What is a White-Label Crypto Exchange?

The term, white label, has become wildly popular in recent years, encapsulating an entire movement simplifying technological challenges in business. The white-label concept is quite simple, allowing companies to adopt a pre-made workflow (platforms, systems, websites) and use it to create a distinct business. As a result, white-label solutions minimise development costs, save time and allow business owners to achieve their plans with a fraction of the resources. 

White-label solution providers gained massive popularity in the crypto exchange market, letting companies jumpstart a crypto exchange business in months or weeks. While the proposition of skipping the technical complexities, security measures, and other challenges of operating white-label crypto exchange software is far from trivial, this piece will tackle the concept of crypto exchange white-label solutions, giving you a better idea of what you might be stepping into! 

The Concept of White-Label Software in Crypto

White-label software solutions trace back to the 1990s when the first software developer companies offered templates for businesses and users to use independently. The concept became so popular that the Web 2.0 landscape was filled with white-label options in numerous sectors. 

From websites and applications to platforms, the digital landscape experienced a global emergence of white-label software. Companies like Wix, Webflow, Shopify and Salesforce offer a variety of white-label solutions that allow companies to level the playing field and catch up with bigger market players. 

Since the efficiency of white-label solutions is a great fit with the fast-moving crypto industry, white-label practices swiftly became commonplace in the small and mid-sized crypto business niche. In 2024, most newcomer crypto exchange startups opt for white-label solutions, avoiding the troubles of in-house development, security implementation and various other challenges. 

White-label exchanges receive a ready-made platform template that has full functionality from the get-go. They can then adjust and customise the visual and functional side of the platform, changing the colours, shaping the dashboards and adding widgets to create a smooth user experience for crypto traders. The setup simplicity and streamlined time-to-market provided by white-label options have made them a go-to choice in the crypto exchange sector. 

A Comprehensive Guide on All Things White-Label in the Crypto Field

While a white-label crypto exchange platform might answer your budgetary questions and technical complexities, it is essential to carefully assess the strengths, weaknesses and finer details of this niche before making commitments. Having a good grasp on the concept of a white-label crypto exchange solution will help you avoid newcomer mistakes and form realistic expectations in the initial startup stages.

Why Would Someone Choose a White-Label Crypto Exchange?

As discussed above, the white-label niche comes with many advantages that favour small and mid-sized businesses. Entering the crypto trading platform industry without a white-label service provider might be unfeasible with budgets that are below seven or eight figures. The in-house development salaries, digital and physical products alone will take you anywhere from $500,000 to $1,500,000. 

The additional marketing considerations, CRM features, complementary systems and platform maintenance might bloat your costs far beyond the budget mentioned above. Conversely, white-label crypto exchange costs much less, ranging from $2,000 to $10,000 monthly subscription fees. 

So, a cheap white-label crypto exchange is a no-brainer choice for smaller businesses strapped for budgets. With such a significant price discrepancy, are white-label solutions a viable alternative to in-house platforms, or are they too limited in their functionality? Let’s discuss. 

What are The Benefits of White-Label Crypto Exchanges?

As analysed, white-label crypto exchange development is far more affordable than in-house options. But does this mean that white-label exchanges are limited? While that was the case several years ago, the current WL solutions offer a wide range of features that can comfortably rival big crypto players in the market. 

WL solutions employ robust security features, including the most popular trading mechanisms (derivatives, ETFs, CFDs), and feature advanced trading strategies like copy trading, PAMM, and MAM. In addition to these core functionalities, white-label solutions often provide live price charts of supported crypto or fiat currencies, analytical tools to assess the performance of currency pairings and learning materials to ease the user transition into the world of digital assets. 

Specific companies even offer regulatory compliance tools that help businesses monitor compliance with various authorities, avoid legal troubles, and establish optimal security practices. Similarly, the best white-label crypto exchange providers can equip your platform with KYC, KYT, and AML protocols and security measures like 2FA. 

Moreover, White-label solutions are easier to manage and maintain in the long run. Since these solutions are designed, developed and tested rigorously, the possibility of technical breakdowns is much smaller. If breakdowns and technical errors happen, the white-label crypto exchange development company will handle your issues swiftly and efficiently. 

How Does White-Label Crypto Exchange Development Work?

The practical process of adopting a white-label cryptocurrency exchange platform is quite simple. As a business, you must pinpoint the white-label provider of your choice, agree on terms and conditions and purchase the white-label solution with a subscription package. Once acquired, the admin panel will grant you access to adjustment privileges across the entire platform. In most cases, customisation and branding can happen without coding or engineering. 

Like interactive website builders, white-label platforms allow you to change the layout, modify the menus and customise design details with direct clicks. As a result, the entire process is seamless and will not force you to hire a technical specialist. However, the convenience of the white-label setup process can vary from platform to platform, with some options becoming more complex. So, the marginal assistance of technical specialists might be necessary. 

