In December 2020, the total value of the global cryptocurrency market went over $644 billion. Since February 2018, the amount of cryptocurrency traded rose 75% from one month to the next in August 2020. Since March 2020, the average daily volume of cryptocurrency trading on Indian exchanges has grown by 500%, which is a big deal. As the number of trades keeps going up, so does the demand for cryptocurrency exchange development. But making a premium cryptocurrency exchange from scratch could be expensive and take a lot of time. A white label cryptocurrency exchange is an easy way to solve all of these problems.
What does “white label cryptocurrency exchange software” mean?
From a business point of view, a “white label” crypto exchange is a ready-to-go exchange platform. With some strategic changes, the exchange operator can launch a fully-featured and fully-functional cryptocurrency exchange platform in a few days. At a deeper level, it is software with standard features and APIs that can be used to build a fully functional exchange.
What features are available in white label cryptocurrency exchange software?
For a cryptocurrency exchange to be fully functional, it needs to have a lot of security features, trading features, and standard parts. Here is a list of the standard features and parts, along with why they make it a complete solution for crypto trading:
1) A cryptocurrency wallet that can hold more than one currency
2) A way to match people
3) Secure Admin panel
4) Intuitive UX/UI
Standard features you can expect
There is now a lot of competition in the cryptocurrency exchange market. There are a lot of well-known and sophisticated exchanges, which makes it hard for new exchanges to get traders. So, it’s very important to go beyond just the basics of an exchange.
Multiple Currency Wallet
Since there are more than 2,000 cryptocurrencies on the market, traders need an exchange that lets them buy, sell, and store more than one. Along with supporting more than one currency, the exchange must also allow for more than one trading pair.
The market for cryptocurrencies is very volatile. Because of this, a cryptocurrency exchange can’t be slow. It is very important for an exchange to process trades within minutes.
Not everyone who uses crypto is a trader. Some of them just hold on to their bags and wait for the right time to trade. Staking is an advanced feature of a crypto exchange that lets users earn interest on their idle crypto assets, just like a traditional bank.
In 2020, more people will trade crypto derivatives. Options, Futures, and Perpetual contracts are examples of derivatives that more and more crypto users are buying to make more money. By letting people trade derivatives, a cryptocurrency exchange can stand out in this very competitive market.
Protection against DDoS
It is a type of attack that hackers use a lot. They send more people who don’t do anything useful to the exchange platform in order to slow down the services. Anti DDos Protection can be used on exchange websites to stop these kinds of attacks.
Google Authenticator is one of the security features that people trust the most. It makes sure that every time a user logs into his Exchange profile, he is asked for an OTP or a link to his Gmail account. It is a more secure option that will give the exchange platform a high level of security.
In the case of a p2p crypto exchange development platform, escrow protection makes sure that the funds don’t go to the buyer’s account until the seller confirms that he has received the payment. This makes sure that the business is done in a fair and safe way.
Two Factor Authentication (2FA)
This is also a high-tech way to keep people safe. It’s more than a username and a password. Also, it asks users for passwords and other information to prove who they are and give them access.
How to Pick the Best White-Label Crypto Exchange Software Provider
Recently, the word “white-label” has almost become a buzzword in the DeFi space, as entrepreneurs want to take advantage of this opportunity. Even though it sounds good, it’s not a solution that works for everyone. This also means that what works for you might not work for someone else.
A simpler way to choose is to look for easy-to-customize software with lots of features. Here is a short list of five important things to look for when choosing the best white-label crypto exchange software provider:
Security is the most important thing for your business to do well in the long run. Check out the security protocols and backend features that are available. If the white-label solution looks good on paper, don’t be afraid to call the technical team and ask about the security measures.
Depending on the business model, you may want to talk about KYC (know your client) and KYT (know your transaction) protocols. In the same way, you should talk about any AML (anti-money laundering) requirements.
You won’t be able to wow your clients if you can’t give them access to the liquidity they want. Traders love liquidity because it means that trades can be made right away, there is less volatility, and spreads are tight. High liquidity also means that your customers can easily turn their digital assets into cash.
Check out the liquidity provision carefully. It will tell you important things about how deep the market is. Some white-label exchanges get their Tier 1 liquidity from an outside vendor, while others may get it from a company that isn’t a bank.
When making a crypto exchange, it’s easy to forget that your success doesn’t depend on what you think is important. Instead, it depends on what other people think is important. How well your product sells depends on how your customers see it. Because of this, you should pay extra attention to the user experience and customer service.
In this situation, you should make sure that the user interface is easy to use. Since many of your clients may be new to crypto, keeping everything simple will encourage them to open an account. Also, check the customer service tool to make sure you have what you need to meet your customer service goals.
If you want clients from different places, don’t forget to look at how the software affects the rules and regulations in each place. Most white-label crypto platforms and their customers don’t connect the technical aspects with the rules.
In reality, different software features like Know Your Customer (KYC), Anti-Money Laundering (AML), and giving incentives are often in line with the rules and laws of each country. Because of this, the people who work on the software need to have experience and know how their product affects their clients.
New projects have led to the fast growth of crypto. It’s also why so many people looking for the next big thing in the crypto world go to crypto exchanges.
Let’s agree that investors will continue to look for new ways to make money because they have a capitalist mind-set. So, to keep everyone interested, your white-label solution should give your clients access to a variety of coins and tokens. The more digital assets you have, the more likely it is that you will do well.
In addition to the above must-have features, the cryptocurrency market is so unpredictable that new features must be added regularly. Talk to a skilled developer team to get a White-label cryptocurrency exchange that works well and is friendly to the market.