Benefits of Centralized Exchanges

Centralized exchanges work as trading platforms just like traditional brokerage or stock market. A centralized cryptocurrency exchange does not give private keys to the users for their exchange account’s wallets. This puts all of the user’s funds under the centralized exchange’s monitor, as transactions could only be made through the guidelines and rules approved by the central authority, and in this case the centralized exchange. Most of the white label crypto exchange Software around the globe is based on centralized exchanges owing to thee several benefits that they provide.

Why do businesses still go with centralized exchange, while crypto is decentralized and ideally the exchanges in which they trade should be decentralized.

Here are some exceptional benefits of the centralized cryptocurrency exchanges:

1. Trade volume: CCE records higher trade volume than their decentralized counterparts. 99% of crypto trade is still happening on CCE.
2. Liquidity: Due to its centralized nature, liquidity providers find CCE a safe option to trade their liquidity, and thus you get higher liquidity with CCE.
3. Fiat currency exchange: While decentralized exchanges are exclusively for cryptocurrency, centralized exchange allows users to trade fiat with crypto and vice versa.
4. Functionality: Some centralized exchanges offer varied functionalities, including margin trading, discounts for higher volume trading, institutional trading tools and more.
5. Popularity: There are more number of CCE around the globe compared to DEX. At this moment the highest number of user registrations happen over centralized platforms only.
6. Insurance: nowadays some CCEs are insured. It means that users are guaranteed to get their money back if there are some adversities over the exchange.

While, these days, centralized cryptocurrency exchanges provide more functionality to their users, one must remember that the burgeoning cryptocurrency industry was born out of the emergence of blockchain (distributed ledger) technology. The emergence of cryptocurrencies as a new form of money has had a massive impact on societies around the world. Owing to legal compliances of CCE, they are a favorite amongst investors and government authorities and thus they get a better edge over decentralized platforms. Today every cryptocurrency exchange development company helps you in complying to all the legal and governmental norms and helps you build your own exchange at any location in the world.

Difference between Utility Tokens and Security Tokens

Utility Tokens

1. Utility Tokens Security Tokens Provide access to a service or utility. For example, Filecoin which provides users access to its decentralized cloud storage.
2. Not regulated, prone to scams
3. They are not investments, so there is no profit guarantee although their prices may appreciate
4. No powers or rights to investors

Security Tokens

1. Provide ownership of the asset. For example, Aspen Coins allowed investors an indirect fragmented equity ownership stake in the property.
2. Regulated, considered a safe investment option
3. Being investments you can expect profits, especially in the long run
4. Investors can vote and decide how company works

This is a small section from our extensive market report on security token Offering (STO). If you would like to get complete hold over the nuances of this market with the present and future predictions, the key players, and how to build your own security token exchange, click here for the full research report.

Types of White Label Crypto Exchange Software You Need To Know

The cryptocurrency exchange is like a stock exchange, but its focus is only the cryptocurrency tokens. The investors can change their cryptos to another token or trade it for the local fiat currency too. Let us see the types of white label crypto exchange software.

Centralized Exchange (CEX): It works as a traditional stock exchange where the exchange has an intermediary. The buyers and sellers carry out the transactions through a central authority. Moreover, you can also find many modern CEX based on the white label crypto exchange platform.

Decentralized Exchange (DEX): This exchange does not possess an intermediary, and traders can trade cryptos themselves. It provides security and private tokens to the users. The Decentralized white label crypto exchange is hard to hack because it uses encryption technology as users have private keys.

Hybrid Exchange: Hybrid BitCoin exchange software is a Smart trading platform that has the features of both centralized and decentralized exchanges. It consists of security like that of DEX and the usability structure of CEX. This exchange has a high level of liquidity and also offers the right amount of digital assets for doing trading.

All this cryptocurrency exchange software has its advantages that make them unique for investors. The exchange businesses can choose the platform based on business model. Also, they can consider the various aspects of security, usability, liquidity, fiat-crypto exchange, privacy, and much more.

Espay offers safe, secure, and feature-rich white label crypto exchange software. Our software facilitates established exchange businesses to grab more market share and startups to attract more investors offering smooth experience to traders.

The Function Of Stop & Limit Order In White Label Crypto Exchange

Various traders and investors have different trading practices. Some may hold the stock for the long term, and some other could not purchase stock at desired price. The stop and limit order is a feature that facilitates traders to sell or buy stock automatically at a specific price. The exchanges businesses can provide this feature to their trader through Crypto exchange software.

Not all cryptocurrencies are suitable for long-term investment. Traders need to be extra careful while investing them. The stop loss will help them to sell cryptocurrency automatically and minimize their loss.

The Stop Order proceeds when the order reaches the stop price, and the Limit Order instantly gets placed. Traders can sell their order below or little above the Limit Price. One thing trader must keep in mind that they should not take any emotional decision.

