This content originally appeared on DEV Community and was authored by tara tierreni
In this guide, we will analyze in detail all the characteristics of White-Label Crypto Exchange.
First, what is white label products?
White-label products are sold with their own branding and logo, but the products themselves are manufactured by a third party. White labeling happens when the manufacturer of an item uses the branding requested by the purchaser, or marketer, instead of its own. The end product appears as though it has been produced by the purchaser. In other words, a White label is a business model in which one company produces a finished product but is sold by another company with its name attached to that product.
Another way around, in this model, the manufacturing and the selling of a product is carried out by two different brands. The manufacturer makes a profit by making the product, whereas the seller makes a profit by marketing and selling the end product in the market.
Let’s see Advantages and disadvantages using of white-label products
Advantages:
• Reduced Crypto Exchange Development Costs: Using a white-label means that you don’t need to get coding resources. Whether in the form of an in-house software development team, or an outsourced development company, the costs of software production quickly mount up. A white label avoids this process almost entirely.
• Large contracts: Third-party producers get huge contracts, which could come with guaranteed sales and revenue.
• Discounted sales: Stores can boost revenue by selling white-label products at a discount relative to national brands.
• Quality. White-label brands can be just as good as national brands, as they often use the same producers; high quality creates satisfied customers.
• Save your development time.
Disadvantages:
• Copycatting. Using very similar packaging among brands is called copycatting, which can be illegal in some cases. Private label brands must differentiate themselves sufficiently so as not to mislead consumers.
• Barriers to entry. The growing dominance of white label brands could make it hard for new firms to enter the market, reducing overall competition.
• Only a few companies offer core customization, which is hardly enough for a decent feature.
Typically, the White-Label Agreement contains the following terms and is not limited to:
• Relationship between the manufacturer and reseller
• Rights and obligations of both parties
• Product manufacturing details
• Packaging and documentation
• Product or service warranties
• Quality control
• Fees, pricing
• Payment terms
• Customer support
• And more
Types of crypto exchanges:
Centralized Crypto exchange
This is the most common type of exchange. Such exchanges have a centralized operator who is responsible for security, updates, and functionality. Centralized exchanges manage order books, which record all buy and sell orders. The weak point of this type is that coins are stored in the services themselves, which increases the likelihood of losing your funds due to hacker attacks. Therefore, centralized exchanges work hard to ensure the proper level of security.
Decentralized crypto exchange
Decentralized exchanges provide transfers of funds directly between users' wallets. This reduces the potential for theft from exchange hacking since the exchange never actually stores cryptocurrency. However, you should keep in mind that in such exchanges, the lack of moderating third-party shifts all responsibility for errors and security to the users themselves
White label Crypto exchange
A customer saves up their time as the platform is ready-made. In fact, the characteristics and the work ability are already tested and used by various other traders.
Peer-to-peer exchanges
P2P exchanges provide the sale and purchase of cryptocurrency directly between users. Traders leave their orders as on a bulletin board, and other network participants can respond to the offers and agree on the terms of buy/sale.
What is a White label crypto exchange?
generally, ‘White Label’ refers to a customizable product and, or service that is developed by one company and sold to another. In other words, the development company sells the rights of a white-label solution to its client company, either fully or partially. Apart from being time-saving, such solutions prove to be economical for businesses. A white-label exchange is a market-ready solution with ready-to-deploy back-end and easy-to-customize front-end. The UI/UX can be easily customized as per brand requirements and the software can be quickly launched into the market.
When you start your own white label for crypto exchange, do everything possible to secure the deposits and the user’s data. This is even more important if you want to develop a decentralized exchange.
Features of white label crypto exchange
• Liquidity
• Immaculate exchanging motor
• Wallet coordination
• High amount of transactions per second
• Security highlights
• Exchange of advanced resources
• Escrow
• Referral program
• Staking
• Crypto payment gateway integration
• IEO module
• Admin panel
• Intelligent analytic outlines
• Trading Bot
• KYC and AML
Security features of White label crypto exchange:
• Denial of service defense (DoS).
