The Appinop Blog

Cryptocurrency and Blockchain development has been the talk of the town during the last few years. With the ever-expanding and growing technologies, more and more companies have started to adopt this platform. As a result, companies have launched their own cryptocurrency as well. Sooner or Later, these companies also try to create their own Cryptocurrency exchange, and it is where White Label exchange comes in. While companies have already invested their time in it, users have also been investing in cryptocurrency by buying, selling, and trading them. These activities take place on a White Label Cryptocurrency exchange which not only simplifies the process but also saves a lot of time and resources. With the White-label cryptocurrency exchange software, a cryptocurrency exchange can be created in a couple of days, rather than months.

What is a White Label Crypto Exchange Development and How is it Different from Custom Exchange Development?

White label exchange comes to us as market ready. It got a customisable front end and pre built back end. The graphical interface can be tailored according to the brand needs and hence becomes a ready-to-deploy solution for your business. It provides efficient operation with the addition of privacy and security elements which makes it one of the best and the most used exchange platform for cryptocurrency. It comes with a lot of features that are not easily available on other exchange platforms.

• These platforms are more reliable, and the trades are secured with the best available blockchain technology.
• It saves both time and money as setting it up takes the least time, resources, and money.
• Creating a White Label Exchange does not need a lot of technical knowledge.
• The UI/UX of the White Label exchange platform can be easily changed and customized as per the brand requirement.
• It comes with features like Anti-Phishing, two-factor authentication, data encryption, and more to ensure privacy and security.

Types of White Label Cryptocurrencies Software

Centralized Exchange

Centralized crypto exchanges are the one that allows third parties to monitor the platform. This helps to build a trusted environment between the platform and its users. But, this trust comes with fees, and the exchanges charge a percentage of the payments. Most modern customers seek centralized white label exchanges since it allows more earning potential through transaction fees. Moreover, users prefer centralized exchanges due to their high liquidity, thus providing a safe environment to square off trades.

Decentralized Exchange

Decentralized exchanges are where transactions take place without the need of any third-party entity. Additionally, there is no compulsory requirement for KYC verification, nor does it have withdrawal limitations like centralized exchanges. Users like decentralized exchange due to its trustless environment, which is established using smart contracts. Moreover, white label decentralized exchanges come with lower transaction fees and democratic participation in management decisions.

Hybrid Crypto Exchanges

Both centralized and decentralized exchanges have their limitations. This is where hybrid crypto exchanges come in. As the name says, a hybrid combines the best of both the exchanges while countering the disadvantages of its predecessors. The hybrid exchange draws usability and liquidity from centralized exchanges, while anonymity and security are derived from decentralized exchanges. Users prefer hybrid exchanges as they control their funds rather than a custodian. Additionally, users can directly trade their digital assets from their wallets by depositing them directly into smart contracts. Hybrid crypto exchanges are also known as next-generation crypto exchanges.

Peer to Peer Exchanges

P2P exchanges work similarly to the online bulletin. Users can post their requirements to buy or sell a particular type of crypto. Others can contact the buyer regarding the availability. The exchange provides a trustless environment using escrow-like smart contracts, which will release the coins after the money is deposited in the seller’s wallet. Peer-to-peer exchanges do not involve third parties and built-in privacy models. Additionally, there are no transaction fees involved. Users only need to pay the exchange to deposit or withdraw money.

Stages of White Label Exchange Development

Understanding the requirements

Features

White label crypto exchanges should have some basic features that will expedite transactions by the users of the crypto exchanges. Some basic features are:

• On-ramp and off-ramp of fiat currency for seamless sale of digital assets
• Robust engines to match buyers with the sellers
• Price charts
• Analytical tools

Some additional features that users might find helpful are:

• Market orders
• Limit orders
• OTC
• Fund management
• Leverage trading
• Spot trading

Supporting Cryptocurrencies and Interoperability

Centralized exchanges need to be connected to other blockchains through the usage of APIs to support the trading of a wide variety of cryptocurrencies. Because of that, white-label exchange software comes with the support of multiple cryptocurrencies. Moreover, crypto exchanges need to adopt cryptocurrencies from various ecosystems like Ethereum, Cardano, Solana. This means white-label exchange software needs to have the flexibility for being interoperable.

Technical Needs

Crypto exchanges are a sophisticated piece of technology. That is why it is essential to understand the underlying technology behind it. Some exchanges come with the rapid deployment of smart contracts that can make swift margin trading calls. Additionally, when white label exchanges are built with top-notch engines, they can reduce latency and enhance users’ experience.

Another technical aspect to check before purchasing a white label crypto exchange is the Transaction Speed per second (TPS). The users always favor a crypto exchange with a higher TPS as it can facilitate more transactions.

