The rapid surge in the traffic for NFTs (Non-Fungible Tokens) as a new source of revenue escalated the demand for Crypto Exchange Software. This caused several White Label Crypto Exchange Development companies to emerge.
Types of Crypto Exchange Platforms
Your first step to launching a white label crypto exchange is to decide what type of exchange platform you want out of the three that are described below. This will drastically impact the crypto asset’s mechanism and the way to store, liquidity, fiat currency (traditional currency/banknotes), money flow capacity, and transaction speed.
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Centralized Exchange (CEX): Since this mechanism offers greater trading value and high liquidity as compared to the decentralized exchanges, approximately 99% of the cryptocurrency trades take place on Centralized Exchange (CEX). This system is quite similar to traditional exchanges, the process is controlled by one single operator and the trader buys and sells their deposited funds.
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Decentralized Exchange (DEX): These platforms use smart contracts to make transactions instead of a central authority on DEX. They are mostly used by private individuals or big companies where the processes are executed by automatic algorithms. Plus, the traders don not required to deposit their assets over the exchange to allow trading.
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Hybrid Exchange (HEX): These exchanges take the best from both CEX and DEX worlds. It doesn't have any centralized operator like in DEX and has faster transaction speeds and low latency like in CEX. Your information stays highly secured. The rapid surge in the users of digital currencies has caused cryptocurrency platforms to grow in numbers. Many global businesses are deciding to start their very own cryptocurrency exchange development ventures.
Steps To Develop White Label Crypto Exchange
Choosing Your Business Needs
The first step is deciding the type of exchange where you will run your business. Thus, it must be a place where all opportunities could come together.
Accomplishing Legal Formalities
After deciding on the exchange comes the fulfillment of all legal formalities. The terms & regulations vary from one place to another, so please ensure that you satisfy all the legal formalities.
Choose Bank Partner
To take care of the fiat currency finances, you would need a banking partner. Likewise, choose a bank that you can rely on to provide digital services for your business growth.
Choose Liquidity Provider Exchange
It is a must to select a White Label Crypto Exchange that provides liquidity features. Thus, joining a liquidity-improving network is a smart move.
Since more and more cryptocurrency enthusiasts are joining this industry, many businesses from all around the world are coming forward to launch their in-house crypto exchange software. But since we have already discussed that building it from scratch is quite an overwhelming task, it's all up to you to decide whether you are ready to spend your valuable money and time on developing something from the beginning or choose an easier way, i.e White Label Crypto Exchange solution.
