10 Awesome Cryptocurrency Business Ideas

10 Awesome Cryptocurrency Business Ideas

Despite the fact that cryptocurrencies have been around for more than a decade, they remain novel, exciting, and full of growth and opportunity. With so much space and flexibility provided by cryptocurrency, now is the best time to investigate any thoughts you may have about starting a cryptocurrency business. Digital currencies will become more important than ever in an exploding digital economy.

Many businesses that accept traditional fiat currency can also accept cryptocurrency, including DeFi coins. With that in mind, let us look at nine different cryptocurrency business ideas that capitalize on the current needs of the digital currency economy.

10 Awesome Cryptocurrency Business Ideas

Image Credit: Foreign Exchange Live

1. Establish a Cryptocurrency Exchange Business

A cryptocurrency exchange is a company that allows people to buy and sell various cryptocurrencies in a safe and secure setting. The exchange’s owner levies fees for users to deposit, withdraw, and transfer their cryptocurrencies.

In the market, there are various types of exchanges. As a result, before you launch, do your research on the type of business you want to run. The following are examples of exchanges:

  • Centralized Exchange
  • Decentralized Exchange
  • Hybrid Exchange
  • Order Books Exchange 
  • Exchange based on advertisements
  • Binary options Exchange

Once you’ve made your decision, you’ll want to hire competent legal counsel. You’ll also need money, cryptocurrency exchange software, and a payment processor. Furthermore, you will require the resources to conduct all of the testing, marketing, and support required to run a successful business.

2. Offer Cryptocurrency Payment Gateway Services to Other Businesses

Another cryptocurrency business idea is to establish a cryptocurrency payment gateway. Cryptocurrency payment gateways enable businesses to accept payments online in the form of various cryptocurrencies. The core value that crypto payment gateways provide necessitates a strong emphasis on security. Coinbase Commerce is currently the most popular payment gateway provider for a variety of online stores.

When a customer pays with a digital currency at a business that uses a cryptocurrency payment gateway, the gateway usually converts the cryptocurrency to fiat currency to stabilize its value.

The transaction details are then routed from the merchant to the issuing bank. Once the bank has approved the transaction, it can settle the amount with the gateway, who then does the same with the merchant.

So, how does the payment gateway generate revenue? They accomplish this by offering transaction discounting rates, transaction charges, support costs, setup fees, and a variety of other services that make their clients’ lives easier.

3. Launch a CryptoPayroll Service

A crypto payroll service, like a traditional payroll service, enables businesses to pay their employees.

They can allow a company to fund their payroll account with both cryptocurrencies and fiat currency, allowing employers to pay their employees in either currency.

A cryptocurrency payroll service earns money by charging businesses fees per employee, which are paid monthly or annually. Other income sources include charging fees for the various ways businesses want to fund their payroll and different wage distribution methods.

4. Launch a Bitcoin Mining Company

Mining If approached correctly, Bitcoin can be a profitable cryptocurrency business. However, the days of Bitcoin mining being profitable with just a home computer are long gone. At the moment, specific mining rigs costing $12,000 or more are required to solve the majority of Bitcoin calculations. You can pool resources to get into mining for less money, or you can mine through the cloud, though these are far less profitable ventures.

Along with hardware costs, there are costs associated with housing and powering said hardware. Mining’s profitability is heavily reliant on electricity. Heat reduction is also important for the application-specific integrated circuits (ASICs) required for effective mining. An estimate based solely on electricity usage places each Bitcoin transaction at 215 kilowatts.
Bitcoin mining generates revenue by computing hashes to verify Bitcoin transactions. The first miner to correctly audit a transaction earns both Bitcoin and a transaction fee. If you can make enough money from this to make a profit after paying for your hardware and electricity, you’re in business.

That is, of course, the primary concern. Profit is directly proportional to the value of Bitcoin and the cost of electricity. The less valuable Bitcoin is, the less valuable it is to mine it. If your business is mining and providing mining services to others, you can charge your customers to cover your expenses.

Another option is to investigate and mine other currencies that may have a lower cost of entry. Finally, mining cryptocurrencies is a risky business with large rewards if you are successful.

5. Invest in the Early Stages of a Cryptocurrency

To begin with, this one will necessitate a larger investment as well as extensive research. Pre-ICO, or early-stage investment, is a way to get in on the ground floor of a cryptocurrency and potentially make a lot of money.

