Scratch-Built Vs. White-Label Crypto Exchange Software

Development from Scratch Vs. White-Label Crypto Exchange 

Crypto exchanges are decentralized platforms that provide the safest, quickest, and easiest ways to trade, sell, and buy cryptocurrencies. Businesses have two options for developing these platforms. One is to develop the entire platform from scratch and another is to opt for white-label crypto exchange development. 

Although both methods will give you crypto exchange, they differ in several aspects, including cost and time. Here is a comparison between development from scratch and white-label crypto exchanges:

Time to Market

• Development from Scratch 

Developing a crypto exchange from scratch involves designing, developing, testing, and regulatory compliance checks. Naturally, these processes take considerable time. Depending on the project requirement the average time may take several months to a year or more. 

• White-Label

White-label crypto exchange software is a pre-built solution with core functionalities already developed. This reduces the time needed to launch a platform and enables quicker deployment. White-label crypto exchange development can range from weeks to a few months. 

Check It Out | Oodles Scaffold | Ready-to-Launch Crypto Exchange Software

Cost

• Development from Scratch 

Developing an exchange from scratch can be more expensive due to hiring developers, compliance experts, and other resources needed for the entire development cycle.

• White-Label

Typically, white-label solutions are more cost-effective as they offer pre-built modules and infrastructure and reduce development costs significantly.

Risk

• Development from Scratch 

Risks associated with crypto exchange development from scratch include potential delays, regulatory hurdles, and uncertainties in implementation. 

• White-Label

White-label cryptocurrency exchange mitigates risks associated with development as they often come with tested frameworks and established technology. This approach reduces legal risks and uncertainties. 

Also, Read | Finding a Faster and Efficient Way to Develop a Cryptocurrency Exchange Platform

Scalability

• Development from Scratch 

A custom-built exchange might face scalability challenges when adding new features or expanding to new markets. Often, its scaling involves significant redevelopment or restructuring of the entire platform to accommodate new functionalities or cater to different markets. 

• White-Label

White-label crypto exchange software allows the addition of new modules or features to the existing infrastructure. It offers a straightforward way to expand to new markets. 

Security 

• Development from Scratch  

Crypto exchange development from scratch requires robust security protocols to prevent fraud. It will require you to hire crypto exchange developers who will ensure careful implementation of security measures. 

• White-Label

Security protocols may vary with the provider. Typically, reputable white-label providers offer solutions integrated with robust security features and protocols. 

Suggested Read | P2P Crypto Exchange Development | The Future of Digital Trading

Flexibility

• Development from Scratch 

Cryptocurrency exchange development from scratch offers more flexibility while choosing the most suitable technology stack. It also allows complete control over the compliance frameworks to meet specific regional or industry requirements. 

• White-Label

White-label crypto exchange provides a balance between customization and ready-made features. It may offer limited customization but can be integrated quickly. 

Customization

• Development from Scratch 

Building from scratch allows complete control over the design, layout, and functionality of the platform. You have complete freedom to design and integrate unique features and functionalities based on the exchange's niche or target audience. 

• White-Label

White-label cryptocurrency exchange software offers customization to a certain extent. It allows branding, UI/UX adjustments, and some additional feature integration.

Also, Explore | AI-Powered Crypto Exchange Platform Development

Support

• Development from Scratch 

Support in custom crypto exchange relies on the development team. In some instances, you may have to hire third-party providers for ongoing maintenance and updates. 

• White-Label

Usually, a white-label provider gives ongoing support, updates, and maintenance. This ensures smoother operations. 

Reliability

• Development from Scratch 

When developing a crypto exchange from scratch, reliability relies heavily on the development team's expertise, adherence to security best practices, and the robustness of the codebase. Teams need to ensure stringent testing, continuous monitoring, and frequent updates to maintain reliability. 

• White-Label

With a white-label crypto exchange solution, reliability depends on the reputation and track record of the provider. It's essential to assess their past implementations, ongoing support, and the flexibility of the solution to meet specific business requirements.

Also, Check | Oodles Scaffold | Your Ideal White-Label Crypto Exchange

Conclusion

Both methods have their fair share of pros and cons. Businesses that require a rapid market entry and cannot afford an extended development period can opt for white-label crypto exchange software. Additionally, businesses who prefer a cost-effective, predefined solution can opt for this solution.

Businesses that require highly tailored features and functionalities specific to their business model can go for cryptocurrency exchange development from scratch. They can also hire crypto exchange developers to start the development process from scratch. 

If you are looking for white-label crypto exchange software, then Oodles Scaffold is the right solution for you. Connect with our crypto exchange developers to book a demo.