The crypto market is upbeat today with the presence of traders, investors, and exchanges. Though it is characterized by a lot of volatility, it is an exciting place to be in this world. As the competition keeps intensifying in the industry is important to develop a White label Bitcoin exchange software to reap the benefits.
A White label Bitcoin Exchange software contains exclusive features and is ready to be put into operations in the market. With a comfortable user interface, it can be customized as per the business needs and requirements of the users. This, in turn, will reduce the time and costs involved in software development. A firm can concentrate more on its core business activities and launch its crypto presence quickly.
In this blog, we will see some of the factors to be considered and advantages to be fetched while building a White Label Exchange
Type of Exchange – Broadly speaking, there are three types of crypto exchanges, Centralized, Decentralized and Hybrid. A company can opt for any exchange depending upon its scale of operations and the scope for expansion.
Regulations – Not every country favours the operation of cryptocurrencies. Some nations such as China, South Korea, and Saudi Arabia have banned cryptocurrencies considering them as a huge threat to their financial system. It is best to have up-to-date knowledge of all relevant laws and regulations that apply to a crypto business. Every business firm must comply with the rules that have been set to survive in the long run. Concrete steps must be taken to ensure that cryptocurrencies do not fund terrorism, money-laundering, and terrorism-related activities.
Priority to Security – The highest level of importance must be given towards security. Since cryptocurrencies deal in billions of dollars, steps should be taken to eliminate threats of hacking, data breach and identity theft. Reports of spamming and phishing in such exchanges can tarnish a cryptocurrency exchange’s reputation. Techniques such as two-factor authentication, data encryption, and usage of multi-signature hot and cold wallets can be utilized.
Number of coins to integrate – Established cryptocurrencies will have multiple cryptocurrencies listed in the platform. New startups must decide on the kinds of coins they want to integrate. Consequently, there must be a supporting infrastructure in place to support the level of trading activity that accompanies a high number of listings.
Liquidity – Liquidity is the critical basis by which a business can achieve its important financial goals. In general, it refers to the speed at which assets get converted (bought or sold) into cash without influencing the market price. Companies must maintain adequate liquidity to gather more users and higher trading volume. Many crypto exchanges tend to close down without liquidity.
Read Article Also About The Battle Of The Crypto Exchange Models – CEX Vs DEX
Gains from a White label Bitcoin Exchange Software
Customization – White label exchanges are tailor-made for business requirements. Companies can alter the package by adding special features according to their brand name, logo, UI/UX design, and theme for personalization. This can attract more traders to the platform.
Faster deployment – A firm can launch its presence in the market rapidly. Since all essential features have been pre-tested with quality checks, no time is lost for the company. Business owners can plan their entry into the market perfectly without any hesitation.
Technical expertise not needed – Entrepreneurs need not equip themselves with the latest technical know-how to operate a crypto exchange. Basic understanding of the processes would be more than enough.
Saves money and time – If a firm opts to develop a cryptocurrency exchange from scratch, it needs to employ programmers, developers, graphic designers and spend a whopping amount of money. It will take plenty of years to create it from ideation to a successful launch. However, with white label bitcoin exchange software, it takes only a few weeks to announce its entry in the market. This will improve a firm’s efficiency and it can emphasise more on strategic operations crucial to its business while outsourcing the deployment of the white-label to a reliable software provider.
The above-mentioned factors must be taken into account by every company while deploying white label bitcoin exchange software for its business.