This also necessitates extensive networking within the crypto community.

You must stay alert, recognize when people are attempting to launch new crypto, as well as understand their business model – and determine whether or not it will be successful. Begin by following industry influencers on Twitter, starting discussions on Reddit, and attending conferences and other networking events.

6. Provide Services for Crypto Asset Management

Another great cryptocurrency business you can get into if you have a healthy interest and knowledge of cryptocurrencies is asset management. You can make a living by assisting others in making the most of their digital investments by taking a long-standing business like financial management and focusing it on the world of cryptocurrency.
Services you could provide would be similar to those provided by any fiat financial advisor to their clients, such as:

  • Planning your finances
  • Investment guidance
  • Coaching for cryptocurrency
  • Financial evaluation

You could either travel to a client’s location or offer your services remotely. You would be reducing the overhead of having a physical office space, as well as all of the costs associated with it, by doing so. To get started, all you need to do is register your agency, market yourself, and use your cryptocurrency knowledge to your advantage.

7. Offer Legal or Accounting Services to Cryptocurrency Investors

Providing legal and accounting services to digital investors would be almost identical to how you would provide those services to fiat customers, similar to how you would provide asset management services to cryptocurrency clients. Tax services are something that many cryptocurrency investors require.

As a crypto CPA, you could assist clients in navigating the ever-changing legal waters of virtual currency. Helping individuals and businesses who regularly transact or invest in cryptocurrency with their bookkeeping and tax filings is a priceless service.

8. Begin Offering Cryptocurrency Lending Services

You could lend fiat money or cryptocurrencies to others in exchange for interest as an alternative investment firm. As a lender, you would set an interest rate, give a borrower assets in exchange for bonds, receive bonds as interest, and then return the bonds at the end of the contract to receive cryptocurrency in return.

There are numerous cryptocurrency exchanges that can help with a cryptocurrency lending contract. Platforms like Binance or Coinbase act as a middleman in an easy-to-use service that provides various protections to both you and the borrower.

This means that all currency must pass through them and remain in their possession until it is withdrawn.

There is always the option of using Decentralized Finance (DeFi) to lend directly without going through a third party. Using a smart contract, transactions can take place automatically based on predefined conditions. The security of a smart contract is provided by public audit, which allows anyone to manually verify it. Because DeFi is restricted to a single blockchain, the options for crypto lending are limited.

9. Become a Bitcoin Escrow Service Provider

A Bitcoin escrow service is a cryptocurrency business idea that uses the same blockchain technology that powers virtual currencies. Currencies with increasing value are ideal for escrow services, so it is only natural to enter the crypto escrow industry.

Escrow services act as neutral intermediaries between two parties in cryptocurrency transactions. By requiring the purchasing party to make an upfront crypto deposit, an escrow protects sellers from fraudulent buyers. It also protects buyers if a seller fails to fulfill their obligations by providing goods or services.
An escrow company makes money by charging fees for their services, making it a relatively simple business for those with the means to make it happen.

10. Provide Crypto Industry Freelance Writing Services

What better way to apply your cryptocurrency knowledge than to share it with the rest of the world? Freelance writers who can write about cryptocurrency for blogs, online research, content marketing, SEO, and other purposes are in high demand across industries.
By writing quality, well-informed copy, a good freelance writer can assist a company in developing a reputable brand. 

Specialized writers who understand how to meet the needs of their clients can boost a company’s brand awareness, search engine rankings, and assist with more technical writing such as whitepapers or tutorials.

As a freelancer, you can set your own rates and market yourself quickly on sites like Upwork. Current freelance rates for cryptocurrency writing range from $35 to $200 per hour, depending on the writer’s expertise and breadth of knowledge.

Final Thoughts on Cryptocurrency Businesses

Knowing the ins and outs of the cryptocurrency industry enables those in the know to apply that knowledge in novel and exciting ways to other industries. As the information presented above shows, there is no shortage of cryptocurrency business ideas.

Almost any business that relies on fiat currency can be adapted to work with cryptocurrency, sometimes in more profitable ways. All it takes is a solid understanding of how virtual currencies work and how to leverage that knowledge. Whether you own any cryptocurrency or not, you can start a business based on it.

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