The cryptocurrency exchange solution does not take any charge for the service of stop and limit order. The broker gets commission only when the order executes.

It is essential to consider the market factors and capitalization of assets before buying or selling the orders. It helps growth investors, active traders, angel brokers, etc. to be saved from huge losses. The modern platforms like white label crypto exchange software also alert the traders about any slippage in prices.

The exchange businesses can avail the crypto exchange software from Espay Fintech. The software includes the features of stop and limit orders providing a seamless experience to the traders and investors.

Security Tokens Offerings Exchange — Extremely Potential or Short Lived?

Since five years of first ever ICO launch, it has raised more than $3.7 billion until December 2017. The year 2017 represents the upsurge of the funds raised with this new funding method. This chart showcases the cumulative growth of ICO. $5,642,588,112 is the overall extent of money raised from ICOs in 2017.

The traditional stock market was designed to be more/less predictable. There are no limits on the number of stocks of a specific organization. An additional portion of stocks can be issued at any time. It assures steadiness when supply as well as demand ratio shifts. On the opposing, utmost cryptocurrencies have a hard cap. i.e. Bitcoin is restricted to 21 million tokens, and this insufficiency drives the value up as the currency moves closer to mass-adoption. This kind of gap flanked by traditional and cryptocurrency markets removed by Security tokens.

In the base of this new paradigm of fundraising is the token and the tokenization of digital/physical assets. The security token signifies a tradable element of real-world value as well as offer a blockchain-assured transaction record. Blockchain connects multiple parties in the network of trust and reliability. It facilitates the transfer of assets as well as the detail regarding the assets.

Clearer rules and a regulatory framework are needed for Blockchain businesses for the securities which already exists. By getting cryptocurrency and institutional investors together in a highly liquefied, worldwide market, security tokens could bring the major shift in the world of asset and token exchange.

Challenges with the traditional approach

It needs an epic investment to earn money in security token exchanges. You can earn good amount if you also start with the little with patience. But complexity and low ROI will make think twice for the investors to enter in the market.

Though some trading applications such as eToro have made it effortless for unfamiliar investors to enter the market, you never own the crucial asset as well as trading will be expensive with spreads. Just like that if you need to invest in any property via a crowd funding website, your investment is tied up in a market. So whether its CFDs or crowd funding, it will not be the perfect option to traditional trading.

You might not have enough fund to purchase a share as per the size and type of asset you want to invest. You also need to spend for brokers or funding managers to buy or sell an illiquid yet desirable asset like fine art.

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Understanding the Different Areas of Digital Currency Solutions

Cryptocurrency

Cryptocurrency is a digital currency. Blockchain is the bedrock of all cryptocurrencies. It is globally accessible, decentralized, irreversible, anonymous, and extremely secure. There are more than 2000 cryptocurrencies with Bitcoin dominating half of the market share.

Cryptocurrency Exchange
A cryptocurrency exchange platform is where you can buy, sell or trade cryptocurrencies using another cryptocurrency or a fiat currency such as USD, Yen, or Euro.

ICO
An Initial Coin Offering or ICO sells utility tokens in exchange for cryptocurrency to raise capital. They are unregulated securities.

STO
A security token offering sells security tokens that, unlike utility tokens, are backed by tangible assets. STO investors also get voting rights or revenue distribution rights.

STE
A security token exchange platform or STE allows investors to sell, buy, and trade security tokens in a fashion similar to the conventional stock exchange.

This is a small section from our extensive market report on security token exchanges (STE). If you would like to get complete hold over the nuances of this market with the present and future predictions, the key players, and how to build your own security token exchange, click here for the full research report.

Things To Consider While Starting Your Whitelabel Cryptocurrency Exchange

Start уоur оwn сrурtосurrеnсу еxсhаngе tоdау… Crурtосurrеnсiеѕ pave wау fоr dесеntrаlizеd vаluе еxсhаngе via Blосkсhаin. Thе digitаl сurrеnсу еxсhаngе рrоvidеѕ a ѕесurеd рlаtfоrm fоr сrурtо hоldеrѕ tо buу аnd ѕеll numеrоuѕ сrурtосurrеnсiеѕ with еаѕе. Bу hаrnеѕѕing thе роwеr оf Blосkсhаin Technology, уоur dеdiсаtеd сrурtосurrеnсу exchange will rеvоlutiоnizе thе сrурtо mаrkеt.

Wе all know thаt сеntrаlizеd сrурtосurrеnсу еxсhаngеѕ are gооd but nоt thе bеѕt whеn it соmеѕ tо safety. Mоrеоvеr, inсidеntѕ ѕuсh as Mt. Gоx hасk аnd Bitfinеx hасk imbibе mоrе fеаr.

Dеѕрitе аll, wе аrе fоrсеd tо uѕе сеntrаlizеd еxсhаngеѕ whiсh fundаmеntаllу viоlаtе thе bаѕiс tеnаntѕ оf a dесеntrаlizеd сrурtо economy.

