How do you Launch your own White Label Bitcoin Exchange?
How does a cryptocurrency exchange work?
There are two types of cryptocurrency exchanges. A traditional cryptocurrency exchange like coinbase is called a centralized exchange, which means that your funds are on the exchange, and a central server governs it. They manage your private keys.Another type of exchange is a decentralized exchange that leverages some more benefits of blockchain technology to add additional security to your trading.
A centralized White label Bitcoin exchange has two significant advantages:
- Allows you to buy cryptocurrency with fiat currency.
- Allows you to trade crypto assets between different blockchains.
How does it allow you to trade crypto assets for one another?
Let’s take an example of crypto assets like Ether and Bitcoin.
On a white label crypto trading platform, several assets are listed, which come from different blockchains.
What does that mean?
This means its distributed ledger of assets representing the value created in that Blockchain, which is a coin. Bitcoin it’s native crypto on the Bitcoin blockchain, and then other assets are like tokens built on top of the Blockchain. White Label Bitcoin Exchange allows you to trade Ether for Bitcoin but how these cryptocurrencies work is that their Blockchain backs them.
If you own Bitcoin, you only own it on the Bitcoin blockchain, and Bitcoin funds will be held in a Bitcoin wallet or a Bitcoin account address. If you own Ethereum or Ether, you only own it on the Ethereum Blockchain, and funds will be held in an Ethereum wallet or Ethereum address.
If you own Bitcoin or Ethereum, these two blockchains don’t know how to transfer funds from one to get another because, fundamentally, the underlying technologies are different with separate networks. These are two blockchains, and that’s where a centralized White Label Crypto Trading Platform comes in.
Once you’re in the crypto ecosystem, how do you trade assets from one to another?How does it allow you to make an order, swap to trade Ether for Bitcoin, or vice-versa?How does it give you all these trading pairs?
The first and foremost is to issue you an account for each network. You may do it with the help of the best white label cryptocurrency exchange software.
Thus, if you want to trade Bitcoin, it’ll create an account for you on the Bitcoin network, and if you’re going to try Ether, it’ll make an Ethereum account.
Accounts on blockchains are part of the cryptographic process. They’re composed of a public key and a private key. The private key generates a public key, which is like your password; that’s the thing you never want to show anyone.
On a centralized exchange, the private keys are managed by the exchanges. That allows you to trade off that so that you don’t have to work it like some people don’t even want to manage their crypto assets.
Despite recent downs, the crypto market continues to increase, and digital assets are growing in popularity, as can be seen by the statistics.
The crypto market is close to mass adoption, digitized assets are being used in many spheres, and the number of crypto skeptics is rapidly falling.
Institutions and private investors recognize crypto projects’ immense power and potential.
Digital currencies are also more popular than ever, and the number of digital currency wallets reached 74.7 million. With 18.57% growth in six months, the sector is now on the brink of mass adoption. Crypto holders must have secure, convenient platforms to store their funds.
