There are three types of cryptocurrency exchanges: peer-to-peer, centralized and decentralized. Users can trade directly with one another through centralized exchanges that are hosted on one server.
Users can trade directly with one another through decentralized crypto exchanges, which are hosted on a network. Peer-to-peer Exchanges allow two people to trade directly without the assistance of a central authority.
Because they provide a convenient and unique way to trade cryptocurrency, cryptocurrency exchanges are top-rated. But, it can be difficult and time-consuming to set up cryptocurrency exchanges. This is where white-label cryptocurrency exchange development comes in.
What is White-Label?
White-label refers to any product or service manufactured by a third party and then sold by retailers using their branding and logo.
A white label, in simple terms, is when someone else's product is taken, and your name is added to it. This is often a win-win scenario for both the seller and the product manufacturer. This partnership allows the product manufacturer to focus on building and improving the product while the seller focuses on marketing and selling it.
This niche has many success stories. Whole Foods Market is well-known for its trademark Everyday Value. This white-label model is used to sell a wide range of food products.
White-label branding is a popular way to sell food, accessories and fitness equipment. White-label branding has the main advantage of saving you time, money, and research costs.
Sometimes the terms white-label or private label are interchangeable. They are, however, not the same. White-label products are often sold to multiple retailers depending on their needs and market. On the other hand, a private-label product is made and designed for one retailer only.
Both white-label products and private labels have their advantages. However, private-label products are more expensive and carry the same risks as any other product. Most retailers and businesses stick with the white-label option.
What is a White-Label Crypto Exchange (Crypto Exchange)?
A white-label cryptocurrency exchange is a preconfigured and ready-to-deploy platform that can be customized to your specifications and launched on the market as an individual brand.
This is a complete solution for anyone who wants to start a crypto trading business. The trading platform can include a powerful matching engine, a user-friendly interface, digital assets, APIs and enterprise-class wallets. It also has advanced payment processing capabilities.
A white-label cryptocurrency exchange works just like any other white-label product. You only need to register your name to create your platform.
The white-label service is a full-service exchange and can be tailored to meet specific requirements. The service can be tailored to allow users to invest in certain crypto assets. The solution can also be used to manage wallet custody businesses. Sometimes it's used to provide liquidity.
Why should you use a white-label cryptocurrency exchange over building your own? Here are some ways to find out:
- White-label exchanges for cryptocurrencies will make it easier to enter the market.
- It will avoid costly errors due to trial and error. To guard against these uncertainties, the product has been tested.
- Creating tools already available in other formats is not a waste of time.
- White-label crypto exchanges will allow you to benefit from the shared liquidity offered by the software provider. Liquidity is something that many crypto exchange users are looking for when choosing which crypto exchange to use.
White-label Development of Crypto Exchanges has Many Benefits.
White-label development of crypto exchanges is a popular choice for businesses that want to launch cryptocurrency exchanges.
Cost-effective:
White-label development of crypto exchanges is cost-effective. It can be costly to develop a cryptocurrency exchange from scratch. White-label development of cryptocurrency exchanges is possible. You only have to pay for the software and any customization. This can help you save a lot of money over the long term.
Read More:- Know More About Cryptocurrency Exchange Developement
White-label development of crypto exchanges is also time-saving. It can take months, if not years, to develop a cryptocurrency exchange. White-label crypto exchange development company makes it possible to launch your exchange within weeks. This is because the software has already been developed and can be tailored to meet your needs.
Increased Business Agility:
White-label development of crypto exchanges can also benefit your business agility. You would have to wait for developers to make changes to the code. This can take up to weeks or even months. White-label solutions allow you to make changes and launch new features quickly. This will give you a competitive edge and allow you to grow your business more quickly.
White-label development of crypto exchanges offers greater flexibility. You would have to use the same features as the developers if you had a custom-built crypto exchange. White-label solutions allow you to add and remove features as needed. This allows you to tailor the exchange to meet your needs and make it easier for users.