Additionally, crypto exchanges should come with features like API integration and a multi-currency support wallet. Today, worldwide internet users are equally divided between computer and mobile device users. That is why crypto exchanges should be device agnostic and can work both on laptops and mobile devices.

Budget

Blockchain developers include all the additional features in a crypto exchange to make it a very sophisticated exchange. But companies need to stay on budget and prioritize the essential features before developing an exchange. That is why crypto exchanges opt for white label solutions, which come with industry-standard features and are also cheaper.

Seek Legal Council To Ensure That All Licensing Requirements Are Met

It is no secret that government regulations have failed to catch up with technology, which is why crypto exchanges operate without any oversights. But it is absolutely empirical to seek legal advice before starting any new enterprise. Additionally, the firm will require licensing from all jurisdictions it will be working on.

If your exchange will operate in the US, then the exchange needs to be licensed as a Money Transmitter firm and abide by the rules set forth by the SEC and CFTC. Additionally, crypto exchanges come under the operation of currency exchange. So, it is essential to know your customer details from users. This is done to counteract money laundering and using money to fund anti-social activities. New exchanges should note that regulations differ from jurisdiction to jurisdiction. So, make sure to take advice from an attorney who has experience in this sector.

Attain Funding For the Venture

Before jumping into starting a crypto exchange, it is essential to have a clear idea of how much it will cost. The development of crypto exchange will be cash-intensive and will require spending in:

• Technology
• Hosting
• Legal Advice
• Regulation and registration
• Advertising

Businesses must consider all the spending required to jump-start the business and keep it running till the business turns profitable. The biggest mistake that most startups commit is to under budget the whole process, raising fewer funds. This leaves the firm devoid of funds for operation.

Moreover, obtaining funds from non reputed ventures can lead to massive headaches as they will demand recurring fees, derailing the project.

Locate a Provider Of Crypto White Label Exchange Solutions

When clients choose Appinop Technologies for white label crypto exchange solutions, they are guaranteed one-time licensing fees without additional royalties or compensations. With the one-time payment, clients are given full possession of the entire source code for the exchange.

Additionally, clients can audit the exchange, which is a requirement for regulatory procedures. With Appinop’s expertise, clients can have appropriate stacks built-in in their crypto exchanges. Our experts employ the best technologies to endure a clutter-free interface. Thus uplifting the user’s experience.

Our custom-built crypto exchanges can equip clients’ demand for a customizable front end to suit the brand’s image. All our white label crypto exchange solutions can hit the market at the least possible time, and this way, any crypto exchange can start generating profit before other exchanges.

Find A Reputed White Label Crypto Exchange Platform Developer

To start a white label crypto exchange, it is essential to find a reputed developer who can transform your crude idea into a piece of art. At present, thousands of people are jumping into crypto space. Adoption is slowly increasing. So, it is apparent developers have started developing blockchain-based services. Among the sea of thousands of white label exchange providers, you must find the most reliable and experienced one.

Collaborating with a team of excellent developers will take the worry out of developing a platform as they will take your idea and transform it into a working model. The team will handle the whole development process from start to finish. Also, they will keep you updated with the latest features so that no sudden surprise bomb is dropped on you. Additionally, when you purchase Appinop’s white label exchange, you are assured of after-sale service.

Connect Your Exchange With Others For Added Liquidity

Cryptocurrency users are always skeptical about the liquidity of any new platforms. That is why liquidity is an essential pillar for the success of a crypto exchange. Exchanges can add additional liquidity to the exchange through dummy accounts, but connecting the new exchange to a network of existing exchanges is much easier. New exchanges should remember that exchanges with connections to other exchanges will face the issue of low liquidity less often.

Partner with Payment Processors

Different payment processors have additional business requirements. Some possible differentiation between payment processors can be:

• Transaction fee
• Settlement time
• PCI DDS compliance
• Hidden fees

Upcoming crypto exchange should offer the lowest possible transaction fees, which can be a great USP to differentiate itself from its competition. Additionally, crypto exchanges should ensure that their payment processor is PCI-compliant. This will ensure that the exchange platform is safe from cybercriminals.

Implement Best Security Practices

Every day millions of funds and assets are exchanged in a Cryptocurrency exchange. This has made them an easy target for hackers. Thus fortifying the crypto exchange with security best practices should be the norm.

White label cryptocurrency solutions from Appinop technologies come with robust bank-like security solutions. We apply a wide variety of solutions to cover all the security bases of an exchange. Some security features that are employed in Appinop’s white label crypto exchange are:

• Multi-Factor Authentication
• SSL certificate
• Peer-to-peer Encryption
• Anti- DDoS Support
• Anti-Phishing mechanism
• Biometric authentication
• Browser Detection Support
• Firewall Support

Go Like via Beta testing.

After going through all the above processes, it is time to launch the exchange in beta testing. This will allow the developers to understand how all the features will work in real life. Beta testing will also enable firms to weed out the bugs that might hinder the smooth working of the crypto exchange.