How to Choose The Right White-Label Crypto Exchange Software

The current market for white-label crypto exchange platforms is quite diverse, with a healthy mixture of established names and newcomer companies that focus on specific features. You must consider several crucial factors to choose the right option for your needs. 

First and foremost, it is paramount to choose a provider with a clean track record and a reputable history. Any signs of subpar performance or disappointed customers should be a clear deterrent. Second, it is crucial to assess your specific exchange business plan and choose a WL provider that delivers the trading tools and features you desire. 

For example, if your mission is to prioritise security, you must assess the extent and quality of the WL provider’s applied security measures. Conversely, if your preferred advantage is fast execution, you should review the WL provider’s digital capabilities to deliver an efficient processing system. 

Finally, you should compare the pricing to your monthly budget plans. While WL providers are quite affordable, they might sometimes feature hidden fees and compounded charges. As a result, your WL fees might transform into considerable expenses down the road. So, it is crucial to avoid pricing confusion and ensure that what you see is what you get in terms of monthly subscription fees. 

Are White-Label Cryptocurrency Exchanges Secure?

White-label crypto exchange platforms often come with integrated security options that are in line with best market practices. These often include two-factor authentication, KYC, KYT, AML, and Anti-Terrorism Financing protocols. Additionally, WL providers have their own anti-virus and cybersecurity software that continuously protects your customised platform version. 

While the best WL providers can offer the aforementioned tools and even more, cheaper WL options might not come with the most fortified security systems. In this case, it is prudent to employ your own security measures or if the expenses are too costly, you can simply search for a more security-focused WL developer. 

On average, WL platforms are quite secure, but users often become victims of phishing scams. Thus, the primary source of danger comes not from hacking attempts but from social engineering scams. Therefore, it is advisable to educate your employees and users on the possible dangers of phishing and other types of scams. 

What is a White-Label Cryptocurrency Exchange Script?

The white-label crypto exchange software development script (WL script) is the engine behind the entire platform’s functionality. The WL script takes care of core features like user registration, account management, order matching algorithms, security storage of digital assets, transaction processing, and fee collection. 

It is important to understand that your WL provider uses the latest frameworks and best programming practices to develop a scalable WL script that can deliver optimal performance even during stressful capacities. 

WL scripts are very important in your mission to deliver a competent platform that functions smoothly and without technical challenges. It is crucial not to tamper with the core script of the white-label solutions. Most WL providers deliver front-end-only access to clients, ensuring the security of your WL infrastructure from external and internal threats. 

What is The Price for White-Label Crypto Exchanges?

As discussed above, WL crypto exchanges are significantly more affordable than in-house alternatives. However, your preferred WL provider choice will determine the extent of additional services or staff members that you may need to add. For example, WL solutions don’t often include dedicated customer support. So, you will likely need to hire support assistants to satisfy your clients. 

Other considerations include the extent of liquidity channels, security measures, CRM capabilities, and other features that may not be included in a basic white-label package. To acquire these premier capabilities, you might require a substantially higher budget that could go from five figures to six figures. The all-inclusive WL providers charge anywhere from $30,000 to $100,000 every month. 

Deciding the perfect balance between acquiring an expensive WL solution and obtaining some of the tools from different sources will require careful research and due diligence. Sometimes, it might be cheaper to develop CRM channels separately or employ freelancer support specialists instead of spending excessive fees on premier WL packages. 

The Future of White-Label Crypto Exchanges

While WL solutions have reached impressive heights of complexity and functionality, probably, the best is yet to come. No-coding solutions are becoming increasingly popular, with WL providers taking charge of crafting solutions that simplify digital business operations. 

Even in the current environment, White-label crypto exchange options have a clear advantage over in-house solutions for smaller companies. In the next several years, the gap might be even wider thanks to the new technological advancements and incremental improvements. 

It is advisable to actively research any new developments in the WL crypto exchange niche, as new and exciting updates are being introduced almost monthly. Even the best WL solutions might become dated in short periods. So, keep an eye on recent updates and innovations in the WL field, as some of these improvements might drastically streamline your existing workflow. 

Final Takeaways – Should You Go White-Label?

White-label solutions are a definitive choice for aspiring crypto exchange platforms with limited budgets and small teams. However, it is important to remember that WL solutions are not the complete shortcuts to a crypto exchange sector that many believe. Despite their convenience, business owners will still face other prominent challenges in the sector, including volatility, fierce competition, client relationships, etc. 

Moreover, White-label software is not as flexible and customisable as in-house solutions. While this might be a good trade-off for bootstrapped companies, you should still carefully consider the limitations of WL functionality. Although WL software is a go-to strategy for stepping into the crypto exchange scene in 2024, you should still treat it as a great tool, not a solution to every problem. 

Remember, the crypto exchange business is still yours to run, with all relevant responsibilities and complex decisions in the startup process.