Behind every seamless trade on a crypto exchange lies a complex, high-revenue mechanism. Users focus on buying, selling, and speculating. However, simultaneously, exchanges are quietly capitalizing on every transaction, every deposit, every listing — at scale. And with billions in daily volume, those seemingly small fees add up quickly.

In this article, we’ll break down the core revenue streams of cryptocurrency exchanges. From trading fees and withdrawal costs to premium features like margin lending, futures, and token listings. We’ll also reveal the emerging crypto currency exchange revenue models, like white-label licensing and institutional APIs (application programming interfaces).

Whether you’re planning to launch your own exchange or just want to understand how do currency exchanges make money — this guide is your starting point. 

Trading fees – the core revenue generator

In how crypto currency exchange generate income, trading fees come first. Commissions on trading are the primary mean for profitability of crypto exchanges. Every time an asset is bought or sold, the exchange captures a tiny fraction of the transaction.

Thousands or even millions of trades every day add up to a huge sum of money. For a large exchange like Binance or Coinbase, this single source of revenue earns them hundreds of millions of dollars annually.

Trading fees come in different forms, and exchanges apply them through different models. Makers (who add liquidity to the order book) are usually charged less than takers (those who take out liquidity), and this is what keeps the market balanced. Some platforms offer discounts for high-volume traders or those who pay with the exchange’s native token.

Trading activity persists whether the market is rising or falling. Users are rebalancing portfolios, hedging risk, or implementing strategies — and all transactions yield revenue. For businesses developing exchanges, optimizing the structure of trading fees has a direct effect on liquidity, user behavior, and market efficiency.

Withdrawal and deposit fees – transaction costs

Deposit and withdrawal charges are secondary but stable sources for profitability of crypto exchanges. They are used when funds are transferred onto or off of the platform, or to offset operating, network, and third-party payment processing expenses.

There are two common types of transaction charges:

• Withdrawal charges Often a fixed fee per asset (e.g., 0.0005 BTC) or dynamically calculated based on blockchain congestion or network gas fees. For fiat withdrawals, percentage service fees or flat rates apply, particularly when standard banking infrastructure or intermediaries are involved.

Margining over actual network fees is a strategy used by some platforms to enhance profitability. These fees can cover the operational costs of providing Fiat On/Off Ramp Services, which play a vital role in bringing in users from the traditional financial system into the crypto space.

These fees have operational functions as well. Fixed-rate withdrawal fees reduce spam transactions, while higher thresholds can incentivize users to keep assets within the exchange, increasing retention and potential activity on other features like staking, lending, or derivatives.

From a business perspective, transaction fees bring in constant income with minimal overhead. When scaled over a large number of users, even minimal fees contribute significantly to overall exchange income. For new market entrants, modeling deposit and withdrawal fee policies delicately is essential.

With well-structured fees, users can find a balance between liquidity retention and long-term monetization, while exchanges can optimize their Fiat On/Off Ramp Services for greater user acquisition and activity.

Listing fees – the price of exposure

When one googles about how do currency exchanges make revenue, they usually find out about listing fees. For most crypto exchanges, listing fees are a high-margin source of revenue directly tied to the visibility of the project. When new tokens require visibility, liquidity access, and legitimacy, appearing on a reputable exchange is critical for the investments to pay for.

Listing fees are generally a one-time payment made to token projects for listing on the order book of an exchange. Fees vary between $10,000 and more than $1 million based on brand awareness of the exchange, user base, and number of trades per day.

Accelerated listings, promotion packages, or special pairing plans are also available in certain exchanges at a premium fee. Some operate by application portals to list where they evaluate projects on compliance, prospective liquidity, and tokenomics. In DeFi (decentrilized finance) platforms, however, the regime shifts — community voting or liquidity contribution replaces direct fees.

While listing fees are controversial, they are a typical revenue component for centralized platforms. For exchanges, they pay for token integration, market arrangements, and advertising. For token projects, a listing is often a crucial point of entry to wider adoption.

Effective monetization of listings requires a balance between business needs and long-term reputation.  Overcharging or listing low quality assets damages user trust and market integrity.

Margin trading and lending fees – leveraging assets

Crypto margin lending and margin trading have become key drivers of profit for exchanges that offer financial derivatives with leverage. These services allow customers to borrow funds to take longer positions in their trades — and as a result, the platform captures stable, high-margin fee income.

Exchanges charge lenders interest on borrowed money in margin trading, often on an hourly or daily basis. Rates vary based on asset volatility, demand, and market conditions. Exchanges act as intermediators in most cases between lenders (often other users or liquidity providers) and borrowers, charging a spread on the interest.

Lending platforms, whether CEXs (centralized exchanges) or DeFi platforms, make money off idle customer funds by paying lenders returns and charging borrowers a premium. In CEXs, this is typically tightly integrated in the trading UI. In DeFi, it’s accomplished via smart contracts.

These products attract active and institutional traders drawn to capital efficiency. But they bring risk, and that’s why platforms create collateral requirements, risk engines, and automated liquidations.

For exchanges, margin and lending products are highly volume generators because they also add depth in liquidity and generate steady streams of revenue. Done well, they become core components of how do currency exchanges make revenue and a long-term monetization model.

Futures and derivatives trading fees – advanced instruments

Perpetuals and futures, alongside other cryptocurrency derivatives, have evolved. Both in regards to user need but as streams of high volume and high frequency revenue streams of cryptocurrency exchanges. They allow price speculation on price variation without exposure to the underlying asset, compounding leverage, as well as volume of trade.

