In the modern era, cryptocurrencies have made a major impact in the trading market by offering investors greater possibilities of high return investments. Therefore, a number of traders who are interested in making money lucratively continue seeking access to a prolific crypto trading platform supporting the ease of buying and selling in cryptocurrencies. 

With an increasing number of investors turning to cryptocurrencies, the overall user traffic on such cryptocurrency trading platforms has increased significantly. People are in search for a reliable, stable, and secure crypto exchange platform. It is not the only reason why such platforms have gained impetus quite recently. 

Leading crypto exchanges feature an ideal, profit-yielding model for a business owner to generate higher revenues. Due to ample profits generated by using high-end cryptocurrency exchange platforms, a number of startups have revealed immense interest in the development of a secure trading platform.

Available Methods for Creating Cryptocurrency Exchange Platform

Usually, entrepreneurs like to follow one of the following methods for cryptocurrency exchange platform development:

1. Open-source: As the name implies, you can think of building a crypto trading platform from a code that is publicly accessible. The code will remain available for modification, distribution, or downloading for any individual. However, most individuals who try to save money in building the crypto exchange will try using the open-source model from unauthorized or insecure websites. 

When you make use of the open-source model for crypto exchange platform development, there is the risk of damaging your project with several glitches. It is because the open-source model or platform will not feature any security. Therefore, a crypto exchange platform that is designed on this model will have a higher chance of being hacked.

2. Scratch Development: It is a famous methodology that is beneficial for individuals who wish to develop the cryptocurrency exchange platform from scratch with high-end features. It also helps in implementing the ideology you envision. With this technology, you can effectively allow diverse trading functionalities as per the specifications of your idea.

When you develop a crypto exchange platform from scratch, it also helps you in making use of cutting-edge technology to make the exchange full of advanced features. The given methodology helps in paving the way to develop a customized crypto trading exchange platform.

3. White Label Software Development: Clone script or white label cryptocurrency exchange development is utilization of a pre-fabricated software solution. It helps in saving time & money for the developers. It is because it will include all essential features that are required for the development of a crypto trading platform.

With white label software, you can expect higher security as well. However, it will also have its pros and cons that you should know about.

As the use of cryptocurrency is becoming a global phenomenon quite recently, a number of exchange platforms have come into existence. Therefore, you are expected to choose the right methodology that will help you in the development of something unique to attract the attention of the traders.

Understanding White Label and Cryptocurrency Exchange Development from Scratch

Cryptocurrency is a major concept in the modern digital era. It tends to rule the entire realm of digital trading with high-end dominance. Cryptocurrency serves to be a virtual form of digital asset that is also regarded as an alternative form of payment for a myriad of financial transactions. 

Crypto assets are developed by utilizing the blockchain technology and encryption algorithms. Therefore, cryptocurrency is known to function as both a virtual accounting system and a type of currency. According to the ongoing market conditions, there are some crypto assets that are quite famous amongst investors and traders -including Ethereum, Bitcoin, Cardano, Tron, and others. For investing or trading in crypto, you need access to a secure, stable platform. This is wherein the role of a reliable cryptocurrency platform comes into play. To ensure the best outcomes, you should know whether you should use white label development or crypto exchange development from scratch. 

What is a Cryptocurrency Exchange Platform?

A dedicated cryptocurrency exchange platform is a specialized trading platform on which any individual can think of buying and selling the desired virtual assets or cryptocurrencies without any hassles. We can observe an increasing number of individuals using tokens and crypto coins for obtaining profits. Therefore, there is a major increase in user traffic on the respective crypto exchange platforms. This has led to an immense demand for high-end crypto exchanges. 

Whether you are an entrepreneur or a startup having the idea of launching a crypto-based business, then developing a reliable crypto exchange platform should be your ultimate choice. You should be aware of the right methodology to adopt to come up with a dedicated crypto exchange platform to run your business successfully. 

What is a White Label Exchange?

