Starting Cryptocurrency Business in 2022? — Ultimate Guide
As we move onward as a civilization, many aspects of our lives change practically every year. The same goes for trading. It has been here for a long time and has expanded and developed into something lucrative and easy to reach that we no longer even think about.
Creating a whole new sphere of information has allowed us to enter a “digital environment.”
We are witnessing the new era of digital platforms, which completely changes how the world functions. And in this article, we mainly want to focus on digitalization in trading.
Blockchain-based crypto-assets are becoming one of the most popular and growing trading tools today. Many believers of the forming crypto-economy hope that the new form of ecosystems that blockchain technology and cryptocurrencies offer is a journey to something we have never seen before. They are partially right.
Mainstream media, celebrities, virtual communities, and even governments regularly talk about the increasing popularity of cryptocurrencies, which are slowly becoming part of our lives. That is when the smartest and most savvy investors come up with the idea that they can capitalize on it.
That is why we find it relevant to tell you a little about cryptocurrencies themselves, how to profit from them, as well as who is the best provider of solutions that will help you with your business.
Where do these cryptocurrencies come from anyways?
The history of blockchain technology and cryptos themselves is for another article since it is a very insightful topic. Despite that, few historical facts should be mentioned. The first decentralized blockchain was brought to existence by Satoshi Nakamoto, an anonymous individual or group of people, in 2008. People saw the first launch of cryptocurrency on this blockchain on January 3rd, 2009, which is known as Bitcoin. What Satoshi Nakamoto invented was, for most people, outstanding and revolutionary. What makes it so innovative, what value does it bring, and why is it so attractive?
Cryptocurrencies have become increasingly popular over the past several years. Today, there are thousands and thousands of them and still counting. As cryptocurrency numbers and interest increase, so do startups and businesses who want their piece of the cake too.
Most people have likely heard or read about cryptocurrencies since 2018, during its first significant bull run. Cryptos have become a daily topic in mainstream media ever since.
Why does it draw so much attention?
Firstly, there are three types of people. The first group criticizes them and claims they are worthless. Others just ignore them and stick to traditional instruments. In contrast, crypto optimists believe that cryptocurrencies are the future of exchange tools and were invented to replace or provide an alternative to conventional centralized fiat money controlled by central banks and other authorities.
Cryptocurrencies are basically digital currencies secured by cryptography. This makes it nearly impossible to hack them or double-spend. What makes cryptocurrencies so attractive, among other benefits, is that they are almost totally decentralized and are based on blockchain technology. Another crucial feature of cryptocurrencies is that they are generally not issued by any central authority. Therefore, as of now, government manipulation or involvement is reduced to a minimum.
Furthermore, many users started seeing cryptocurrencies as payment and as a belief to avoid the presence of third-party intermediaries. Bitcoin is also considered a “digital gold” because of its specifics, such as the limited market capitalization of 21 million units. However, Bitcoin isn’t the only one out there. You can find and trade more exclusive cryptos that have different functions. For example, you can enjoy trading Ethereum, a decentralized, open-source blockchain with smart contract functionality, Litecoin, the “digital silver,” and many more.
Are you willing to create an innovative business solution that is faster, safer, and more transparent? Cryptos and blockchain offer plenty of solutions and might significantly contribute to or even help create your startup, firm, or entrepreneurship.
Here are some reasons why starting a crypto business can be attractive for entrepreneurs.
Firstly, such a business idea will unlock funding opportunities. Since blockchain technology and cryptocurrencies are on the rise and are one of the most prospective tools of the modern trading system, they attract the most worthy contributions to entrepreneurship. That being said, it opens opportunities for effective crowdfunding campaigns. In fact, these types of startups have raised more than $5 billion in funds already, the most of any public campaign. These fundraising models have proven to be successful as they even attract investment from the “mainstream” sector.
These crowdfunding campaigns are also going global. However, only some of these projects are from developing countries where around 80 percent of initiatives do not reach their targets. The lack of accessibility has led some innovative companies to combine blockchain with traditional crowdfunding to give power back to entrepreneurs around the globe.
Additionally, several digital platforms and projects organize crowdfunding solutions to help businessmen and startups gain marketing support, which will maximize their chances of becoming a perfect choice for a specific community of new users.
As you already know, blockchain technology, cryptocurrencies, and other digital assets are developed to make the whole ecosystem transparent, safe, and accessible from any part of the world with an internet connection and access to modern gadgets. So this might be your chance to fill the gap and go to places where others are unwilling to.
Next, consider providing financial tools that others don’t. Since these modern digital trading instruments are growing in unforeseen popularity, more and more new firms and startups are considering using cryptocurrencies and fiat currencies to manage their finances. Managing multiple fiat and crypto accounts may not seem easy; therefore, do proper research and find a company with such a solution. It would be great for your business if you could connect an exchange, crypto and fiat wallet, and a bank in one ecosystem. By doing this, you will take your crypto trading business to the top level and beyond!
It is essential, especially within financial services, to offer your customers a friendly design and ease of use. Personalization and customizable interfaces will help new users have a complete trading experience, send and receive payments, and interact with a community of like-minded people.
Another crucial aspect of having a successful and profitable brokerage is building customer loyalty. Focus on maintaining and continuously improving business-customer relationships.
Think of some programs that might attract newcomers and keep your already assembled clientele with you along the way. However, bear in mind that it will require more technological necessities and work.