On perpetual contracts — the most traded crypto derivatives — the absence of expiry dates encourages 24/7 trading. This generates volume, and volume generates fee income. Even a 0.01% fee per contract, levied on billions worth of daily derivatives volume, contributes significantly to how do exchanges make money.

Futures trading also brings institutional and algorithmic participants that rely on deep liquidity, low latency, and advanced order types. Exchanges react by making investments in infrastructure and risk management systems but, in turn, the reward is frequently well worth it.

Offering derivatives is no longer an option for competitive exchanges who look how do crypto currency exchanges make money. It’s an inherent component of the financial product stack, attracting customers and opening higher layers of profit.

Other potential revenue streams

Beyond basic monetization models like trading and withdrawal charges, there are numerous other streams of revenue in how do crypto exchanges make money. Some of which are high-margin, scalable, and unexploited. Whether you’re starting a platform or expanding an existing one, one of these models could be the perfect choice for your growth strategy. Below, we outline the most feasible options.

• Staking-as-a-service Exchanges offer staking for eligible Proof-of-Stake assets, undertaking the technical lifting while charging users a commission for rewards. It offers repeat income and on-platform asset retention.
• OTC (over-the-counter) services An OTC desk caters to high-volume traders, corporate treasuries, and institutional clients who also require large trades. In one OTC umbrella, various integrated revenue components such as the following emerge:

1. Customized spread pricing. With block or high-volume orders, the exchange negotiates tailor-made spreads based on market conditions and client profiles.
2. Block trade facilitation fees. Exchanges get paid facilitation or brokerage fees to reduce the market effect by simplifying big trades, usually with private execution.
3. Premium service fees. An over-the-counter (OTC) package that is based on services can include private account managers, faster payments, or in-depth research, generating service-based revenue.
4. Wealth management integration. Linking over-the-counter (OTC) services to overall wealth management plans (for example, custody, crypto-based yield products) helps exchanges keep customers and make more money from assets stored or managed on their platform.

• IEO/token launchpad services Emerging projects remit listing and marketing fees in order to bring their tokens out through exchange-listed IEOs. Revenue and user action accrue to the exchange while offering early investors access to screened assets.
• White-label licensing Leasing or selling your exchange infrastructure to third parties enables quick entry into the market for new market participants. The white-label model creates initial revenue, repeated maintenance contracts, and expands your ecosystem footprint.
• API monetization Fast-performance APIs, high-end data feeds, or low-latency infrastructure are most often paid by sophisticated or institutional traders. This exposes a high-margin B2B revenue channel with minimal user-facing complexity.
• Data services Real-time and past trading data can be sold to researchers, analytics solutions, or trading firms. High-volume and clean-data exchanges have a competitive advantage in this market.
• Subscription models Offer premium functionalities like deep analytics, reduced charges, personalized alerts, or priority support for monthly payments. This model increases the predictability of revenues and the retention of users.
• NFT marketplaces Combining NFT minting, trading, and drops brings in additional revenue from listing fees, transaction fees, and creator fees. It also brings in a new, usually highly engaged, user base.
• Advertising and sponsored listings Projects and partners pay for placement on home page banner, trading screen, or token recommendation. This model derives revenue off-platform traffic without touching core exchange mechanisms.
• DeFi aggregation As a gateway to DeFi protocols (yield farming, lending, swaps), it enables your CEX to collect a small fee on routed trades — combining centralized UX with decentralized backends.
• Asset management tools Providing portfolio dashboards, tax reporting, or auto-strategies as premium features helps monetize user convenience, especially for institutional or high-net-worth clients.

Keep in mind that diversifying revenue gives you a competitive advantage. As crypto infrastructure matures, exchanges that are able to package services and scale across verticals are more likely to capture long-term value.

Custody solutions

With institutional and high worth investors entering the crypto space, demand for compliant and secure custody solutions grows exponentially. For centralized exchanges, custody solutions instill confidence among risk-averse customers and uncover a high-value revenue stream. Following are key ways exchanges can monetize custody services:

Institutional custody fees

Institutional-sized custody is required for family offices, corporate treasuries, and large funds to protect material holdings. Offering segregated accounts, audited procedures, and regulatory compliance allows exchanges to impose recurring custody fees. These may be tiered by assets under custody size, offering a stable and repeatable revenue stream.

Insurance premium sharing

Partnering with insurers to cover digital assets is reassuring to clients. As the exchange negotiates on behalf of holders to obtain group coverage for cryptos held in storage, it can take a share of premiums users pay to provide extra protection. With a focus on the type of insurance coverage (theft, hacking), exchanges justify premium pricing to institutions that refuse to take the risk themselves.

Multi-signature wallet services

Companies seek advanced security features like multi-signature schemes, where several participants must approve transactions. Offering customized multi-sig solutions—right down to bespoke control settings—warrants higher service fees. As an advanced security feature, it’s a compelling selling point for clients requiring strong internal controls.

Cold storage management fees

The most secure location for long-term digital asset storage is offline—so-called cold storage. But keeping air gapped servers, safe vaults, and 24/7 surveillance requires specialized infrastructure and operational expertise. Dedicated cold storage allows exchanges to earn additional management fees, mainly from institutions requiring verifiable offline custody.

Market making services

Market making is the art of selling and buying orders to the spread to be tight and price discovery to work efficiently. For a CEX to operate its own desk or to share with professional market makers unleashes mammoth revenues:

Spread capture

By repeatedly quoting buy (bid) and sell (ask) orders, a market maker profits from the difference—or “spread”—between the two. Across large volumes of trades, the aggregate total of these small profits is large, especially when spreads are best manipulated for volatility or liquidity.