Security improved:
White-label development of crypto exchanges can increase security. The code can be viewed by anyone with access to a custom-built exchange. Developers can only access and view the code if the white-label solution is used. This can be used to protect against hacking attacks and other security threats.
Enhanced security means more clients because they can be sure of the safety and integrity of their investments. It also builds trust and credibility in the market. Businesses can reach new heights with enhanced safety.
Market time faster:
White-label development of crypto exchanges can be a great way to launch your exchange within weeks. This is possible because the software has already been developed and can be tailored to meet your needs. This will give you a competitive edge and allow you to grow your business more quickly.
Enterprises can be competitive by being able to get to market faster. This gives them an advantage over their competitors by allowing them to capitalize on market opportunities before they are available. You can also onboard customers quicker, which allows you to generate revenue quickly.
Better fund management:
White-label development of crypto exchanges can save money and help you allocate your resources more efficiently. This is because the exchange does not require you to develop it from scratch. Instead, this money can be used to market your business better or to allocate to other areas within your business.
You can then focus on the important aspects of your business and help it grow more efficiently. Companies can reach new markets and scale new heights with better fund management.
Greater scalability:
White-label development of crypto exchanges offers greater flexibility and scalability. If you want to add new features to your exchange or expand into new markets, you will need to rebuild it all. You can, however, add new modules to an existing exchange using a white-label solution.
Businesses can expand their reach quickly and easily by having greater scalability. They can easily add new features or enter new markets without incurring high costs. They can also scale down quickly, if necessary, without any hassle.
White-label Solutions give you a head start on your business process
White-label development of crypto exchanges gives you a head start in your business. The platform has already been developed and can be tailored to meet your needs. This will save you time and money.
White-label solutions can speed up the launch of your exchange. A white-label solution can help you save money and better allocate your resources. A white-label solution allows you to focus on the essentials of your business and help it grow more efficiently.
Crypto Exchange App Development
The global crypto market is growing rapidly.
The global cryptocurrency market will reach 1,902.5 million USD by 2028, from 910.3 million USD to 2021.
In addition, crypto has been mainstreamed by the rise in digital coins over the past decade. In 2022, there will be more than 10,000 cryptocurrencies. This is a significant increase from just a few cryptocurrencies in 2013.
The rapid growth of crypto users accounts for this huge increase. It's common to see novice traders relying on easy blockchain development solutions.
What exactly is a cryptocurrency exchange solution? What are the different types of crypto exchanges available? What are the most important features of an exchange solution?
These questions will be answered, and we'll show you how to create a secure and robust cryptocurrency exchange that appeals to your users.
What is a Crypto Exchange?
A cryptocurrency exchange allows customers to instantly buy or sell cryptocurrencies.
Users can trade one cryptocurrency for another using these exchange platforms. They can trade their Ethereum for Bitcoin, Litecoin or Binance coins.
Customers can also trade their digital coins with crypto exchange apps for fiat money like the US Dollar and AU Dollar.
The market price for the cryptocurrency they hold is also displayed on exchange platforms. You can convert cryptocurrency back into any currency you choose. If they want to withdraw the whole amount, they can either plan to keep the cash in their account or convert it into cash.
Crypto exchanges are intermediaries between buyers & sellers and make money through commissions and transaction fees. Transaction fees can be used to withdraw, trade, deposit, and other things. To encourage traders, some cryptocurrency exchanges offer tokens.
However, not all cryptocurrency exchanges are created equal.
Some exchanges allow users to trade, while others offer open and transparent trading data through their order books.
Different types of Crypto Exchanges
There are three cryptocurrency exchanges: DEX, centralized crypto exchanges; CEX, or centralized exchange; and hybrid solution.
Let's find out how they differ and highlight their pros and cons.
CEX - Centralized Cryptocurrency exchanges
An exchange operator oversees a central crypto exchange. Its primary task is ensuring customers sign up and that trading goes smoothly.
The CEX platforms allow you to easily link your bank account and debit card to purchase or sell digital assets. They are also centrally controlled and managed, which makes them reliable.
They also offer both crypto-to-crypto and fiat-to-crypto trading options.
Coinbase, Kraken and Huobi are some of the most well-known CEX platforms.
DEX - Decentralized Cryptocurrency exchanges
DEX platforms allow buyers and sellers to come together and transact directly in crypto. These peer-to-peer (P2P) transaction executions are free from intermediaries or third parties.
Securer decentralized cryptocurrency exchanges. On the other hand, users are more likely to lose their money. Another problem with DEXs is that they need to allow trading fiat currencies for digital. Due to CEX being more popular, DEX has low volume and liquidity.
Errna, Uniswap and IDEX are some of the most well-known DEX platforms.
Hybrid Exchanges
Hybrid is the latest generation in crypto exchange and is currently under development.
The hybrid crypto exchange platform combines the best of both CEX AND DEX. It combines the speed and liquidity of a centralized platform with the privacy and security of a DEX solution.
Qurrex and Nash are the most popular hybrid crypto exchanges.
How do You Create a Crypto Exchange App?
It is possible to create a cryptocurrency exchange that appeals to everyone if you have a clear roadmap.
This roadmap allows for smooth, accelerated app development.
Let's take a look at all the steps in this roadmap.
Identify the Problem
Start by identifying your customers' pain points and how your crypto exchange will solve them.
This means you should thoroughly research your customers' problems. Analyze the solutions available on the market to find out if your app can stand out and solve users' issues.
Do a cost-benefit analysis of your solution to determine if it is worth the investment. Assess any possible risks.
Establish the Operational Scope
Another important step is to set the operational scope for your crypto exchange. Here you can provide detailed functional specifications for your app.
It is easier to build your app by defining a scope.
It ensures that app developers know what they are building. It also helps project managers estimate the effort and time required to build the app.
You will need all the approvals needed in the future based on the operational scope.
Select a Crypto Exchange Type
Choosing the correct type of crypto exchange is important because it will determine how the app will work.
As we have discussed, there are three types of crypto exchanges: Centralized, Decentralized and Hybrid.
Choose a Jurisdiction
You will need specific licensing and approvals to operate your crypto exchange smoothly, regardless of whether you plan to go global or focus on a particular region.
There may also be laws that differ from one place to the next. For example, some countries or regions may have no regulations, while others have clearly defined rules.
You should keep an eye out for any new or upcoming legislative changes.
You must take care of compliance & regulations.
Because of the amount of money involved, governments worldwide are often strict about using cryptocurrency and exchanges.
You should adhere to certain KYC standards in your app. For example, you should facilitate documentation to verify your customers' identities.
KYC compliance reduces the risk that money laundering occurs through cryptocurrency trading.
Integrate a customer verification API into your crypto exchange. Also, create a backend database for records to keep them updated.
Partner with a payment processor/bank
This is required to allow payment processing using fiat currency.
You should look for a bank offering a variety of online services.
This is especially important if you are operating in a country that does not have instant banks. Transactions in such cases may take several days to settle.
Customers often choose a bank that offers fast transactions, clearing, and funds settlement.
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Locate a liquidity provider
Another important aspect of crypto-exchange solutions is liquidity.
Liquidity is key to the success of an exchange platform. How quickly can you get assets exchanges going?
Customers will prefer an exchange with better liquidity and a narrower spread.
You need to do some things:
- With APIs, integrate your crypto exchange's liquidity position with other businesses. It allows you to share liquidity and trade volume information between two exchanges.
- You can make your crypto exchange part of the exchange network to increase liquidity.
High-quality Security Standards
Hackers and other malicious attacks are attracted to crypto exchanges.
This is why you need to ensure the security of your exchange. This can be done with features like multi-signature wallets and two-factor authentication.
Keep the records and funds of traders safe in cold wallets. It should be easy and quick to transfer funds between cold and hot wallets whenever necessary. Transparency should not be compromised.
A proper KYC process should be established in the best interests of all parties.
Initiate a Customer Support channel
This is an essential feature for any app that's being developed today.
An interactive customer support channel that provides instant responses to customer questions is now a standard feature.
Your app should have a customer service channel, especially if it involves cryptocurrency exchange that involves money transactions.
Support for Cryptocurrency
Cryptocurrency can be a highly competitive market. Decide how many cryptocurrencies you want your exchange to support.
Keep in mind that the more cryptocurrencies supported by a solution, the greater the investment required to build dedicated APIs for fetching historical data and charts and placing orders.
Decide carefully which digital coins to use.
Try Your Crypto Exchange
Before launching your application, make sure you test it.
Get feedback from users and make improvements to ensure smooth operation.
The crypto exchange must be tested for its overall performance, liquidity, functionality and transparency. It should also assess transaction speed, reliability, efficiency, and security.
The Key Features You Need to Add to Your Crypto Exchange App
You now understand how to create a crypto exchange system. Now you can start to think about ways to improve the crypto trading experience for your customers.
Although you can add many great features to your app, there are some essential features every crypto exchange app should have.
These include:
Trading Engine
The heart of any crypto exchange platform is its trading engine. A crypto exchange app is useless without a functioning trading engine.
A trading engine feature typically tracks all open orders and bids and allows you to find and create new trades. This feature manages:
- Execution of crypto transactions
- Calculation of balances
- Order-books access.
- Match transactions (buying/selling on the exchange).
Crypto Wallet
Another essential feature to have in your app is the crypto wallet. This allows your users to store and send virtual currency.
This feature can be customized and enhanced to meet your needs.
You have the option to create a hot or cold wallet. Hot wallets can be connected to the Internet. These wallets are easy to use and faster than offline ones, but they are also more vulnerable to online attacks. On the other side, cold wallets are known as offline wallets. These are safer but less convenient.
Make sure that your wallet supports multi-cryptocurrency functions. Investors will appreciate a wallet that integrates cryptocurrency.
Analytics
Analytics is a fantastic tool for building a compelling crypto solution.
This feature puts the power of data in the hands of your customers. This feature allows app users to make better investments and get the most from every trading opportunity.
Let's look at some common indicators traders use to make decisions.
- The Relative Strength Index measures the strength and likelihood of a trend change. This indicator, for example, can show the recent price changes and the rate at which they have changed.
- The Moving Average is the average price for a given period.
- It is used to predict fluctuations in prices.
- Stochastic RSI: This is an excellent tool for identifying overbought or oversold areas.
Your app must provide a visual trading experience for your users in addition to live information tracking.
Interface for intuitive users
An intuitive user interface is essential for your app. This is because both professional and novice traders use crypto-exchange apps.
It should have a simple interface to hide the complexity of crypto trading.
What you need is the following:
- A user interface that makes it easy to execute transactions efficiently and reduces trading time.
- The dashboard provides quick access to all the essential information and gives you a clear view.
- Deposits and withdrawals of funds are seamless.
- Connect with support
Push Notifications
Because push notifications allow for communication between app users, they have become a key feature of many crypto exchange apps.
Push notifications allow you to notify your users about special offers and coin exchange listings, price fluctuations, the latest trends, and news.
You can customize notifications to allow users to choose the notifications they want.
Admin Panel
An admin console is a great feature that allows traders and owners of crypto exchanges to manage different aspects of the exchange.
This feature can be customized to meet your specific crypto app needs. Every admin console should offer the ability to add currencies, modify trading fees, manage crypto listings and credit/debit accounts, and address support-related problems.
Verification and Authorization of the User
Users who have an easy and interactive onboarding experience will love your app.
With a simple KYC - Know Your Customers feature, you can ensure the trustworthiness of your cryptocurrency exchange platform. This feature allows the app to authenticate documents submitted by new users instantly.
Conclusion
A crypto exchange that does not require user verification can increase fraud risk and reduce transparency. You must integrate your app to increase data security.
