The demand for cryptocurrency exchange platforms has skyrocketed over the past year. Many new companies have been quick to capitalize on the opportunity by creating white-label versions of cryptocurrency exchange platforms.
However, if you’re thinking about entering this market, it’s essential to consider your company’s goals and regulatory requirements that may affect how you operate your crypto business.
In short, launching a crypto exchange platform can be a great way to get involved in the cryptocurrency boom. But, it can also be challenging, especially if you’re looking to gain traction right out of the gate.
In this article, you’ll learn how white-labeling a cryptocurrency exchange platform can benefit you and your customers and why it may be the most successful strategy in the long run.
What is a Cryptocurrency Exchange Platform?
A cryptocurrency exchange platform is designed to help users buy and sell cryptocurrencies in a secure trading environment.
This environment often involves an online wallet and transactions between individual users.
The transactions get recorded on the blockchain, a decentralized public ledger that allows all transactions on the platform to be recorded transparently in real-time.
Due to their transparency, exchanges have gained popularity in recent years as it’s possible to trace both incoming and outgoing funds through many platforms helping boost transparency in crypto trading markets.
However, some traditional businesses might be hesitant to adopt such services due to associated risks with new technology and untested business models that could adversely impact profits.
What is a White-labeled Cryptocurrency Exchange Platform?
Although Whitelabel refers to products and platforms that you can rebrand yourself with your logo, trade name, or other material designations, white labeling usually refers to companies that provide a complete solution.
Cryptocurrency exchange platforms specifically may refer to platforms that do not require third-party exchange integration or specialized development outside of branding. Some platforms may still require integrations with other external wallets or tracking systems depending on where they’re sourced from.
Most of these exchanges are built upon Ethereum smart contracts; few have their token offerings in mind. However, decentralized exchanges aren’t necessarily compatible with all cryptocurrencies and don’t necessarily support fiat trading either, so read more about your options if needed.
Strategy #1: Create your brand
Building a brand around it is essential if you’re white-labeling a cryptocurrency exchange platform.
You’llYou’ll want to ensure that everything from your corporate website to your public-facing marketing materials is designed around your brand and looks clean and professional.
If you choose to use another company’s technology (e.g., Bitcoin APIs), take some time to integrate branding into their appearance to maintain a cohesive image across platforms.
And don’t forget about social media! It would help if you had an account on all of the major sites: Facebook, Twitter, LinkedIn, Instagram, Snapchat—you name it.
Strategy #2: Build an exchange using existing platform APIs
Another option is to use an existing technology platform to build your white label exchange.
For example, you could build a white label exchange by choosing one of the existing platform’s APIs to drastically reduce development time and costs while leveraging their established security procedures.
These systems include all needed software, infrastructure, and support, so you don’t have to invest in building it yourself or paying someone else to do it on your behalf.
Strategy #3: White label an existing cryptocurrency exchange
The most straightforward approach is to leverage an existing cryptocurrency exchange platform and tailor it to your brand. You can effectively sell a white label product by branding and promoting a pre-existing solution.
However, to stand out from an already crowded market, you will need significant marketing resources. Furthermore, there is likely a slight monetary advantage unless you operate at a huge scale.
Strategy #4: Become a sponsor of an existing exchange
If you’re like most cryptocurrency businesses, you’re probably not keen on paying another company to help market your brand. Instead, look at sponsorship opportunities.
Find an exchange in line with your customer base, then partner with them to offer a fee discount or additional benefits to new users who purchase trading fees using your brand’s tokens.
You might also consider rebranding their platform, so it looks and feels more like yours.
Strategy #5: Adapt your business model to match the current market
The cryptocurrency market is constantly changing, with new coins and exchanges emerging every day. To remain competitive and relevant, you need to be able to stay up-to-date on current trends in crypto and make sure your business model matches those trends.
If a new blockchain protocol or third-party platform is set to launch soon, consider making some of your features compatible with it in advance.
These moves will help you gain customers interested in using the latest technology.