Cryptocurrencies play a crucial role in triggering a critical change and transformation in financial transactions. Ever since the advent of the first cryptocurrency Bitcoin, in 2009 to date, cryptocurrencies have always managed to gain hype and popularity among potential investors in the market. Many entrepreneurs all around the world were fascinated by cryptocurrencies and aspired to invest with them. And the best way to augment profits using their valuable cryptocurrencies is by exchanging them.
This growing interest of investors towards cryptocurrencies is why there is a constant change in the volume of crypto exchanges as newcomers enter the market with their own exchange, to boost profits for their business. If you are one of them, it is very important that you thoroughly understand and analyze a few factors to execute solid and sustainable cryptocurrency exchange development for your business. Let’s begin by getting to know different types of exchanges.
Different types of cryptocurrency exchanges
Choosing the type of exchange you want to build is the key step as it will determine the time and cost, and other factors to go about your development. For that purpose, let’s quickly take a look at the primary types of exchanges.
- Centralized exchange- A centralized exchange works depending on a third party for facilitating transactions and the exchange controls the user funds.
- Decentralized exchange- A decentralized exchange works contrarily to a centralized exchange, facilitating direct peer-to-peer transactions between users without involving an intermediary.
- Hybrid exchange– Hybrid exchanges involve components and benefits from both centralized and decentralized exchanges and a rectified version of both.
How to create your own cryptocurrency exchange?
To create your own crypto exchange, there are different ways to go about. The first one is building from scratch. This involves a set of procedures such as,
- Determining the operational location and obtaining a license.
- Complying with all the other legal requirements and KYC( Know Your Customer), AML( Anti-Money Laundering) formalities based on your geographical jurisdiction.
- Partnering with a bank or a payment processor
- Generating funds for the exchange and Establishing liquidity
- Implementing the best security measures for the exchange
- Constant Maintenance of the exchange, customer support, etc.
To undergo all these basic procedures and more will consume an ample amount of time, money and involve technical factors that demand quality assistance. As we discussed earlier, in this fiercely competitive scenario, you cannot afford to spend too much time on your development. Hence, this will not be a viable option to go with.
This is why white label exchange software solutions are currently ruling the market. White label exchanges are readily available exchanges built by experts with every necessary feature and functionality required for the exchange to operate smoothly. White label exchanges are pre-tested before being delivered to the customers, and are bug-free.
They are also highly scalable, customizable, and cost-effective when compared to an exchange built all the way from the ground up as they save the cost incurred on the development and labor requirement. All the customers have to do is purchase the software and customize it according to their desired brand. If you are interested in a white label exchange, let’s take a look at its key features.
Technical Features of a white label crypto exchange software
- Multiple cryptocurrency and fiat currency support
- Multiple languages support
- Powerful Matching Engine
- High Volume TPS capacity ( Transactions Per Second)
- Multi-currency crypto wallet with multi-signatures
- API and SDK integration
- High Volume Liquidity Integration
- Robust Admin Backend Panel
- Firewall/Firebase implementation
- Multiple Payment Gateway Integration
- Cutting edge blockchain technology and smart contracts integration
- Mobile Applications support
Security Features of a white label crypto exchange software
- HTTPS Authentication
- Multi-Factor Authentication
- Jail Login
- Encrypted Data
- DoS( Anti-Denial of Service) Protection
- DDoS( Anti-Distributed Denial of Service) Protection
- CSRF( Cross- Site Request Forgery) Protection
- SSRF(Server-Side Request Forgery) Protection
- HTTP parameter pollution protection
- Escrow System
How much does it cost to create a cryptocurrency exchange?
The cost to start a crypto exchange varies from customer to customer based on factors such as,
- Choice of the type of exchange to build
- Preferences of the features to implement for the exchange
- Time and budget constraints
- Personal Customization Preferences
- Project Complexity
However, if you go with a white label exchange software, it costs much less to have an exchange built from scratch as discussed before.
Cryptocurrency and cryptocurrency exchanges are widely prevailing in the market, and experts predict that they will become the future of financial transactions. Therefore, there is no better time than now to build your own white label cryptocurrency exchange software to make the most favorable outcome for your business. So, conduct in depth research, choose the right company, acquire your white label exchange and become an industry player.