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HOW TO START A CRYPTOCURRENCY BUSINESS

HOW TO START A CRYPTOCURRENCY BUSINESS

Blockchain technology has given rise to a new digital currency: cryptocurrency. The most well-known cryptocurrency is Bitcoin, but there are hundreds of other “altcoin” cryptocurrencies. All of these cryptocurrencies are developed by cryptocurrency businesses.

The cryptocurrency marketing is young, yet it has a promising future. It’s been forecasted to reach as much as $1 trillion in 2018.

Learn how to start your own Cryptocurrency Business and whether it is the right fit for you.

Start a cryptocurrency business by following these 9 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your cryptocurrency business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What are the startup and ongoing costs?
Who is your target market?
How much can you charge customers?
What will you name your business?
Luckily we have done a lot of this research for you.

What are the costs involved in opening a cryptocurrency business?
Programmers who are competent in C++ can create a new cryptocurrency without any financial layout, for the open-source core code that’s needed is readily available for free on Github.

Instead, the primary startup cost is time rather than money.

A competent programmer can create a new cryptocurrency in as little as 30 minutes because the core code is already written. A half-hour cryptocurrency is unlikely to be successful, though.

Successful cryptocurrency businesses usually have unique cryptocurrencies that have adjusted hashes, and changing the hash can take months. The businesses also typically invest a lot of time marketing their new cryptocurrency, for success ultimately depends on whether people adopt and start using the cryptocurrency.

At the time of writing, businesses didn’t have to register with the Securities and Exchange Commission when issuing an ICO. Businesses may choose to work with an attorney who’s familiar with ICOs and Securities issues, however. Doing so would increase startup costs but may have significant long-term benefits.

What are the ongoing expenses for a cryptocurrency business?
The ongoing expenses for a cryptocurrency business are minimal. It takes a great deal of energy to run the computer programs that cryptocurrencies rely on, but miners pay for this energy. The creating business rewards miners in cryptocurrency, which is built into the equations the business is created on.

Who is the target market?
Focusing on a community also provides businesses with a set group to market to. A targeted community can be almost any group, so long as it’s defined and has use for a peer-to-peer currency.

How does a cryptocurrency business make money?
Cryptocurrencies currently make most of their money through initial coin offerings (ICOs), which are akin to initial public offerings (IPOs) of stocks. An ICO can bring in a one-time influx of cash through the sale of coins. Afterward, any coins that a business itself has will hopefully gain value as the cryptocurrency becomes more popular and increases in value itself.

In the future, some cryptocurrency businesses will start to see more of their revenue come from transaction fees.

How much can you charge customers?
Many coins cost 10 cents each at the time of their ICOs, but cryptocurrency businesses are free to choose any amount they like. Some choose an incremental price structure to entice early adopters. After an ICO, the price of a cryptocurrency is determined by the open market.

How much profit can a cryptocurrency business make?
The profit potential for a cryptocurrency business is extremely high. For example, one business has raised $133 million in capital for a new cryptocurrency before an ICO.

How can you make your business more profitable?
Cryptocurrency businesses owners may start up mining operations to create additional revenue, but this could be perceived as a conflict of interest. Most businesses primarily focus on increasing their cryptocurrency’s value through marketing and providing ongoing technical support.

What will you name your business?
Choosing the right name is very important. If you don’t have a name in mind already, read our detailed guide on how to name a business or get some help brainstorming a name with our Cryptocurrency Business Name Generator.

Then, when registering a business name we recommend checking if the business name is available in your state, federally by doing a trademark search, searching the web, and making sure the name you choose is available as a web domain to secure it early so no one else can take it.

Find a Domain Now
Search for your perfect domain…

.com

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After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google’s G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your cryptocurrency business is sued. There are many business structures to choose from including: Corporations, LLC’s, and DBA’s.

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