• HTTP-parameters pollution protection
• Distributed denial of service defense (DDoS)
• Cross-site request forgery protection (CSRF)
• Two-factor and HTTPS authentications
• Biometrical authentication
• Data encryption
• SQL injection
How to launch a crypto exchange using a white label solution?
For launching a cryptocurrency exchange using a white label solution, you need to understand the pros and cons of having a white label cryptocurrency exchange.
Pros:
• A white label cryptocurrency exchange avoids all the extra time, development and effort required for building an exchange from scratch.
• It can be customized as per your requirements.
• It offers a higher return on investment (ROI).
• Enables you to instantly launch a ready-made exchange platform within minutes.
Cons:
• Since it is a ready-made solution, in-depth customization is hard.
• You will need upfront short-term capital to buy the white-label crypto exchange.
• License: There can be complicated licenses and compliance (depending on the country).
• Long-term support long-term: Depending on what solution you use; the provider may not provide support.
• Control: Since the tech is outsourced you will have to give up some control.
• Flexibility: There can be difficulty changing from one white-label exchange to another after building the business. This is why it is important for you to choose the best white-label provider.
The benefits of white label crypto exchange are:
• Easy to deploy products
• Customizable UI/UX
• Market analysis
• Time efficient transactions
• Cost effective crypto exchange
• Multiple payment methods
• No need for an expert technician
• Reliable crypto exchange
• Improved accuracy and efficiency
• Multiple device access
To start a white label crypto exchange is:
• Trading engine. This module is responsible for checking wallet balance, determining the order of buying and selling assets, counting the balances, merging with liquidity pools and payment gateways, and counting rates and commissions.
• User-friendly interface. The user interface includes branding, personalization and software customization. You need to work on naming, logos, design settings, features, and more.
• Security system. In this section, security measures, licenses, privacy and anti-hacking are set by the platform owner.
• Payment system. The payment system is responsible for revenue generation, fees, deposits and withdrawals.
• Support. One of the most important issues of digital currency exchange is the constant support of the software.
• Admin console: Designing a panel for the user and site administrator is one of the requirements for a white label crypto exchange.
How much does it cost to create a white label cryptocurrency exchange:
The cost for white-label exchange software varies from $3,000 on the low-end, up to $1,000,000 for enterprise solutions. Here is a breakdown of the costs:
$3,000 for low-end (often tagged with a monthly cloud cost or revenue share)
$100,000s mid-range
$1,000,000s enterprise solution
Some major steps involved in the development of a white label cryptocurrency exchange are listed as follows-
• Deciding on the business needs: The first thing is deciding on the exchange in which you will be willing to do the business. It must be a platform for all the opportunities to come together.
• Fulfilling the legal formalities: After choosing the exchange, the next step is completing all the legal formalities. The rules and regulations vary from place to place. So be sure of the legal formalities you must satisfy.
• Choosing a banking partner: A banking partner is necessary for completing the finances in fiat currency. Likewise, select a trustworthy bank that provides adequate digital services to help the business.
• Choose an exchange providing liquidity: Liquidity must feature to create a white label cryptocurrency exchange. Join a network that helps in improving liquidity.
• Be sure the platform goes live after beta testing: Firstly, do the Beta testing and then go online. Further, Beta testing helps to bring all the flaws out that have occurred while developing the software.
• Have an active customer support team: There should be an active customer support team to help the customers in times of need. With constant development, the support team will also grow.
How long does it take to launch a white-label crypto exchange?
Launching a white-label exchange should take the shortest time possible. Most white-label exchanges can be launched in between 1–4 weeks.
Conclusion:
Launching a white label cryptocurrency exchange software is the best crypto business option right now. Make sure that you have reached the best white-label crypto exchange solutions provider to create your exchange platform. You must decide whether you can afford to keep the development team once the exchange is completed, or if it is better to employ a solution that has already been designed and tested by others. Consider the time it takes to initiate the exchange, which translates to a delay in profits.
One method to calculate if a white-label exchange solution is worth it is to estimate your team’s ability to build a regular website from scratch.
This content originally appeared on DEV Community and was authored by tara tierreni
tara tierreni | Sciencx (2021-11-03T07:53:37+00:00) White Label Crypto Exchange. Retrieved from https://www.scien.cx/2021/11/03/white-label-crypto-exchange/
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