A digital revolution has started in currency exchange through the usage of Cryptocurrency. With the buying and selling of digital assets, it has emerged as an alternative to the services offered by banks and financial institutions. By using efficient white-label solutions that provide customized performance, cryptocurrency traders are reaping several benefits.
Some of the leading benefits are
Reduction in transaction costs- The services of Intermediaries such as brokers, agents, asset managers, fund managers, legal representatives are eliminated in cryptocurrency exchange. This helps the parties to save on commission, brokerage, and paperwork expenses. Since the crypto exchange works on a peer to peer model, greater accountability and transparency over audits will be established. High clarity overpayments to be made and settled is ensured. Some fees may be incurred to hire third party-services for maintaining cryptocurrency wallets.
Increase in financial inclusiveness- The rapid reach and ease of operation in crypto exchanges has led to the creation of better economic opportunities for traders. By tapping into new investors in different markets, more liquidity will be brought into the exchange. This will lead to competitive pricing and faster trade settlement. For those who do not have access to banking services due to poor infrastructure, crypto exchanges act as a source of credit. This will help in better redistribution of wealth.
Not affected by external factors- White label crypto exchanges are not hindered by fluctuations in exchange rates, interest rates, and other levies imposed by countries since they are universally recognized. They will operate smoothly once the digital and regulatory atmosphere is established.
More freedom to traders- With no external interference, traders will have full control over their funds. In normal circumstances, they would be subject to the Terms of Service of financial agencies. These agencies can monitor user accounts and funds on various terms and conditions. However, in cryptocurrency, traders will have higher involvement in fund management. This will reduce the time and costs involved in asset transfers. All public and private encryption keys will be in the eyes of the traders. They can modify the terms based on their usage pattern.
Strong security- The highest standards of security, confidentiality, and privacy are assured in a White label crypto exchange. State of the art encryption techniques are used in transaction processes with the help of blockchain technology. This helps in preventing fraud, money laundering, data breach, and identity theft. Generally, banks have access to all transactions made by users which can lead to frequent checks of account balances compromising vital financial details. However, protection of the financial history of traders is assured in crypto exchanges based on agreed terms between parties. Other practices such as biometric authentication, online verification, and KYC ensure security as a priority.
Adaptability- Crypto exchanges offer the usage of multiple cryptocurrencies on their platform. For example, if Bitcoin is not performing up to the mark, then traders can make use of alternatives such as Altcoin, Litecoin, Ripple, etc. Industry-specific cryptocurrencies in automobiles, real estate, education, and tourism are proving to be a gamechanger. Options are given to traders to go either long or short depending upon the market conditions.
Automated operations- Trading operations are automated with the help of Smart contracts. Smart contracts are software programs that work when some conditions are met. Through technology, costs incurred on manpower will be reduced significantly.
24/7/365 access- Banks will have limited working hours. In absence of centralized control and governance, crypto exchanges are available for trading throughout the year.
Increase in exposure- Small traders can open positions with the help of margins by contributing only a small deposit but gaining greater access to a large cryptocurrency market. This enables an opportunity to earn a high amount of profits from a small investment. Losses can be amplified if they exceed the initial deposit. A suitable risk management strategy with appropriate checks and balances should be considered by traders.
Blockchain App Factory also offers expert cryptocurrency exchange services to their stakeholders.
