Let’s meet the growing demand for cryptocurrencies right with the embracement of digital asset exchange software solutions from a leading white label cryptocurrency exchange software services provider Shamla Tech!
Come; let us have a quick insight into the digital asset exchanges. This blog is going to make you aware of every aspect that you need to know prior to starting up a cryptocurrency exchange platform. So read it till the end to grasp the entire information.
The world’s first and most famous cryptocurrency bitcoin is about to cross 10+ years of existence in the market and such fame has triggered the interest of some billions of entrepreneurs all across the globe towards introducing more and more innovative cryptocurrency types into the market every single day. The cryptocurrencies account for seamless and effective business transactions leading to improved consumer trust and immense profit forever.
With this in trend, the total number of cryptocurrencies has started to rise at a rapid pace, thus seeming to transform the world of finance on the go. This practice has led to the evolution of digital asset exchange software that finds its use cases in the arena of cryptocurrency trading software development or bitcoin exchange development.
The concept of decentralization even strengthens the process of digital asset exchange software creation leading to an improved level of liquidity from the business perspective. Hence the demand for white label cryptocurrency exchange software also increases substantially resulting in widespread adoption among the community of digital entrepreneurs.
Because of this growing demand, creating your own crypto exchange is a bit complex to go ahead with all the necessary considerations. Here is where we introduce our white label bitcoin exchange platform solutions that could help you come out with an excellent exchange marketplace right at ease and at a cost-effective budget.
What is the digital asset exchange software?
Digital asset exchange software is nothing but a collection of scripting codes necessary for the launch of a digital asset exchange platform. Yes! The software provides you with all the required features and functionalities so that you could be able to deploy your own cryptocurrency exchange with free of hassles. The exchange could be used for performing effective trades and for managing the crypto market situations at ease.
Here are some of the advantages offered by digital asset exchanges:
- No location constraints:
The digital asset exchange platforms are not location-specific. They offer access to users from all across the globe without any restrictions.
- No entry barriers:
There will not be any barriers for the users as the exchanges allow access to all user types irrespective of their status or any other considerations.
- Lesser investments: Starting up a cryptocurrency exchange platform will never ever demand the entrepreneurs to make huge initial investments; only a minimal investment amount is needed.
- Risk-free trades: As beginner traders, the users could perform risk-free trades at the start by making use of the virtual trading options provided by the exchange platform.
- Lower trading fees: Since a majority of the digital asset exchanges are fully automated, they impose only a small amount of commission charges for making trades. The process automation helps out as well in executing all the trading strategies efficiently without always keeping eye on it. The users here are permitted simply to place their trade (buy or sell) orders and let them get automated with all the conditions specified.
Digital asset exchange types at present:
- Centralized exchange: This exchange type stands as intermediates in connecting buyers and sellers having the same kind of service requirements. In simple terms, these exchanges work to match trades of similar service choice to close trades possibly at the instant. Here, charges are imposed on the users for making transactions from the exchange side. These exchanges are noted for their higher trading volume and robust trading network. The users who wish for the same can make use of these exchange types to get done with their trading operations.
One most vital feature of this exchange type is that it holds a single central point of control. This paves way for users to avoid unwanted hacks or security vulnerabilities that are possible within the system. Hence this type of exchange is considered as the risk-free exchange type of all the time.
- Decentralized exchange: Here there is no authority for control; instead there comes some kind of middlemen services to take charge over the control side of the exchange. Moreover, this type of exchange is highly flexible and their services are available at the lowest rates possible. Here P2P connectivity exists between the buyers and sellers when it comes to performing trades.
- Hybrid exchanges: This type is a combination of centralized and decentralized exchange types. Here, the trades happen with a blend of features of both the centralized and decentralized ones. They are simply noted for their ease of use, security, and top-notch liquidity. This type of exchange operates via smart contracts and this is the major reason why they have been gaining traction these days over the other exchange types.
Here is how the digital asset exchanges work:
White label digital asset exchange solutions have been getting familiar in almost all the parts of the world because of the better connectivity that they provide to the users. Here the connectivity refers to the aspect of introducing a link between the buyers and sellers of the platform depending upon the market conditions. The exchanges maintain an equilibrium condition that helps us balancing out both the supply and demand sides to come out with excellent outcomes ever.
We all know that if higher is the demand, and then better would be the value of the product or service in general. Here, the same criterion applies for the digital asset exchanges, where a consistent effort has been taken always to keep the value and demand high.
Factors to be considered for the adoption of a white label cryptocurrency exchange solution:
- Success track record: As there are numerous unsuccessful exchanges out there in the market, it is always vital to keep eye on the track record that a particular exchange holds as of now to avoid expectation disputes.
- Verification: security is of the utmost importance when it comes to any digital asset exchange as it involves a lot of financial transactions. So, picking up an exchange solution with high priority for security verifications is one most ideal considerations here.
- Trust: The embracement of an exchange solution with better trust among the users’ perspective can help increase the trading volume and profit in no time.
- Reviews: Going out through customer feedback can also help maintain the legitimacy of the business with ease.
- KYC and AML: Adherence to the basic authentication checks or procedures can help avoid unauthorized user logins and accesses thus helping the exchange get protected forever.
Must-have features in digital asset exchange software:
- Security
- Instant response to user queries
- Definitive control
- Flexibility
- Customization
- Scalability
- Easier access
- Currency deposit and withdrawal options
- Balance checking options
- Transaction history preview
- Trade order book maintenance
- Round the clock support.
Trade order types in the digital asset exchanges:
Every cryptocurrency exchange maintains the following order book types to facilitate smooth trades:
- Limit order: As the name implies, there is a set limit here for the trade orders to get executed in the exchange platform. Yes! A pre-defined limit is set beforehand for the users to make trades. The execution of trades happens once the price set limit is found to be getting exceeded or crossed over. In the case of buying assets, the execution of the buy limit order takes place at exactly the limit price or somewhat lower. Simultaneously in the case of selling assets, the execution of the sell limit order takes place exactly at the limit price or somewhat higher.
This order type has a greater influence over the market price conditions.
- Stop-limit order: It is nothing but a combination of a stop order and a limit order. In this type of trade order, two same or different price points will be set as pre-determined fixes for the trades to be carried out. Here, the stop order can be changed into a limit order, but the limit order cannot be changed anymore else. Stop-limit order books mainly support the trading of highly volatile asset types.
- Market order: This type of order is the fastest cum easiest way for traders to make trades in the exchange platform. Here, the trades get executed instantly on the go with no influence over the market situations. The buy and sell orders here will be closed at the best rates possible.