Arbitrage opportunities

Watching several pairs of trades or off-board markets for price imbalances enables instant buy-and-sell trades at profit. In addition to creating direct revenues, these also contribute positively to market efficiency, boosting trader confidence and strengthening the exchange’s reputation.

Liquidity mining programs

Users incentivized to provide liquidity (usually through token rewards or reduced fees) vastly amplify trading volume and activity. Although these rewards are a one time cost, they usually pay for themselves through strong network effects.

Quick summary:

• Smaller spreads and higher liquidity attract both recreational and sophisticated traders.
• Low risk, high frequency arbitrage provides consistent profit.
• Incentivized liquidity mining promotes longterm user loyalty and trading habits.

Educational resources and premium research

Delivering better learning resources and professional insight raises a CEX beyond a trading hub. Profiting from such, an exchange earns consistent revenues, fostering trader trust and reliability.

Trading courses and certification programs

Exchanges establish formal courses, ranging from digital asset fundamentals to advanced technical analysis. Charging enrollment fees or even premium membership tiers—complete with certification—bring money and enhances user confidence and proficiency. In most instances, this results in higher trading volumes on the platform.

Market research reports

Issuing regular, detailed reports of crypto market movement, regulatory updates, and emerging trends can be a powerful differentiator. Such reports can include:

Selling subscriptions or providing access on other tiers, the exchange can ensure a consistent stream of recurring income. Plus, high-quality research serves to solidify your role as an authority of trust.

Trading signals

Not everyone who trades needs to conduct his or her own technical or fundamental analysis. Intraday trading signals, driven by algorithmic bots or in house specialists, can be sold as a subscription product, generating additional income. 

Such a product is of use to customers requiring instant, fact based advice so that they may make speedy choices during volatile market conditions regardless of their crypto knowledge.

Expert webinars

Live events with industry experts, experienced traders, or in house analysts offer a direct channel for knowledge sharing and user engagement. A concise list of possible formats could be:

The webinars can be offered free to build platform reach or reserved for subscribers, while driving premium subscription revenues. Either way, they advance the exchange’s role as an informed marketplace.

Enterprise solutions

Large corporates often have more high-end needs—whether bulk settlement or effective treasury management controls. By offering enterprise-grade solutions solving these problems, a CEX can be the one-stop collaborator and enable lucrative B2B revenue avenues.

• Settlement services. Ensures quick and secure settlement of bulk transactions to institutional clients at low counterparty risk and cost of operations.
• Treasury management tools. Offers automated liquidity, multi-currency asset management, and real-time reporting—enabling business entities to maximize capital deployment and minimize market risk.
• Corporate account services. Streamline access, onboarding, and transaction management for organizations with complex operational and compliance needs. May include:

1. Multi-user access – Manage roles and permissions for various employees.
2. Dedicated onboarding – Streamlined KYC procedures tailored to corporate entities.
3. Bulk transaction processing – Efficient solutions for batch payments, payroll, or vendor payments.
4. Compliance reporting – Automated solutions to manage regulatory compliance.

• Integration solutions. APIs and custom connectors offer simple integration with enterprise resource planning (ERP) solutions, streamlining the operations efficiency and transparency of the data for business customers.

Examples from leading exchanges

Here are the widely known exchanges and how they apply the revenue strategies mentioned. Use them as inspiration, but don’t hesitate to experiment with methods that suit your platform and audience best.

1. Binance

Binance achieved market dominance by focusing on fast-paced innovation—launching new product offerings (like futures, staking, and NFTs) faster than anyone else. With a strong native token (BNB) that rewards users with trading fee discounts, the platform has established a gargantuan global user base.

2. Coinbase

Coinbase is the most user-friendly platform, prioritizing regulatory compliance and simplicity. Its paid model—advanced tools and in-depth analytics are behind paid tiers—sets it apart in its monetization beyond typical trading fees.

3. Kraken

Kraken focuses on security, stability, and advanced trading. Known for offering margin trading and futures with competitive fee rates, Kraken also provides robust staking services. Meeting the requirements of retail and institutional traders, Kraken maintains over one profitable revenue stream.

4. Huobi

Huobi utilizes its strong presence in Asian markets, providing a wide coin offering and local fiat gateways. Through Huobi Prime (its initial exchange offering platform) and other international partnerships, it has expanded into token listings, fiat on-ramps, and high-end corporate services.

5. Bitfinex

Bitfinex has carved out a niche for institutional and more sophisticated traders, with a sophisticated interface, several order types, and an active margin funding market. This segment of sophisticated traders also actively trades derivatives, earning steady fees.

6. OKX

OKX stands out with its broad derivatives coverage, high liquidity, and international reach. By bringing DeFi protocols onto its platform, it appeals to both institutional crypto traders and users who are exploring decentralized finance—another diversification of its revenue streams.

These success stories cite a very valuable lesson: none of these approaches is a single guaranteed way to ensure the profitability and longevity of a crypto exchange. Instead, what works best is the blending of multiple revenue streams.

From simple trading commissions to complex enterprise offerings, institutional custody solutions, and interactive learning modules. Whether you want to become the next Binance or find your own area like Bitfinex, the best way to make money is to use a variety of methods.

Conclusion

After looking into main and secondary ways of how do exchanges make money, one thing is clear: they don’t make money from just one feature. In how crypto currency exchange generate income, the secret is to mix different revenue sources. Such approach allows to make steady, scalable money both actively and passively. 

Which revenue model you choose will rely on the type of platform you’re making. Plus, consider whether you want to get a lot of users quickly, make the platform popular with institutions, or keep it stable over time. Some exchanges make the most money by offering high-frequency trading goods.