A white label cryptocurrency exchange platform is a ready-made software solution that is integrated with all the core features of a cryptocurrency trading platform. It has the database, the core, and the backend of the platform all-ready to be deployed. The front-end of the cryptocurrency trading platform in a white label exchange can also be customized to incorporate the color theme or the brand logo.

What is Crypto Exchange Development from Scratch?
When you go for the development of a cryptocurrency trading platform from scratch, it implies doing every single activity right from the start. Whether it is about choosing the right technology or deciding on the right features, ensuring the crypto exchange development process, platform testing, or the deployment of the platform, all these processes are carried by an individual or a team from scratch.

It can take ample time and cost to develop a cryptocurrency trading platform from scratch. However, there are several benefits to it as well.

Why is Developing a Crypto Platform from Scratch Better than White Label Exchange?
Several young entrepreneurs and crypto startups are getting into the crypto ecosystem to gain access to huge profits. However, only some taste success while other tend to fail because of the method they select for developing a cryptocurrency exchange platform. Another underlying factor is the type of trading services offered to the end users. 

To overcome the same and run a crypto exchange successfully, you can think of developing a crypto exchange platform from scratch with the help of top-class trading functions. Some of the top reasons you should prefer developing a crypto platform from scratch rather than opting for white label development are:

#Ownership

When you buy a crypto exchange clone script or white label platform, you are only getting access to an apple pie that is crummy and half-baked. You indeed get access to the clone script or the white label software. However, there is no testing assurance. Therefore, with a white label software solution, you can expect non-technical and technical crashes.

The glitches that you experience with your cryptocurrency exchange platform will affect the overall quality of the trading platform. It will ultimately downside the trust and expectations of the end users. With a white label software solution, you will not obtain any ownership rights. It is because the entire clone script or white label software remains under the ownership of the coders or the developers. 

On the other hand, when you develop a crypto trading platform from scratch, you will ensure full ownership of the platform’s source code. Therefore, you become the sole owner of the entire code or the platform.

#Absence of Hacking Issues

In the modern crypto industry, security threats are rising day by day. It is because of the presence of inappropriate features that are included in the exchange platform. When you launch an exchange platform within a hack-free environment, it will help you in reaping major benefits in the ongoing crypto market. 

When you make use of a clone script or a white label solution, there is a higher possibility for your exchange to get hacked. There are some creators or influencers on social media who claim that using a clone script to develop an exchange platform will be un-hackable and highly secure. However, it is not so. 

Let us help you understand the same with an example. Let us consider that around 10 startup organizations are developing a crypto exchange platform with the help of a readymade software solution or a clone script. If any of the respective clone exchanges get hacked, then the other crypto exchanges that are launched with the help of the same clone script will also be easily hacked by potential hackers. You will not be able to prevent the complex situation through the addition of multiple security modules. It is because the same code or clone script is utilized by multiple clone crypto exchanges.

On the other hand, when you develop a clone exchange from scratch, you can go ahead with developing a full-fledged, well-protected crypto platform. The platform will have state-of-the-art security features depending on the unique needs of every business. When you have access to a unique, customized source code, you can easily safeguard the crypto exchange from phishing activities and hackers. 

#Brand Identity

When you wish to ensure maximum success in the crypto market with your cryptocurrency trading platform, brand identity is an important aspect to consider. When you make use of a white label solution or a clone script for crypto exchange development, it is difficult to build your brand identity. Moreover, such a readymade solution will not offer the type of reputation you want for your brand or business.

As a clone script makes use of the same architecture and framework for every crypto exchange, users are not able to differentiate different clone scripts without a specific logo or brand name. It will ultimately confuse the end users. 

On the other hand, when you develop a crypto exchange with a reliable solution that develops from scratch, you are then capable of implementing your own frameworks and architecture on the respective business concept. Therefore, you can be assured that your crypto exchange platform remains unique in the crowd. Moreover, you can also think of obtaining ample credibility for your exchange platform without the need of duplicating others.

