The story of cryptocurrency exchange software can be approximated to the beginning of a famous fantasy saga. It began with the forging of the great rings…Almost, but rather far from the truth. In reality, the first ever cryptocurrency exchange to enter the market was Bitcoinmarket.com way back in 2010. Though the platform is since defunct, the legacy it left behind serves as the founding pillar for all ensuing white label cryptocurrency exchange software development.
In fact, the development of exchange software is not so different from the approach used by any other blockchain application, since an exchange is little more than an expanded wallet. The crypto exchange acts as far more than a repository of funds, but said repository is the basis for all operations on the blockchain. The underlying network does not need to be reinvented, instead, the cryptocurrency exchange is simply built on top of it as an application with the addition of several more modules for expanding users’ scope of opportunities.
The exchange software itself is rather basic and does not require any out-of-the-ordinary solutions or innovations. The reason is because trading platforms in the cryptocurrency market mimic their counterparts from the traditional stock exchange. The algorithms, the charts and trading tools, as well as the indices and asset exchange concepts are all the same. The only thing that actually changes is the asset lineup being used and the volatility factors that affect their exchange rates.
In this material, we will explore the rise of the white label crypto exchange and the ways developers resort to in their strive to create exchange platforms.
Cryptocurrency Exchange Software Development Solutions
As the cryptocurrency market evolved, the need for more advanced crypto exchanges became not only evident, but also profitable. Spoiled by the choice of assets they had the opportunity of acquiring and trading at high profits at the height of the crypto craze way back in 2017, users started demanding more functionality that would reach out beyond the banal toolset of buying and selling.
Exchange developers were quick to catch on the trend and started developing more sophisticated platforms. Every additional module or integration of a strategy adopted from the conventional trading market became a significant competitive advantage. Seeing the instant outflow of inconstant users to more advanced platforms, other exchange developers started taking the development of crypto exchange software to the next level in order to maintain their competitive advantage and explore the possibilities of cryptocurrency trading.
By pushing the boundaries of digital currency superposition on the concepts of stock trading, crypto exchange developers quickly realized that using existing software solutions was an easier option than creating new ones from scratch. The direct overlaying of the TradingView software onto the crypto market became an instant success, as the immensely popular and highly versatile trading software package was rather user friendly and applicable to the realities of the cryptocurrency market.
The result of such direct bastardization of a conventional trading platform for use on the crypto market was the advent of the so-called white label crypto exchange software. In its base essence, the white label cryptocurrency exchange is a platform that was created on demand by a hosting project.
Basically, white label solutions are deployed by some project that wants to launch its own exchange and turns to the services of an external developer. Said developer can be anything from a private individual with extensive coding skills to a dedicated studio that focuses on the development of blockchain-based applications.
Naturally, a private individual taking on the development of a whole white label exchange is a herculean task that will not only require a ridiculous amount of time, but will also entail an astronomical budget. That is why projects seeking white label development usually turn to the services of studios specializing on blockchain application creation.
The advantages of turning to an external contractor are many, if compared to hiring an entire in-house team. The in-house approach will require budgeting of salaries for rather expensive specialists, lengthy team building, constant management of each team member and their tasks, as well as the unpredictability of the outcome. But when it comes to an external developer, the studio is likely to have an established team with clearly outlined workflows, thus significantly speeding up development and resulting in considerably lower overall costs.
Many projects seeking to deploy their own exchanges usually search for the best white label cryptocurrency exchange developers. However, the sad reality is that there are so many exchanges on the market and just as many studios developing them that the choice usually boils down to the most basic of factors – the cost of development. Since the solutions that will be employed in developing the white label software are widely known, it is highly unlikely that the project can expect to receive a unique product. Chances are quite high that the framework of their exchange will be a slightly tuned existing template that has already been used for the deployment of other exchanges by the studio of choice.
There is actually nothing wrong with building a trading platform using existing solutions, since the likelihood of them being well designed and tested is quite high. This automatically reduces downtime on development tuning and ensures a higher degree of overall platform security. The more extensively used and audited the solution – the better.
Key Takeaways
The cryptocurrency exchange is more than just a trading venue. It is a whole ecosystem of products and services that users can resort to in order to take full advantage of the possibilities of both the blockchain and the cryptocurrencies they own.
Developers of exchange projects rarely take on the creation of their platforms on their own in recent times, since the availability of white label software solutions has become widespread. Turning to a studio focusing on cryptocurrency exchange development is oftentimes more cost-efficient and productive in functional terms than developing something from scratch. However, the abundance of development studios on the market leaves the choice of such exclusively to the client.
