Another day, another crypto business, many don't last, some live to become bigger than banks. But how are they doing it? How are they ‘doing
crypto’ so to speak?
This article will explain not only how but why. We'll also cover the top white-label solutions and best crypto tools that get your business blockchain-connected.
White-label Open-source Exchange Software and DIY Crypto Tool Kits
It just so happens nearly all things cool in crypto are built within an exchange platform. If you’ve ever used a crypto exchange you’d know they have everything. 97% of people that interact with blockchains do it through an exchange, they are where the coins
live, where fortunes are made and lost. They are the gateway.
But back to the tools... Why is it important to learn how to develop and use crypto and blockchain tools? First, the industry is likely to continue growing, and getting hands-on experience and education is a great investment.
Second, it is like getting your business onto the Internet for the first time. It will unlock new powerful business applications while your business moves into the future. Some of these applications will be covered later.
Exchanges aren’t just about price speculation. Once you get over-speculation, exchanges unlock important concepts around creating coins, tokens and involve a whole new world around community and tokenomics.
The word 'economy' is a combination of 'household' and 'manage' in greek. If you have users and a business then you’ve got an economy. By connecting a coin and exchange system with your users you can create powerful incentives to keep your customers committed.
Think rewards and perks the ingredients for engagement.
👥 Community First
Coin and community go hand in glove. When combined they are effective at conjuring up interest and align incentives of all parties holding a coin or token.
Communities holding their beloved coin can use the coin to express interest beyond a typical Facebook 'like' or Reddit ‘upvote’ or YouTube ‘thumbs up’.
But why? Because coins are universally transferable and actually hold value (within a particular community). That’s the secret. Try transferring your likes, upvotes, or karma in Reddit, they don’t have value transferability beyond the system itself but coins
on the blockchain at least have the possibility to be used outside, albeit with effort.
Coins are also effective at expressing the preferred direction of a project/community through their global value transfer and/or through lockage of coins, often referred to as staking, and can even double as a kind of share or stock. Governance through tokens
is a new but promising area.
Exchanges make the crafting of these tokenomics easier because they enchorage participation with markets, user accounts, sign ups, price discovery, wallets, coin distribution and funding flow controls.
👌 Easy to Do
Some blockchain protocols and exchange software have made the processes of doing an exchange, tokens, shares, stocks, and coin issuance trivially basic due to the open-source nature of blockchain and exchange software.
For example, public blockchains like Ethereum’s ERC-20 protocol and
crypto tool kits are increasing in adoption and are key components to do crypto/blockchain-related projects and businesses.
Take for example exchange tokens, like BNB, where all traders on the exchange are given discounts on trade fees simply by holding the token. This was the start of utility tokens and today many more businesses are crafting their own within their own exchange
💰 Storage & Offering Interest Rates
Exchange software makes it easy to store values, similar to a bank. The software can also stake coins/tokens or in other words, emulate the whole interest-bearing account model or
reward earnings found in your typical savings account.
White-label exchange software even allows people to trade unique goods through
NFT technology and cover an ever-growing list of applications in an array of industries.
Exchanges are essentially machines for generating business.
💱 The Power of Exchange
There isn’t much an exchange can’t do which is why the demand for exchange tools continue to rise. We even see fintech and even non-financial industries compelled to migrate into crypto and blockchain systems.
Don't believe it? Just take a look at the growth in DeFi and the increasing demand for
crypto-exchange how-to guides. It is literally impossible to count the number of platforms out there today.
So how do you start? If you want to create your own coin and exchange you will need to use an exchange kit. An exchange kit includes the software tools required to build your own cryptocurrency exchange.
In this article, we will cover the best exchange kits out there, but before that, it is important to cover what to actually look for when selecting a white-label exchange kit. There are a lot of parts that go into an exchange but we will only cover the important
features, the bread and butter of an exchange.
🧰 White-Label Exchange Features
The main features of any white-label exchange solution should be a robust, fast, and flexible platform with a multitude of interfaces from trading to admin, charting, orderbooks, and a way to track balances, records and all trade orders.
The exchange can be boiled down into 5 parts:
- User-Interfaces—Look and Feel:
A white-label should provide a multitude of exchange interfaces that may come in the form of a simple brokerage interface or a heavy duty professional trading interface. In addition, an easily customized dark and light version of the interface to tweek to match
- Crypto Liquidity—Traders and Market Activity:
On the back-end, some white-label crypto solutions may include liquidity as a built-in feature which is something to consider when selecting your white-label. The liquidity, if shared, also helps as more users start using the same exchange software.
- Wallet Deposit and Withdrawals—Money Flow and Storage:
Of course, a crypto wallet for digital asset storage is a must-have and is an integral part of any good crypto white-label kit. The wallet system should securely execute withdrawals and deposits on-demand in real-time, in various crypto assets, including fiat-based
assets like USD and EUR in an automatic way.
- Automatic Deployment—Set Up and Launch:
Can the exchange be deployed in minutes? Can it be updated to apply changes rapidly? A good exchange kit should allow you to automatically launch and be ready on your website right away for your users to login and use.
