June 21, 2022

MobiDAX: White Label Cryptocurrency Exchange Software dives into the PROS and CONS of using White Label SaaS for operating a Cryptocurrency & Fiat Trading Platform. From biggest benefits like time to market, to the biggest drawbacks, if you're looking to operate a Crypto FinTech Platform, this is a must read!

Choosing the right software to reflect your business vision and compliment your team's capabilities is of utmost importance. This article is written to share our experience, so that you can better understand PROS and CONS of choosing a White Label Exchange Platform Software (SaaS).

Lets go over some fundamental aspects worth evaluating when choosing a White Label Digital Asset Exchange Platform.

What is a White Label Exchange Platform?
White Label Solution is an equivalent of a turn-key solution. This software option was built by a development company with the intent to sell software subscription packages that are easy to deploy and maintain as a single code base. This option requires limited setup, development and future maintenance for the end client. White label provider options vary, but using such a solution can be as simple as adding your brand-specific color theme and logo. More advanced solutions will allow you to deeply customize the provided User Interface (UI), and may even support the integration of a fully custom Front-End.

What are the greatest benefits of a White Label Exchange Platform?
Here is a quick list:

  • Time to Market: White label option offers you a complete Digital Asset Exchange Platform as a turn-key solution. Add your brand colors, logo, set your fees, margins, configure your trading pairs from the list of supported currencies and you can begin focusing on marketing.
  • Simplified Hosting: Software Provider takes on the responsibility for hosting. Although, you should be well acquainted with the software agreement, to understand what limitation are imposed on hosting by the service provider.
  • Simplified Maintenance and Upkeep: Software Provider takes on the responsibility for both. Same as hosting, you should be well acquainted with the software agreement and imposed limitation that vary from one service provider to another.
  • Exchanges in Production: High likelyhood that the White Label Software Provider already has other Exchange Platforms in production. These production deployments serve are being used in a real-time environments and already support the intended services. Having your Exchange Platform user-tested is a huge plus.

Is a White Label Exchange Platform more affordable than a Custom Software Solution?
Thorough accounting audit should be done on any Software Provider you are considering. You should have  clear understanding of the underlying operational costs and review: set-up fees, monthly fees, hosting fees, revenue share and potential penalties based on contractual limitations and requirements.
Historically, White Label Platform has the lowest out of pocket for going to production, when compared to developing your own software from scratch.
But Opensource build components, such as Peatio minimize both time to market and out of pocket expenses. So today this is an arguable topic and one we will discuss further in another article.

Will I need a tech team to support my White Label Exchange Platform?
Certainly depends on the provider and the type of hosting solution that is selected for production deployment. On the other hand, you can be assured that maintaining a white label will be significantly less maintenance than supporting your own code base and hosting infrastructure.
Again, carefully review the contract agreement from the provider and assess how maintenance support may be limited and calculated by the provider. What is completely covered by the Service Level Agreement (SLA)?  what is considered paid maintenance? There is a good chance that SLA is figured into the price of your solution, so you must carefully review and understand the details of your agreement with the service provider.

Where can a White Label Exchange Platform be be hosted?
Most white label solutions are cloud-based at the first glance but the providers actually host hybrid set-ups. Our team has helped to set up quite a number of these. It is very unlikely that you can satisfy Regulatory Requirements for hosting your exchange in jurisdiction of company registration using a White Label Solution.

What Cryptocurrencies does a White Label Exchange Platform support?
Typically White Label Solutions support a the top 20 cryptocurrencies listed on Coinmarketcap. They will also support the currencies favored by their team and those who paid a hefty integration fee to be available to all the customers of this particular White Label Provider.

Can my Cryptocurrency or Tokenized Asset be listed on a White Label Exchange Platform?
Normally the answer to this question is no, but there are some White Label Platform Providers that support the integration of requested tokens, cryptocurrencies and digital assets. The typical drawback of White Label Solutions is that coding custom features means that these features will be released to all of the supported customers, while each of them has their own custom requests for integrating various services. This waiting queue can be quite large and pricey. So if the solution you are reviewing seems like it is a fit, get a commitment with cost and time-frame for integrating your custom request.

Does a White Label Exchange Platform support 3rd party services?
Question that should be asked, is the White Label Platform flexible enough for integration of new 3rd party services. What is the process of adding such services? What are the costs? What is the timeline? If you have business critical services that need to be added to your Exchange Platform, get a commitment before signing the contract and paying your invoice.

What are some of the cons of choosing a White Label Exchange Platform SaaS?
To many advantages of using a White Label Exchange Platform, we must address the obvious disadvantages. Here are some of the most obvious:

  • You do not own the software, so your Exchange Platform Software cannot be counted as an asset during evaluation.
  • You do not have the ability to review the code as it is managed by the White Label Software Provider. This is often a regulatory roadblock for countries requiring that provisioning of relevant services you also take responsibility for software, its maintenance and upgrades. If this is not a requirement for your business, you should still have infinite trust in your software partner.
  • Migration from a White Label SaaS to other software solutions can be costly. Unless handled with utmost care and professionalism it may also be inconvenient to your user base.
  • White labels are typically not Piece-of-Art-Architecture and there is a good chance that the User Interface (UI) of your Exchange will closely resemble and often identical to other Exchange Platforms deployed by the White Label Provider.
  • Integration of unique features via customization of Back-end and Front-end is highly limited. Typically not possible and when released the feature is no longer unique because it will be available to all the other customers using this White Label Solution.
  • Customization of Front-end User Interface and User Experience enhancement is very limited.
  • Addition of 3rd Party Services is very limited, often impossible.
  • Cost of customization is typically charged at premium rates since custom development is limited to the team operating the software.

Summary: The success of your business is closely tied to the process of choosing your software and software provider. Often White Label Exchange Platform SaaS is the best solution for businesses adding cryptocurrency trading to an existing suite of Financial Services. In our opinion, the primary reason for choosing White Label is the fact that you may not want manage an IT team or outsource these services to an experienced team. Then again, should you offer a B2C Financial Service if you are not ready to operate and be responsible for your own software? What will be your unique offer for your traders? What will make them choose you from the other White Label copies available today? Since time to market is no longer impacted by a White Label Solution, one should carefully weigh the alternative of customizing and managing your proprietary and unique Digital Asset Exchange Software.

MobiDAX solution is based on components built around Opensource Peatio, and integrate a mix of custom software built to support this node managing and accounting component. Customize your platform and integrate existing services via API to build the platform that will attract your end user. Invent and add new custom features that will retain the loyalty of your traders and refer new users to your Exchange Platform.

Don’t overpay for your software. Don’t limit your business with software limitation. Do your research and contact an expert team willing to share their experience. Stay informed and educated!

Andy Smith

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