Last updated on October 15th, 2019 at 02:41 pm
Cryptocurrencies have been a topic of intense discussion over the last few years. We would have heard great success stories about the millionaires who have launched their own cryptocurrency businesses. It is a very lucrative business and this trend is set to continue with the demand for crypto-related services.
A Complete Overview of the Cryptocurrency Business
With its potential, Blockchain Technology has given birth to a new digital currency called Cryptocurrencies. It was in the year 2008, “Bitcoin”, one of the popular cryptocurrency came into existence. In addition to Bitcoin, other Altcoins are also live now.
The Cryptocurrency businesses are still in nascent stages. It is the right time to get started with them!
#How you are the right fit for Cryptocurrency Business?
If you are a Fintech lover and a person ready to experiment with cryptocurrencies, you are ready to kick-start with one!
Know what is a Target Market:
Whatever the business it may be, there will be a set of the target community available. Know who will be using your Cryptocurrencies, crypto exchanges, etc.
#How is the growth factor for Crypto Businesses?
No doubts that we are going to have a very good Crypto business in the future. Bitcoin Businesses have so far been highly successful by making around $835.69 billion.
Making a start with Crypto Business
#What are some skills and expertise you should have for a successful business strategy?
If you are a tech-savvy person with a mix of Coding skills, it can be highly helpful for you! If you are familiar with C++, you can integrate the code of Litecoin or Bitcoin from popular programming sites. But anyhow, this is not going to be completely helpful for you.
#The cost involved in launching a Cryptocurrency Business
If you are good at programming, you yourself can create your own cryptocurrencies and exchange platforms easily. You can make use of source code from websites like GitHub, Stack Overflow, etc.
Further, apart from development, it is your responsibility to market your product. If you know marketing tactics, well, appreciable. Though you can save your money here, your project will take a long time which should also be remembered.
While if you go with Solution providers, the competent programmers won’t take much time to create one. They can complete the development phase within your stipulated time mentioned. Additionally, they would help you with your marketing efforts.
#Register with regulatory bodies
The next step is the Registration phase of your crypto business. You have to register your business with one such regulatory body called SEC (Securities and Exchange Commission). Never fail to do so, since their approvals are crucial.
#Steps involved in starting a Cryptocurrency Business
Once you are comfortable with all the above guidelines, here are the steps you should follow to start a crypto business.
1) Plan your Business
A clear plan will help you with a successful business. You should have answers for the below questions:
- What are the initial costs? Do I have a sufficient amount to support?
- Who are my Target Audiences?
- Do I have a team to support me?
- What type of Cryptocurrency business should I start?
You are given a lot of options in this field such as:
2) Crypto Exchange Platform
With the Cryptocurrency Exchange platform, traders can exchange popular cryptocurrencies such as Bitcoin, Ethereum, etc. As a Businessperson, you can charge a piece of trading fee for the transaction to happen.
If you are looking to launch a trading platform, it would be much beneficial if the platform comes in the form of a mobile application.
3) Coin Creation
As the name suggests, it represents the development of Bitcoins and other Cryptocurrencies
4) Crypto Wallets
Cryptocurrency Wallets are the safe storage where one can store their cryptocurrencies.
5) Legal Considerations to be considered
Since you are involved in the cryptocurrency business, it is important to know the legal aspects of the country.
2) State & Local Business Requirements
Only certain state permits cryptocurrency businesses. So, learn about the cryptocurrency requirements of the country from legal advisories. You can get the help from Legal advisories and government officials of the state to understand them.
3) Register for Taxes
It is crucial to register for a variety of state and federal taxes before you open your crypto business.
4) Opening a Business Bank Account
To open a crypto business, you should initially have a Bank account specifically for your business. Since it is highly important to keep track of your expenses and other sources of income which will reflect your financial performance of your business. Moreover, keeping accurate and detailed accounts will simplify your annual tax listing.
5) Obtaining necessary permits and licenses
Failing to acquire the required licenses can make you liable to pay huge fines or even cause your project to shut down.
6) Obtain a Business Insurance
Insurance is a crucial factor for business holders. If in case you plan to hire employees for your business, workers compensation insurance can be a mandatory or a legal requirement in your state.
7) Defining your Brand
Your brand is what your company stands for! By having a powerful brand, your brand takes the next stages by standing out from others.
8) Establishing your web presence
Building a business website can allow your customers to learn more about you. Try to brief the services and products you offer on the website.
Marketing Strategy for your Cryptocurrency Business
Now you have your website. It is time to market them to build a global community. When it comes to Marketing, you can make use of different marketing channels to grow your business. Initially, Social Media is one such platform to easily grow your customers.
Apart from Social Media, there are other strategies such as:
- You can introduce your business to your target audience by participating in Cryptocurrency Communities like BitcoinTalk, Reddit Bitcoin Community, Crypto Compare, Cryptocurrency Talk, etc.
- You can join LinkedIn groups where there are around 65 million users where you can easily reach out of your business.
- Email Campaigns are a direct form of marketing. You can easily send emails to your customers, to get potential results.
- Paid Ads can also help you in promoting your business. Paid Ads services are provided by platforms such as Facebook, Google, YouTube, Twitter, etc.
- Apart from this, Reputation Handling is another important task. You should try to manage both positive and negative comments. Remember, negative feedback can help you to enhance your business.
- You can use Affiliate Marketing strategy to build your community. This means that a middleman will be responsible for sending traffic to your website.
Know your earning potential:
How much you can charge your customers?
It depends on the type of crypto business you choose. As we have discussed already, the more the transactions happen in the exchange platform, the more If you have a Crypto exchange business, you can make money from the traders by charging a percentage of money as a trading fee.
Anyhow, cryptocurrency businesses are allowed to choose the amount they like in regards to the current market.
How can you make your business more profitable?
With the growth of Cryptocurrency prices, there are higher chances that your business can experience great profits. It has been predicted that the forthcoming years can experience high growth in prices.
How come this happen?
- New developments and announcements on additional features can cause a huge wave of buying behavior among the people. This can naturally increase the price of the coin.
- Real-world usage and adoption of cryptocurrencies, or reduction in the supply can create a high demand for cryptocurrencies which can increase their prices.
Tom Lee, one of Wall Street’s Bitcoin Optimists, records his views on the Bitcoin price hike.
“I think bitcoin is easily going to take out its all-time highs.”, he said.
With this great hype, undoubtedly we can expect Bitcoin price to reach peaks!
Decide on all these factors before getting started with the cryptocurrency business. Most of the solution providers are readily available to help you with all your queries. If you require any assistance with the crypto business, you can contact us right now!
Akshara Singh working at Coinsclone. She is a Crypto Writer with 6 years of desired expertise. Apart from being a Crypto Writer, She finds herself enjoying a stuffed set of books in her rack. She has a great passion for Fintech solutions and plays with words to explain them.