Start Marketing and PR Campaign

Most crypto exchanges rely on organic social media marketing to reach the masses. But, to gain the initial momentum, this process is ineffective. After the white label exchange has gone live, marketing and PR campaigns should be started. Initially, it is empirical to drive users through renowned news publications in the Web 3.0 space.

The next step is to organize marketing campaigns while keeping track of the expenses. Nobody wants to burn money without any results. So keeping track of the inbound clients through different marketing campaigns should be tracked. This way, the exchange can focus on putting efforts into the campaigns that bore results.

Provide Customer Support

Going live with a white label crypto exchange does not assure success if it does not have streamlined customer support to back it up. Customer service is essential for gaining trust and long-term clients.

Additionally, customer support professionals should be attentive and have guidelines to solve the customer’s complaints and technical difficulties. Customers’ requests for support can be established with a ticketing system like Freshdesk and Zoho Desk. Since crypto markets never sleep, that is why crypto exchanges should have an around-the-clock customer support team who are experienced and helpful.

Maintain A Legal Team For Ongoing Compliance

As we mentioned, most exchanges do not have an oversight board. But that should not stop exchanges from being in legal compliance with all the current and proposed laws of the land. Additionally, the exchange should comply with the law in its domiciled jurisdiction and the foreign lands where its clients are based. Failing to do so can end up with severe repercussions.

Since crypto exchanges operate globally and have a particular market, unlike stock markets, that is why they keep up with the compliance issues of all the countries. It is advisable to have an in-house compliance staff. Moreover, the exchange can also outsource the legal stuff to law firms of each jurisdiction. Crypto exchanges should adhere to international laws to ensure a lawful organization when conducting a global business.

Things to Consider Before Investing In A White Label Platform

Before investing in a white-label crypto exchange, you should check out the requirements mentioned above in this blog. In addition to that, here are some things you should also consider checking out:

Checking the Competitive Advantage

The cryptocurrency and blockchain market is growing at neck-break speed. So, it is essential to invest in platforms that offer ready-made solutions. But, still, it is crucial to research different exchanges. Checking out the competitors and understanding their market share is also essential. You should also check out the white label solutions provided by others to get the best value for your money.

Whether White Label Provides A Good Exit Strategy

The conventional markets do not give us the option of exit methods like white labeling. White label licensing aids you in finding the correct label partner, and the company pays a considerable price. It can also go on without the investment that is usually needed to support a start-up business. White labeling is not suitable for all types of industry, so ensure to examine whether it furnishes a proper exit method for your business.

Checking The Sales Cycle

In B2B solutions, checking out the product cycle is essential. Since crypto markets are evolving every day, checking out the sales cycle will give you a proper gasp of after-sales services. When a white label crypto exchange software shows the features and benefits of their exchanges, this will ensure that buyers will line up to buy this piece of technological advancement.

Must-haves for White Label Crypto Exchange

There are certain expectations that traders have learned to expect from a crypto exchange platform. So, before buying a white label crypto exchange platform, make sure to verify if the following solution is provided:

• Robust Trading Engine

The trading engine will match the buyers to the sellers, so having a robust trading engine will increase users’ engagement. The trading engine should recommend and process thousands of transactions per second.

• Payment Gateway and Wallet Integration

Crypto exchanges deal function globally and also have multiple cryptocurrencies at the same time. That is why it is essential to implement a multi-currency payment gateway integration. With wallet integration, the white label crypto exchange can ensure that users have quick access to their money in the volatile crypto space.

• Know-Your-Customer (KYC)

When crypto exchanges adhere to all the KYC and AML norms, they ensure that all the customer details are filled in correctly and verified. Additionally, Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) can ensure that your exchange is not the breeding grounds for anti-social activities.

• Interactive charts or graphs on price movement history

To increase their profitability, traders need to have a clear idea of past and present price movements. This will enable traders to make the best analysis for future price movements. When traders make profitable trades using your white label crypto exchange platform, they will return for more. Also, you can expect great exposure from word-of-mouth.

• High volume liquidity

With Appinop’s liquidity API, users can quickly access their profits with just one click. This makes sure to enhance users’ experience and ensure that their profits are unaffected by the high volatility of the crypto markets.

• Top-notch security features

When you choose Appinop technologies white label crypto exchanges, they are guaranteed security features like multi-factor authentication, peer-to-peer transaction, and many more industry-standard security features. This makes sure that all our crypto funds are safer than hardware wallets.

Conclusion

Blockchain and crypto adoption is still in the nascent stage. So, there is much room to capitalize on new crypto exchanges. But due to increasing demand and capitalizing on this trend, firms are choosing white label cryptocurrency exchange software. You can also launch your crypto exchange platform by booking a call with us.