The cryptocurrency industry has experienced tremendous growth over the past years, with Bitcoin, Ethereum and other crypto projects paving the path for entrepreneurs to launch their own crypto startups. Digital currencies went from being the underdog of the financial system to an increasingly appealing payment mechanism and investment venue. By the latest count, there are over 420 million crypto users worldwide, and a growing number of businesses and organizations have started accepting crypto payments or adding crypto to their investment portfolios.
The prevalence of crypto exchanges like Binance where users can check the Bitcoin price in real-time and buy, sell, and trade cryptocurrencies with ease has also contributed to the rising popularity of this new asset class. This means there are more opportunities than ever for entrepreneurs to launch a lucrative business in this space and scale their venture in the years to come.
As cryptocurrencies continue to inch closer to mainstream adoption, there’s certainly no shortage of profitable crypto business ideas to consider, from building a new cryptocurrency to establishing crypto exchange platforms, crypto payment gateways, crypto asset management services or legal and accounting services, and so on.
However, with more companies entering the fertile crypto land, the competition is also getting tougher, making it harder for newcomers to stand out from the crowd. Although barriers to entry are low and breaking into the crypto industry is relatively simple, growing your startup and setting it up for long-term success is not as easy. So, if you’re planning to dive into the crypto sphere and launch your own crypto business, here are a few aspects to keep in mind.
Know what you’re getting into
The cryptocurrency space is vast and complex and it’s only getting bigger in all respects. This means there are many ways you can make money with crypto, but you have to understand what cryptocurrencies are and how they function if you want to unlock these opportunities. Everyone has a rough idea of cryptocurrencies and their use cases, but most people don’t know much about what’s going on behind the scenes.
If you want to break into an industry, especially one that’s as innovative and fast-paced as the crypto industry, you need to learn as much as you can about it. So, you’ll have to go beyond the basics and gain an in-depth understanding of digital currencies, the principles on which they are based, as well as the technology that underpins them.
Find your niche
After you’ve educated yourself on the blockchain and crypto-asset ecosystem and armed yourself with the right knowledge, you’ll be ready to take the leap and choose the path that you want to follow. The demand for crypto products and services is high at the moment, despite the market’s volatility, but you can’t possibly cater to everyone. You need to choose a specific niche for your startup and decide what type of product/service you want your business to provide.
There are a few steps that can help you narrow down your options and identify the most profitable niche for you, as follows:
- Identify your interest and skills
- Conduct market research
- Look for problems that require solving within the crypto industry
- Analyze the competition
- Determine the profitability of the niches you’re considering
- Focus on a target audience
- Find your unique selling point
- Test your idea
If after testing, your business idea receives a positive response, you can continue and develop it into a full-fledged business. If you don’t get the results you expected, you can tweak it until it matches your objectives, or you can start from scratch with a new business idea.
Build a team to support your crypto startup
Even if you manage to become a crypto expert, it’s still highly unlikely you’ll be able to get your startup off the ground without help. The success of a crypto project is largely determined by the team of developers or specialists working on it. That’s why you need to find talented individuals in the field and convince them to jump on board the project.
But how do you do that when there’s such a high demand for skilled professionals in the crypto industry? Offering competitive salaries and benefits, sparking interest by providing challenging work and emphasizing career advancement opportunities can help you attract the right kind of people on your side. Working with a team of professionals that understand and uphold your vision will make it easier for you to get your message across and win over your audience.
It’s not just developers and customers that you need to attract for your crypto startup to thrive. You also need to make your business attractive to investors and secure the necessary funds to help your business grow. Networking and establishing relations or partnerships with other professionals and startups in your niche can open numerous opportunities in this respect. This will make investors come to you instead of you chasing them and vying for their attention.
Additionally, you should be able to provide evidence of your startup’s potential, spend time developing a personalized pitch, provide accurate information about your business, and emphasize your uniqueness. This should help you attract the right kind of investors and increase your chances of building a strong crypto business.
Set realistic expectations
All startups come with a certain degree of risk, but starting a business in the crypto industry is a particularly risky endeavor, regardless of niche, due to the novelty and the inherent volatility of the market. Therefore, you need to be aware of the hazards you expose yourself to and get ready to face the massive swings in the market.
Setting realistic business goals and having a contingency plan in place is key to reducing risks and keeping your business afloat in trying times. Keep in mind that crypto businesses are profitable in the long run, so don’t expect to see massive returns overnight.
Launching a startup in the crypto space can be a wild ride, but it can also be an extremely rewarding one, so if you think you’ve got what it takes to make it into this booming industry, you should start preparing right now.