Blockchain has turned out to be an excellent tool for helping entrepreneurs to develop hassle-free customer loyalty programs, reward repeat customers with special incentives, and nurture business or friendly relationships. Blockchain’s automatable transaction ledger can keep track of customer interactions and appropriately adjust customers’ loyalty status.
Since you already understand the benefits and the potential behind crypto and blockchain, it’s presumably impossible to ignore these innovative technologies. In almost every sphere of our lives, they are adopting fast, and there is no sign of deceleration. On the contrary, investors and businessmen are constantly looking for new blockchain and crypto-based exchanges that offer unique, unprecedented opportunities for people seeking to venture into something new and exciting.
So how can you start your cryptocurrency exchange business in 2022 – An ultimate Guide
An investor Peter Lynch once said: “During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents, and blue jeans (Levi Strauss) made a nice profit. ”
The same applies here to cryptocurrencies. Since those are booming, people who decided to invest in them early already made fortunes, but the concept is becoming mainstream only recently. It looks attractive, it is a new technology, and people want to have their money work for them. A considerable number of people seek to get profits like those who invested earlier on.
So, if you are looking for a potential business with a high return and seriously want to build up your broker or exchange business, do not miss this ultimate step-by-step guide that will show you the right direction and point out every detail.
First of all, acquire proper legal advice. Before you start working on your plan, it is essential to find legal counsel to have a clear picture of the regulatory demands of your upcoming venture. This factor is a must since licensing is necessary for all jurisdictions in which the business wants to operate. As of now, many cryptocurrency exchanges are working without serious oversight. It is because the government and regulation watch dogs are not yet thoroughly familiar with these technologies. However, in many countries, crypto operators must be licensed and must follow their local regulators and institutions’ rules and laws. Therefore, do not continue without having proper legal counsel. Many modern well-functioning exchange clients must now complete the process known as the “Know Your Customer (KYC)” procedure. This is geared toward combating money laundering.
Please remember that regulations vary by jurisdiction, so be sure to consult with an attorney familiar with the industry.
Secondly, take a look at how to bring additional funding for your venture. Before starting, you should be aware that developing and launching a cryptocurrency exchange, even with a white label solution, will cost you a solid amount of money since it includes the cost of the technology itself, hosting, legal counsel, and registration by the government and marketing.
Sure, they are not required right away, but it is crucial to ensure that you have enough capital to allow a proper runway. Why do most startups and businesses fail from the beginning? Well, their mistake is that they fail to plan. Startups also often make the mistake of licensing from crypto exchange providers that charge ongoing fees and forget to mention the legal obligations and costs required for setting up and maintaining an exchange. Before starting, consider your budget and consider getting a white label solution since it is already developed and will definitely shorten your expenses and time.
The third point is precisely about that. Find your business a solid solution provider. With white-label, you can customize your cryptocurrency business together with getting a one-time license fee without additional boring paperwork. These solutions have been on the market for many years now, they have a good reputation, and brokers have a great experience with them.
White label exchange software with a robust source code allows all the customization of a custom-build exchange. And most importantly, it decreases the time of building your business as well as overall cost significantly.
The fourth important factor is getting liquidity. Without liquidity, you can’t move forward. Therefore, consider providing an order book and offering trading activity. Lacking these, potential customers will not be attracted. If you want to avoid these issues, you can try to connect your exchange to a network of existing exchanges, which will eventually enhance its liquidity. The more extensive the network of exchanges, the more liquidity equals more profits.
Another factor is security. Exchanges must offer the most secure methods in the world. Consider at least utilizing offline cold storage wallets, 2FA, and encrypted databases. Since cryptocurrencies are one of the most common targets for hacking, leaving exchanges without proper security is not the best idea. Choosing a white label might be the best solution since it is already secured at the top level.
Also, consider launching Beta testing in order to check possible errors that may appear. Beta testing is always a good idea since it reveals possible mistakes and bugs. After it’s clear that everything runs smoothly, you can start offering it officially.
The next point is to work on your marketing and other campaigns. Plan your marketing activities and their costs to ensure you have enough funding. Attracting your clients via social media platforms is the most effective method of doing so. Once your business is on, consider connecting with, for example, cryptocurrency news outlets.
The last essential aspect is to present the friendliest and most effective customer support. While customer support might be the final step in making your new crypto business, your support for your clients will determine your long-term success.
You should always have someone who can help your clients with complaints and other issues. Customers should get your response in a short period of time. Therefore, consider implementing a so-called ticketing system, together with staff who have the necessary knowledge. The more languages you will offer, the better for you.
Offer 24/7 service because cryptocurrencies “never sleep.”
Since many investors are interested in joining trading in cryptocurrencies, new businesses, startups, and individual entrepreneurs are starting to look for possible ways to properly start a cryptocurrency business on their own. But developing it without help and a ready-made software solution will not be easy because it will cost a significant amount of money, loads of time for its deployment, and endless effort.
Launching cryptocurrency exchanges using white label solutions is here for you. With this solution, all who seriously want to start a crypto business can begin by adopting fast, secure, and customizable cryptocurrency exchanges with a relatively small amount of capital. You can make the best of crypto growth possibilities by choosing several alternatives, taking your cryptocurrency trading business to a whole new level.
To conclude, there are numerous solutions that are easy to adopt, fast and effective. Why would you waste lots of your time and capital building something from zero when you already have professionals in this field with developed trustworthy solutions in advance?