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.