A white label solution might be perfect for starting a crypto exchange. Such a solution enables you to swiftly launch your exchange and is substantially less expensive than starting from scratch. Having the same functionality as other exchangers but under your brand name is now simpler and faster than ever. This post will go over the benefits and drawbacks of a white label crypto exchange.
Six reasons to utilize white label
1) White labels give you complete control
A white label exchange platform theoretically gives you complete control over every system element. In actuality, it is probably wiser to concentrate on creating a fantastic user experience and outsource whatever your engineering capabilities are lacking. By doing this, you’ll maintain your focus on your primary business while making the more “technical” stuff easier to understand.
2) They can offer greater security
The majority of white label exchange solutions\ consist of industry-standard technologies, including hot or warm wallet systems, cold wallets for offline cryptocurrency storage, and SSL certificates for data encryption (the latter sending encrypted data to hot wallets when needed). Learn more about the security features of the WL solution you have selected.
3) There are no legal issues
Contract negotiations are rarely necessary when purchasing a WL solution. There is little likelihood that you will encounter any legal concerns because it is not your product but rather a generic component.
4) They can save a lot of time and money
Since the development of your exchange is being outsourced, you won’t need to worry about recruiting or supervising a development staff. Additionally, you avoid having numerous conversations with potential investors about the cost of developing your own platform. Overall, WL enables you to launch your exchange more quickly and for less money.
5) You can solve the problem of marketing
A WL solution makes marketing your exchange, which you’ll probably need to do in some way, much easier to handle. It’s not hard to understand how white labels relieve you of some of your marketing duties because you won’t have to come up with a name for the product or a logo.
6) White labels give you instant access
Ultimately, getting started is really easy because you are not inventing the new wheel (or even purchasing one). All you need is a developer that understands the WL solution’s APIs and an idea. This expedites the process of starting and launching your exchange.
1) You are restricted to basic functionality
Although WL solutions are excellent, they have significant drawbacks. For instance, you will only receive the features the supplier decided to include. You might need to rebuild a portion of your exchange if these features don’t quite meet your demands; this can be more expensive than initially hiring additional developers.
2) White labels aren’t all that original
If WL solutions are successful, they will almost certainly be replicated, just like any other firm product or service. It won’t take long for people to start inquiring why their just opened crypto exchange is similar to yours, so keep that in mind when marketing your cryptocurrency exchange.
3) White labels require extra work during updates
Maintaining your cryptocurrency exchange current with the most recent underlying technology updates (i.e., new cryptocurrencies, tokens, and blockchain systems). Typically, the complete white label solution needs to be updated. This implies that you’re unlikely to have access to any beta versions of upcoming improvements. Although it needn’t be a problem, this will surely hold down product advancements because you will be required to approve any modifications.
4) White labels don’t allow you to become a pioneer
Lastly, these solutions could work well for building cryptocurrency exchanges swiftly and simply. However, they also eliminate your opportunity to become a pioneer, someone who creates cryptocurrency exchanges from scratch and establishes new standards in the process. You should probably look into hiring more engineers or building your platform from scratch if you want to be known as the best exchange available.
If you handle everything on your own, creating a crypto exchange might take plenty of time and money. Because they can concentrate on making their exchange more user-friendly and developing a game-changing business model, some investors opt to use off-the-shelf components like white label solutions.
A white label can, in the grand scheme of things, be a terrific option if you’re trying to start your own crypto exchange. You will also save money because they are speedy, reasonably priced, and have built-in security measures that make life easier for developers. On the other hand, power users can find the limited capability provided by any specific white label solution to be a deal-breaker.