Others give premium services like staking, APIs, and white-label solutions. When you learn how do currency exchanges make money, ensure your stack works for both your customers and the business running the API.

In the end, opening an exchange is only one part of the success. The key to long-term success is creating a system that keeps making money and grows it. Peiko is ready to show you how do currency exchanges make revenue on your own example! Contact us and let’s build the profitable white-label solution.

FAQ

People are always looking for a streamlined way of starting their crypto exchanges with little work. Two standard solutions are private label and white label solutions. 

Before making a decision you should compare white label versus private label. By choosing white-label solutions, you get a ready-made platform that can be adapted to your needs, including customization of the design and some functions while maintaining the overall structure. 

In turn, private label solutions allow the business to have full control over the design, functionality, and specifications of the product. Yes, this gives more freedom but requires more effort and resources for customization. 

So, which one wins in the comparison – private label versus white label? Let’s discover more details on how these solutions differ and which one to select. 

Defining white labeling

White labeling cryptocurrency exchanges involves using a pre-existing platform provided by a third-party supplier that can be rebranded and simply tailored to meet the business needs. The product already includes all the fundamental elements, such as trading engines, wallets, and payment integration. 

Companies can personalize the look and branding (e.g., logos, colors), but the underlying software remains unchanged. White label solutions are best for those who want a fast go-to-market solution with low development outlays.

Advantages of white-label crypto exchanges

Let’s reveal the main benefits of white label solutions. Why are they so popular instead of development from scratch?

Quicker market presence. White-label crypto exchanges allow businesses to swiftly launch their platforms without the long and time-consuming process of obtaining a custom solution. Pre-made platforms give businesses the power to go live within weeks, leading to a head start in the fast-changing crypto market.

Cost-effective. Building a crypto exchange from scratch is time and money-intensive. White-label options provide a more affordable solution by reducing development expenditure, enabling companies to direct their capital towards other vital sectors like marketing, liquidity, and retaining customers.

Trusted, proven technology. White-label exchanges possess tried-and-tested, secure, and scalable technology that has already undergone testing by its provider. This minimizes the risk of launching a new exchange, providing firms with a sound platform to launch straight away.

Who is it for?

• Startups or entrepreneurs who are ready to quickly deploy a crypto exchange.
• Those who want market entry with low development costs.
• Companies focused on user experience and brand identity.

Defining private labeling

Private labeling meaning for crypto exchanges that you get a fully customizable platform in which you are fully in charge of all the elements of the exchange. This method allows businesses to personalize the design, functionality, and technical specifications of the exchange based on their exact needs. 

Whatever the custom features, integrations, or custom user interfaces, private labeling provides full freedom for your company. It is typically the choice for those businesses with the means and capability to build an entirely customized exchange experience.

Benefits of private label crypto exchanges

What are three main advantages of private label solution for cryptocurrency exchnages? Here are they:

• Complete customization. Private-label crypto exchanges allow businesses full autonomy over all aspects of the platform, from the interface to functionality. With that level of customization, businesses are able to build a tailored user experience that most suits their brand and market needs.
• Complete branding control. With private-label solutions, businesses own complete control over their platform’s branding, user interface, and pricing models. This provides an opportunity to create a highly tailored exchange that is coherent with the company’s vision and strategy.
• Scalability for future growth. For businesses anticipating aggressive expansion or with specific needs, private-label exchanges provide greater scalability. Companies are able to easily convert and scale the infrastructure of the platform for growth, and hence, it is a good choice for large organizations or businesses that need considerable flexibility.

Who should select it?

• Current businesses with the means to build a fully customized exchange.
• Businesses needing a unique platform with custom features to stand out in the marketplace.
• Organizations that desire total control of the security, design, and functionality of the platform.

Our white-label solution includes the benefits of both private label and white label solutions, offering businesses full control over branding and features and comes at an affordable price. 

Core differences: Private label vs white label

So, software private label or white label solutions? Choosing the right platform model to host your cryptocurrency exchange can make a huge difference in the success of your business strategy. Below, we explained the key differences between the two models:

Customization flexibility

White label. This choice offers pre-configured platforms with the ability to customize somewhat. You can usually customize things like logos, color schemes, and basic design elements. But the underlying functionality is the same for every business using the solution, so you won’t have extensive control over features or back-end operations. It is one of the main white label private label difference.

Private label. The software is where the level of customization is at its maximum. In this case, you’re provided with full freedom over the functionality, design, and technical aspects of the exchange. It means you can tailor the platform to meet your business’s unique needs, provide customized experiences for users, and include custom features.

Level of control

White label. In this case, the infrastructure and software below belong to the platform provider. While you can make cosmetic adjustments like branding and some functional tweaks, most of the system is handled by the provider, including updates, security, and maintenance.

Private label. You get full control of the platform’s architecture. Everything from the user interface to the back-end layout can be defined by you on how it all works. This option gives the full liberty to customize, maintain, and revolutionize your exchange platform in whatever form you choose, without depending on a third party.

Time to market

White label. The greatest advantage of a white label solution is how quickly you can deploy your exchange. Since the platform is already built and operational, you can skip the development stage and go straight to branding and deployment. This is an ideal option for businesses that must enter the crypto arena quickly and start serving users.

Private label. Alternatively, private label solutions require more time to develop. Since the platform is being developed from scratch, it will take months, depending on the level of customization you need. This longer timeframe enables you to build a very specific exchange but at the cost of slower entry into the marketplace.

