How much does it cost to start a p2p crypto lending business?


To begin with, let’s take a look at what a p2p exchange is and how did it evolve! 

What is a p2p exchange? 

P2P exchange stands for peer-to-peer exchange. A p2p crypto exchange software allows investors of the crypto market to directly conduct trades/ borrow and lend currencies with each other without involvement from any third parties. In a regular exchange, the exchange company is the intermediary between two traders, and the exchange gains profit via the transaction fees that they charge for the trade. In the case of peer-to-peer exchange, the functions are pre-programmed by the software, and there is absolutely no requirement for a third party. 

We are all aware that the current era is widely evolving towards a digital and technological transformation. Cryptocurrencies and blockchain technology plays a major role in that transformation. Together they are disrupting almost every major business and are taking it to the next phase. One of the principal reasons for blockchain being preferred by investors is because of its decentralized nature. And p2p exchanges are the perfect examples of the concept of decentralization. 

How did p2p exchanges come into play? 

Initially, online exchanges were serving as an intermediary between customers to trade cryptocurrencies for other digital currencies or fiat money. But the exchanges were owned by companies that involved workers/ assistants who were responsible for handling the exchange funds and transactions that happen between the two parties. They collected fees for the trades that happened in the exchange and helped resolve any disagreements between the traders. But, this, in some cases, led to few disadvantages such as scams etc. that made the process a bit onerous for the traders. This also led to a few countries reluctant towards using cryptocurrencies for their business. This is where P2P exchanges came into existence. P2P was brought into light in the year 2014, for eliminating such intermediaries and providing a completely decentralized peer-peer exchange platform for traders for a hassle-free experience. Ever since then, P2P exchanges have been gaining huge traction among potential investors and is one of the most preferred exchanges in the market. 

As evidence of the above statement, let’s quickly look at a few highlights! 

  • Experts from Statista have predicted that the global peer-to-peer lending market’s value will hit $1 trillion by 2025.
  • Every day, there are newbies entering the market with their own p2p platforms, and the demand is widely booming with each day. 
  • The peer-to-peer trading and lending systems are expected to compete with/ disrupt the traditional banking systems in the near future. 

How P2P exchanges work? 

With the evolution of trading approaches came the evolution of different types of exchanges.  In the traditional crypto exchange method, the trader places an order, along with the amount of cryptocurrencies he/she wants to trade and its prices. A common distributed ledger will collect all order information, and store it in the order book. Buyers will choose their preferred selection from the list of orders in the book. Thus, trade begins when the order of the buyer and seller match with each other. Although this digital trading method involves a lot of benefits, it still consumed a lot of time and involved intermediaries. 

This is where p2p plays a role, making the trading process more convenient and time-saving for the customers. In a p2p exchange, the software does all the work by matching suitable buyers and sellers automatically without involvement from any human intermediary. Once it connects the buyers and sellers, they can negotiate and conduct trade directly between themselves. The settlements are also really quick with a p2p exchange. With P2P exchanges, customers can trade with anyone directly from anywhere around the world. 

Other than this, P2P exchanges come along with their own set of benefits. Let’s take a look at some of the key benefits. 

Vital benefits of p2p exchanges: 

#1 Global Trades

There are no global boundaries when it comes to peer-to-peer exchanges. With traditional exchanges, it takes weeks to conduct international trades successfully. But with peer-to-peer exchanges, you can conduct instant, efficient, secure, cost-effective global transactions. There are no restrictions for users from any country in this exchange. Hence, buyers and sellers prefer this over other exchanges. 

#2 Cost-friendly transactions

Other exchanges involve a lot of cost factors because of the existence of intermediaries. But with a peer-to-peer exchange, everything is operated by a software underpinned by blockchain technology. And so, the costs are remarkably low when compared to any other exchange. 

#3 No transaction restrictions

The transactions that happen on a p2p exchange platform doesn’t involve any central authority or regulations. They work on the basis of a completely decentralized ledger, and the information remains distributed across the network encrypted with a code. This makes the users, sole owners of the data and allows only authentic users to access. 

#4 Fraud prevention

Whenever a fraud or scam happens in a p2p exchange, there is a community of people that are organized to manage them. They will manage the privacy, settlements, etc., or get involved when there is a disagreement between the buyer and the seller. Therefore, the traders are ensured a hassle-free transaction process. 

#5 Enhanced security

P2P exchange platforms are underpinned by blockchain technology, and every transaction happens on the public ledger of the blockchain. The platform comes with automated KYC/AML verification, which allows only authentic users enabling a risk-free business. Also, the platform is integrated with multi-layered security protocols.  

These are the top benefits that you could obtain from a P2P exchange. Now, if you want to build a legitimate P2P exchange for your business, you need to know the most crucial features to be integrated to make it authentic and preferable to the users. Let’s find out what the features are. 

Key features for a P2P exchange: 

  • Multiple cryptocurrency support
  • Multiple language support
  • Multi-currency wallet
  • Dominant trading engine to match buyers and sellers with minimum latency
  • Automated, Globalised KYC/AML verification
  • Automatic crypto swap option
  • Dispute management
  • Preferred trade selection option
  • Admin backend panel
  • Multiple payment gateway integrations
  • Multi-Factor Authentication
  • Escrow system
  • Enhanced security protocols

How much does it cost to start a p2p exchange business? 

The cost to build a P2P crypto exchange entirely depends upon the specifications and features you choose. However, choosing an already existing p2p cryptocurrency exchange development company and attaining their white label solutions will cost way less, when compared to gathering equipment and building exchange from the ground up. 

What is a white-label p2p crypto exchange? Why should you go for it? 

Whitelabel solutions are nothing but ready-made solutions that come with a desired name, branding, logo designs, UX/UI, and necessary implementations. A white label P2P crypto exchange is readily available software that is tried and pre-tested. It consists of every essential technical, security integrations, and features required to kick-start your P2P exchange. Whitelabel solutions come with various benefits such as, 

  • Quick deployment– Whitelabel solutions are already readily available. Hence they save a lot of time, relieving you from development process stress and helps with a quicker deployment. 
  • Technical expertise – You do not need any specific technical knowledge when it comes to Whitelabel exchanges. Your white-label exchanges will be developed by well-experienced market developers who will provide robust solutions, and any bugs can be easily resolved. 
  • Cost-effective – As mentioned earlier, white label solutions are already integrated with every necessary element required for your exchange. Hence you don’t have to go through development costs and buy ready-made solutions at cost-effective prices. 
  • Reliability – White label solutions are 100% tried and pre-tested before delivering to the customer. Therefore it guarantees a reliable, risk-free, hassle-free business. 
  • Scalability- White label solutions are highly-programmable, scalable, and can be customized according to user preferences. 

Thus, with white label P2P exchange solutions, the process is made efficient, but the benefits and profits are amplified. With the right choice of company, with the right white-label solution for your P2P exchange, your business will be a hit among potential global investors.  White label solutions are usually available within two to three weeks at affordable prices. So, conduct your research, reach out to the right company, get your white label P2P exchange software, and spin millions of dollars as profits for your business.