What is a White Label Crypto Exchange?

A white label crypto exchange is a pre-developed protocol that allows businesses to create customizable exchange platforms. White label cryptocurrency exchanges offer features ranging from buying and selling crypto to fiat-crypto conversion, trading, staking, and holding cryptocurrencies. In addition, these solutions can be customized based on the requirements of the business.

Developing and launching a cryptocurrency exchange is often daunting and cost-intensive. Due to the complex nature of a crypto exchange, it takes around a year or two to build from scratch and can cost north of $100,000 to develop and launch. Because the resources aren't easily available to every business, many choose refrain from launching their crypto exchanges.

White label crypto exchanges were created for businesses looking to create their own blockchain-based crypto exchanges that integrate the most common features such as a digital wallet, crypto-fiat conversion, digital insurance, and regulatory compliance, all  without needing to worry about the cost involved or amount of work involved.

#What is a White Label Crypto Exchange?

In general, 'white label' is a term used to describe customizable products, services, or solutions that are developed by one company and sold to another, who then rebrands the product or service to make it appear as their own, as the development company sells a white-label solution's rights (either fully or partially) to its client company.

A white label crypto exchange is a pre-developed protocol that allows businesses to create customizable exchange platforms. White label cryptocurrency exchanges offer features ranging from buying and selling crypto to fiat-crypto conversion, trading, staking, and holding cryptocurrencies. In addition, these solutions can be customized based on the requirements of the business.

Using white label crypto exchange software offers small and new businesses the opportunity to kickstart their own cryptocurrency exchange in one shot without going through the gruesome, cost-intensive task of building an exchange from scratch.

#What are the Benefits of White-Label Cryptocurrency Exchanges?

The most apparent benefit of a white label crypto exchange would be that it helps businesses bypass the rigors of building their own cryptocurrency exchange. While that is true, businesses stand to benefit in other, numerous ways. Here are the top benefits of choosing a white label crypto exchange.

1. Quickest Way to Launch Your Crypto Exchange

The process of building a crypto exchange from scratch can take anywhere between a couple of months, or up to two years, as it takes a lot of back-testing to ensure all the features are functional. White-label crypto exchanges offer a solution for a business looking to launch a cryptocurrency exchange without experiencing a long wait time. 

1. Cost-Effective

Generally, purchasing the rights to use a white label crypto exchange is much more cost effective than building an exchange from scratch. For example, a business may spend over $100,000 in building their own exchange; whereas white label crypto exchange software costs between $10,000 to $30,000, depending on your business size, customization, and the type of exchange you’ll be using.

1. Easy Deployment

White label crypto exchanges are often ready to be deployed upon request from a business. After submitting the requirements for your exchange, the developer would often create an exchange tailored to meet your needs. And in many cases, they will assist in setting up the crypto exchange for your business.

1. Advanced Trading & Security Features

Security is one of the most important features required to ensure the success of any cryptocurrency exchange. White label exchanges offer businesses the opportunity to access a secure cryptocurrency exchange, built with the safest encrypted databases and authentication processes. By choosing to white label, you’ll also benefit from the robust architecture and advanced trading features already in place that would require huge technical know-how to build from scratch.

1. Cost-Free Server Deployment

By choosing a white label crypto exchange solution, your business is also absolved of the process of setting up and deploying a server for your business' exchange. The process and cost are often handled by the white label crypto exchange developers.

1. Bug-Free Exchange Software

Upon purchasing a white label crypto exchange, the software is ready to be used as it has already been live-tested by the production company. The delay and potential risks of having bugs in an exchange built from scratch are eliminated in white label crypto exchanges. 

Note: When choosing a white label crypto exchange software, it is important to confirm the necessary regulatory compliances that have been met by the developer. In this regard, some of the most important compliance markers to check for are KYC (Know Your Customer), MSB (Money Services Business), AML (Anti Money Laundering), and CTF (Counter-Terrorist Financing) legislation.

#In Conclusion

After assessing the benefits offered by white label crypto exchanges, you need to determine if it is the best move for your business. In general, if you are looking to develop a unique crypto exchange that doesn't share overlapping features with existing exchange-related functionalities, then building from scratch would best suit your needs.

On the flipside, white-label cryptocurrency exchange solutions might be perfect if you're looking for a fast, cost-effective, and hassle-free way of entering the market. In addition, white label crypto exchanges minimize the exposure risks of your exchange since they are offered by reliable sources and are well-tested.