Cost implications

White label. Comparing white labeling vs private labeling, white label solutions are cheaper. As the platform is already created and the provider is reselling it to multiple customers, the cost is shared. Your only expenses to incur are branding, minor customizations, and operational setup.

Private label. Such solutions are significantly more expensive. The reason lies in the custom development, which takes specialized technical teams, designers, and more resources to bring your vision to life. The cost is justified by the highly customized platform and outright ownership of its functionality.

Comparison table: Difference between white label and private label

You can see a comparison table where we summarize the core differences between these two types of solutions.

Choosing the right model for your business

Between the white label or private label cryptocurrency exchange platform lies a decision influenced by a series of factors depending on your objectives, available means, and timeline. It is important to understand white label private label difference to make the best choice for your exchange.

Select white label if:

• You require swift, low-budget entry into cryptocurrency.
• Your expertise is branding and marketing, not creating a platform from scratch.
• You lack technical resources or capital to create an in-house bespoke exchange.
• You need a turnkey solution with minimal adjustments that can be quickly deployed.
• You don’t want to be encumbered by the intricacies of platform maintenance and updates.

Pick private label if:

• You have a large budget and need to create a fully customized cryptocurrency exchange.
• You want total control over the user experience, functionality, and technology of your platform.
• Your firm has the resources (or can outsource) to manage ongoing development, maintenance, and expansion.
• You are keen on building a very differentiated product that will stand out in the market with unique features.
• You are prepared to spend time in a longer development process to build a fully customized exchange platform.

Comparing private labeling vs white labeling, white label solutions are optimal for individuals who want to develop crypto exchanges rapidly with minimal technical hassle. Select private label solutions if you have unique requirements and desire to develop a platform for your specific needs. 

Weigh your company’s resources, goals, and timeline to decide which model – software private label or white label solutions – is most appropriate to your plan.

Start crypto exchange with us and enjoy the ready solution in 3 weeks 

At Peiko, we provide a world-class white-label crypto exchange solution that can have your professional exchange live in as little as 3 weeks. This solution has you generating revenue earlier with a solid, secure, and fully customized CEX (centralized exchange) platform that stands out in today’s competitive environment.

Our white-label crypto exchange solution offers you a flexible, scalable, and secure platform, allowing you to focus on brand building and user acquisition while we deal with the technical complexities. Through our innovative technology, you can give your clients a seamless trading experience from day one.

Advanced features of our white-label crypto exchange

1. Complete trading functionality with TradingView integration

Our exchange platform has everything your users need for successful trading. From spot to market orders with instant execution, in crypto, every millisecond counts. The OrderBook matching engine ensures quick order execution, and the TradingView charts integration allows users to analyze market trends in real-time and make smart choices.

2. High performance with microservice architecture

Our platform is powered by a sophisticated microservice architecture that enables the exchange to handle 10,000 transactions per second. This highly scalable framework places your platform in the same league as leading exchanges, so it’s simple for you to keep up with your increasing number of users. With autoscaling, your platform scales to increasing demand while optimizing server usage and minimizing expenses.

3. Deep liquidity for seamless trading

To ensure a seamless user experience, we’ve pooled liquidity from top providers Huobi and B2C2. This enables deep liquidity, which translates to faster order execution. Should additional liquidity be needed, additional providers can be added with ease, so your platform remains competitive and efficient.

4. Streamlined admin panel for effortless administration

Running a crypto exchange is not just about creating the platform, but an issue of control and management. Our user-friendly admin panel allows you to manage users, set commission rates, and monitor platform activity in real-time. With a secure, no-access feature to funds, you can be in full control of your platform while keeping users’ information protected.

5. Quick setup & affordable pricing

With Peiko’s white-label solution, you can have your exchange operational in as little as 3 weeks a fraction of the time it would require to create a platform from scratch. And our one-stop solution comes in at 5-6 times lower cost than bespoke-built exchanges. That means significant savings for you. You also get full rights to the setup code, making customization further down the line that much easier.

Additional features:

• Improved OrderBook matching for a better user experience.
• Trading Bots and liquidity enhancements for better market performance.
• Zero commissions for users on the exchange, similar to Binance.
• Fast pair addition — add new trading pairs in 2-4 minutes.
• Fireblocks Custody for top-tier security.
• Safe sign-in/sign-up with 2FA for an additional layer of protection.
• KYC Integration using SumSub for regulatory compliance.
• Bespoke code for future scaling and expansion.
• Integration with Azure, AWS, and Google Cloud.
• Blockchain fee pre-check before withdrawals for transparency.
• User cabinet for convenient account management.

Don’t wait to get into the booming crypto startup space. Let’s begin the process of launching your exchange using the most secure, efficient, and affordable white-label solution on the market.

Conclusion

Now, you have all the information to decide between private vs white label solutions. Both white label and private label products have their own target audience. White label products are ideal for entrepreneurs who want a quick and easy way to rebrand an already developed and tested product. Private label products give you full control over the branding, design, and even the functionality of the product. The final choice depends on your goals, your time, and your budget.

If you are interested in entering the crypto arena and need a fast, customized solution, Peiko’s white label crypto exchange platform is exactly what you need.
Contact us today and get a functional crypto exchange in the shortest time!

FAQ

Cryptocurrency exchanges are online sites where digital currencies are exchanged. These platforms come in three types: centralized exchanges (CEXs), decentralized exchanges (DEXs), and, also, hybrid crypto exchanges (HEXs). How do they differ?

CEXs are controlled by a central entity. Typically, these platforms offer a simple interface. DEXs, however, are done without a central agency. They provide more freedom for individuals with their ownership and greater anonymity but have greater navigational complexity. 

