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Are you looking for a complete guide on white label cryptocurrency exchange software?
Within a little over a decade of its inception, blockchain technology, and cryptocurrency has taken over the world by storm. The new technology and its most prominent manifestation have redefined a lot of traditional elements of data, transaction, and finance.
Although the innovation looks great on paper, the feasibility of cryptocurrency as a practical instrument of transaction seems uncertain at its best. The magnitude of aversion can be attributed to the extreme volatility of cryptocurrency against real-world values.
In spite of this dubious volatility, there is one segment of business that has managed to establish itself as something dependable and profitable in the crypto space. We are talking about the business of cryptocurrency exchanges.
As the name implies, a cryptocurrency exchange is a platform on which a buyer and a seller can interact with each other and exchange crypto assets at a predetermined price regulated by the dynamics of the market like demand and supply.
The volatility which was considered a bane to the crypto world has now become an object of bliss. The possibility of making money in the crypto space is no longer confined to people who know technology and people who have computers with high processing power. It has been opened up to analysts and investors who understand market flow and fluctuations.
A cryptocurrency exchange is a lucrative business opportunity because of the multiple avenues of profit it provides. A cryptocurrency exchange can make money from the commissions it charges for every transaction, for listing new clients in an IEO, in advertising, and for providing liquidity benefits.
With these many advantages, and with multiple channels of making a profit, it is surely a great business idea for any crypto entrepreneur who is willing to explore this space.
There are multiple channels of effort involved in setting up a cryptocurrency exchange business. One of the most daunting challenges is to build a proper cryptocurrency exchange software. More often than not, conventional wisdom would suggest that you go for building your own team or hiring a company that specializes in cryptocurrency exchange software development.
Another easy alternative is to use a white label cryptocurrency exchange software.
A white label solution is a product designed and developed by one company and is made available to be licensed or branded by another company. Even if it were to provide a specific service, a white label solution, in essence, becomes a product.
A white label cryptocurrency exchange solution is a crypto exchange that is made available off the shelf and is a welcome bliss for crypto entrepreneurs who intend to start a cryptocurrency exchange business.
A white label cryptocurrency exchange software brings with it a lot of advantages.
Although the white label crypto exchange is readily available with all features Intact, it is good for any crypto entrepreneur to know the essential features.
A cryptocurrency exchange is, at its core, a financial business. Therefore, complying with the KYC/AML formalities is a must. Your white-label cryptocurrency exchange solution Should easily facilitate the verification process.
The exchange should support multiple cryptocurrency trading pairs. It is to be remembered that the first transaction begins with fiat currency. Therefore, the cryptocurrency exchange should be provided with a versatile payment gateway that can accept payments from multiple payment methods.
Another important feature of a cryptocurrency exchange is the cryptocurrency wallet. The wallet is a small software responsible for storing crypto assets. Your crypto exchange should have both hot and cold wallets that are, in that order, attached to the network and away from the network. Needless to say, the cold wallet provides better security than its hot counterpart.
Even if all the features are in place, it is the users who contribute to the revenue and the functioning of the entire cryptocurrency exchange. The user should be able to sign up for the services without any hassle. They should also be provided with a dashboard that will show a history of all the transactions.
Another important feature that might not be considered tangible is liquidity. Liquidity is the measure of the number of transactions that happen on the crypto exchange. It might not be possible for a new cryptocurrency exchange to showcase liquidity. They can consider simulating transactions by using artificial accounts within the exchange. Alternatively, they can also consider tying up with another exchange through an API to reap the benefits of that exchange.
Security deserves some special attention when it comes to cryptocurrency exchanges. Dubiously and unfortunately, most of the security breaches in the crypto space have been on centralized cryptocurrency exchanges.
Simple security measures like HTTPS authentication, multi-factor login authentication on multiple devices, introducing an additional layer of security, and multi-signature wallets can go a long distance in enhancing the security of your cryptocurrency exchange.
The cryptocurrency exchange should also be protected against denial of service, cross-site request forgery, and server-side request forgery attacks. It is also recommended that an escrow system is in place, so funds are not lost in malicious transactions. The KYC/AML formalities also ensure that the profit generated from the exchange does not get siphoned into terrorist activities.
The profitability of the cryptocurrency exchange business has already been established. We also know that the white label solution is more practical, reliable, and fast.
If you are one of those aspiring crypto entrepreneurs, all you need to do to kickstart your cryptocurrency exchange business is to get in touch with the white label cryptocurrency exchange software development company.
They will take care to understand your business requirement and also provide you with a product customized according to your business needs.