White Label Cryptocurrency Exchange Development: A Step-by-Step Guide
Cryptocurrencies are gradually transforming the financial market and are believed to beat the fiat market in the near future. Cryptocurrencies are gaining worldwide adoption and the increased usage of cryptocurrencies urges a need for the development of a cryptocurrency exchange platform.
As the competition gets tough and more and more players seek opportunities to tap into the crypto market with their exchange platforms, white label cryptocurrency exchange development remains a preferred choice. It not only saves development time and cost but also enables the players to enter the crypto market quickly, helping them gain an essential competitive edge.
If you are also planning to build your white label crypto exchange, you will have to go through various steps to get the desired results. Here is a step-by-step guide that will help you navigate your crypto exchange development journey.
- Procure necessary licensing regulations according to the concerned geographical area
First and foremost, the necessary legal formalities should be apprehended. Every country has different legal requirements that have to be completed for starting a crypto exchange business. Obtaining and fulfilling the required obligations make the future process smooth and trouble-free.
There are still many regions where concerned governing bodies do not have any specified regulations due to the lack of foresightedness. But some countries like the United States have formulated various rules and regulations that have to be complied with. So if you are planning to launch your exchange in the US market, you have to register yourself as Money Transmitter business and have to follow the guidelines of the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission).
- Anticipate the cost required for the product and reach out for the financial backup
Building white label cryptocurrency exchange software requires an initial cost on your part. The gap is large between the time of initiation of the project and the time it will start monetizing the project. During this time, you should have a specific amount to fund the project or a financial backup to support the project. The overall costing involves hosting, marketing, advertisement and technology cost.
- Associate yourself with a leading cryptocurrency exchange software development company
Partner with a leading white label cryptocurrency exchange development company. Even if you are unaware of the complexities of the technology, the professionals of such a company are proactive to deal with such complexities in advance.
You should also check up to which level your chosen company can customize its white label solution as per your needs. Choose a turnkey solution that can be easily customized according to your business needs.
- Ensure liquidity of your cryptocurrency exchange
By choosing your exchange for trading, the traders are investing their hard-earned money in your exchanges. In return, they expect to redeem the funds whenever they desire. To live up to their expectations, you should establish as many connecting partners as you could to ensure high liquidity of the exchange. Aim for a higher liquidity than your opponents to gain an essential competitive edge.
- Maintain collaboration with the payment processor
When building a fiat-to-crypto exchange, you need to connect with the payment processor. Different payment processors charge different fees for the transactions processed. Try to associate with a leading and reliable payment processor which charges the least transaction fee. While formulating a contract, make sure that there is no hidden or concealed fee charged by the payment processor. Simultaneously, ensure to follow the cybersecurity practices.
- Integration of advanced security features
Security of any white label cryptocurrency exchange software is paramount as it deals with a huge sum of public money. There is an indispensable need that you reinforce your crypto exchange with the right security features such as two-factor authentication for additional login security, encrypted user access, and automatic limits for fund withdrawal.
- Make sure to perform beta testing
Beta testing is a phase of software testing in which a particular group of audience tries the product and brings out the flaws in it. It thereby enables addressing the issues that have come up in the development phase. Thus, all errors can be taken care of before making the exchange live and bringing it to a wider audience.
- Engage in marketing
After your exchange goes live, the next step is to market the exchange to the potential customers. You can leverage multi-channel online marketing to create awareness of your exchange.
You can also plan for a PR through an agency or influential marketing. Posting engaging content on various social media platforms also plays a significant role in attracting the target audience.
- Provide continuous customer support
Continuous user support increases brand equity. You can hire skilled staff to deal with your users’ queries. You can also install a live chat to solve your users’ problems instantly. If the existing users are happy and satisfied with your services, it will eventually bring new users to your exchange.
- Have the support of a legal team of experts
You need to comprehend all of the legal formalities and keep up with the changing regulations. You can hire a legal team of experts who are well-equipped with the updated rules in the jurisdictions. Usually, crypto exchanges target more than one region, thus it needs to follow the rules and regulations of various jurisdictions.
The aforementioned are the important pointers that you need to consider during white label cryptocurrency exchange development.
At Antier, we can be your reliable partner to handle all of the points mentioned above. Backed by a multi-functional and experienced team of experts, we handle everything related to crypto exchange development — from technology to marketing and consulting. Besides, we can provide you with highly-secure, scalable, feature-rich white label cryptocurrency exchange software in just 3 weeks.
View a demo of our turnkey exchange or talk to our experts to share your requirements for a completely new exchange to be built from scratch.