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Advantages of Different Cryptocurrency Exchange Software Development Methods

09.12.2019 · Posted in Writing and Speaking

White label solution, an open-source software code/script, and ready-made cryptocurrency exchange software with customizable components are the most common methods for developing an efficient crypto exchange platform. Each method has its own distinct features and benefits that require detailed evaluation for the success of the platform.

In this blog, we have discussed a few features of the most prevalent crypto exchange development techniques. Let’s take a look at them:

White label solution

Essentially, it is not a development technique but a ready-made platform for cryptocurrency exchange software. Its components like trading core, backend, and the database are copied from one project to another for efficient deployment.

Rapid deployment 

As mentioned above, a white label solution’s trading core already exists, which means there is no need to build anything from scratch. You just need to deploy, install and configure it in a new network for immediate use. 

The more often a solution is used and tested by other businesses, the more stability it provides. 

Quick and Easy to Brand

Typically, a white label solution comes fully integrated and ready-made. It makes the branding and launching of an exchange platform efficient by saving time and effort in the research and development phase. The only change that needs to be done is to include your branding elements like color palette and logo. 

Cost-efficient

Developing a solution from scratch requires substantial funds and resources. However, with a white label crypto exchange software, you get a fully-built exchange at a significantly lower cost than full-scale development. Investing in a white label solution is an ideal choice if you want to accelerate your go-to-market strategy to compete with other players.  

Time-Efficient

Building a crypto exchange platform from scratch is a complex process. It also delays the product launch and creates challenges for attracting potential investors. It is wise to choose a ready-made exchange solution to ensure deployment of the platform within five to seven weeks. 

Faster customer adoption

A white label solution like Oodles Scaffold gives you the option to avail a cryptocurrency exchange platform rapidly, so you can immediately reach out to investors. Availing a prepackaged solution suits those who want to quickly establish their cryptocurrency trading business with minimum development risks. 

Open-Source Crypto Exchange Script

Developing your exchange platform with an open-source script provides the following features: 

P2P Exchange

Peer to peer transaction models eliminates intermediaries from various business operations. A P2P model-based platform delivers an efficient exchange experience while securing cryptocurrencies and transactions. P2P exchange is an essential feature that is available in several open-source crypto exchange scripts. 

Admin Panel

An open-source script based exchange platform has a user-friendly, flexible, efficient and secure admin panel. It ensures mass user adoption for your platform since it also enables non-crypto investors to engage in trading.  

Security

An open-source script comes with essential built-in security features for secure transactions, deposits, and withdrawals. They employ security practices like internal security audit, network and hardware security mechanisms, KYC (Know Your Customer) and AML ( Anti-Money Laundering) checks, and 2 Factor Authentication for users. 

Robust APIs

A robust crypto exchange software API is a core asset that differentiates one crypto trading platform or the whole business from others. A robust API can be regarded as a key functionality of the platform. It is treated independently to provide and consume information from unknown customers. An API should follow the standards required by the client. It must be secure and robust, and able to compute the current market rate for every available coin on crypto exchanges. 

Advanced Trading Engine

An efficient order book visualization with matching engine is a must-have feature, which is already available in open source exchanges. It stores all transaction records that have ever taken place. It provides a list of orders of buyers and sellers for financial instruments that enable efficient capital flow and transfers among global investors

Oodles Scaffold: A ready-to-use hub of customizable exchange platform components 

Oodles Scaffold is a hub of ready-to-use exchange platform components that can be customized to meet varied business requirements. It enables companies to employ a ready-made exchange software, but it also has provision for customizations in the software modules. With Oodles Scaffold, clients get the complete source code of the solution that makes the auditing a smooth process. They also get several other benefits of both the above-mentioned development methods under one software solution. Essentially, it helps the clients with faster time to value in very less time with cost-efficiency along with reducing the overall ownership cost

Let’s take a look at how Oodles Scaffold becomes a viable option for quick and efficient cryptocurrency exchange development. 

Conclusion

A white-label solution is efficient and cost-effective as it enables investors to offer provide exchange services without heavy technology investments. It expedites the branding and selling of your services while streamlining the conversion path for your clients. On the other hand, open source exchange software development provides an advanced solution that is open, free and easily accessible to everyone. 

However, with a ready-made solution like Oodles Scaffold, you get benefits of both the crypto exchange development methods. You can build a crypto exchange platform that meets complex business requirements with highly secure and scalable features of both open source script and white label solution. It makes it a viable choice over a white-label solution and open source exchange script. 

Reach out to us for more information about our cryptocurrency exchange development services. We consult fintech startups and financial services providers to choose the most suitable option for their business strategy. 

Source:https://blockchain.oodles.io/blog/cryptocurrency-exchange-development-method/

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