White label exchanges is the on-going trend that is ruling the cryptocurrency markets. The growing interest of entrepreneurs to own a cryptocurrency exchange, and the growing adoption of crypto exchanges around the world has led to the emergence of a white label crypto exchange. The aim is to help entrepreneurs avoid the long, and tedious development process and facilitate a quick launch to get up to speed and get ahead of the competitors in the market.
With this overwhelming competitive environment, it is important for you to gain knowledge about white label exchanges inside-out, all the opportunities and how it helps surpass the obstacles involved with exchange businesses, before you choose one, to make an informed decision. In this article, we are going to discuss all about white label crypto exchanges to help you establish a profitable exchange, and set yourself up for success. If you’re a novice crypto entrepreneur let’s first start with a quick glance of what are white label crypto exchanges.
What is a white label cryptocurrency exchange?
The concept of white label solutions basically refers to a readily-available solution made by one company, and sold by another in its own brand. Similarly, a white label cryptocurrency exchange is a ready-to-use cryptocurrency exchange platform that is fully-featured, and integrated with every necessary infrastructure to make the exchange fully- functional. All the customers have to do is, purchase them and customize them according to their personal preferences to launch in their own brand.
Now, as mentioned earlier, if you’re interested in acquiring a white label crypto exchange yourself, let’s analyze all the opportunities and the solutions white label exchanges offer to overcome obstacles involved with crypto exchanges to help you gain better understanding.
Advantages involved with white label cryptocurrency exchanges
If you are looking to launch your exchange as quickly as possible to make a place for yourself among the wide-spread competitors, and make use of the favourable market conditions, there is no better solution than a white label cryptocurrency exchange. As they are readily-available, they are much faster to deploy compared to building an exchange from scratch. In most cases, it takes only 7 days to two weeks to launch a white label exchange in the market.
You don’t have to worry about lacking technical expertise when it comes to launching a white label exchange. The entire development process is taken care of by the company that you’re choosing to build your exchange, allowing you to concentrate on other factors to enhance your business. Infact, the process is made even easier by some companies where the providers themselves will install and kick-start the deployment for you.
White label exchanges are built by a team of experienced developers, and are completely pre-tested before being delivered to the clients. Therefore, it is bug-free and has the ability to perform effectively, enabling a seamless launch for your exchange.
Time-saving and cost-effective
White label crypto exchanges save an ample amount of time for you, and are much more cost-effective than exchanges built from scratch as it relieves you from going through the whole development process and the labor costs involved.
Efficient liquidity upgradation
Liquidity is the key factor for any cryptocurrency exchange. Instead of building an exchange from scratch and trying to integrate liquidity into it through various ways, you can choose an existing, ready-made white label exchange that is integrated with enhanced liquidity. This will make the process easier and improve opportunities to attract more users.
Elimination of barrier to entry
Deploying a cryptocurrency exchange is not a very easy process. There are many regulatory requirements that you need to look into, properly analyze and obtain license, and there are certain barriers to entry involved with launching an exchange. But in the case of a white label exchange, there is such a barrier involved. The exchange will comprise every legal framework essential and eliminates other barriers as well to help you with an efficient launch.
Other than these factors, white label exchanges are also highly scalable, and customizable and can be constantly upgraded based on the changing market trends. You have to make sure that the team you’re handling your white label exchange development to, offers adequate maintenance support for the exchange as well.
Challenges involved with white label exchanges and how you can overcome them
Hack threats, security breach and loss of data
Combating hack threats, security breaches and loss of data has always been a big challenge for cryptocurrency exchanges. Many entrepreneurs are uncertain about setting foot in the business due to its history of hacks. But a white label cryptocurrency exchange is free from such threats/ security attacks. The right white label cryptocurrency exchange comes with a proper audit process to ensure the smooth functioning and security of the exchange, implemented with multi-layer security protection along with multi-factor authentication, multi-signature hot and cold wallets etc to prevent the exchange and the users from being prone to such hacks.
Exchanges will not be able to handle a strong user-base and large trading volumes due to lack of proper infrastructure which may also lead to khack issues. But white label exchanges are usually built by qualified experts, ensuring robust infrastructure, quality technical and security solutions, advanced user-interface, and a proper pre-tested software, which will prevent any pitfalls.
The regulatory framework of an exchange is often confusing to the users as the laws vary from one country to another. Also, the legal framework is not constant. The laws keep changing constantly. What was legal earlier might not be legal now, and vice versa. This makes it difficult for an exchange owner to keep track of and make their exchange fully legalized accordingly. But with a white label exchange, the exchange is already compiled with every necessary legal framework according to your location making you all set for a hassle-free launch. It is also implemented with automated KYC/AML procedures to enable authenticated users and transactions for the exchange.
Thus, white label exchanges are gaining immense traction due to these advantages, and the challenges they help overcome along with their highly-efficient, secure, speedy and scalable nature. To build a strong base for your exchange business, and to launch an effective exchange in a short turnaround time, at a cost-effective price, conduct extensive research and choose a well established company to avail yourself of a solid and sustainable cryptocurrency exchange software solutions and earn million-dollar profits for your business.