2020 has been a very unpredictable year for cryptocurrency investors. Among the high levels of volatility in the market, and the numerous new projects that enter the scene, there is another trend building up – that of crypto business. Apart from learning how to buy Bitcoin, investors and merchants are looking for more information on how to start a cryptocurrency business.
Before we delve into everything you need to know, there is an important distinction we need to make. You see, cryptocurrency businesses can be many different things, so you will need to know exactly what type of business you are looking to make.
What is considered a cryptocurrency business
Generally speaking, a cryptocurrency business is a company that deals with cryptocurrency. That being said, there are several options out there when it comes to the concept.
- You may be looking to accept cryptocurrency for your store, or use it to pay suppliers and salaries.
- You may be looking to start a cryptocurrency exchange, which is a viable and popular business at the moment.
- You may be looking to create your own cryptocurrency and make a business from it. For example, many promising utility tokens are solely fueled by the money of crypto investors, who buy into their token.
In the following chapters, we will explain each of the points in further detail, and explain what steps you need to take in order to reach your goals.
Option #1: Accepting cryptocurrency for your products or services
Many merchants find this option appealing since they open up to a new audience and a new payment method. Apart from that, accepting cryptocurrency can also make your business more “Trendy” and increase its social media following. An example of such a business is Tahinis restaurants, who recently converted their cash reserves into Bitcoin.
If this is what you are after, then there are several ways to go about it. First off, it is important to remember that, accepting Bitcoin for your physical store and e-commerce store can be completely different:
- E-commerce stores require what is more commonly known as a cryptocurrency payment gateway. You can get these from BitPay and Coinbase Commerce, who also have a wide array of useful videos to help you learn how to set it up.
- For physical stores, things are much easier. All you need to do is print the QR code of your Bitcoin (or any other coin’s) wallet, laminate it, and place it at the cashier desk. Every time someone wants to pay, they can simply scan the QR code and make a payment.
Option #2: Starting your own cryptocurrency exchange
This one is a lot more complicated and expensive. Cryptocurrency exchanges, nowadays, are subject to many new laws and regulations surrounding cryptocurrency. Apart from that, you will need to get all the important licenses that make your business legal. Once again, there are two ways to go about this:
- Create a brokerage service, similar to Coinbase. By doing so, you simply act as the middleman, that connects the buyer with the liquidity provider. In other words, you act as one big Bitcoin ATM, but then online.
- Create a trading platform. Now, thanks to Alphapoint, this is very easy to do. The platform offers white-labeling services, requiring only the starting capital and a strong marketing team. Binance is also in the process of creating a white-labeling service for its exchange infrastructure.
Option #3 – Create your own cryptocurrency
With the new hype surrounding DeFi products, it is only natural for many people to start exploring how they can best benefit from it. One of these ways is by creating a cryptocurrency that matches the criteria of DeFi projects, offering farming opportunities or high-yield staking. And even if that’s not the case, you can always create a new token and launch it in a few steps.
The best part? It is 100% free to do so!
To do this, start by creating a versatile team with experience in blockchain. This obviously starts with the development team but is fueled by marketing and promotion experts. After all, crypto is all about community building. Once your team is created, the next step involves creating a token on the Ethereum blockchain. Here is a video that explains the process in further detail:
As you can see, developing your own coin does not require extended technical knowledge. But what it does require is a purpose. What problem is your project trying to solve? How does the cryptocurrency help in this process?
What is also important to keep in mind is that you will need to make the coin “liquid”, meaning that you will need to list it on several exchanges. Thankfully, decentralized exchanges (DEX) allow coins to be listed for free. So start from there and work your way up.
You should now have a better idea of what it takes to create a cryptocurrency business. To sum up the points of this post, here is what you need to remember:
- To start accepting cryptocurrency payments for your store, consider using a payment gateway (widget) that allows users to pay using the coin of their preference.
- When starting your own exchange, the easiest way to go about it is to use existing exchange infrastructure (Alphapoint) and simply work on the marketing elements.
- To create your own coin, start by creating a team, build the token on the Ethereum network, and put a lot of emphasis on building a community and listing it on exchanges. Additionally, remember that your token must have some form of utility – it needs to resolve an existing problem in the industry.
And that’s all. We hope you found this article valuable. Let the contents of this post be the starting point of further research and, who knows, You may soon have your very own cryptocurrency business.