2020 was a valuable year for crypto trading. Be it BTC regaining its lost glory or the spectacular launch of Ethereum 2.0, the investors have discovered innovative ways to mint returns than just holding tokens in the wallet. Although derivatives in crypto trading was around the corner, it gained traction when the total trading volume reached USD 2.159 trillion in Q2 of 2020.  Eventually, financial institutions have plunged at the opportunity to regale the enormous pool of token holders and got their crypto derivatives trading platform development done.

However, building a derivatives exchange from scratch is a comprehensive task that could take upot months. Since enterprises have to address the pressures from the stakeholders, a white label solution deployment is an effective alternative to launch early. 

First things first –  What exactly is crypto derivatives trading? 

A derivative is a financial contract written between two parties to buy/sell a tokenized asset for a specified value on a specified date in the future. Crypto Derivatives follow the same definition, except that the parties involved trade cryptocurrency on the exchange.

Crypto derivatives can be traded on both centralized (CEX) and decentralized (DEX) platforms. While a DEX allows peer-2-peer transfers and utmost autonomy to the users, centralized exchanges follow the traditional protocols. In both cases, however, the users have the autonomy to decide how much risk they want to take.

There are five types of crypto derivatives- 

• Forwards 
• Swaps
• Futures
• Perpetual Futures 
• Options 

Why Use Whitelabel Software 

You will need to hire Cryptocurrency derivatives development services to build and launch an exchange to facilitate the said transactions. You can either choose to build the exchange from scratch (by investing huge amounts of time and money) or buy the ready-to-use software (source code) and launch your exchange in less time for a smaller investment. 

Using Whitelabel software offers many advantages such as-

• Data Security 

Blockchain is, by nature, more transparent and secure compared to other platforms. But when you use the software of Whitelabel company, you can be assured of additional security levels on the exchange. The exchange is protected from hackers using various security protocols. Users’ data is kept safe while also ensuring that the user experience is not compromised. 

• Increased Transaction Speed 

A powerful trade engine will result in faster transactions. This will allow users to conduct more transactions each day. And this will, in turn, result in an increase in the business volume for the exchange. Considering the highly volatile nature of the crypto derivatives market, an exchange that can handle more business will be able to attract more users. 

• Customization 

The Crypto derivative exchange software can be customized to meet your business requirements. You can ask for more security levels or include new features. The expert developers from the company will make the necessary changes to the source code to add the features you want to offer to your customers. 

• Less Risk, More Returns 

Using error-free crypto derivatives software will reduce the risk of failures of the exchange. Since the software has been developed by a Whitelabel company, you can be assured that the exchange will not crash or cause trouble to the users. This will naturally encourage your customers to conduct more transactions, and more returns for you in less time. 

• Technical Support Services 

The Whitelabel company will assist you at every stage of the business, right from submitting forms for legal approvals from the federal and state authorities to customizing and testing the Crypto Derivatives Exchange, creating a marketing plan to launch and promote the platform, and ensuring that the exchange is regularly upgraded to deliver its best at all times. 

• More Opportunities 

When it takes less time to launch a fully developed exchange, it will provide you more opportunities to expand your customer base. The Crypto derivative exchange development services provided by the Whitelabel company are aimed at giving you a definite edge over your competitors and making the most of the market trends. 

Launch your Crypto Derivatives Exchange Today! 

Contact the leading Whitelabel crypto software developer in the market and request a free demo to discuss the crypto derivatives exchange in detail.