Cryptocurrency and Bitcoin have probably become two of the most common and used words in the financial and IT fields in our days. The huge success and head-whirling value of the Bitcoin have encouraged many individuals to try their luck and launch their own digital coins.
In numbers, the beginning of 2018 brought a total market value of more than 230 billion US dollars for Bitcoin and an increase of 17.5% on the stock markets for Ethereum.
The access to buying or using in one way or another cryptocurrency, and here we are not only referring to Bitcoin, but also Ethereum and Litecoin which are growing in popularity, increases people’s interest in finding out how to start cryptocurrency businesses. Luckily, there are various options in one of the best emerging industries worldwide.
Types of cryptocurrency businesses
If you are planning to start a cryptocurrency business you should first get to know what type of activity suits you best, because there are plenty of options out there. Among the most successful recipes revolve around digital coin mining, cryptocurrency exchanges and initial coin offerings which everybody knows as ICOs.
Lately, some enterprisers have taken an interest in setting up cryptocurrency ATMs and even vending machines selling digital coins. So, as you can see, it is a matter of finding a niche that suits your needs and knowledge.
In case you are thinking about mining or ICOs, you will also need a fast and reliable internet connection.
Starting up the business
The first step to create a cryptocurrency company is to come up with a business model unless you simply want to buy and re-sell bitcoins or any other token. The main idea is to create your own digital coin and build upon it, as this is how most of the startups have become successful.
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So, if you want to start your cryptocurrency business from scratch you will need a code for creating the digital coin. The good news is that all companies opened so far used Bitcoin’s open source code and created their own currencies by changing one or more sequences and then started the mining process in order to create as many digital coins as possible. This is why you will need a good internet connection (as mentioned above) and a powerful computer.
Want to earn interest on your crypto?
BlockFI lets you invest your crypto in an IRA and even earn interest on it. This is a great way to add crypto to your retirement portfolio.
The tech part is not something you need to worry about as there are plenty of forums where you can exchange ideas and ask for opinions, so it won’t take long before you actually have your own brand-new cryptocurrency.
Then, you will need to register a company with the authorities in your country and start trading your cryptocurrency.
Cryptocurrencies from a legal point of view
Cryptocurrencies are decentralized currencies which means that they have no specific authority supervising the activities of companies using them. This has been an issue when Bitcoin appeared; however, once it became popular the number of governments seeking solutions for regulating transactions with digital money has increased.
Up to this point, most governments acknowledge this type of transactions, while other activities related to digital money remain somewhat uncertain from a legal point of view. However, this is about to change as some governments are thinking about creating laws which regulate cryptocurrencies.
One of the first countries considering the introduction of a law which regulates cryptocurrencies is Malaysia. This will be an important step towards recognizing transactions with Bitcoins and other digital assets, according to the authorities there. Moreover, it will open the door for the recognition of other cryptocurrencies and will push other countries in the same direction.
Starting a cryptocurrency business is not complicated and the success of such venture is almost guaranteed considering how the global economy is evolving into a digital one and the number of governments accepting transactions with digital money is growing which will mean a more stable market for these assets.
