Thriving in the Era of Crypto: The Basics of Starting a Blockchain-Based Venture

Have you ever contemplated starting your own cryptocurrency-based business? If so, you aren’t the only one, particularly in this day and age when everyone seems to consider starting a side hustle to supplement their income. Not to mention all the social media posts romanticizing entrepreneurship, thereby amplifying the fear of missing out.

Don’t let yourself be deceived, though. Running a business isn’t all sunshine and rainbows, especially if you’re choosing a niche like cryptocurrency.  Figuring out the basics on your own can be cumbersome, but what if you had a handy guide to point you in the right direction so you can set yourself up for success? While this article isn’t a replacement for doing your own research, it aims to give you a good start to ensure you can overcome any practical obstacles that may arise along the way. Read on below and let this guide shape your dreams into an actionable plan!

First, What’s a Crypto Business?

A cryptocurrency business encompasses any type of venture that offers blockchain and cryptocurrency-related services and has the blockchain at the core of its operations, leveraging benefits like anonymity, decentralization, and efficiency. A good example of a business in this field is represented by crypto exchanges that allow users to find the top cryptocurrency by listing different options, but crypto payment gateways, NFT marketplaces, and decentralized exchanges can also provide a path towards profitable entrepreneurship. In other words, there’s a sheer breadth of opportunities awaiting, especially as blockchain is rapidly permeating more domains, ranging from finance and gaming to education and healthcare.

What Sort of Crypto Business Should You Choose?

As previously stated, you have endless options to choose from if you’ve been pondering about starting a crypto venture, and we will give you a teaser below so you can get an idea of what’s out there:

• Crypto mining platforms. Do you remember the good old days of the Bitcoin gold rush? At that time, everyone could mine crypto from the comfort of their own homes, if they were able to run software harnessing their CPU power and solve complex cryptographic puzzles, receiving newly minted coins in return. These days are gone, however, and nowadays, business opportunities lie in developing mining tools for group use. You can choose among tools and solutions, such as cloud platforms, local platforms, and mining pools, each with unique characteristics that require detailed research.
• Crypto payment gateways. If crypto mining isn’t your cup of tea, another compelling option is to create a crypto payment gateway. This service enables other ventures to accept coins as payment from customers. Although this method isn’t as widespread as fiat currency, it still provides major benefits, including increased global availability and fast transaction speeds, which are particularly relevant for cross-border payments.
• Crypto consulting services. Asset management consulting is one of the most sought-after services in the traditional finance industry. As people become increasingly serious about personal finance, they need professional advice to navigate the complexities involved, which is especially true for cryptocurrencies, known for their volatile nature. If you are passionate about helping others, launching a crypto consulting business may be the perfect path for you.
• Decentralized applications. As you may already know, crypto is more than just finance. If you’re seeking a smaller-scale project aligned with the decentralization aspect of crypto, it may be a good idea to launch a dApp. When it comes to this niche, the sky is the limit: you can create anything you like, whether social networks, games, or productivity tools; alternatively, you may want to explore NFTs, which are a type of cryptographic token that is particularly useful in GameFi and digital art platforms.

What Are the Steps to Starting a Crypto Business?

Now that we’ve discussed the numerous options available, it’s time to do the work. No matter the type of crypto business idea you’ve settled on, there are some fundamental steps you will need to take to get your venture off the ground:

• Conduct market research. The most important thing you should do before launching a crypto-related business is to understand if there’s a need for it, and that’s where market research comes into play. You don’t want your business to become another statistic among the 90% startups that end up failing, so take the time to evaluate industry trends, your competitors, the potential unmet needs of customers, who your product is for, and what the current crypto business landscape looks like.
• Pick a legal structure. When starting any kind of business- including a crypto startup- you should take the time to choose your legal structure, because it will impact everything from taxes and liability to fundraising. Most crypto startups choose among Limited Liability Company, C-corp, and DAO, although there are different specifics and nuances when it comes to all the legal structures available and their suitability for this kind of venture. This isn’t a decision to rush, so take your time and choose the option that suits you best.
• Consider funding. The next logical step is obviously figuring out where your initial capital will come from, so it can meet the minimum threshold of covering development costs, licensing procedures, salaries, and marketing budget, to name a few. While startups typically rely on angel investors and venture capital firms, in the crypto space, there are alternative options, such as Security Token Offerings and Initial Coin Offerings, enabling you to secure funding directly from the crypto community itself. However, they come with complex regulations and specific conditions, which you need to be aware of.
• Set up the tech infrastructure. It’s only a crypto business if it’s backed up by blockchain, isn’t it? Hence, it’s paramount to develop a technological blueprint for your venture and choose a blockchain to base your project on, such as Ethereum, Polkadot, or another alternative. However, if you feel bold, you can always create your own blockchain from scratch, although you should remember that this can be time-consuming and costly.
• Create and validate your MVP. One of the most essential milestones for any venture is the MVP, or the minimum viable product, which represents the first version of the product, including only its core features and functionalities. Following this, there will be a period of ongoing refinement, during which you will engage with early adopters and utilize their feedback and suggestions for further upgrades.
• Have a marketing plan in place. Once you have a viable product, you need to advertise it effectively, which is why you shouldn’t leave marketing as an afterthought. The “built it and they’ll come” approach often doesn’t work out, so leverage social media marketing, content marketing, and community engagement to ensure that the word gets out and prevent your venture from crashing up on the rocks.

The Bottom Line

Learning how to start a crypto venture is indeed not something you can achieve after reading just one article, but hopefully, this comprehensive guide will become a reliable paddle in an intimidating ocean of crypto entrepreneurship. As you embark on this journey, remember to stay adaptable, motivated, and always put users’ needs first, as these are the secret ingredients for success.

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