Data shared from Cambridge Judge Business school shows that as of the third quarter of 2020, there were more than one hundred million verified cryptocurrency users globally, according to Finance Online. Starting a cryptocurrency business has become an attractive venture in recent years as more individuals adopt digital currencies. What’s more, this trend is set to continue, creating numerous opportunities for those thinking of investing in cryptocurrency. While setting up a crypto-based business can be lucrative, there are several things you need to do to succeed. If you’re an aspiring crypto business owner, check out these three steps to launch a successful cryptocurrency business.
Know The Licensing And Insurance Requirement
Understanding the licensing requirements of starting a crypto business is critical if you want to avoid legal implications. Therefore, take time to familiarize yourself with the industry’s regulations. For example, if you’re operating a business in the US, you’ll need to apply for a money transmitter license. You’re also required to follow strict rules set by the Security and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
While obtaining licenses might seem enough, you need to invest in various business insurance policies, such as general liability, property insurance, and product liability. If you plan to hire employees, make sure to purchase worker’s comp insurance. According to Cerity, purchasing worker’s compensation insurance guarantees peace of mind, so you can focus on growing your business. That’s because you’ll have financial protection to cover your employees’ expenses should an accident occur at work.
Choose A Niche
Before launching your crypto business, determine your niche based on your skills, interest, and target audience. For instance, if you’re tech-savvy, you can establish a crypto mining company or develop an exchange system for Bitcoins, Ethereum, or Dogecoin. If you have experience in copywriting, you can create a freelance cryptocurrency writing business. Other cryptocurrency business ideas worth your time include crypto lending services, asset management, payment gateway, and legal or accounting services. By narrowing your crypto business to a specific niche, you increase the chances of staying ahead of competitors because you’re aware of what you’re doing.
Develop A Business Plan
Once you’ve defined your niche, consider writing a detailed business plan. Your business plan should provide clear insights into the crypto services you intend to offer and the exchange software you’ll be using. Also, list payment processing companies you’ll partner with and the best security practices you want to implement.
Establishing a cryptocurrency business is an excellent way of earning high profits. However, there are financial and regulatory risks that may hinder your success. To overcome these obstacles, make sure you understand the licensing and insurance requirements. Also, narrow down your niche market, develop a business plan, and create an effective digital marketing strategy.
Suggested image:Â https://www.pexels.com/photo/gold-round-coin-on-persons-hand-7567430/
Source: Plato Data Intelligence
