Creating a Crypto Business. Where to Start, What to Choose and How to Be Successful
The first thing that comes to mind when we talk about earning money on cryptocurrencies is trading virtual assets. Even though it is possible to earn an income, it is not the only option. Cryptocurrencies and blockchain offer a wide range of possibilities for creating different kinds of businesses.
In this article, you will learn what you need before starting a business, what business ideas are trending, and how to launch a crypto project on example of crypto processing.
First Steps to Crypto Business
Decisions made spontaneously often lead to miscalculations. That’s why it is important to be prepared when starting a business. It is necessary to carefully research the market, choose a jurisdiction and, of course, understand where to take the initial capital. But first things first.
1. Market Research
Is it profitable, relevant to do what you have in mind? What are the risks? Where are the conditions most favorable? This and much more should be kept in mind in advance.
Obviously, you do not need to open a business in China, for example. Look for more progressive states with an affinity for digital currencies. Switzerland is also often referred to as a crypto country because of its easy launch of a company and its loyal attitude towards cryptocurrencies. Moderate taxation is also a plus.
2. Legal Aspects
If you have decided with the country, the next step is reasonable to consult a lawyer and take into account all the specifics of the legislative regulation of the sphere. So you will be able to assess the risks and conduct further work without fear.
3. The Initial Capital
The initial capital depends directly on the idea that you want to implement. That is, if it is, for example, trade for bitcoins, you need about 20 thousand U.S. dollars. If it is something more ambitious, like mining, the starting amount can be up to 700 thousand dollars.
In any case, you need capital. And it can be found, for example, through credit institutions. One of them is Unchained Capital in the U.S., providing a loan for up to 2 years. Also do not forget about investors, crowdfunding platforms, which now are quite a few.
6 Business Ideas to Make Money on Cryptocurrencies
You can make money in the crypto industry in different ways: somewhere you need to establish a company and assemble a whole team, somewhere the income can be passive, and some ideas do not involve any serious investments at all. We will tell you about them all below!
The most common way to make money. You can mine digital coins in two ways: through cloud or hardware mining. The first one is the easiest. With it, you pay a contract with a mining hotel that rents out equipment, and in return you get some of the mined coins. But you need to be careful when choosing an organization: carefully study the company, the contract terms and reviews of the other participants, in order to not get run into scammers.
Hardware mining is divided into individual and pool mining. It also involves buying equipment on your own. Mining coins alone is a very complicated and expensive process where you get all the profits, but the mining process itself can be long. That’s why most often miners join together in pools, where tasks and profits are shared among all participants. The costs here are relatively higher, but the profits are also considerable. After all, the more coins you get, the higher the income will be while they are growing. Besides, you can put your equipment in a mining hotel and earn there.
Initial capital for hardware mining is earned through ICO campaigns. Many also consider borrowing options and affiliate programs for those who also want to have a business in this niche.
2. Crypto Projects Using B2B Model
The point of this business idea is the following: a company works in a certain cryptocurrency sector, offers goods or services and receives income from it. Example: creation of a crypto processing service that allows a business to accept payments in digital currency from customers. The niche is just gaining popularity among both sellers and contractors, as well as those who want to make money by creating their own crypto processing service. At the end of the article we have painted what you need to create such a service.
We should note that it is necessary to treat the implementation of such projects more thoughtfully. It is about the initial capital, which is not always easy to attract, about the relevance of the product and the timing of development. In some industries, everything is quite predictable, but working in volatile areas, such as DeFi, requires flexibility. Nevertheless, development of such crypto projects can be quite profitable.
3. Crypto Exchange
A good crypto exchange can bring millions and even billions of dollars to its owners. You can either develop it from scratch or buy a ready-made solution.
The first option is quite time-consuming, but quite feasible. It is very important when creating any platform/site to pay attention to its functionality and security, because breaking the platform where the assets of its users are stored will be literally the point of no return. The users will lose money and will stop trusting you. That’s why you need to take care of data protection first.
Don’t forget about user-friendliness — the platform will gain if the services can be used effortlessly, and the interface will be friendly. All this can be done with the help of a powerful team of developers, analysts, marketers and executives with extensive experience in the niche.
White label, or a ready-made solution, is a more expensive but easier way to start making money. Essentially, you’re buying a ready-made product that all you have to do is run it. In addition, the working crypto exchange can be given for revision — to add some functions of your own, for example. This approach will be cheaper than creating a platform from scratch. This option will be ideal for those who value every second of their time.