#Unlimited Customizations

When you have access to a readymade clone script or a white label software solution, you are only permitted to ensure basic levels of customizations within the software. Any relevant alterations or modifications in the trading platform will require in-depth assistance from the software developers or providers.

While you might obtain access to a white label solution or a clone script at affordable rates, still you will have to pay extra every time you wish to include an add-on module or other advanced trading features into the existing platform. 

In comparison to the white label solution, development of a cryptocurrency trading platform from the beginning is increasingly beneficial. It will never lower down your overall expectations. 

#Scalability

In the modern cryptocurrency exchange platform business, you are expected to be specialized in delivering access to the latest updates to the users. Moreover, you are also expected to be always ready for growth. You should measure or analyze the total number of users of the platform. Then, you can adjust the architecture of the trading platform accordingly.

In case your user count is increasing rapidly in the trading platform, then the architecture offered by the white label or clone script solution will not be capable of handling it. Eventually, it might lead to a major crash. To avoid the existing complexity, you should aim at developing a crypto platform from scratch. It will allow you to handle millions of users at a single instance in a hassle-free manner. 

#Lack of Exclusivity from the App Store

According to the ongoing market trends in the cryptocurrency industry, when you have an interactive crypto mobile app for the exchange platform, it is highly beneficial. It is because of the increasing number of smartphone users on a daily basis. A number of modern crypto traders or investors prefer using the mobile application on their smartphones to ensure successful crypto trading. 

To be in competition, you should aim at launching a user-friendly cryptocurrency exchange or trading mobile app without any flaws. Google Play Store and Apple Store will not permit low-quality products or apps on the respective platforms. Currently, the App Store continues taking serious actions to eliminate ineffective applications from the platform. Any application featuring bugs or spams or is not effective will be removed from the App Store. 

Therefore, it would be highly damaging if Google Play Store or App Store will remove your application when you have invested your unique ideology in the development of a trading app by using a clone script or a white label solution.

Is There Any Alternative Between White Label and Development-from-Scratch Solutions?

On the web, you will indeed come across existing crypto trading exchanges that do not actually function as their owners would agree to resell them. If you go ahead with this option, here are some aspects to consider:

• Why is the exchange not working?
• What can I improve on the exchange platform?
• How can I attract users to my brand?

If you have a crypto exchange idea and if you wish to keep your cryptocurrency platform unique, developing the platform right from scratch is your best bet. 

Developing a Cryptocurrency Exchange Platform from Scratch

A crypto exchange platform should be launched only with the help of bespoke custom development. With this way, you can ensure maximum security and quality of the software solution. You can come across ready-made white label software solutions that are usually developed by amateurs or carry along significant risks for your entire platform. Considering the ongoing situation with frequent cryptocurrency platform hacks, it is not worth the overall risks.

You can think of developing a crypto exchange platform from scratch on your own or taking assistance from a reliable developer company to understand your unique requirements. The detailed process will be as:

• Sign a contract -The provider and your firm will discuss the general concepts of the crypto exchange. Once you agree on the specific terms & conditions, you can sign a cooperation agreement.
• Platform Prototyping: The business analyst, the designer, and the developers will come up with a dedicated framework for designing the platform from scratch.
• Interface Design: Depending on the wireframe, designers come up with a proper layout or prototype of the interface of the platform.
• Direct Encoding: Technical descriptions are provided to the programmers for implementing in the respective code.
• Product Testing: QA engineers check the potential errors or bugs in the code.
• Deployment & Support: A dedicated marketing campaign is launched to attract users and traders.

To Conclude

Creating a high-end crypto trading platform from scratch will indeed take more efforts but it is worth more than a white label investment. To get a highly secure and effective exchange platform from scratch, you should get proper guidance from a reliable cryptocurrency exchange platform development company in the cryptocurrency domain so your project turns out well. 

You should conduct in-depth market research and connect with a highly reliable and well-experienced crypto exchange development agency to serve your goals considering all parameters of service and support. As for all reasons it is going to serve your crypto fate!