The current article will show the main things, measures, components and subtleties of launching a white label cryptocurrency exchange software. This is a highly recommended post for investors, entrepreneurs, business people and even crypto-enthusiasts and traders.
The Cryptocurrency market, as you know, is uncontrollable and that’s the only reason that some people still mistrust it. It can be called a bubble in a way-after all, investing, say in bitcoin or litecoin, and losing money on it – will not get you any help from the government. You should understand there are risks in this situation. You may make a profit or loss.
Nevertheless, this industry is still developing rapidly. Cryptocurrency software platforms were one way of making money. But how do you capitalize? What do you need to know when picking a cryptocurrency trading software? In general, the primary requirements when starting a company are given below:
Any business starts with its legal company registration and the registration of bank accounts. Starting a white label cryptocurrency exchange is no exception. You will have to research on some crypto-friendly regions that are favorable for your business.
At AskPaccosi we come across many clients who want to start their own exchange business and consult us for their Belarus announced the legalization of the Cryptocurrency, especially bitcoin, in December 2017. How is this going to affect the economy and that industry? By this move, Belarus said it is ready to be the world’s cryptocurrency hub and jurisdiction and ready to become a tax-free country. In reality, only time will show if this is going to be so. A lot of this planet’s inhabitants found Belarus at the end of last year.
Among other countries, you can count on different states of the USA for company registration, such as Texas. Singapore is also on the list of crypto-friendly countries. Although we highly recommend choosing the country which has crypto-friendly laws and you know the laws well.
Only invest in countries that have the potential to let you grow. Blockchain deserves special attention, especially in healthcare. Since 2017, public companies seemingly not even connected with information technology, after the introduction of the blockchain, have increased stock value from 3x-5x times!
The users are representatives of the cryptocurrency exchange program. This helps grow companies. At this level, there are but a few important points:
- KYC (Know Your Customer)
- AML (Anti-Money Laundering)
The second point is a lot easier (not every jurisdiction asks for it). With regard to the first concept, you should of course know your customers. User identity in cryptocurrency exchange is the most important aspect. Do you want to know what is required? The minimum requirements are universal passport authentication, Identity verification or driver’s license. Australia includes, for example, utility bills, registration of addresses, or payment by bank. Generally, it is considered that there are 2 key verification stages (no, this is neither a phone nor an email): identity verification and address verification.
For instance, some enforce very strict identity verification criteria – you need a personal presence through a web camera or a front camera verification. Interesting to note, for many platforms, such as Amazon or Etsy, control and authentication of users is quite common.
The user only gets full permissions after testing according to the rules. Then he can do business and deposit his wallets.
Cryptocurrency trading software must include the following components:
- Graphical user interface.
- Secure private system for administrators, moderators, and owners.
- Trading engine.
- Cryptocurrency wallets.
This is the list of the main components any cryptocurrency exchange software couldn’t survive without. There will be no control and clarity without an administrative system, insufficient liquidity simply cannot provide a starting point for growth, and a vulnerable system can ruin everything completely.
Graphical user interface
Although more accurately, this module will design the part not only visually appealing, but also convenient, taking into account the users ‘ own global, social and local preferences.
After scientists conducted an experiment, trying to figure out how long it will take a person (never before using social networks) to sort out Facebook’s largest social network. Though I’m not going into complete details, the result has been 57 minutes! Imagine how you’re showing your distant Facebook relative from another country and he needs an hour to understand why and how to use Facebook.
Nonetheless, cryptocurrencies exchange users aren’t technology novices nor newbies. They are at least tech-savvy, interested in growth, money-making and investment, banking system and politics.. User experience is expected to be at the highest level, everything should be super simple. As if for the very first time you understood the navigation, the layout and the tests. And, of course, you have to be careful to make it top-notch.
Design plays a secondary role. First, it is UX. Intuitive and simplicity are key features. A small note: cryptocurrencies are still growing in popularity; this industry is not even at a peak. Many newcomers have never traded. Do you see the hint?
Secure private system
Needless to say, the content management system (CMS) is vital for any network, and even a website. There should be a wide range of features and data under a private admin system, so that the owner can see the current situation in just a few clicks.
Required features include a dashboard with key transaction indicators, users, deposits, etc. The project should have the option to withdraw money manually and to flexibly adjust a fee. One of the features many owners ignore is interest in this or that crypto-currency. An analysis of this aspect will assist you with making an effective marketing campaign.
