You could be a blockchain enthusiast wanting to start your own exchange or just someone curious to know how such exchanges work, and then you chance upon this article. “Crypto exchanges are hard enough to understand, now what’s this white label business?” you may think. Not to worry, though, because this article explains what a white-labeled crypto exchange is and how it works. All you need to do is keep reading.
What is a white-label crypto exchange?
A white-label crypto exchange is a type of exchange platform created by one company for another. In other words, the first company allows third parties to launch their exchange platform without building the technology from scratch. The operators can customize the user interface, add their branding, and tailor the platform to their specific needs.
These exchanges typically offer a range of features and functionalities. To break it down, it supports various crypto assets, trading pairs, order types, liquidity management, and security features. The provider also takes care of the back-end technology, infrastructure, and security, allowing the platform operator to focus on building their business and acquiring users.
White-label crypto exchanges can be attractive for entrepreneurs, startups, and established businesses looking to enter the crypto market without investing significant resources. These exchanges offer them a fast and cost-effective way to enter the market.
Moreover, they come with a high degree of customizability and support.
How does a white-label crypto exchange work?
The basic steps of this service involve identifying a service provider, customizing the platform, launching it, and finally managing it.
White-label crypto exchanges work on a revenue-sharing model. So the platform operator pays a fee to the white-label provider in exchange for their technology and infrastructure. This fee may be a percentage of the platform’s revenue or a fixed fee on the basis of usage.
What are the benefits of white-label crypto exchange?
White-label crypto exchanges offer several benefits to businesses and entrepreneurs. One of the primary benefits of a white-label crypto exchange is the speed of market entry. For the other ones, read on.
Cost-effective and quick deployment
By leveraging an existing technology platform, businesses can launch a crypto exchange quickly and without significant investment in infrastructure development. Developing a crypto exchange from scratch can be expensive and time-consuming. By using a white-label solution, businesses can reduce their development costs and focus on building their brand.
Fraud prevention
White-label providers have already built and tested their technology platforms, reducing the risk of bugs or security vulnerabilities. This allows businesses to focus on building their brand and acquiring users without worrying about technology issues. The providers also typically offer ongoing support and maintenance for their technology platforms. This ensures that businesses can operate their exchanges smoothly and efficiently.
Minimal effort
White-label providers typically offer ongoing support and maintenance for their technology platforms, ensuring that businesses can operate their exchanges smoothly and efficiently, ensuring a rapid and minimum investment or effort setup.
What is the cost of a white-label crypto exchange?
The cost of a white-label crypto exchange can range from a few thousand dollars to hundreds of thousands of dollars, depending on the level of customization required and the features and functionalities offered. It’s important for businesses to carefully evaluate their needs and budget before selecting a white-label provider and launching a crypto exchange.
The best white-label crypto exchange solutions
White-labeled crypto exchanges come in varied forms. The choice depends on several factors, including the provider, the level of customization required, and the features and functionalities offered. The fee may also be a consideration. Businesses must remember that they will incur additional costs for customizing the platform.
Some of the more popular options are as follows.
Bybit Cloud
This white-label crypto exchange provider offers a turnkey solution for businesses looking to launch their own exchange quickly and easily. It offers customizable branding and trading pairs.
ChainUp
This blockchain technology company offers a range of solutions for the crypto industry, including a white-label crypto exchange platform. This one, too, offers customizable features in addition to 24/7 technical support.
B2Broker
A fintech company, B2Broker, provides a white-label exchange platform. It comes with high customizability and integrations with liquidity providers and payment systems.
AlphaPoint
The AlphaPoint blockchain technology company offers a white-label exchange platform for businesses and institutions. It has many benefits, with customizable features and a range of security and compliance tools.
Devexperts
This software development company brings a white-label exchange platform with advanced trading features to the market. Various order types, risk management, and trading analytics are features to look for.
Skalex
Another blockchain development company, Skalex, offers a white-label exchange platform focusing on security and scalability. It features customizable trading pairs and order types.
PayBito
A crypto exchange platform also offers a white-label solution featuring customizable branding and trading pairs, integrated payment gateways, and KYC/AML compliance tools.
Exberry
A technology provider that offers a white-label exchange platform with customizable features, including trading pairs, fees, and order types. It also comes with advanced risk management and compliance tools.
Conclusion
While the white-label provider takes care of the back-end technology and infrastructure, businesses may still need to invest in front-end development and design to create a user-friendly interface. Financial costs are also associated with marketing activities to attract users to a platform. Marketing costs also include advertising spending, including social media ads, search engine marketing, or influencer marketing. Businesses keen on leveraging from a white-labeled crypto exchange will incur ongoing maintenance costs, such as hosting fees, security upgrades, and customer support. Evaluating all the costs before starting a service is a good idea.
FAQs
What is crypto exchange software?
Crypto exchange software is a platform for building exchanges where users can buy crypto assets. It is another name for a white-label exchange.
Which is the best white-label crypto exchange?
While there is no single best white-label exchange, there are a few that one can shortlist. The shortlisting should be based on parameters such as the blockchain engine, speed, features, functionalities, and the kind of crypto assets it can host. The ability to customize branding and commission structures is also a key factor.
What is a crypto exchange API?
Simply put, a crypto trading API is a set of computerized rules. They allow users to communicate with a trading platform. It is akin to a bridge with detailed written instructions and, sometimes, the ability to track real-time prices.
Why should you use a white-label crypto exchange?
A white-labeled crypto exchange makes sense to entrepreneurs who want to start a service faster and more efficiently. Since the infrastructure, platform support, and crypto software are handled by a third party, one can focus on marketing and promoting the service.
What are the benefits of a white-label exchange?
A white-label exchange offers advantages like reduced development time and costs. It lets you focus on branding and marketing while leveraging a pre-built platform for launching your cryptocurrency exchange business.
What’s the future scope for white-label exchanges?
The future for white-label exchanges looks promising. As cryptocurrencies gain wider adoption, more businesses may seek efficient entry into the market using white-label solutions, fostering innovation and competition.
