A white-label is referred to any product or service made or pre-configured by a third party but sold by retailers with their own branding and logo. To put it in other words, a white label is when you take someone else’s product and put your name on it. It’s often a win-win situation for the product manufacturer and the seller. In this partnership, the product manufacturer focuses on building and improving the product while the seller concentrates on marketing and selling the product. The story happens all around the world for different kinds of products, and today, some of the most popular food items, phone accessories, and fitness equipment are sold using the white-label concept. The main benefit of white-label branding is that it saves you time, cost, and research expenses.
What Is a White-Label Crypto Exchange?
A white-label crypto exchange is a ready-to-deploy crypto platform that can be customized and launched in the market as an independent brand and it is a major solution for anyone interested in launching a new crypto exchange business. Among a variety of features, the trading platform may include a powerful matching engine, user-friendly interface, digital assets, APIs, enterprise-class wallet, and advanced payment processing capabilities. As it is clear, a crypto exchange white label software development is just like any other non-branded white-label product. If you want to launch your own platform, the only thing you need to do is to put your name on it which is your desired name.
The white-label service can also address a specific requirement besides operating as a full-service exchange. The service can be fine-tuned as an investment platform letting users invest in specific crypto assets. Likewise, the solution can be turned into a wallet custody business. It's sometimes used as a liquidity solution.
Why should you choose a white-label crypto exchange instead of building your own?
- You will not waste time developing tools that already exist in other formats.
- A white-label crypto exchange will enable you to enjoy the shared liquidity provided by the software provider; liquidity is a key feature that many crypto exchange users look out for when choosing a crypto exchange to use.
- A white-label crypto exchange will speed up your entry into the market without the huge learning curve involved in designing such a system.
- It will prevent costly mistakes due to trial and error. The product is already tested to guard against such uncertainties.
How Does a White-Label Crypto Exchange Work?
The main purpose of a white-label crypto exchange as it was mentioned earlier, is to offer a ready-to-launch platform that is customized according to users’ business requirements. To run the trading platform, you must agree to a white-label software license. The white-label software package usually contains all the important features needed to trade different kinds of cryptocurrencies and run all the typical functions of a crypto exchange.
A typical business model is made up of two distinct elements: technical and sales. The white-label crypto software primarily handles the technical aspects. It will manage the platform technology as well as help handle security, finance, and operations. Here is how it may look:
- Technology: Backend and frontend components, user interface, matching engine, and wallets.
- Security: Fraud prevention technologies, security, and DDoS protection.
- Finance: Payment processing solutions, banking transactions, and cold wallets.
- Operations: Dealing desk, technical maintenance, and access to market insights.
While technology is essential to running a white-label solution, there are important sales aspects that you will either need to do yourself or ask your provider to assist you. For instance, customer relationship management and marketing are something that you will need to do yourself.
A customer relationship management program can include listening to calls, offering promotions, and acquiring customers. Similarly, business marketing includes search engine optimization, PR, and referral programs. There are other sales aspects that you will need assistance with, but you need to talk to your service provider about the legal aspects, contracts, and compliance. Liquidity is another important factor that will impact your overall sales. You should try to see if your partner can offer enough liquidity to accommodate your goals. If there aren't enough liquidity pools, then you may have to look to external liquidity providers and deploy a bridge to other exchanges. If you want to operate in multiple countries, you can take advantage of your partner's experience in getting compliant in different jurisdictions
Benefits of Using a White-Label Crypto Exchange Software
As we all know now, white-label crypto exchange software is a complete package that lets you run, configure, and change different components of the platform. All of these different components are designed to work together, which helps streamline business operations.
24/7 Support
Any white-label crypto exchange should be crafted with 24/7 support which answers the potential questions. Some of the best solutions have a group of teams at your disposal and if there is a problem, you know who to turn to. This is not entirely feasible when you're working on your own product because developing a new crypto exchange has its ups and downs. At that time, you need to wait to find a solution that may not work in the end.
Reduced Cost
A white-label crypto exchange reduces risks such as being scammed and wasting precious time, because it's cost-effective, and you can break even much quicker than traditional setups. The cost of launching a crypto exchange is a challenging process since it can be so expensive and often requires funding from venture capital firms and investors. Sometimes, you need to dig into your own pockets to find additional revenue streams needed to break even. This is why so many budding entrepreneurs fail.
Enhanced Security
According to CipherTrace, hackers stole nearly $1.9 billion from various crypto exchanges in 2020, therefore, the security of a crypto exchange remains a prime concern for founding members. To safeguard your assets, a white-label solution will give you enough time to critically think about different security measures. You can also opt to use DoS, HTTP parameters, CSRF, two-factor authentication, biometrics, data encryption, and SQL injection.
Boosts Visibility
the white-label solution is pre-tested, which can give an immediate boost to your brand without the usual risk associated with the pre-launch phase, while a traditional crypto exchange requires a lot of research and development, particularly when you need to continuously tweak different elements during the initial stages of its launch.
Fastest Way to Enter the Crypto Market
As we mentioned earlier, building an exchange can take so much time, in fact, it can take years to build a viable crypto exchange. Instead of delaying your ambition, it's better to use white-label crypto software to enter the market. In some cases, the entire system can be deployed in less than a month.
Strengthens Customer Loyalty
A reliable system without any major glitches will ultimately define your brand. This is precisely what a preconfigured white-label crypto exchange solution gives you, so you can focus on customer relations.
Greater Flexibility
To succeed in a competitive environment, you need maximum flexibility, and going white-label is precisely what you should do. It will let you customize your platform according to your desire and the platform works similarly to one popular exchanges like Paxful. This is also a great way to scale your business because you can add advanced functionalities as the need arises.
No comments yet