HEXs combine both DEX advantages and CEX key benefits. These exchanges offer decentralization benefits with some aspects of centralization, like a more simple user interface.

Want to learn more about the differences between these types of exchanges? This article is for you.

Centralized exchanges

Let’s talk about CEX advantages and drawbacks. These are platforms on which users are able to buy, sell, and trade cryptocurrencies, with the intermediary being the exchange. Centralized exchanges manage the entire process of the transaction, ranging from matching buying and selling orders to keeping users’ funds. 

Some of the well-known centralized exchanges include Binance, Coinbase, and Kraken.

The interesting thing about CEXs is that they rely on a central authority to regulate their operations. It is such an arrangement that the users must trust the platform in order to safely handle their funds as well as personal information. In return, centralized exchanges offer the user such advantages as plenty of liquidity, easy-to-use interfaces, as well as a variety of cryptocurrencies. They also offer customer support, which can be extremely helpful.

However, despite CEX advantages, there are risks with centralized exchanges as well. Since they keep their users’ funds with them, they are exposed to hacker attacks, regulatory issues, or technical failures. Under such circumstances, the users stand to lose their money. Furthermore, since CEXs provide control over the assets of their users, they differ from decentralized exchanges, where the users are in complete control of their money.

CEXs are popular because they are easy to use and convenient. They are regarded as being a secure method of trading, especially for new cryptocurrency traders. A key advantage of CEX is that clients within CEXs do not pay gas fees for transactions and only pay when depositing or withdrawing funds.

Decentralized exchanges 

Such platforms enable direct exchange between users of cryptocurrencies without the use of an intermediary. Founded on blockchain technology, DEXs execute trades through smart contracts rather than a central authority. 

Examples of such DEXs are Uniswap, SushiSwap, and PancakeSwap.

DEXs tend to have more anonymity, as they do not involve comprehensive identity verification processes (KYC/AML) like in most centralized platforms.

But DEXs present their own issues. Without the central organization, they are often more complicated to use, perhaps making them less attractive to new entrants. They are also less liquid than centralized exchanges, which could result in worse trading conditions for larger trades and more slippage.

Despite these limitations, decentralized exchanges are increasingly becoming a popular option for those who need secrecy and asset control.

Hybrid exchanges 

This third type of exchange merges the strengths of centralized and decentralized exchanges. They offer users a composite trading experience that brings together convenience, security, and control. Having the best of both worlds, hybrid crypto exchanges fuse centralized order matching and settlement with decentralized aspects like self-custody and peer-to-peer transactions. 

Some examples of such platforms are DeversiFi and Nash.

One of the biggest HEX advantages is that it provides the user-friendly functionality of centralized exchanges, such as fast trade execution and high liquidity. At the same time, they allow users to retain control of their assets, such as decentralized exchanges.

The model reduces the risk of having funds under the control of a centralized platform. Hybrid crypto exchanges also typically offer advanced trading options, such as spot and derivatives trading, for more skilled traders.

Hybrid cryptocurrency exchanges are still in their early days, and the technology that supports them is continuously developing. While they attempt to balance the experience, they may not yet equal the liquidity or security that is offered by purely centralized exchanges. Also, the user experience can be inconsistent since some hybrid platforms are still fine-tuning their features and user interfaces.

Despite these challenges, hybrid crypto exchanges are an attractive middle ground for traders who desire both security and speed, along with greater control of their assets.

Comparing CEXs, DEXs, and HEXs

When selecting a cryptocurrency exchange, it’s important to understand the distinctions between centralized exchanges, decentralized exchanges, and hybrid platforms. These different crypto exchanges offer unique benefits and drawbacks, making them suitable for diverse types of users. 

Below you can see a comparison table with the key features of each platform.

What to consider when choosing between different crypto exchanges

When designing to build your own cryptocurrency exchange, choosing the appropriate type—centralized, decentralized, or hybrid—is important to achieving your objectives. The model of exchange you use will determine everything from the user interface to regulatory approval. 

So, what should you consider when deciding between different types of cryptocurrency exchanges? 

Target group and user experience

If your aim is to serve beginners or retail traders, then a CEX may be the optimal choice for you. It will generally be simpler to operate than a DEX, with easy interfaces and support from customers, which tends to appeal to newcomers. 

If you wish to serve more professional traders or those who like to be in charge of their investments, then a DEX or a hybrid exchange crypto may be more appropriate to such a strategy. These ones give more freedom but at an increased learning expense for both developers and users.

Security and control

One of the most important considerations in building an exchange is how you are going to manage user money and security. 

CEXs keep users’ money and, therefore, become primary targets for hacks, so excellent security is a necessity. If control of user funds is paramount, you can use the benefits HEX or DEX, which both enable users to keep their private keys in control. 

Liquidity considerations

For an exchange to be successful, it has to be extremely liquid. CEXs tend to fare well here since they have centralized order books and increased market depth. This makes them attractive to traders who are interested in fast execution and high volumes of trades. 

Liquidity problems may arise with DEXs, especially for smaller-hyped tokens or periods of low volatility. HEXs are more liquid than DEXs but less than a fully centralized exchange. If liquidity is essential to your business model, a CEX may be the best choice.

Regulatory compliance and privacy

If you’re designing an exchange that will be serving international markets or international markets with strong regulatory compliance, CEXs will be more likely to fall under regulatory supervision. This will necessitate them to have KYC and AML procedures. 

On the other hand, DEXs do not usually work under KYC limitations, offering greater anonymity to users. They will, however, need to deal with regulatory challenges, depending on the state or country. HEXs provide a middle ground, with some anonymity benefits and more formality than DEXs, which will appeal to some users and markets.

