Cryptocurrency exchanges are web services with high demands on performance, stability, security and complexity of operations. Development of such projects from scratch is difficult, costly and risky (!), So if you want to launch your own exchange, you should consider alternatives.
There are only two. The first involves the use of a white label. The second is open source software development. Consider the advantages and disadvantages of each of them and compare with the development of individual software solutions.
White label software
A type of cooperation in which one company creates a product and another sells it under its own brand. Thus, each party can focus on its competence (production and launch), which optimizes processes and brings more profit. The number of sellers of white label products is usually not limited.
The name “white label” came from the music industry, when American record companies began to release vinyl records with a clean (white) label so that network and retailers could put their brand on them. Later this approach was adopted in IT and finance.
Best white label software solutions
Software developer providing professional business services, including for creating cryptocurrency exchanges. Merehead's white label includes a liquidity module, admin panel, P2P exchanger, hot and cold wallets. It is possible to try out the demo version.
White label benefits from Merehead:
- The average cost of the white label platform is $ 15,500.
- Unencrypted source code, which can be customized as desired, easy to add and edit any functions.
- Multiple security levels that prevent fraudulent activities and guarantee the safety of money.
- 99.9% non-failure operating time for DNS.
California software development company with customers in more than 26 countries. The product they created is a multi-currency SegWit platform with support for high-frequency trading, multi-signatures and flexible configuration of currency pairs.
HashCash Product Features:
- Supports KYC / AML procedure, including checking the location of users.
- Integration with other exchanges through Crypto Liquidity.
- 3-point architecture and database encryption.
- iOS, Android support.
In March 2018, the Canadian cryptocurrency exchange Coinsquare announced the launch of a platform for replicating their software solutions. The white label cryptocurrency exchange software they provide is integrated with KYC and payment processors, which will facilitate fast and efficient user verification.
This White label is distinguished by the fact that it is developed on the basis of a working cryptocurrency exchange. True, the site Coinsquare only begins its journey. For example, in Europe, the exchange became available (added support for the euro and local means of payment) only at the end of 2018. Therefore, it is too early to judge how safe and reliable this white label solution is.
A financial and technology company that boasts a partnership with Red Hat, Microsoft, Coin Center, Hyperledger, Intel, and Enterprise Ethereum Alliance (which partnership is not indicated on the site). It has several industry awards and many clients on five continents. AlphaPoint's mission is to help a business find and implement its blockchain strategy.
White label benefits from AlphaPoint:
- Capacity - 1,000,000 transactions per second.
- Integrates with banking, payment and payment gateways, as well as with 200+ national currencies.
- Easy connection to KYC / AML, ETL, reports and other services.
- Advanced risk control.
The company has been on the market for 40 years. Engaged in a variety of projects, including the blockchain and the white label for cryptocurrency exchange. The Shift Markets solution is focused primarily on newcomers to trading: an intuitive interface, simple order forms, similarity to traditional trading platforms.
Shift Markets offers:
- multicurrency trading;
- order and risk management systems;
- secure and flexible wallet infrastructure;
- two-factor authentication.
The company is headquartered in London, UK. Emphasizes the entire life cycle of blockchain products, and not just their production. Their white label solutions for crypto-exchange can boast HFT support, as well as institutional connection via API FIX and ITCH protocols.
- ready-to-use white label with KYC support, 24/7 interchange, custom design and other;
- if desired, the content of the exchanger site with marketing content, cookies and privacy policies;
- if desired, the creation and debugging of support services;
- project support in the first few weeks of its operation.
A large enough company with 200 employees and 10 years of software development experience. It focuses on development in the blockchain field - from creating tokens and launching ICO to implementing white label solutions for exchange and over-the-counter cryptocurrency trading on platform.
Prolitus Product Features:
- Support for margin trading, lending and SIP module.
- Ability to choose between a decentralized and centralized exchanger.
- Integration with email, SMS and Google Authenticator.
- Restriction on withdrawals, limit on the amount of deposit / withdrawal.
- Basic and Advanced KYC module with customizable by country.
- KYC wise Limits - restriction on withdrawals, restriction on the amount of deposit / withdrawal.
