White-Label vs Building Your Own Crypto Exchange

One of the most common issues in the cryptocurrency industry is whether to create a cryptocurrency exchange from scratch or go with a white-label solution.

If you intend to start a cryptocurrency exchange, you will almost certainly pose the same question. This article will describe the advantages and disadvantages of both white-label exchange and constructing one from scratch to help you make the best option for yourself.

Let’s start by defining each sort of exchange.

Two different approaches to setting up a cryptocurrency exchange

Cryptocurrencies have clearly become a global phenomenon in recent years. Nonetheless, some exchanges have already been created. Because there are hundreds of them all around the world, you should be aware that competition is tough. If you are a cryptopreneurs, then you might undergo two different approaches to establishing the cryptocurrency exchange. And the two ways are:

• Building an exchange from scratch.
• White-label cryptocurrency exchange.

What exactly is a white-label cryptocurrency exchange?

A white-label cryptocurrency exchange is a pre-packaged software that includes all of the essential functions of a cryptocurrency trading platform. It includes the core, backend, and database; the front end may be simply changed to include your business logo and color scheme.

What exactly does it mean to create an exchange from the ground up?

Developing a cryptocurrency exchange from scratch entails doing everything from the start, including selecting the correct technology, deciding on features, developing the platform, testing it, and deploying it. It takes a significant amount of time and money.

White-label crypto exchange Vs. Development from scratch

Establishing a cryptocurrency exchange might be difficult, but once up and running, it can be incredibly profitable. Whether you choose to white-label crypto exchange or develop from the ground up, consider the below-listed features before you develop your own cryptocurrency exchange.

1. Development Price

When developing a crypto exchange platform from scratch, you would have to pay several parties such as front-end and back-end developers, designers, attorneys, and other professionals. Furthermore, because everything must be done from the beginning, such as designing the exchange’s home page, constructing the modules, integrating the modules, testing, and deploying, the cost would undoubtedly be higher.

A white-label solution requires you to pay only for a vendor. Furthermore, the modules have been completed, testing has been completed, and even the landing page is complete. There will be only some changes in designs and your personalized exchange will be ready to launch. The development cost will also be lower because there is less effort necessary to prepare the white-label exchange for your organization.

2. Implementation time

Creating a cryptocurrency exchange from scratch would undoubtedly take far longer than utilizing a white-label solution. The initial development will take months, and once completed, the platform must be tested to discover any problems. Resolving the defects necessitates re-testing the platform to guarantee that the issues have been completely handled and have not resulted in further problems. Before you can introduce your crypto exchange to the market, you must first thoroughly evaluate the platform in terms of design, functionality, usability, and user experience.

A white-label cryptocurrency exchange software, on other hand, speeds implementation and time-to-market. Depending on the amount of customization necessary, the exchange can be ready for launch in a short period of time.

3. Funds and Wallet Security

With a complete build, you will be responsible for ensuring that all security mechanisms are in place to protect your users' cash from fraudulent assaults. This means you’ll need to identify a reputable provider of hot and cold wallets and develop standards for how the cash may be accessed and moved.

White-label solution vendors, on the other hand, are more likely to include storage and wallet choices in their bundles. You can use the present policy framework to access and move funds.

4. Personalization

Building a cryptocurrency exchange from the bottom up gives you the most freedom and customization options. You may implement any functionality into your exchange based on your needs. However, if you choose a white-label solution, you may have to sacrifice personalization, however, many providers allow complete customization of white-label exchange platforms.

Furthermore, when you create a new exchange, you gain ownership of the source code. With a white label, you must determine whether or not the provider firm grants source code ownership. While some businesses maintain ownership of the source code, others provide it as part of the package.

The above-mentioned are the general features that help to differentiate the development process of the cryptocurrency trading platform. And here are some of the additional benefits to differentiate White label crypto exchange from building from scratch.

Additional Perks of a White-Label Crypto Exchange

Some of the extra advantages of white-label crypto exchange are as follows:

Affordable Price:

The White-label crypto exchange cost is substantially lower than the expense of developing your own from start. Because the exchange software is so complicated, designing and debugging an exchange from scratch might take a full year or even longer.

Faster to market:

Because the technology is already in place, you can concentrate on growing your business and personalizing your exchange to meet your strategy and style. Most white-label exchanges can be set up and launched quickly.

Increase your marketing efforts:

Instead of concentrating primarily on technological development, you might concentrate on marketing and brand development. While the backend is being managed by a white-label supplier, you may plan the demographic and audience to target, once your exchange is functioning, you may get started right away.

Final Verdict

Given the foregoing, it is reasonable to conclude that establishing a white-label Cryptocurrency exchange software is preferable to constructing the exchange from the ground up. However, the decision is based on your requirements.

If you want to swiftly implement and launch your exchange in the unpredictable and competitive crypto industry, a white-label solution is an excellent alternative. On the other, if you have enough time and money and want to include unique features other than the fundamental characteristics of a trading platform, it is advisable to start a crypto exchange from scratch.

Apart from your choice, make sure to collaborate with a robust cryptocurrency exchange development company. They help you to develop a new cryptocurrency exchange completely for you from the ground level as per your business requirements, and contrarily, provide a highly-secure, scalable white-label crypto exchange just in a few weeks!.