Fee structure

CEXs normally have more favorable fees on trades, possibly attracting high-frequency traders. However, they may also charge some other withdrawal or deposit fees. DEXs will often have higher transaction fees because of the expense of the blockchain network.

HEXs, while typically having a fee structure between DEXs and CEXs, may still need to factor in network congestion and blockchain transaction fees, especially if they are combining on-chain and off-chain features.

Development sophistication and maintenance

CEXs are generally more complex to implement and maintain due to the demands for secure, centralized infrastructure, sophisticated trading engines, and regulatory acceptability. 

On the other hand, the construction of DEX would typically be simpler in infrastructural aspects because the exchange is not centrally controlled. Despite the DEX advantages, they are need maybe more attention to building smart contracts and user interfaces would be required. 

HEXs combine system complexities and would potentially require an advanced technical stack to balance decentralized liquidity with centralized order matching.

Launch your own crypto exchange fast with Peiko 

Skip the lengthy development cycle and have a fully branded, white-label exchange launched in just three weeks (!). Our solution offers a professionally designed platform that is launch-ready quickly and efficiently.

Peiko’s exchange provides seamless TradingView integration, real-time market data, and analysis tools for professionals. It is built on a scalable microservices architecture for high liquidity and commission-free automated trading. Security is prioritized with Fireblocks for custody, 2FA, and data encryption for safeguarding. You are in full control with a customizable admin panel for managing users and orders in real time.

Our solution offers a rapid start, scalability, and peak performance, with 24/7 support and regular updates. And you can choose your hosting platform from top providers like Azure, AWS, and Google Cloud.

Conclusion

If you are at a crossroads of what types of crypto exchanges to create, you must weigh factors such as control, liquidity, security, and regulatory requirements. If ease of use and liquidity are your priority, then CEX is the direction to go. If privacy and decentralization are your concern, then DEX or HEX platform is probably what you need.

The Peiko team offers you a unique solution on how to create a reliable cryptocurrency exchange in just 3 weeks. If you are interested in how our team can help, contact us today.

FAQ

Сreating a new exchange from scratch can be quite challenging and time-consuming. White label crypto exchange software provides an effective solution, enabling businesses to introduce their own platform within a matter of weeks without needing to develop it in-depth or invest much capital. 

The pre-developed software enables businesses to rebrand and tailor the platform to meet their needs, offering a faster, more affordable entry into the market. The main advantages of such out-of-the-box solutions include decreased setup time and cost reduction for launching your own crypto exchange.

What is a white label cryptocurrency exchange?

A white-label crypto exchange is a pre-built platform that enables businesses to quickly deploy their own cryptocurrency exchange with minimal development effort. These solutions come with essential features such as trading engines, order matching, and wallet integration. All these features can be branded and customized to meet a business’s requirements and branding.

Why is it worth using a white label solution for crypto exchange development? Building a crypto exchange from the ground up with basic features would typically take 8-12 months, and more advanced platforms could take 16 months or longer. 

However, with a white-label offering by Peiko, businesses can have an operational, pre-made platform online in 3-6 weeks.

Also, the cost difference between launching a crypto exchange from scratch and using an out-of-the-box solution is significant. If the first variant may cost more than $500,000 depending on features, the second option will cost you just around $90,000.

In general, the most significant benefits of a white label centralized exchange are the development speed and cost advantages. 

Architecture of white-label crypto exchanges 

Let’s consider the essential features of white label software. 

1. Core infrastructure

The core infrastructure includes the fundamental components that ensure the seamless, safe, and efficient operation of a crypto exchange platform.

• Trading engine Processes order matching and trade execution in real time.
• Wallet system Manages hot and cold wallets to securely hold digital assets.
• Liquidity integration Aggregates liquidity from multiple sources to offer stable price and volume.
• Security A white label cryptocurrency exchange features robust encryption, multi-signature wallets, and frequent security audits.

2. Customization options

White-label crypto exchanges come with a set of customizable features that allow businesses to tailor the platform according to their brand and user needs.

• UI/UX (user interface/user experience) Fully customizable user interface to accommodate a company’s branding and user experience.
• Trading features Triggers like margin trading, advanced charting, and staking can be added.
• Payment gateway Features a broad range of fiat-to-crypto payment methods.
• API access For third-party services like trading robots or analytics portals to connect to.

3. Compliance and regulatory tools

White-label platforms should be pre-equipped with the regulatory tools like SumSub needed for adhering to legal stipulations and for combating financial crimes.

• KYC/AML Combined tools for identity verification (know your customer) and anti-money laundering compliance.
• Transaction monitoring Tracks and alerts suspicious activity to meet regulatory requirements.
• Audit trails Keeps detailed records for transparency and auditing.

4. Platform management

These tools allow businesses that choose to buy white-label solutions to manage the operational aspect of their crypto exchange efficiently.

• Admin dashboard Single point of management interface for managing platform operations and administering user accounts.
• Risk management Monitors trading activity and adjusts limits based on market conditions.
• Analytics Real-time analytics into platform performance and user activity.

Below, you can see an example of white label centralized crypto exchange software architecture. 

How does a white label exchange work? 

Let’s take a step-by-step look at what happens from the beginning when you purchase such a white label solution.

Initial consultation and personalization

After purchasing the white-label solution, firms collaborate with the provider. It is important to define branding, user interface preferences, as well as individual functionality needs. The platform is next customized to meet these preferences.

