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Six Reasons to Use White Label Solutions to Start Your Crypto Exchange

Crypto Exchange

Starting a crypto exchange with a white label solution may be the best option. It’s now easier and faster than ever to have the same functionality as other exchangers while maintaining your own brand. With such a solution, you may get up and running immediately at a lower cost than if you built your exchange from the ground up. This post will go through the pros and downsides of a white label crypto exchange.

There are Six Good Reasons to Choose White Label.

1) You have total control with a white label.

In principle, you have complete control over every aspect of a white label exchange platform. In practice, though, it’s usually better to focus on creating a fantastic user experience and outsource the engineering work you don’t have power to do. This will make the more ‘technical’ aspects of your business more approachable, while keeping you focused on your main business.

2) They can provide more security.

Standard technology is used in most white label exchange solutions, including as SSL certificates for data encryption, cold wallets for offline crypto storage, and hot or warm wallet systems (the latter sending encrypted data to hot wallets when needed). Learn more about your selected WL solution’s security features.

3) There are no legal ramifications.

When purchasing a WL solution, contract discussions are rarely necessary. There’s a slim possibility you’ll run into legal concerns because it’s not your product, but rather an off-the-shelf component.

4) They can help you save a significant amount of time and money.

Because you outsource your exchange’s development, you won’t have to worry about hiring or managing a development staff. You may also avoid long debates with possible investors about the amount of money needed to develop your own platform. Overall, WL enables you to launch your exchange more quickly and at a lower cost.

5) You have the ability to solve the marketing challenge.

You’ll almost certainly need to promote your exchange in some way, and having a WL solution makes it a lot easier. Because you won’t have to come up with a product name or a logo, it’s clear that white labels relieve you of certain marketing responsibilities.

6) White labels give you instant access.

Finally, because you’re not creating (or even purchasing) a wheel, getting started is a breeze. All you’ll need is a concept and a developer that understands how to use the APIs for the WL solution you’ve chosen. Starting and launching your exchange is now as easy as 1-2-3!

Disadvantages

1) You’re only allowed to use the most basic features.

Although WL solutions are beneficial, they do have certain drawbacks. For example, you’ll only get the things that the supplier has opted to give. If these capabilities don’t quite meet your demands, you may have to rebuild a section of your exchange, which can be more costly than employing more developers in the first place.

2) White labels aren’t exactly unique.

If WL solutions are effective, they, like any other corporate product or service, are quickly copied. Keep this in mind while marketing your cryptocurrency exchange; otherwise, people may wonder why their recently founded cryptocurrency exchange is so identical to yours.

3) During upgrades, white labels necessitate more work.

Keeping your Cryptocurrency exchange up to speed with the most recent modifications to the underlying technology is essential (i.e. new cryptocurrencies, tokens, and blockchain systems). This normally necessitates a complete white label solution update. This implies you’re unlikely to obtain access to any future update beta versions. While this isn’t always a negative, it will inevitably hinder product development because any modifications will have to go by you first.

4)You can’t be a pioneer with white labeling.

Finally, these solutions may be ideal for building cryptocurrency exchanges fast and easily. However, they eliminate your opportunity to be a pioneer, someone who builds cryptocurrency exchanges from the bottom up and establishes new standards in the process. If you want to be known as the top exchange, you need either hire additional developers or create your platform from the ground up.

If you try to build a cryptocurrency exchange on your own, it might take a long time and cost a lot of money. This is why some investors choose off-the-shelf components like white label solutions: it allows them to concentrate on making their exchange more user-friendly and developing an innovative business strategy.

Overall, if you want to start your own crypto exchange, a white label might be an excellent option. They are generally inexpensive and quick, and they include built-in security measures that make development easier – which means you will save money as well. On the other hand, for power users, the restricted capability offered by any specific white label solution may be a deal-breaker news.

 

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