Searching on YouTube for ‘crypto exchange launch’ or similar is a good way to find out if the software is easy to work with and deploy.
Once deployed, the exchange should automatically connect to multiple blockchains and ready for deposits.
A prepackaged white-label solution comes with all the pieces preconnected to the blockchain, saving time, so that you can focus on the business. As a general rule of thumb, more automation the better.
- Admin Controls—Back Office:
Lastly, an administration backend control panel or back office to manage the platform is needed which provides the necessary support for exchange configuration, KYC and user management among other important things.
The back office system should include coin management for adding or removing coins, and a team should also be able to work together on the platform with different team roles with different permissions for access to key areas. These team management features
will become important as the exchange grows.
📝 Test the 5 parts and do the research
To make finding a crypto solution less complicated, stick to testing the 5 parts mentioned above.
But for those that are completely new to all of the above, then asking yourself first if you
can start an exchange, then going back to the basics and reading more about open-source exchange solutions and crypto businesses is highly advisable.
Alternatively, if costs are a concern then this article on the
costs of running a cryptocurrency exchange will shed light on the subject.
3 Main Crypto Exchange Kits and Crypto Tools
So now you know what to look for, what are some of the best solutions out there? To answer this you’d normally have to go through countless solutions. Instead, we've shortened it to the top 3 companies specialized in white-label crypto software services and
their main advantages and disadvantages.
1. No-fuss Exchange Kit: HollaEx Kit
HollaEx Kit has an inbuilt token setup system as well and an exchange set up all in one that lets you jump right into it with only an email.
The great thing about this white-label exchange is its real-time rebranding and is super straightforward setup. Just insert your coins and go live.
This exchange kit allows users to upload graphics, such as your logo or icons, and even change the color theme without touching the code. Strings of text and languages are also possible to change on the fly without having to dig into the code.
However, one drawback with the kit when using the free DIY version is that changing some footer features at the bottom of the screen won’t be easy unless you have a paid version, however, the paid version is highly affordable in comparison with the typical
white-label exchange software prices.
The unique thing about this kit is that the core abilities align with open crypto ethos, meaning you don't have to arrange multiple meetings between multiple departments in IT to managerial just to get permission. Simply log in and complete the exchange
To summarize, the HollaEx Kit is the ultimate no-fuss exchange launcher. Videos on YouTube prove just how fast the
kit can get up and running. Best of all it is
downloadable free, open-source and can be
set up here.
2. Decentralize everything: Bisq
Bisq is similar to HollaEx Kit in that it is open-sourced and free. Once running you can buy and sell bitcoin for fiat in a private, secure way peer-to-peer (P2P) way. Just input bank details and they will be shared with your counter-party once the transaction
Bisq is built in a way so that your users will have to be running a desktop application as there isn't a live website with markets, which is the downside of a P2P system.
The advantage? No registration required. That is a huge plus for certain users that don’t want the hassle of doing KYC but want to trade fiat and crypto.
One disadvantage with Bisq is setting up something custom and branding will require a lot of work as it isn’t a centralized exchange software. Making new coins or adding new coins will also be difficult.
Lastly, the trades are executed in a kind of swap but with an automated escrow system, this means collateral is required by both parties in order to trade. Collateral could be BTC or other cryptos. If the transaction is large, both parties are required to
put up more collateral. If there is an issue with the transaction such as someone cheating, the collateral is taken from the cheater and given to the other party.
In summary, Bisq is the ultimate P2P private escrow network exchange without registration.
3. When money is no object: AlphaPoint
On an unlimited budget? Then AlphaPoint might be your exchange.
Features galore and unlimited support, this is where you'll drop a pretty penny. As this white-label has a lot of extra bells and whistles be sure to do your own research first. From remarketing, to STO systems, extensive software licenses and contracts,
there is a lot of work required in order to start.
The downside, besides time and costs, is that it is not open-sourced and makes evaluating the software a long back and forth process. If you plan on hitting any strict deadlines you can say goodbye to that. Due to the complexity of the solution getting your
hands on anything quickly, even for testing purposes will be a challenge as multiple checks and balances and zoom meetings will be required in order to access the software. Prepair to set aside months.
The good news, this white-label solution is one of the oldest and can provide peace of mind for newbies that may need hand-holding.
To conclude, the features, service, and support for this software is where a lot of your money is going, and if you can afford the time and/or need the assistance then this might be the solution for you.
✅ Take it for a test drive
Now that you have all the info, it is time to get your business connected to the blockchain but before you start it is important to test drive the 5 main components of your crypto tool and white-label solution:
Admin control or back-office system
Self-evaluating these 5 areas and actually using the software and getting your hands dirty will go a long way. If you can't get the software to run then at least getting a trusted tech member of your team to test drive it.
In closing, when test driving your exchange software, you may find it tempting to go with the Lamborghini. Maybe Tesla feels like the 'smarter' choice, but really, if all you'll need to do is go from A to B, then going with something that you can actually
use, something that works personally for you. That's totally fine as you can always upgrade as you grow and boy will the crypto market grow.