How White Label Dex Exchange Platform is driving the cryptocurrency landscape
By Scott Macy on The Capital
Summary
- Centralized exchanges are facing severe constraints. White label Dex exchange platform is acting as a viable alternative.
- Though they have a lot of promising benefits, mass acceptance and friendlier regulations will be the key to its success.
- They tick the right boxes in terms of lower costs and faster execution of operations.
As centralized cryptocurrency exchanges lose their attraction due to a restrictive operating atmosphere, White label Dex exchange Platforms are leading the trend as they offer more freedom for users.
While centralized exchanges involve control from authorities regarding fund management and transaction authorization, decentralized exchanges permit peer-to-peer trading, and data is stored across different locations enabling it to function with zero downtime.
Centralized platforms are also more vulnerable to hacking and misappropriation of funds. This has led to a favorable preference for decentralized exchanges. Let us understand more about its scope and functioning.
Meaning of a White label Dex Exchange Platform
A White label Dex exchange platform operates with the help of blockchain technology. It is cheaper to operate and maintain, as it eliminates third parties. Traders can conduct transactions with each other through a peer-to-peer mechanism.
Knowing how a White Label Cryptocurrency Exchange functions
- The order book will help in matching the requests of buyers and sellers. The price of the asset and the transaction fees involved will be determined.
- After the terms and conditions are agreed by the parties, the trades will be automatically processed by a smart contract which is a self-executing program consisting of pre-installed codes.
- The cryptos will be transferred to the corresponding user’s wallet.
- All records of transactions will be available to parties. It is immutable in nature.
Why Whitelabel Crypto Exchange Solution is in high demand
- No chance of a single point of failure — Since a distributed blockchain network controls the operation of a White label Dex exchange platform, it operates seamlessly even if there is a fault in any one network. The exchange keeps functioning with zero downtime.
- A higher level of privacy — While centralized exchanges demand more personal information from users for greater scrutiny, Whitelabel’s crypto exchange solution is more user-friendly. The registration process is quick and hassle-free.
- More control over funds — Unlike centralized exchanges who act as a custodian for trader’s funds, A White label Dex exchange platform allows traders to handle their funds effectively. With different wallets available, users can conduct transactions quickly, and monitor their financial position using the order book.
- Better security — By not allowing the presence of intermediaries, Whitelabel Crypto exchange solutions are more secure. Since it operates on a distributed network where all participants have equal access to technology, it is virtually impossible to steal the user’s data and funds.
Every White label Currency exchange must support trading of multiple cryptocurrencies, compliance with KYC and AML guidelines, possess sufficient liquidity, enabled with multi-factor authentication, and offer different payment options.
Why White Label Dex Exchange Platform has a bright future ahead
Small and medium-sized businesses that aim at the optimization of resources will prefer a White label Dex exchange platform because they help in cutting costs. Customization can be done by adding their brand name, logo, UI/UX design, and color theme.
With intermediaries such as brokers and banks eliminated, assets can be liquidated by fetching higher returns.
Whitelabel Crypto exchange solutions are rigorously tested before being deployed into operations. All glitches and issues are fixed in advance.
Building a centralized exchange requires several months and years of investment involving different stages. Buying a customized and ready-made White label Dex exchange platform saves money incurred on software development and manpower.
The exchange owner need not possess the technical expertise to handle the software. The package is easy to handle for any kind of user.
Factors to consider before acquiring a White Label Currency Exchange
- Compliance with local laws — Since not all countries are receptive to the entry of cryptocurrencies, make sure to follow the different rules and regulations laid down by authorities. Get a license before commencing your operations.
- Fulfill the KYC and AML guidelines — Verify the identity and background of all the users of your platform by following the KYC (Know Your Customer) processes. Make sure to implement the AML (Anti-Money Laundering) guidelines to prevent incidents of fund misappropriation.
- Ensure the availability of basic features — Have the presence of an accurate matching engine, a comfortable user interface, and robust wallets. Include an admin console that monitors the daily operations.
- Presence of sufficient liquidity — Liquidity is the key to handle the huge trading activity on the platform. It can be boosted by connecting with leading exchanges.
Follow all the above guidelines while investing in a Whitelabel Crypto exchange solution to fulfill your business objectives comfortably. Make use of this profitable business opportunity to stay ahead of your competitors.
