How Should a White-label Cryptocurrency Exchange Software Be Selected?

How Should a White-label Cryptocurrency Exchange Software Be Selected?

Although the cryptocurrency market is still in its infancy, it already aspires to reach $1 billion by the end of 2022, which attracts many business owners. A cryptocurrency exchange is the first thing that comes to mind when considering what service to introduce. It should come as no surprise that exchanges attract a diverse clientele that ranges from seasoned traders to novices and offer a wide range of services, many of which are the most crucial in terms of finances.

You can already see how challenging it is to create one from scratch: in addition to creating software, one must locate a source of liquidity, offer custody, select a legal jurisdiction, and perform several other tasks. Fortunately, there is a different approach: white-label cryptocurrency exchange. It's a fully-developed turnkey solution that businesses may provide to a client who can rebrand, add a distinctive design with a logo, and select the tools, features, and assets he or she needs.

What benefits do White-label Crypto Exchanges offer?

Let's examine the key advantages that make white-label products so well-liked.

● The system has been tested. Because the platform has already been utilised by clients, you won't need to make sure that everything is operating as it should. For instance, Scalable Solutions has been available since 2013, demonstrating the reliability of our technology. ● Rapid setup. A white-label exchange is already created and only requires a simple setup, but building a cryptocurrency exchange from scratch will take you a year or longer.

This allows one to enter the market much faster. The setup procedure at Scalable Solutions takes about six months. ● Ready-made remedy. Many factors should be considered when creating an exchange, including liquidity source, custody, security, and numerous more. An unskilled (and occasionally even experienced) entrepreneur will undoubtedly run into a number of issues, but a White Label Cryptocurrency Exchange offers a ready-made solution that takes into account all the subtleties.

What drawbacks does a White-label cryptocurrency exchange have? ● ●

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You don't possess the technology. It implies that you are unable to market the technology and start your own business providing exchange software.

A poor set of features are offered by certain systems. Different platforms are designed differently and offer different benefits. Some of them merely provide the most fundamental structures, while others (Scalable Solutions included) give customers access to a wider range of capabilities and enable bespoke branding and customisation.

Some solutions can't be scaled. Scalability is frequently an exchange's weakest link. Not all platforms can grow as trade volumes and trader numbers increase, placing a significant stress on the infrastructure. But we can handle it! We truly live up to our name because our solutions are modular and scale up with your business.

Important Security Points All financial services are based on the principle of security; thus, it is important to carefully consider if the exchange you choose offers an adequate level of security. Does it adhere to AML? Has it got 2FA? Can a hardware wallet be incorporated into it?

Interesting fact Since entering the market in 2013, we have successfully thwarted numerous hacker assaults and have never lost a penny of our customers' money. Therefore, when we say that security is our top priority, we truly mean it.

Liquidity Liquidity is a common issue for business owners when selecting a white-label exchange.

When selecting a liquidity provider, you should exercise caution because some of them combine liquidity from many sources. On some trading pairs, it may lead to low liquidity quality or low liquidity levels, which can cause order book imbalances, high volatility, and

price peaks. Also, broad spreads are frequently a result of significant volatility. It is advised that you select a deep exchange with built-in liquidity.

Functionality The functionality of the service itself is one of the most important factors to take into account.

Make that it offers all the essential functions, including spot trading, margin trading, futures trading, etc. Additionally, it would be fantastic if it included some other features, like staking.

If it already has KYC and KYT providers, as well as on-ramp options to acquire cryptocurrency for fiat, that is advantageous.

Technical Specifications Pay close attention to the technology, since an advanced trade engine offers minimal latency due to its rapid order matching.

Transaction speed, expressed in Transactions Per Second, is another element worth addressing (TPS). The TPS for our exchange is 100,000 deals per second.

Additionally, having desktop and mobile versions of an exchange platform would be preferable. At Scalable Solutions, we provide a strong mobile conversion of a desktop version.

Interoperability The core concern with crypto in general is compatibility. It means that without Bridges, several blockchains such as Ethereum, Solana, Near, and others cannot "communicate" with one another. The platform must be able to deliver several well-known assets by collaborating with multiple blockchains in order to apply to exchange.

Scalability Huge trade volumes and large transaction volumes can both be handled by a strong exchange. It must have quick servers, nearly perfect uptime, and excellent customer support. An exchange can only gain users' trust and genuinely scale if it possesses these essential qualities.

Academic-Grade Connectivity Retail traders, institutional investors, brokers, and other actor demands are all bridged by digital asset exchanges to offer trading. APIs are also necessary for the connectivity and communication between various entities and exchanges. Two common API protocols are used by the majority of cryptocurrency exchanges: REST and WebSocket.

Support Imagine a novice exchange operator working alone with a complex technological solution and being unsure of what to do, or a business owner who is unsure of his own idea. What might occur if a white-label product doesn't offer top-notch service.

Wrapping Up Selecting a reliable white-label exchange is a difficult undertaking that necessitates much investigation. Consider the criteria given above if you want to simplify this process.