You can make money on NFT without any serious investments. The secret of high income here is simple enough — to invest in new collections before their price rises. This was the case with CryptoPunks. Five years ago, the price of NFTs ranged from $1 to $34. Four years later, just as the sector became popular, the price has risen by a factor of tens or even a million.
In order to find new collections, you can track down little-known but up-and-coming art creators. Being savvy on the subject will help you find a successful NFT. And here are the services where there are projects that are only planned to be sold:
- NFT Catcher.
An equally simple idea of making money from cryptocurrencies is GameFi. For the last year it has been almost at the top of the trend lists — and for good reason. Essentially a mixture of game mechanics, cryptocurrencies, blockchain technology, and NFT, GameFi allows you to make money while playing the game.
You don’t need to create your own company and act like a traditional business to do so. Income here is determined by your experience and strategy. With zero knowledge, you can start with less complex games like Axie Infinity. To start playing and earning, you need to create two wallets: one MetaMask and another — Ronin for further transfer of game currency into cryptocurrency, then set up an account and purchase the first axes. You can log in to the game on either a PC or mobile device. For every win, you get a reward in the form of SLP tokens, which can be converted into cryptocurrency or fiat money.
6. Brand Ambassador
Many crypto projects appear today, all of them need brand ambassadors who will tell other users about their products or services. This is done through an ambassador program, where a person uses the product themselves and shares its benefits with the other audience. With this, a referral link is left for new users. Often, the number of clicks on it determines the income of such a person.
Any person who fills out a form on the website of a cryptocurrency company can take part in such a program.
Your Own Crypto Project. How to Create a Crypto Processing Service
A large number of people over the past few years have started using virtual assets and want to pay for goods or services with them. Moreover, this method of payment is more profitable for the sellers themselves — lower fees, no chargebacks, access to the international arena and much more. Crypto processing service is indeed in demand from both sides. But it takes a very time-consuming way to get it up and running. Let’s tell you briefly what you need to do.
Step 1. Create a strategy to attract customers. This includes methods, brand positioning techniques, using different types of tools, channels to attract the audience.
Step 2. Choose a model of work: “crypto-fiat” or “crypto-crypto”. The first model allows you to convert digital money into fiat, the second — into a specific cryptocurrency, most often it’s stabelcoin.
Step 3. Choose crypto assets. If you choose the “crypto-crypto” model, analyze future assets, look at the history of the currency, how the security is constructed and other aspects. If the “crypto-fiat” model, you need to select traditional currencies.
Step 4. Find a team. The scope of work is large, so you can’t manage without programmers, financiers, lawyers, marketers, sales managers and tech support specialists.
Step 5. Select a liquidity provider. Providers can be brokers, stock exchanges or a single liquidity pool.
Step 6. Choose a way of realization. Decide whether the service will be developed from scratch or you are interested in an already existing solution.
Step 7. Contact banks and payment systems in order to conclude an agreement. Cooperation with financial organizations is necessary when working with fiat money.
Step 8. Plan expenses. There are many costs to include in this category: developing or paying for a ready-made solution, employee salaries, marketing, and more.
Step 9. Set fees for customers. Most often with the “crypto-crypto” model, the fee is no more than 1%, but with the other model, it may be higher. Received funds go to pay for the license of the payment system and liquidity provider.
In addition, do not forget about the first steps described in the beginning of the article — analyze the market, choose a jurisdiction and learn the specifics of the legislation of the country. All this is important, and with proper management will help bring your business to a solid profit.
Is it necessary to create a crypto processor from scratch? Absolutely not. Moreover, if you already have a business, it is not necessary to develop a whole service for accepting crypto payments — it will be expensive and long. Instead, you can buy a ready-made solution or integrate cryptocurrency gateway 0xprocessing to your platform/site quickly and without any difficulties.
0xprocessing helps you quickly and securely accept more than 40 popular cryptocurrencies. It suits businesses of any type, and it doesn’t matter if it’ e-commerce, a gaming platform or anything else. Its services can be customized, but we don’t recommend to miss out all the opportunities this service has to offer:
- Web3 processing — the ability for customers to pay for a product/service through a Web3 wallet;
- Agency processing — accepting cryptocurrency in the countries, where there is no access to the world banks or where popular payment systems do not work (Visa, MasterCard, etc.);
- Recurring payments — retention of regular clients;
- Automatic volatility risk control system — saving the received amount in one of the stabelcoins supported by the service.
You can contact 0xprocessing here: