Building a cryptocurrency exchange from scratch or using white label solutions?

Do you fantasise of starting your own bitcoin exchange? Then Suffescom Solutions is here to assist you as it is the leading white label cryptocurrency exchange development company in the USA. Prepare to compete fiercely, as there will be many pretenders. However, we do not intend to discourage you in this post. We'd want to demonstrate the differences between starting from scratch and using a white label cryptocurrency exchange. Plus, there's a chance we'll have a third alternative for you. That understanding will safeguard you from making a costly error right from the start.

There are two approaches to set up a bitcoin exchange.

Cryptocurrencies have undeniably become a global phenomena in recent years. Nonetheless, several exchanges have already been established. Because there are hundreds of them around the world, you must be aware that competition is fierce.

• Building from scratch

If you wish to launch a bitcoin exchange in this manner, you need a budget around $350,000 or perhaps more for the platform. Why would you do something like that? It appears logical at first glance. As previously stated, the competition is fierce, thus you must stand out in some way, such as by developing new features from the ground up.

However, you can't differentiate yourself too much from your competition because people are accustomed to particular solutions. Furthermore, all white label companies will allow you to customise your platform anyway you wish (with some limitations). So, what's the distinction?

You take a lot of risks when you construct a platform from the ground up. It's difficult to avoid blunders and delivery delays when doing something brand new. As a result, you'll likely spend more money, wait longer for execution (considering that establishing such an exchange takes 8-12 months), and still have no idea if you'll end up with something that users will like.

This, in our opinion, is a gamble that pays off only in select circumstances, particularly when you have the cash and a clear vision of how to produce a game-changing product.

• White label cryptocurrency exchange

How does it function? In general, you purchase a ready-to-use product that you may customise or brand in any way you wish to boost your market share. What about the answer? It has previously been tested, so there are no security or operational issues to worry about. Frequently include a guarantee and service level agreement (SLA). Another benefit is that, unlike creating from scratch, you don't need a large development crew to make adjustments, which equals even more savings.

White label solutions allow you to get up and running quickly. From the time of acquisition to the start of the business, it only takes a few weeks. Furthermore, white label solutions are less expensive than the preceding choice. A licence will cost between $150 and $200 thousand dollars.

Fortunately, there are several white label cryptocurrency exchange providers to choose from. Here are a few of the most well-known:

• AlphaPoint

• CED

• Modulus

Is there another option?

Existing bitcoin exchanges that do not function will almost certainly be found on the Internet, and their owners will agree to resell them. Please answer the following questions first if you are considering this option:

• Why is the exchange not working?

• What can I do to make the platform better?

• How many users are drawn to the brand?

That option may be ideal for you if you have a concept and don't want to build your own brand from the ground up. Typically, you will have the chance to purchase not only the programme but also the complete business that surrounds it – legal, licences, user base, and so on. This may also hasten the start of your project.

When should you not utilise a white-label cryptocurrency exchange?

You must first weigh the advantages and disadvantages of a white-label solution before launching a bitcoin exchange. "What am I attempting to achieve?" you must ask yourself.

It's ideal to start from scratch if it's a wholly unique product with no overlap with existing exchange-related functionalities. White-label solutions are not appropriate for high-customization and sophisticated use-cases like lending, borrowing, and derivatives. However, you must keep up with the latest technological breakthroughs and dynamic changes. Furthermore, your targeted solutions must be able to withstand fluctuations in trade volume.

White-label cryptocurrency exchange options, on the other hand, may be ideal if you're searching for a quick, cost-effective, and hassle-free method to enter the market. Furthermore, because white-label items from reputable providers have been thoroughly evaluated, it reduces the risks for your cryptocurrency software development company.

5 top cryptocurrency exchange white label solutions

In this part, we'll look at some of the leading bitcoin software development businesses' white label exchange products. The five names listed below are not in any order of importance.

• White Label DEX

White Label DEX, OpenLedger's white-label cryptocurrency exchange, is a configurable, decentralised, and peer-to-peer trading platform. Aside from providing end-users with maximum privacy and liberty, the solution has a quick time-to-market of only fourteen days.

End-users retain control of their private keys using White Label DEX, which is an increasing demand among the blockchain-cryptocurrency community. The solution is also cost-effective, as it does not require any initial customisation. The platform also features two unique user interfaces for novices and experts, as well as the ability to localise in ten languages.

• The network, which promises over 1000 transactions per second, is quicker and more scalable than Bitcoin and Ethereum.

• White Label DEX uses Two-Factor Authentication (2FA), Cold Wallet Storage, and Access Management to offer top-tier security.

• Customer assistance for OpenLedger is accessible 24 hours a day, 7 days a week, to assist with technical consulting, maintenance, and periodic updates, as well as related modifications and extension support.

