Guide for Creating White-label Cryptocurrency Exchange
Cryptocurrency exchanges have positioned themselves as profitable alternatives to classic mining when it comes to reaping revenue from cryptocurrencies. The success of brands like Binance and Poloniex speaks volumes about the viability of this business model. It is not a thing of surprise that a lot of cryptocurrency exchanges are springing up left, right, and center.
There are different ways to build a cryptocurrency exchange. You can choose to hire your own team of developers, or partner with a blockchain development company that specializes in white-label crypto exchanges. Another usually unwelcome way is to download the open-source exchange scripts from sources in GitHub.
Alternatively, you can consider purchasing white label cryptocurrency exchanges. These white label cryptocurrency exchange platforms present a lot of advantages to the business. In the oncoming paragraphs, we will read on the various benefits of the white label cryptocurrency exchange software, its features, its cost, and the different types.
Table of Contents
- What is a White label exchange?
- Benefits of a White Label Crypto Exchange
- The Types of White Label Crypto Exchange Solutions
- How much a white label crypto exchange cost?
- Is a White Label Exchange Worth It?
- How long will it take to build a crypto exchange?
- How long does it take to launch a white-label crypto exchange?
What is a White label exchange?
White labeling is not an uncommon practice in business. White label cryptocurrency exchanges are, in essence, off-the-shelf crypto exchanges with all the core features of the cryptocurrency exchange. White label exchanges eliminate the need to find and hire programmers, testing and debugging codes, managing the project, and designing the interface.
These white label solutions are extremely flexible in terms of customizability. They can be made to bear your brand image and also sport any UI that you would want.
A white label cryptocurrency exchange is complete with all its core features. The features include a trading page, an administrator interface, wallets, trading pairs, trading engine, KYC/AML integrations, affiliate, and different systems, banking integrations, and localization.
The first and foremost advantage brought about by a white label cryptocurrency exchange is in terms of time and cost. White label exchanges can be launched considerably faster than an exchange built from scratch.
Benefits of a White Label Crypto Exchange
Cryptocurrency exchanges also present a lot of business benefits. There are quite some reasons that you might want to consider launching your own cryptocurrency exchange.
The first and most obvious reason is that cryptocurrency exchange is a profitable business. It goes in line with the principle of casinos that the house always wins. Irrespective of the trader making a profit or loss, you, as a cryptocurrency exchange owner, can be assured of profit all the time.
White label exchanges, in addition to the cost and time benefits, have a host of other benefits as well.
White label cryptocurrency exchanges are extremely customizable. It is possible to change the logo and the fonts if needed. This makes it easy for anyone to enter the cryptocurrency exchange market, and even if they were to use the same white label script, people would not be able to notice the similarity!
White label exchanges are reliable and can be developed and deployed in the fastest possible time. These exchanges, with inbuilt solutions and patches which can help in quick fixing of any issues that you may face. Since the exchange script will be free from bugs, you do not have to spend a lot of time and effort in making your product perfect.
White label cryptocurrency exchanges also mean that you do not need an extensive technical prowess to handle those pieces of technology. It is quite easy for any entrepreneur to understand and execute, making it an instant hit among people who might not have the technical knowledge around cryptocurrency.
White label cryptocurrency exchanges also present enhanced security. Instead of counting on the uncertainties associated with building an exchange from scratch or using an open-source script, you can be assured that your exchange is extremely secure.
All these points culminate at the fact that the business owner does not have to worry about the technology. Cryptocurrency exchanges are, in essence, business opportunities and not just pieces of technology. In addition, the business owner can also be assured of reliable support if they face any technical difficulties.
The Types of White Label Crypto Exchange Solutions
Cryptocurrency exchanges are not monotonous, and there are quite a lot of varieties of cryptocurrency exchanges that you can opt for, even when you consider white-label options.
The Cloud Centralized Exchange or the CCEX is the most common type of cryptocurrency exchange handled by white label providers. There may be additional fees associated with this type of exchange, considering the factors like startup server fees and ongoing server fees.
Do-It-Yourself Centralized Exchange or the DIY CEX functions more like an IKEA of cryptocurrency exchanges. The provider will give you all the parts and tools required to launch and run an exchange. The responsibility of completing the exchange and the power of complete control over the exchange lies with the business owner. You will have to figure out a proper hosting provider, and given today’s circumstances, cloud hosting providers like Amazon and Google are recommended.
Do-It-Yourself Decentralized Exchanges or the DIY DEX completely rely on smart contracts without any degree of centralization or human intervention. The automated trade matching and wallet management in a completely D centralized fashion.
Considering factors like ease of use, lunchtime, and profitability, CCEX and DIY CEX type of exchanges are always recommended. The first type of exchange could be one of the best options for you to beta-test your market.
How Much Does A White Label Crypto Exchange Cost?
The cost of white label exchanges is spread across a wide spectrum. There are possibilities that the cost could run into even the zone of millions of dollars for enterprise solutions. The cloud centralized exchanges are considered to be the cheapest options. If you go for a DIY centralized exchange, the cost is contingent upon the features of the kit that you will receive. It has to be noted that some abysmally low prices might result in a heavy compromise on features, particularly on the quality and security aspects.
DIY decentralized exchanges are typically free and almost all components or automated. However, the limits in its usage and the limited patronage push it to the lowest rung of the list of favorites for investors when it comes to white label cryptocurrency exchange. The cloud centralized exchange fees might have additional components like revenue sharing on monthly fees. In the revenue sharing model, the revenue in which the exchange generates is a commission or a percentage to the white label provider. There is a monthly cost for server maintenance, and it might have a six month or one year upfront cost.
Is a White Label Cryptocurrency Exchange Worth It?
Well, the answer to the above question is bound to change the fortunes of many people, as it literally is a million-dollar question! The best way to answer the above question in a subjective way is to look at the possibilities of profit by taking into consideration the abilities of your team and the revenues your exchange is likely to churn.
Considering the COVID-19 crisis and the acceptance that crypto coins have received of late, and how the government of Australia, Estonia, Malta, and the United States have been slowly moving towards digital currencies, it would surely be a worthwhile investment to consider launching a cryptocurrency exchange business. It makes better business sense to look at white-label options because there are no time-based investments associated with white label exchanges.
While calculating your returns on investment, it is important to consider the costs involved in legal activities, marketing, and HR.
How long will it take to build a crypto exchange?
If you were to embark on building a cryptocurrency exchange from scratch, it would take about 4 to 8 months. It involves millions of lines of coding, design, figuring out legal aspects, working on the wallets and the quasi-financial aspects of the exchange, and after finishing everything, testing the exchange platform.
White label exchanges, on the other hand, can be created and customized in even less than 24 hours. It does not involve a lot of coding, and for all, you know, running an exchange could be as simple as installing an app on your mobile device.
How long does it take to launch a white-label crypto exchange?
It is to be remembered that white label exchanges offer solutions only in the technical arena. It still would be considered quite a cumbersome task to launch a cryptocurrency exchange. However, considering the entire process holistically, white-label exchanges are the best, but you can consider for the quickest launch. The average time taken to launch the white label cryptocurrency exchange is in the order of about 1 to 4 weeks. However, there have been instances where some white label cryptocurrency exchanges have been set up in a matter of minutes.
White label solutions have been a big bliss to the world of technology. It holds true in the context of a cryptocurrency exchange as well. If you are one of those aspiring entrepreneurs, white label cryptocurrency exchange software solutions are your best bet to ticket yourself into the route of profitability in the crypto world.