Before deciding you’re going to build your own cryptocurrency exchange, it’s crucial to estimate the inevitable costs and time associated with developing, maintaining and constantly upgrading your exchange software in-house.
Due to its inherently complex nature, developing your own crypto exchange software from scratch will be costly and could take up to 1-2 years of time until it works seamlessly (depending on your developers’ experience). Contingent upon the salary of your developers, their experience, and what functionalities you want to incorporate into your exchange (multiple languages, currencies, mobile application, etc.), development costs can quickly add-up to millions of dollars.
Additionally, you’ll have to make major decisions like selecting which bank or payment processor to partner with, determining how to implement best security practices as well as figuring out where to outsource and onboard your 24/7 customer support team.
Another significant roadblock many individuals and financial institutions come up against when attempting to build-out their own crypto exchange is liquidity. Every exchange requires liquidity at the start if it’s going to operate successfully. Customers are hesitant to place orders or even deposit funds unless they see a full order book and trading activity on your exchange. If you’re starting your exchange from scratch, you’ll have to kick-start your own liquidity. Do you have the time or access?
Of all the must-haves on your new exchange list, security for transactions and your customers’ data is paramount. Your exchange requires top-notch security to ensure the exchange operator’s and traders’ funds remain secure. This should apply to your customers’ private data too which include their KYC details and bank account information.
There have been numerous incidents of security breach at various exchanges like the infamous Mt. Gox breach where the security breach went unnoticed for years resulting in almost 1% of total bitcoins in circulation being stolen. According to a Reuters report, a third of all bitcoin exchanges operational during the period of 2009 to 2015 were hacked. The main take-away? Security mustbe your top priority within your exchange and therefore having an expert fintech and cyber security team in place to guarantee your exchange security is critical.
Fortunately, you don’t have to build an exchange on your own, nor for all of the aforementioned reasons is it recommended you do so. There is a smarter option and it’s called – Ibinex.
Ibinex is a private white label crypto to crypto exchange software solution for financial companies and individual traders. You’re already at an advantage going the white label exchange software route because it’s software that has already been thoroughly tested and proven to work (particularly the trade engine), while at the same time allows you to customize and alter the software to match your individual requirements (e.g. design, brand placement, languages, currencies, charting etc.).
Ibinex recently released its newest and improved version of its exchange software, built in-house by a team of experienced engineers and developers. One huge advantage of the Ibinex white label software is that you save yourself the hassle of dealing with technical requirements, implementation and ongoing maintenance. Since the core components (trade engine, wallet, UI and admin panel) have already been fully developed and thoroughly tested, essentially the only thing left for you to do is to customize the software to your preference and then focus on your business.
You save yourself time because the customization time is much shorter (in the case of Ibinex, less than a month) and, you save yourself a great deal of money because you pay significantly less for the Ibinex white label software license compared to developing one on your own.
Founder and Executive Director of Ibinex, Simon Grunfeld, says that the second version of the Ibinex platform features a fully integrated customer relationship management (CRM) system as well, helping exchanges organize customer data in addition to KYC/AML documentation collection verification plus account and money management.
The new Ibinex platform also incorporates an aggregated liquidity exchange providing clients with coveted access to first-tier top of book API bridges from more than 60 leading exchanges. By providing clients access to a listing of hundreds of cryptocurrencies, traders can rest assured they’ll never miss an opportunity to benefit from liquidity as trends shift.
One of the most notable advantages of the Ibinex platform is its compliant banking solution following the announcement earlier this year of the Ibinex EU licensure confirmation. The new EU license makes Ibinex the first-ever cryptocurrency exchange platform with a virtual exchange license offering fully compliant processing.
In addition to offering an EU licensed crypto exchange, the new Ibinex platform has advanced security and is guarded 24/7 in a private cloud. Crypto-based funds are held safely in shielded, impregnable cold wallets while cyber security experts maintain the platform around the clock. Ibinex ensures no weak links exist to threaten the stability and core security of its platform for its customers.
Gone are the days of spending operational time and money building-out your own exchange and privately sourcing crypto liquidity. Ibinex will do all that for you and more.