You are not alone if you are looking for genuine and profitable cryptocurrency startup ideas to invest in.
There are several ways to make money in cryptocurrency: Starting with crypto trading, investing in particular coins for the long term under the HODL strategy, or simply staking, lending, mining, and other investment opportunities available.
However, none offer the profit potential of having your 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
Start a cryptocurrency trading website. This is one of the most lucrative yet very simple cryptocurrency startup ideas 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 three different kinds of cryptocurrency exchange businesses 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 extensive financial commitments and technical know-how.
To start this type successfully, you will need millions or so of funding and dozens of top-rated developers to bring it to reality.
I do not doubt your finances or lack faith in the VCs backing your project. Should you go this line, you must be ready for hackers, regulators, competition, and a host of challenges that these exchanges face almost on daily.
Exchangers operate a more direct, hands-on cryptocurrency bureau-de-change business model.
The operator or business owner (YOU) manually regulates your daily buying and selling prices in this exchange form.
Users send you their coins, and you fund their bank or mobile money accounts with fiat; if they want to buy crypto, they fund your bank account and supply the coins at your rate.
Your profit 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 exchange form is a meeting place for all users –buyers and sellers under a trusted third party (you) to buy or sell their cryptocurrencies.
Usually, it would be best if you were known and trusted for users to entrust their precious digital gold to your hand.
You can check the websites to see how each exchange business works.
Then, you can choose which is best suited to your unique needs. Before doing anything, please talk to your developer(s), attorney, and financial expert if you don’t want to enter troubled waters.
2. Start Accepting Payments in Cryptocurrencies
Suppose you’re already running a business or providing some service. In that case, you can begin accepting payments in Bitcoin or other cryptocurrencies of your choosing solely or side by side with fiat.
The author also owns IT service centers that accept fiat and bitcoin 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; your store may become more successful in setting up and operating digital POS registers and vending machines that accept Bitcoin or other crypto payments.
3. Start a Cryptocurrency ATM Business
“Bitcoin ATM industry is relatively new, join it, and start your business on the cutting edge of technology” ~coinATMradar.
According to data from Coinatmradar, over 6,900 cryptocurrencies and Automated Teller Machines are currently in 73 countries, with the US alone accounting for more than 5,000.
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 will surely pay off your initial investment within a year or even less.
The machines are said to be relatively small, requiring just a tiny 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 expensive, ranging between $10,000 to $15,000, accounting 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.
Conclusion
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 are known for their anti-crypto policies.
Maintaining and operating multiple bank accounts will be a good idea to give you more flexibility.
Finally, you can do everything right and still go out of business 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 obsolete and your customers have moved on without you.
Stay current, open your eyes to 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? Share with us in the comments section below.