Furthermore, being aware of which cryptocurrency will soon be implemented is a good way to integrate with the Coinmarketcap API.
The white label cryptocurrency exchange software can not function properly without this peer-to-peer component. What is important to consider? It’s very simple: users need to openly and securely build orders. All data, transactions, order lists and bookings should be stored in convenient charts on any device, and displayed to the user.
For a moment, let us imagine that the cryptocurrency exchange software you are building in your mind is already working. It has all the necessary functionality: register, log in, verify, order, etc. All the features were tested multiple times. Now is the time for an individual person to sign up. He’s been through all the testing phases and is able to deposit money into the system and is now paying attention to the cryptocurrency buy and sale order list. Then his eyes caught an empty list in the “no money turnover” scheme and he already starts to seriously doubt it – whether to make deposits.
Such a network has liquidity equal to 0. Makers and takers do not exist and why? It’s because you just started today – and this is understandable. What should be done in such a case?
Option one – The liquidity simulation. Artificial intelligence bots and trading bots help us here. The essence is very simple: we (takers and makers) build bots. And then, voila. A new user will be able to see these orders and communicate with them, that is to say buy or sell their currency. Using these liquidity resources is far easier to help a person start a new way of trading.
Option two- The second option is to share liquidity with outside network. With Kraken or Poloniex for starters, or even Binance. And if you don’t just want to focus on one exchange-get many to integrate. This is “Diversification,” as the traders claim.
Most exciting item. Maybe you’re a true Bitcoin enthusiast, or Ethereum-from a network design point of view, this plays little part.
Obviously, the more you allow your users to cryptocurrency the more transactions you can make. Yet is it all so easy? It does not turn out quite so. Considering the cryptocurrency’s peculiarities, and that they are all independent and decentralized. We say the user wallets are decentralized under building decentralized exchange. We need to incorporate them in a manual mode from a technical point of view, one by one. Firstly, this affects the time the wallet is implemented, and consequently the budget.
There are two- to three major wallet forms. A hot wallet, deep-frozen wallet, and cold wallet. That’s a subject for another blog, however.
Private Administration System
The exchange control center is the private-administration system. The person in charge, as an owner or administrator, should be able to look at all the critical information and conduct key tasks like account management, transfers, wallet management, and auxiliary activities such as KYC and AML. You can even assign tasks to other users with limited powers if necessary and based on the user-size of your exchange.
Securing Your Cryptocurrency Exchange
Security is of paramount importance for any white label cryptocurrency exchange software which deals with huge amounts of money. Many hackers attempt to integrate multiple methods to infringe ecosystem security. Many of them include:
1) Hacking the panel of administrators-the attacker gets full system access. It can however be avoided through the use of multi-factor authentication. Another way to secure the funds is to add a combination of cold storage and hot wallets.
2) Hacking a particular user-this may not open the exchange as much as it does when hacking an administrator user, but it is nevertheless a vulnerability. Compared to the administrator stand, providing multifactor authentication would be perfect for the users. This is a growing cause of concern as hackers have been known to target users who have shown they have a lot of money in their crypto wallet, in some way or the other.
3) Social engineering-this is one of the easiest yet most likely approaches to come across. The program can’t help you if you have your wallet’s access credentials leaked, either knowingly or unknowingly. The best way to stay secure from these attacks is to realize that even the minute-est details might open your wallet to the back door.
4) Hacking the server-this is one of the most lucrative methods for a hacker to gain access to enormous sums of money. Investing in a reliable provider is the best way to avoid instances of those assaults. Providers such as Amazon Web Services or Microsoft Azure are considered to safeguard the data from denial-of-service attacks.
The cryptocurrency business is mostly about trading exchanges, accounting for about 80 to 90 per cent of the total volume of business. The rapid growth in 2017 and the uncertainty in 2018 gave massive amounts of money to many investors.
It could be an exaggeration to say cryptocurrency is slowly creeping into mainstream transaction culture. Countries like Australia have allowed the payment of bills using Bitcoin and Malta has grown to be one of the best places in the cryptocurrency industry for doing business.
Given this evolution of cryptocurrencies, creating a White label Cryptocurrency Exchange Software would be a great business proposition for an enthusiast.
3 METHODS TO TURN YOUR IDEAS INTO REALITY – WHERE DOES SERENDIPITY ENTER YOUR BUSINESS? https://t.co/1V8KWJG9Yk— Ask Paccosi (@AskPaccosi) July 19, 2020