If you are looking for cryptocurrency startup ideas to run with; here are the top three (3) to get you started in this direction.
There are several ways to make money in the cryptocurrency space: Starting with crypto trading; investing in particular coins for the long term under the HODL strategy; or simply staking, lending, mining and other forms of investment opportunities available for you to take advantage of.
However, none of these offer the profit potentials as having your own cryptocurrency business spinning out money daily for you. As with every investment opportunity –the higher the potential reward, the higher the risk; so if starting a cryptocurrency business rings sweetly in your ear, you should do well to consider the risks involved so as not to be surprised along the line.
Here are the top three (3) cryptocurrency startup ideas to get you started in this direction:
- Cryptocurrency Exchange
- Cryptocurrency Merchant Store
- Cryptocurrency ATM or BTM
1. Start a Cryptocurrency Exchange
Cryptocurrency Startup Ideas: Cryptocurrency Exchange
Start a cryptocurrency trading website. This is one of the most lucrative yet very simple cryptocurrency startup ideas for you to consider. People will always have reasons to convert their coins to fiat and vice versa; so there’ll always be good demand for this service even in the long term when bitcoin is proclaimed emperor of world money.
There are 3 different kinds of cryptocurrency exchange business you can start:
- A crypto-to-crypto trading exchange like Binance and KuCoin
- A crypto-to-fiat crypto exchanger like NairaEx
- A peer-to-peer escrow based crypto trading exchange like LocalBitcoins and Paxful.
Crypto-To-Crypto Trading Exchange
The crypto-to-crypto exchanges are more advanced and require larger financial commitments and technical know-how to execute. To start this type successfully you will need to have millions of dollars or so of funding and dozens of top-rated developers to bring it to reality. I do not doubt your finances neither do I lack faith in the VCs backing your project but should you go this line you must be ready for hackers, regulators, competition and a host of challenges that these exchanges face almost on a daily basis.
Crypto-To-Fiat Crypto Exchanger
Exchangers on the other operate a more direct, hands-on cryptocurrency bureau-de-change business model. In this form of exchange, the operator or business owner (that’s YOU) manually regulates your daily buying and selling prices. Users send you their coins and you fund their bank or mobile money accounts with fiat; if they’re looking to buy crypto, users fund your bank account and you supply them the coins at your own rate. Your profit then is the difference between your buying and selling prices.
Escrow Based Crypto Trading Exchange
The third form of cryptocurrency exchange business you can start is the escrow based peer-to-peer crypto trading websites much like Paxful and LocalBitcoins. This form of exchange is just a meeting place for all users –both buyers and sellers under a trusted third party (that’s you) to buy or sell their cryptocurrencies. Usually, you must be known and trusted for users to entrust their precious digital gold to your hand.
Under this form of exchange business, users come
You can check the given websites respectively to see how each form of the exchange business works. Then you can choose which is best suited to your special needs. Before doing anything please talk to your developer(s), attorney and a financial expert if you don’t want to enter troubled waters.
2. Start Accepting Payments in Cryptocurrencies
Cryptocurrency Startup Ideas: POS
If you’re already running a business or providing some kind of services of which you can begin accepting payments in bitcoin or other cryptocurrencies of your choosing either solely or side by side with fiat.
The author also owns IT service centers that accept both fiat and bitcoin for payments for all our services and products. We all know (or strongly believe) that the traditional fiat system will be rendered obsolete eventually and crypto payments will become the new standard. Better to be on the side of innovation than wait to be coerced by necessity.
Most crypto enthusiasts are eagerly looking for the next store to spend their coins directly for goods and services and your store may become more successful setting up and operating digital POS registers vending machines that accepts bitcoin or other crypto payments.
3. Start a Cryptocurrency ATM Business
Cryptocurrency Startup Ideas: BTM
“Bitcoin ATM industry is relatively new, join it and start your business on the cutting edge of technology” ~coinATMradar.
According to data from coinatmradar there are currently over 6,900 cryptocurrency Automated Teller Machines in 73 countries of the world with the US alone accounting for more than 5000 of them. These machines make it super easy for people within the locales to buy and sell crypto (bitcoin) or send money to relatives anywhere in the world.
Given a good location with high foot traffic and general public interest in Bitcoin and cryptocurrencies, this business is sure to pay off your initial investment within a year or even less. The machines are said to be relatively small, requiring just a small amount of space so the rent shouldn’t be that high to shrink your profit and if you own your space, that’s even better.
Cryptocurrency ATMs are very expensive ranging between $10,000 to $15,000 and accounts for most of the expenses to start this business. You can search and compare the various manufacturers‘ prices and features and choose the one that meets your budget and configuration requirements.
Just like any other business, you should conduct your feasibility study and craft a compelling business plan; engage the services of an attorney to ensure you are operating within the ambit of the law; otherwise, you will be shut down even before you make your first sale.
More so, establishing a good relationship with your banker is a must. These guys can literarily take you out of business by denying you financial services, as many of them are known for their anti-crypto policies. It will be a good idea to maintain and operate multiple bank accounts to give you more flexibility.
Finally, you can do everything right and still go out of business very quickly if you don’t keep your eye on the industry and stay current with technological advancement. You may wake up one day to find that your business model is now obsolete and your customers have moved on without you. Stay current, keep your eyes open for new ideas and opportunities, adapt to changing technologies and thrive with a successful cryptocurrency business.
What cryptocurrency startup ideas are you experimenting with or thinking about? Please share it with us in the comments section below.
This article first appeared on CryptoSorted.Info