Platform deployment

Once the customization process is complete, the exchange platform is hosted on a secure server or cloud infrastructure to ensure optimal performance and uptime. The company is given access to the admin dashboard so that they can run and manage the exchange effectively.

Liquidity and payment gateway integration

The white label exchange platform is linked to liquidity providers, ensuring adequate trading volume and stable prices. Fiat-to-crypto payment gateways are also set up, allowing users to receive and send funds without any complications.

Compliance configuration

KYC and AML procedures are implemented to validate user identities and ensure regulatory compliance. Transaction monitoring software is also integrated to flag suspicious activities and keep the platform in a manner consistent with the law.

Day-to-day operations

The provider handles back-end operations like maintenance of the platform, software, and ongoing security monitoring, while the company focuses on customer acquisition, marketing, and support.

Ongoing support and maintenance

The white-label provider offers round-the-clock technical support to address any operational challenges. Regular software updates, security patches, and optimizations are implemented to keep the platform secure and running smoothly.

Key features to look for in a white label provider 

The following-listed features and considerations are essential while evaluating providers for your platform:

Customization flexibility

Ensure that the platform offers comprehensive UI/UX customization features to suit your branding. This includes design flexibility in color schemes, logos, and page layouts.

You should be able to selectively add or remove sophisticated trading features (like margin trading, staking, and futures) on a good provider. 

Scalability and performance

The platform has to be built on a scalable infrastructure. This includes using cloud-based solutions, decentralized storage, and load-balancing to optimize availability and fault tolerance.

Except this, traders demand performance. There needs to be an efficient low-latency trading engine to facilitate smooth and speedy order matching. 

Security measures

There should be multi-signature crypto wallets and cold storage solutions such that user funds remain safe from online attacks and hacking. The platform needs to have end-to-end encryption, particularly for personal as well as financial data. Two-factor authentication (2FA) is also essential.

Compliance and regulatory features

A white-label solution needs to have built-in KYC and AML tools so your exchange is in regulatory compliance with global requirements. Monitoring of transactions in real-time is required for the detection and flagging of suspicious transactions. 

Liquidity and market access

The platform must facilitate liquidity aggregation from various sources so that the platform will have a deep market and stable prices. This avoids slippage and seamless trading conditions.

The platform must facilitate simple mechanisms for deposit and withdrawal of fiat and cryptocurrencies.

API and integration capabilities

The platform should have robust API capability to connect with third-party services such as trading bots, market analytics, and liquidity providers. APIs should be well-documented and support RESTful architecture and WebSockets for real-time data integration.

Who uses white label exchange solutions? 

White-label cryptocurrency exchanges are adopted by a broad range of firms looking to offer cryptocurrency trading services in a cost-efficient and effective way. 

Startups and new market entrants

New companies and entrepreneurs who wish to enter the cryptocurrency space typically use white-label exchanges to avoid the astronomical costs and lengthy timelines of building a platform from the ground up. 

Example: CoinSwitch – A new startup cryptocurrency exchange that initially utilized a white-label solution to roll out its platform in a hurry. By doing so, it was able to focus on building its user base and establishing its brand before needing to invest in its own infrastructure.

Traditional financial institutions

These institutions, including banks, hedge funds, and investment firms, turn to white-label exchanges to include cryptocurrency trading in their service platforms. 

Example: Revolut – A well-known fintech company that utilized a white-label platform to add cryptocurrency trading functionality to its existing financial offerings. This allowed Revolut to roll out crypto trading swiftly and in regulatory compliance without building its own platform from scratch.

Existing cryptocurrency exchanges

Established crypto exchanges that want to expand, improve features, or implement a fresh look and feel to their platform can leverage white-label solutions.

Example: The large U.S.-based exchange, Gemini, is leveraging white-label solutions to power its Gemini Custody institution service. It enables other businesses to create branded cryptocurrency custody products on top of Gemini’s safe infrastructure without developing their own solution from the ground up.

Niche market providers

Companies operating in niche markets such as game platforms, tokenized asset providers, or DeFi protocols usually prefer white-label exchanges in order to serve their targeted user base.

Example: The Sandbox – A decentralized game universe that empowers players to create, own, and trade in-game assets. By implementing a white-label exchange, The Sandbox enabled its users to enjoy blockchain powered trading.

Go to the market fast with our white-label crypto exchange software 

Have your own professional white label centralized exchange up and running in three weeks with our white-label solution. Instead of spending several months or years building an exchange from the ground up, you can have a fully branded, custom-built platform up and running in a short period of time. 

What does our white label cryptocurrency exchange offer?

• Advanced trading Close integration with TradingView for real-time market data and analysis.
• Optimized performance Microservices architecture for fast execution and scalability.
• Liquidity & bots High liquidity and trading bot integration, with no commission fees for users.
• Robust security Integrated with Fireblocks for custody, 2FA for extra security, and advanced encryption for data protection.
• Fully customizable Very flexible admin panel for easy user administration and real-time order matching functionality.

Additional advantages:

• Rapid and cost-effective platform deployment.
• Versatile architecture to accommodate increasing traffic from users.
• 24/7 real-time technical assistance and timely updates.
• Host-agnostic and supported on leading cloud platforms like Azure, AWS, and Google Cloud.

Conclusion

With the crypto market on fire, it’s the perfect time to get started on your crypto project, like a crypto exchange. With the white-label solution, you can have your exchange up and running immediately, start earning revenue sooner, and beat your competitors.

If you need a robust, customizable, and reliable crypto exchange solution, Peiko’s white-label offering is the ideal choice. Reach out to Peiko today to elevate your crypto business to the next level!

FAQ