The crypto sector is now on the brink of mass adoption. Crypto payment transaction value will surge 70.5% in 2022 to reach $10.40 billion, and by the end of 2023, this number is expected to be 55.4% to exceed $16 billion.
Due to the high volume of digital transactions, crypto holders and traders require a more secure, simple, and convenient platform to store their funds. Users want to buy cryptocurrencies, wait until they hit higher exchange rates, and trade them on the exchange website.
This is why cryptocurrency exchanges are necessary in this industry. They allow crypto enthusiasts to buy, sell and trade their cryptocurrencies instantly and with ease. The time to build your own exchange platform is just ripe.
In this article, you will find out about all the nuances of cryptocurrency exchange and how to set up your own trading space with the minimum budget allocations.
What is a cryptocurrency exchange?
A cryptocurrency exchange is a virtual space in which exchanges for other digital assets, such as traditional fiat currency or other cryptographic transactions, are carried out.
The objective of cryptocurrency exchange is simple: to allow the trader to acquire or sell cryptocurrencies. They do this by converting fiat currency (real currency backed by a government) into the digital currency of the user’s choice and vice versa. Some players only take real money. Others only accept the digital currency. All of them charge fees in one way or another, which is key to their profitability.
It goes without saying that such exchange sites do not just provide payment facilities but also pay attention to security and compliance. And that’s what the regular user can’t make do without.
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How to create your own cryptocurrency exchange platform
Essentially, there are two ways to create an exchange platform: choosing white-label products or creating the path for themselves. If you are bold to try the latter one, these are the key steps you should take into consideration while developing a cryptocurrency trading platform on your own:
Legal framework
Studying all regulatory requirements is essential to guarantee the security of your platform. Mandatory requirements in the vast majority of crypto exchanges are AML (Anti-Money Laundering) controls and KYC crypto processes.
Liquidity
Liquidity is an important determinant of cryptocurrency’s existence exchange business. The liquidity levels determine how quickly and easily an asset can be converted into another asset. If a market is illiquid, it can cause spikes in cryptocurrency prices and, as a result, hinder trade execution.
Protection and security
A new report by Atlas VPN claims that the amount stolen by blockchain hackers throughout the first quarter of 2022 is nearly $1.3 billion. Indeed, this profitable industry is highly susceptible to hacker attacks. Thus, the protection of your cryptocurrency exchange website should be constantly updated with innovative cybersecurity solutions.
As you can already tell, manufacturing a product, which is a crypto exchange in our case, is a complex process that requires a lot of capital and knowledge of the volatile market. Moreover, building a basic cryptocurrency exchange from scratch also requires time: at least six months for the platform itself and 12-18 months to deploy all advanced features and implement regulations.
As a brand, not everyone necessarily has the expertise and resources to do it all. Developing a brand is one thing, and creating a platform is another dimension.
If you don’t want to risk losing your investment and making a poor quality or even faulty product, you need to consider an alternative: a white label crypto exchange solution.
What is a white label crypto exchange?
A white label crypto exchange solution – is an off-the-shelf software designed for launch in a matter of days. With this SaaS solution, one just needs to make the preferred customizations and start his own digital asset exchange business.
White label solutions are gaining popularity among adventurous entrepreneurs aspiring to launch a brand-new exchange facility. Of course, you can create the software from scratch through the efforts of developers or by an open-source and modify it, which is more cost-effective and time-saving.
Crassula is your gateway to the world of cryptocurrencies. We can help you save tons of time and money with our software package. Our crypto exchange platform is built with a feature-rich technology packed with everything you need to get your exchange business rolling.
You can open accounts for your clients with unique crypto addresses, allow them to exchange fiat for crypto, make crypto transfers, invest in crypto, and issue cards for private and business clients.
What are the advantages of a white label crypto banking platform?
Fast-entry into the crypto market
Cryptocurrency trading is growing day by day, and there are more new entrants, respectively. According to the Gibraltar Finance report, the market size for cryptocurrency will reach $1087.7 million by 2026. A white label crypto exchange solution is a viable way to get to the market promptly. It is a ready-to-go and fully integrated business architecture that you can use and adjust to your own needs.
Enhanced Security
The most important part of an exchange is security. Unless your team has cybersecurity experience to protect data during the transaction and ensure the customer’s information is not stolen, outsourcing can be a backup plan. A white label partnership will take over your exchange security.
An existing business expansion
Many traditional financial or even non-financial businesses can upgrade their existing infrastructure by offering quick and easy access to additional brand-new products and services to their customers. For businesses trying to reach a larger audience, there’s no better way to start than by partnering with a white label platform.
A catalog of solutions
You can multiply your sales force and boost income. Thanks to a large catalog of the most up-to-date solutions, a white label partnership allows you to diversify your offer. You will be able to announce new products that your customers hadn’t seen before, making stepping into a competitive market more seamless.
Reduced costs
A White Label option is always cheaper than can build a platform from scratch. Marketing campaigns or expensive infrastructure are no longer a burden for you. In this vein, the financial benefits don’t go just to you but also to your consumers, that will ultimately get more affordable products and services.
Support around the clock
You have the opportunity to set your own priorities and focus on your core competencies, while a white label partner will take care of the rest. You shouldn’t and can’t be an expert in everything. So, just keep growing the business, and operational and compliance activities will be carried out for you.
Increased brand awareness
A white label cryptocurrency platform can integrate certain features, tools, or metrics that are essential for your business case. In other words, it means that you can fully customize it with a corporate design and a logo. Whenever your customers need trading service, they will think of you.
Ultimately, white-label outsourcing has numerous advantages. Do not hesitate any longer to contact a competent service provider who can deliver a top-notch platform to you in the shortest possible time.
Build a crypto exchange platform with Crassula
If you are looking for a secure and fully-featured system in this industry, Crassula can help. Our top-rated cryptocurrency trading software supports major digital assets that you can buy, sell, trade, and exchange.
FAQ
A white-label cryptocurrency exchange is a pre-built platform developed by a third-party provider that you need to customize, brand, and launch as your exchange business.
Opting for a white-label solution equals accelerated launch, an established legal framework, sufficient liquidity, and all the essential features which will save you from building everything from scratch.
As a rule, pre-made white-label exchange platforms include order matching, a trading engine, a user interface, wallet integration, security measures, KYC/AML compliance, and customer support.
Yes, this can be achieved through provided APIs or through collaboration with a product developer. For instance, Crassula offers its clients supplementary functionalities aligned with its roadmap. The additional features include new cryptocurrencies, payment methods, or specialized trading tools.
Here are the steps to launch a white-label cryptocurrency exchange:
- Conduct Market Research
- Choose a White-Label Provider
- Customize the Platform
- Configure Security Measures
- Sign Contracts
- Test Payment Gateways
- Launch and Test
- Compliance and Legal Considerations
- Marketing and Promotion
- Ongoing Maintenance and Support
A white-label provider will take care of maintenance and updates. They’ll ensure the platform remains secure, up-to-date, and compliant with industry standards so you can focus on your core competencies.
To ensure full compliance with relevant laws and regulations, you need to pay close attention to KYC/AML compliance, AML screening, licensing and registration, data privacy, taxation, cross-border regulations, token listings, etc.
Costs consist of initial setup fees, licensing fees, transaction-based fees, and monthly or annual subscription fees, depending on the provider and the features you choose.
When looking for the right provider, consider factors such as security features, regulatory compliance, customization options, reviews, and pricing models. This checklist will help you fairly compare different providers.
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