Estonian company developing integrated solutions for launching cryptocurrency platforms. The company's products will launch a platform with support for KYC / AML, Fiat, bank payments and integrated round-the-clock support.
Benefits of the Ibinex Solution:
- Zero cost of installing white label.
- Access to bridges of book APIs of more than 60 leading stock exchanges.
- Ability to test drive.
In addition to the blockchain, the company is engaged in the registration of domains (100,000 sold domains) and web hosting (10,000 servers). On the market for more than 10 years, has sales centers in the USA, Spain, Denmark, Russia, Ukraine, Nepal, India and China. Well established itself as a developer of cryptocurrency exchangers, where you can quickly and safely buy, sell and exchange cryptocurrencies for other digital assets or fiat money.
- Extensive experience, thousands of satisfied customers and high development skills.
- Live demo for product testing.
- Simple user interface.
German white label software development company for the launch of cryptocurrency exchanges since 2013. In the previous article, we compared AlphaPoint and Draglet. Many reputable bitcoin and cryptocurrency exchanges use its products. Draglet stands out with a transparent approach to the price: $ 24, 40, 42 and 65 thousand depending on the type of white label and hosting connection.
Advantages of white label from Draglet:
- An API connection to an external provider (for example, Kraken, Bitstamp, itBit, BitMarket).
- Automatic matching of buyers and sellers at the best price.
- Support for any language and any trading pairs, including pairs with Fiat.
- Market and limited orders.
In the market for more than 10 years. The company develops software of any level of complexity for the financial sector. Created more than 30 ready-made software products, including a white label for cryptocurrency exchanges.
UpTrader offer features:
- A wide range of trading instruments - popular and exotic currency pairs, CFD stocks, futures, indices, metals. Other tools may be added upon request.
- Ability to run binary options.
- A-Book and B-book business models.
- Technical support.
- Access to МТ4.
In the market since 2011. The company has developed 20 aggregated services. Espay's white label is relatively simple, but reliable enough and can be built on both decentralized and centralized architecture. In addition, using Espay solutions, you can create an exchange for P2P exchange.
Espay Product Features:
- Integration of third-party APIs (KPI, payment gateway, Internet banking, accounting, cold wallet, SMS authentication, and more).
- Filling the site with content for marketing promotion.
- Flexible design customization, adaptive interface.
Decentralized cryptocurrency exchange, the developers of which decided to use the site they created as a white label. The dDex solution stands out for integration with the Hydro Protocol, which simplifies the design, deployment, and protection of smart contracts used in decentralized trading platforms.
Features dDex offer:
- Flexible payment system (discounts, asymmetric fees, percentage commissions, etc.).
- Trade without the need to transfer money to platform wallets.
- Open source code.
Open-source softwareSoftware with open (free) license. Such products can be used for any purpose, without any restrictions from the creators. Vivid examples of open-source projects - Bitcoin blockchain, Linux and Android operating systems.
Best free open-source software
Trading Engine Model. A simple engine for creating a cryptocurrency exchange. Contains the minimum number of required functions without a template for creating a site.
Philadelphia. The cryptocurrency exchange mechanism implemented on the Java Virtual Machine. It can be connected to stock exchanges, broker structures and other points that use the FIX protocol.
Crypto Day-Trader. One of the few projects aimed at creating a cryptocurrency exchange with commission-free trading. The engine is associated with the Robinhood API (thanks to which the non-commission trading is implemented), but it can be connected to any broker or API.
Buttercoin Trade Engine. The engine is based on the Buttercoin.com crypto-exchanger code, which was supported by Google's venture capital fund, but failed, presumably due to an unfortunate name.
Btcde-poll. A minimalistic engine that processes exclusively BTC-EURO, BCH-EURO and ETH-EURO trading pairs. Simplicity is more than compensated for by reliability.
Crypto trading engine. Very simple engine with minimal features.
Development from scratch
Creation of a cryptocurrency exchange by the staff of a full-time team or an outsourced company. Both options require a lot of time and money. In the case of outsourcing, you can get guarantees of the performance and reliability of the product, with internal development - no.
Which way is better
If you need speed, reliability and reasonable cost - choose a white label. To minimize costs, you need to use open-source software. Those who want to create a unique product should do everything on their own or outsource the development.