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One of the biggest questions doing the rounds of the cryptocurrency market is – whether to build a cryptocurrency exchange from scratch or choose a white label solution?
If you are planning to build a cryptocurrency exchange, you are more likely to ask the same question. This article explains the pros and cons of both white label exchange and developing the one from scratch, to help you make the right decision for yourself.
Let’s begin with understanding each type of exchange.
What is a white label exchange?
A white label Bitcoin exchange software is readymade software integrated with all the primary features of a crypto trading platform. It has the core, the backend and the database ready; the front-end can be easily customized to incorporate your brand logo and color theme.
What does it mean to build an exchange from scratch?
Developing a cryptocurrency exchange from scratch means doing every single thing right from the beginning – choosing the right technology; deciding upon the features; getting the development done; testing the platform; deployment of the platform; and more. It requires a lot of time and cost.
White Label Exchange vs. Development at Ground Zero:
When building an exchange from scratch, you would have to pay different parties, such as front-end and back-end developers, the designers, lawyers, and other experts. Moreover, as everything needs to be done from the starting – such as designing the exchange’s landing page, building the modules, integration of the modules, testing, and deployment – the cost would indubitably be more.
With a white label solution, you need to pay only a single provider. Furthermore, the modules are ready-made, the testing has been done already and even the landing page is ready – just a few changes in the design and your customized exchange is ready for launch. With little efforts required to prepare the white label exchange for your business, the development cost is also less.
Developing a crypto exchange from the beginning will certainly take a lot longer than using a white label solution. The initial development itself will take months and once the development has been done, the platform needs to undergo testing to identify any issues. Resolving the bugs calls the need for testing the platform again to ensure that the issues have been resolved perfectly and it did not lead to other issues. Rigorous testing of the platform – in terms of design, functionality, usability, and user experience – needs to be done before you can launch your exchange to the public.
On the contrary, white label Bitcoin exchange software accelerates deployment and time-to-market. Depending on the customization required, the exchange can be prepared for launch in a little time.
Security of Funds and Wallets
With a full build, you will be responsible to ensure that all security features are in place to safeguard your users’ funds against any malicious attacks. This means that you will have to find a reliable provider for hot and cold wallets and devise policies related to how the funds can be accessed and transferred.
Conversely, white label solution providers are more likely to offer storage and wallet options as a part of their package. You can benefit from the current policy framework to access and transfer the funds.
Building a crypto exchange at ground zero provides you with ultimate flexibility and customization opportunities. You can integrate any feature into your exchange as per your requirements. However, by choosing a white label solution you may have to compromise on customization, although many providers offer full customization of white label exchange platforms.
Furthermore, when you build a new exchange, you get the ownership of source code. With white label, you will have to find out if the provider company offers ownership of source code or not. While some companies retain the ownership of source code, others share the code as the part of the package.
Considering aforementioned points, it would not be wrong to say that it is better to build a white label Bitcoin exchange software than developing the exchange from scratch. However, the choice depends on your needs.
A white label solution is a perfect choice if you want to quickly deploy and launch your exchange in the highly-volatile and competitive crypto market to gain essential competitive edge. On the contrary, it is worthwhile to develop a crypto exchange at ground zero if you have sufficient time and funds and you want to integrate specific features except for the basic features of a trading platform.
Regardless of your choice, make sure to partner with a reliable cryptocurrency exchange development company like Antier. We can build a completely new exchange for you from scratch, as per your business needs, and conversely, offer a highly-secure, scalable white label exchange in just 3 weeks.
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