Yеѕ, forced tо uѕе bесаuѕе we dоn’t hаvе many орtiоnѕ соnѕidеring thе dесеntrаlizеd сrурtосurrеnсу infrаѕtruсturе аnd еxсhаngеѕ аrе ѕtill bеing built.

Thаt ѕаid, whеn thе dесеntrаlizеd infrаѕtruсturе iѕ rеаdу in a full-fledged mаnnеr, it will brеаthе a nеw lifе intо thе сrурtоѕрhеrе. People will bе аblе to раrtiсiраtе withоut wоrrуing аbоut thе ѕаfеtу оf thеir fundѕ.

• An еxсhаngе thаt аllоwѕ itѕ uѕеrѕ tо соntrоl thеir сrурtо fundѕ.

• An еxсhаngе thаt dоеѕn’t have a single роint of fаilurе likе сеntrаlizеd ѕеrvеr hоѕtingѕ оr dаtаbаѕеѕ thаt аrе рrоnе tо hасkѕ.

• An еxсhаngе that hаѕ nо truѕtеd third раrtу ѕеtuрѕ.

• An еxсhаngе thаt nо gоvеrnmеnt саn ѕhut dоwn likе thе Chinеѕе еxсhаngе ѕhutdоwnѕ.

• An exchange thаt iѕ nоt соntrоllеd bу a ѕinglе оr grоuр оf соmраniеѕ.

• An еxсhаngе thаt rеѕресtѕ thе privacy оf itѕ uѕеrѕ аnd dоеѕn’t ask fоr numerous rеgiѕtrаtiоnѕ аnd KYC vеrifiсаtiоnѕ.

Whitеlаbеl Crурtосurrеnсу Exсhаngе Sоftwаrе

Building a crypto еxсhаngе by ѕсrаtсh iѕ a tеdiоuѕ рrосеѕѕ. But rеѕt аѕѕurеd with сuѕtоm build whitе lаbеl сrурtосurrеnсу еxсhаngе software. Rеԛuirеmеntѕ саn bе сuѕtоmizеd ассоrdinglу ѕо уоu wоuld bе ѕаving сruсiаl timе аnd unfоrеѕееn соѕtѕ with whitе lаbеl сrурtо еxсhаngе ѕоlutiоnѕ.

Crурtосurrеnсу еxсhаngе ѕоftwаrе hаѕ fоllоwing features:

•  Mаtсhing Enginе with 20,000 TPS

•  Cоѕt еffесtivе thаn building frоm ѕсrаtсh

•  Highlу customizable

•  Prоviding Liԛuiditу thrоugh оrdеr rоuting

Сrурtосurrеnсу еxсhаngе ѕоftwаrе оffеrѕ:

• Suрроrtѕ major world fiаt сurrеnсiеѕ such аѕ USD, Eurо аmоng оthеrѕ

• Bаnk lеvеl dеfеnѕеѕ tо рrоtесt uѕеrѕ from hасkѕ ѕuсh аѕ 3-роint аrсhitесturе and DB encryption

• Multi-ѕignаturе cold wаllеt аnd еnсrурtеd hot wаllеt

• Multiрlе cryptocurrencies ѕuсh аѕ Bitсоin, Bitcoin Cаѕh, Litecoin, Ethеrеum, XRP, HCX аnd ERC20 tokens are ѕuрроrtеd

• Arсhitесturе аllоwѕ Cryptocurrencies to bе аddеd оr removed еаѕilу аѕ per уоur requirements

• The сrурtосurrеnсу еxсhаngе ѕоftwаrе iѕ a multiсurrеnсу, SеgWit еnаblеd, multi-signature, high frеԛuеnсу trаding рlаtfоrm fоr digitаl аѕѕеtѕ

• Enables уоu tо conduct geography specific user KYC аnd AML сhесkѕ fоr соmрliаnсе

• Dеfаultѕ tо price timе рriоritу mаtсhing еnginе but can bе сuѕtоmizеd as реr requirements

• The рrоduсt iѕ available in iOS, Andrоid and Web vеrѕiоnѕ

Dесеntrаlizеd еxсhаngеѕ will uѕhеr in a nеw wау оf ѕеаmlеѕѕlу, inѕtаntlу, аnd securely trаding сrурtо-аѕѕеtѕ. Thе рrоlifеrаtiоn оf thеѕе еxсhаngеѕ ѕuggеѕtѕ thаt imроrtаnt diffеrеnсеѕ аnd nuаnсеѕ might exist between рlаtfоrmѕ. Alеthiо, a dаtа еnginе аllоwing thе еxtrасtiоn оf rich dаtа frоm thе Ethеrеum blосkсhаin, wаѕ lеvеrаgеd to tаkе a dеер divе intо some оf thе mоѕt рrоminеnt dесеntrаlizеd еxсhаngеѕ.