The white-label crypto exchange is the most popular product in our B2B product portfolio. Our clients appreciate short launch time, cost efficiency, and additional services which allow them to have a ready-made crypto exchange in days.
We are a cryptocurrency exchange software development company with strong experience and know-how as a result of having launched numerous centralized cryptocurrency exchanges for our clients. In this blog post, our core team members will answer the question what is a white-label cryptocurrency exchange, explain how centralized exchanges work as well as how much resources it takes to build one.
Our CEO Andrius and CTO Tadas are here to address the main concerns and give answers on how to start your own crypto exchange business and other relevant questions.
Q: Can you briefly explain how a cryptocurrency exchange platform works?
Andrius Normantas explains:
An exchange is an intermediary between the currency buyers and the sellers. In our case, we exchange fiat into crypto and vice versa. Our platform is an order book driven exchange, which means that there is a list of orders to buy or sell, and they are sorted according to their price. The exchange engine matches the buy and sell orders based on the best price for a particular amount of the assets. Centralized exchange requires KYC to create the account, while decentralized exchange doesn’t require KYC and performs transactions straight from the users connected wallets. Exchanges charge transaction fees, which depend on each individual exchange.
Q: I’m interested in starting my own cryptocurrency exchange. How to build your own crypto exchange?
Andrius Normantas explains:
There are several aspects you need to consider when you want to start your crypto exchange. In order to start building your exchange you need to decide which type of exchange you want to build, what jurisdiction you will be operating in and which crypto exchange architecture and software you will be using as well as security solutions. Only then you start actually building it.
There are two ways to do it: build yourself a tailor-made product from scratch or search for a ready-made crypto exchange solution.
Building a crypto exchange on your own is a complex project which requires a lot of resources and careful planning. Due to the complexity of the project there is a high chance that the implementation time, scope, and budget will change to your disadvantage. It is of crucial importance to have a team that has experience in building an exchange platform from start to finish.
Like Bitlocus, there are companies offering ready-made crypto exchange software for sale.
Regardless of how you choose to create a cryptocurrency exchange, your exchange will require a payment gateway, liquidity provider and cryptocurrency integrations to trade.
We at Bitlocus proudly recommend our white-label cryptocurrency exchange software to any business that wants to have their own crypto exchange.
Q: What is a white-label cryptocurrency exchange?
Andrius Normantas explains:
White-label means that the functionalities of the exchange are already programmed and pre-configured, you just have to put your brand on it and you’re good to go. This way you get a tested and reliable solution in a very short period of time without significant crypto exchange development cost.
Our white-label exchange is a turnkey solution which doesn’t require a technical team to set it up on premises or in the cloud. To run our white-label exchange you don’t need the source code or any owned infrastructure. The product architecture itself is safe and secure. Fireblocks custodial integration ensures safe transfers and settlements. Two-Factor Authentication is built-in. Token development functionality is also available. All customizations regarding adding or removing tokens, setting fees and rules, organizing Initial Exchange Offerings - all is possible with our white-label exchange software solution. Moreover, you now own useful information, such as user data.
Q: What software is used for crypto trading?
Tadas Varanauskas explains:
We have developed our own trading software in-house. Merchants using Bitlocus get immediate benefits of the bespoke implementation, for example: our shared market order engine that allows liquidity sharing for merchant markets. By using the Bitlocus Whitelabel solution merchants are able to get access to instant liquidity and trading volumes of the Bitlocus shared markets. This is great for launching a new exchange as you do not need to build your own liquidity.
Q: How much does it cost to build a crypto exchange platform?
Tadas Varanauskas explains:
It really depends on your wishlist. Building a cryptocurrency exchange from scratch can cost you even more than $500 000. The cost of a white-label crypto exchange solution varies from $25 000. The price highly depends on the functionalities and various extras. You have to be very careful when you compare the prices. Make sure that you compare apples with apples.
As a cryptocurrency exchange software solution provider, we offer full-service set-up and maintenance, KYC and AML processing, and it takes up to 10 minutes for the user to confirm identity and start trading. For our users’ convenience, both fiat and crypto on-/off-ramps are available, including SEPA/SWIFT bank transfers and card payments.
Q: ‘How long does it take to create a crypto exchange’?
Tadas Varanauskas explains:
It depends on the business needs. We can deploy our cryptocurrency exchange solution in under 2 weeks. We know for a fact that a best case scenario for building from scratch will most likely take several months with most projects ending up taking much longer.
Obtaining a license can be a real blocker when wanting to build your own crypto exchange. In some jurisdictions it can take up to six months before you hear if you are granted a license or not, halting development making it a huge waste of resources.
Q: I want to know more about the Bitlocus 'white-label crypto exchange solution'. How can I get more information?
Andrius Normantas explains:
We encourage everyone to reach out to us, no matter how specific or abstract questions they have. Being in the crypto exchange development business since 2018, we have a lot to tell! This is the link to our inquiry form, fill in the initial information and we’ll be in touch.