Editorial

5 steps for starting your own crypto currency business

Since cryptocurrencies have become more popular, businesses have taken the opportunity of accepting crypto payments or even adopting blockchain practices into their culture. However, many fear becoming a complete crypto business due to their uncertainty and overall opinion of them. Plus, given the events from the last two years, the business sector still needs to get back on track.

But starting such a company doesn’t require many resources since it’s mostly programming and monitoring. Still, entrepreneurs need to pay close attention to some legal aspects and know how to promote the business so that investors show up.

Analyze the trends

Starting a business is challenging because, on one side, the market is oversaturated with similar ideas. At the same time, new ideas need to be appropriately shaped in order to appeal to customers. Since this is what companies lack, new businesses lose popularity quite fast.

Therefore, you need to look at the trends and analyze what people are drawn to regarding cryptocurrencies, blockchain and technologies. For example, what shaped 2020 in terms of crypto was:

  • DeFi (decentralized finance) on Ethereum and Bitcoin;
  • Interoperability (connecting with different blockchains with the same digital wallet);
  •  
  • Metaverse (including with NFTs and GameFi);

However, what we expect from 2023 regarding crypto trends include the following:

  • Decentralized metaverse
  • Decentralized social networks
  • Greener Web3

Current social events also influence these trends. For example, since the pandemic, the demand for decentralization and remote monitoring has increased tremendously. NFTs, too, have acquired popularity lately, which is why more artists are creating their own, and marketplaces are providing selling and buying points.

Define your idea

Next, you could come up with a new idea of what you wish to create after you know what people need and what the market lacks. This step is one of the most important because not only do you need the knowledge to understand cryptocurrencies and how blockchain works, but you also must define how that business will develop.

It’ll help if you have a specific goal that you wish to achieve. Do you want to allow people to use NFTs easily? Do you want to become a business exchange? Another crucial aspect is your target audience. It can be anything from teenagers to business owners. Make sure that everyone can easily access your new application or technology solution, and it is not only an unreachable target.

Work on the white paper

Any cryptocurrency has a white paper that mostly contains important information regarding the project and explains how it works and what it aims for. It might be one of the most tedious aspects of this whole project since it’ll take a lot of time to complete and define in order to be easy to understand.

You can have a look at Bitcoin or Ethereum’s whitepaper to grasp the concept and understand how you can create yours too. For example, Bitcoin’s whitepaper has around ten pages and covers the following subjects:

  • How are transactions made;
  • How does the proof-of-work system work;
  • How the network is built;
  • What are the incentives;

And much more than that. Your aim is to let people understand the mechanism behind your business and learn how to use cryptocurrencies so that they can get the most out of their business inquiries. To understand the subject better, you could learn more about the bitcoin price.

Verify the legal aspects

Although a legal authority does not govern cryptocurrencies, they’re still taxable, and any business needs to be registered and verified before it’s approved. For example, if you already have a business and want to start accepting crypto payments, you need to get through the process of creating a crypto wallet and adding a POS cryptocurrency payment option. At the same time, businesses are taxed differently for crypto since the market value is not constant.

Still, there are many benefits for businesses when working with crypto, including:

  • Lower transaction fees: credit card payments charge more than cryptocurrency transactions;
  • Merchant protection: since there are no reverse charges, businesses are protected from false claims of unshipped items;
  • Convenience for customers: similar to card payments, crypto has become easier to use and pay with;
  • Higher sales: you can sell your products internationally, which will increase your customer reach;
  • Keeping up with the competitors: becoming a crypto business in the first years of the trend will put you on top of the competition;

However, keep in mind that cryptocurrencies are highly volatile, so you need to be prepared for any inconveniences and market surges.

Promote your business

When it comes to promoting crypto businesses, you must use more than the regular advertisement practices. Going on social media might not be the best place to promote your business, so you should get accustomed to the blockchain and surf between its platforms, communities and groups in order to communicate your intentions properly. At the same time, more than the online environment might be needed to showcase your business, so going to offline crypto conferences and relying on crypto marketing agencies should cover the gap.

What’s been trending lately is crypto businesses contacting influencers or signing contracts with celebrities to promote a certain crypto product. Still, this method would only work after a few months or your arrival on the market and is not entirely expected to have a real impact.

You may count on social media, blogs, content marketing, and crypto ad networks if you have

limited resources. Depending on your target audience, you’ll need to practice your SEO skills and create relevant content that will make people want to try out your product. You can start by offering free information, such as tutorials or tips, in a way that is easy to understand for anyone.

Wrapping up

Starting a business is already challenging for most people, but a crypto company is even more difficult to maintain and promote, given that the industry is only at the beginning. Still, you can already see some brave entrepreneurs putting their ideas to work and starting remote businesses based on blockchain technology, so we’re excited to see which way crypto companies will extend.

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