer — someone who sets new standards in the industry. Unless you want your platform to be known as a world-class exchange, you will probably need to hire additional developers or build your platform from the ground up.
Building a cryptocurrency exchange from scratch can be a daunting task, which is why many investors opt for white label solutions. This allows them to focus on making their exchange more user-friendly and coming up with new business decisions, without having to worry about the technical aspects of the platform.
If you’re looking to start your own crypto exchange, white label solutions can be a way to go. They tend to be relatively affordable and quick to set up and come with built-in features that can save you time and money. However, the limited functionality of many white label solutions may not be suitable for all exchange owners. Carefully consider your needs before choosing a white label solution for your exchange.