• OpenDAX

Open-Source Digital Assets Exchange, or OpenDAX, is a hybrid solution for full-fledged exchange platform development developed by Openware. Cryptocurrency software development businesses can use OpenDAX's public and private libraries to create platforms for the issuance and trading of utility tokens and securities.

OpenDAX libraries and toolkits are not controlled by centralised institutions, ensuring a high level of censorship resistance and anonymity. Furthermore, a dedicated network of developers and beta testers ensures that white-label services are bug-free, dependable, and transparent.

• Commercial licence holders can buy outright ownership of OpenDAX, allowing them to host the white-label bitcoin exchange themselves. This, combined with an extended warranty, gives Openware's customers a lot of options.

• While offering functions such as KYC, accounting, order books, wallets, and payment gateway connections, OpenDAX is secured with strong risk control and management tools.

• Businesses can create their own unique UI utilising the proprietary Cryptobase Library or their own coding in addition to using OpenDAX's elegant and easy-to-use UI.

• APEX

One of the top white-label cryptocurrency exchange solutions is the AlphaPoint Digital Asset Exchange (APEX) platform. APEX guarantees initial liquidity with Remarketer and AlphaPoint Liquidity, in addition to a configurable user interface and experience.

AlphaPoint's white-label service, which is built on a modular platform, allows for smooth connections with key banks and payment gateways. APEX is an enterprise-ready technology that allows for smooth and transparent business interactions, resulting in higher ROIs and liquidity reserves.

• APEX offers a wide range of usability and relevancy, processing over 1 million TPS and supporting 20 coins.

• Because APEX has built-in FX conversion functionality for smooth multi-currency conversion, it has scalability, interoperability, and performance.

• APEX is highly secure and reliable because to its strong risk management and mitigation capabilities, which include 2FA, real-time error checks, and KYC/AML compliance.

• APEX users benefit from a configurable order routing and management system combined with an intuitive matching engine that strikes a compromise between robustness and flexibility.

• ChainUP

ChainUP offers top-tier white-label bitcoin exchange services. ChainUP supports the deployment of whole or selective modules such as Crypto-Crypto, OTC, and User-to-Contract transactions using a Software-as-a-Service (SaaS) business model.

ChainUP offers a wide range of derivative management solutions, backed by deep liquidity from over 300 exchanges. Apart from a powerful DDoS Defense system for the general network, ChainUP offers a three-layer wallet security framework.

• For each trade pair, a powerful and highly sophisticated memory matching engine permits almost 50,000 TPS.

• Secure, risk-analysed, and crypto-based lending for short and medium terms is enabled through an in-built and algorithmically audited process.

• For both online and offline transactions, strict regulatory compliance and KYC-based onboarding ensure safe counterparty interactions. Furthermore, high-risk accounts are forced to be liquidated, resulting in a clean trading environment.

• HashCash Consultants

HashCash Consultants is a California-based firm that provides white-label bitcoin trading services. This high-frequency trading platform is SegWit compatible, which allows for optimum scalability.

Users of this white-label service can use practically any cryptocurrency, including Bitcoin, Litecoin, and ETH, as well as fiat currencies such as USD, EURO, and others, after completing a KYC/AML-compliant onboarding. Additionally, PayBito, the platform's own crypto-asset, is available.

• Multi-sig cold wallets and encrypted hot wallets provide further asset security.

• External exchanges provide deep liquidity thanks to APIs and interfaces.

• BIP-32 and Firebase are two advanced usability and performance improvements.

• Web, Android, and iOS versions are all multi-platform compatible.

Conclusion

White-label bitcoin exchange systems have significant potential in the quickly growing blockchain industry, where time-to-market is a critical determinant of success. As more companies enter the market, the competition will only increase, forcing enterprises to grab their markets even faster.

Given that the requirement isn't completely unique and complex, white labels are an excellent way to assure that. Choosing, implementing, and maintaining white label solutions, on the other hand, necessitates professional knowledge. Without these conditions, white-label exchanges can become more of a liability than a benefit, especially in terms of cost and performance.

White-label cryptocurrency exchanges, on the other hand, can significantly enhance a company's return on investment and profitability if correctly designed and implemented. We've compiled a carefully chosen list of the best white-label cryptocurrency exchanges to get you started.

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We can assist you whether you choose a white label cryptocurrency exchange or decide to establish your own. We'll let you finish and launch your project in the first situation. We would gladly assist you in building a purchased solution, branding, and so forth. In the second situation, we have the expertise and resources to create a product that exceeds your expectations. If you decide to purchase an existing exchange, please let us know so that we can put you in touch with the appropriate persons.