In today’s fintech era, blockchain and cryptocurrency have become indispensable technologies and assets. With this wave of enthusiasm, more and more businesses and investors aspire to enter this market and establish their own cryptocurrency exchanges. However, developing a new exchange requires not only significant time and resources but also specialized technical knowledge.
In this context, white-label blockchain products provide a perfect solution. They enable businesses and projects to launch their exchanges quickly and at relatively lower costs. But what exactly is a white-label cryptocurrency exchange? Why is it gaining attention and popularity in the current market environment?
This article will delve into the definition of white-label exchanges, their advantages, how to choose the right development company, and address common questions and answers.
What Is a White Label Crypto Exchange?
A white-label crypto exchange, referred to as a white-label exchange, is a pre-built exchange platform allowing businesses or projects to add their branding, design, and specific features. The main advantage of this solution is that users do not have to start from scratch; they can leverage existing technological foundations to expedite their time to market.
The core idea behind a white-label exchange is to provide a “plug-and-play (PnP)” platform where core functionalities, such as trading systems, security measures, user interfaces, etc., are already established. To commence operations, clients only need minimal customization, such as adding their logo, design, and market strategies.
This model not only saves a substantial amount of development time and resources but also enables businesses to focus on market strategy and customer service.
Why Are White Label Exchanges Popular in the Market?
With the widespread adoption of blockchain technology and cryptocurrencies, the exchange market has become a highly competitive arena. As of August of this year (2023), there are approximately 230 exchanges listed on CoinMarketCap alone, and Forbes estimates that there are over 600 operational exchanges worldwide. Against this backdrop, white-label exchanges have become a popular choice with their advantages of rapid deployment and lower development costs.
Next, let’s explore the advantages of white-label exchanges ⤵
Advantages of White Label Exchanges
Rapid Market Entry
On average, new trends emerge in the crypto space every two months, while building an exchange typically takes over a year of development time. This poses significant risks for businesses aiming to capitalize on trends. However, leveraging white-label solutions allows businesses to launch their exchanges quickly and swiftly enter the market.
Cost Efficiency
White-label solutions offer a more economical and efficient approach than traditional development, allowing businesses to enter the market at a lower cost. For instance, developing an exchange from scratch currently ranges from $80,000 to $100,000, whereas the price for a white-label exchange can be as low as $59,900, representing nearly a 35% difference.
Focus on Branding and Market Strategy
Since the technical aspects are outsourced, businesses can allocate more resources to brand building, market strategy, and customer service.
Scalability and Technical Support
With market changes and technological advancements, exchanges may require upgrades or expansions. White-label solutions provide a high degree of flexibility, allowing businesses to make rapid adjustments based on their needs.
For example, AVS Consulting’s Light Exchange 3.0 solution can add new features or integrate third-party services within two weeks.
Choosing a Development Company
To establish a successful exchange, in addition to technology and market strategy, choosing a reliable development company is crucial. This decision impacts the exchange’s technological foundation and factors such as security, compliance, and future scalability. Here are factors to consider when selecting a development partner:
- Experience and Expertise
An experienced company can provide high-quality solutions and address various technical challenges. Regarding data, seeking a company with at least five years of active involvement in the blockchain industry is recommended, as they are more equipped to meet your needs.
- Customization Options
Customization options are geared towards medium to large-scale projects. If your business structure and service scope are extensive, choosing a white-label provider that offers customization is advisable. Conversely, smaller exchanges with lower functional requirements can consider more cost-effective template options.
- Warranty and Post-Sales Support
Whether a free or paid warranty, it’s important to ensure that the development company maintains communication after the sale to address any technical issues.
- Security & Compliance
It’s recommended to avoid online developers without a solid presence, as exchange development is not a small-scale project, and the financial requirements are significant. Opting for a legally registered development company ensures your rights are safeguarded.
- Price
Price is an important consideration, and white-label exchange prices currently range from $45,000 to $80,000. Choose according to your business considerations. Once again, exercise caution when selecting a blockchain contractor, as cryptocurrency hackers stole $3.8 billion in 2022; the importance of security far exceeds pricing.
- Customer Reviews
Customer reviews can be found on B2B platforms such as Clutch, G2, Upwork, Sortlist, etc. Pay attention to the development company’s experience and feedback — strong customer relations lead to better collaborative results.
AVS Consulting is a five-star rating blockchain development company on Clutch
Conclusion
With the rapid evolution of blockchain technology and the continuous growth of the cryptocurrency market, developing an exchange has become a strategic goal for many businesses and investors. White-label cryptocurrency exchanges offer a fast, cost-effective, and efficient pathway to realize this goal. Choosing the right development company is key to ensuring the exchange’s success.
This article explored various factors to consider when selecting a white-label development company, ranging from experience and expertise to customer ratings and feedback. We hope these suggestions assist you in making informed decisions and ensuring the success of your exchange in a competitive market.
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If you are looking for a reliable white-label exchange development company, AVS Consulting might be your best choice!
Since 2015, AVS Consulting has provided end-to-end blockchain, Web3, and mobile technology services to over 80 clients globally, including top-tier enterprises from Germany, Australia, the United States, China, and more. The AVS expert team boasts an average of over 12 years of experience and is recognized as a five-star development company on platforms such as Clutch and Sortlist.
