Few people know about it, but blockchain is quickly becoming one of the most significant forces in our modern world. The invention of Bitcoin paved the way for this new technology, and now with ever-increasing transaction volumes, new cryptocurrencies are being created at an average rate of 15-20 a day. If you’re looking to get into cryptocurrency investing – or just looking to embark on this exciting industry – here are ten steps necessary to start your own cryptocurrency business.
1. Consider obtaining the required licensing requirements.
If you’re thinking of embarking on a cryptocurrency venture, it would be prudent to consider obtaining your licensing requirements. For example, suppose you consider starting a Bitcoin exchange or investment company. In that case, you will need to get a money transmitter license [MTL] in most states in the United States and complete KYC compliance and AML training.
2. Attaining funding for venture.
Any individual or company considering starting a cryptocurrency business should have a minimum of $500,000 – $1 million in liquid capital before starting their venture. This will be used to cover expenses such as licensing fees, exchange development, cold storage and security measures, and legal counsel.
3. Consider having a cryptocurrency exchange software solution provider
This will be used to process transactions and create pricing tools for investors. When choosing an exchange, you should look for the most liquidity, highest volume, and lowest fees. Exchanges with higher liquidity will have more users and offer more trading pairs, while those with lower volumes may have lower prices or fewer trading options.
4. Connect your exchange with others for added liquidity.
These alternative exchanges will increase liquidity for your exchange, allowing more investors to use your platform and increase the volume of transactions.
5. Partner with a payment processor.
If you’re planning on providing a platform for trading cryptocurrencies, service providers such as payment processors and ad networks are necessary. The payment processor will help process the transaction between users and cryptocurrency exchanges. At the same time, the ad network will allow you to place advertisements on your website or in public places around the internet.
6. Implement best security practices
The best way to win back their trust is to implement the highest security measures possible, including encryption, authorization, and network segregation, by implementing a Software Engineering Institute (SEI) Capability Maturity Model Integration (CMMI) level 5 in your development and operations phases.
7. Go live via beta testing.
Once you’ve created a basic version of your cryptocurrency exchange software solution, you’ll need to run a beta test on it before going live on the internet with it. The beta testing phase will ensure that all security measures are up to date and working properly.
8. Start marketing & PR campaign
Like any other business, releasing a new product requires a marketing and PR campaign to promote the service. It would help to hire a social media agency for cryptocurrency exchange promotion.
9. Offer customer support.
The only way around this is to hire your customer service agent and provide 24/7 live chat support, which will help reassure users that your exchange isn’t just some fly-by-night operation.
10. Maintain a legal team for ongoing compliance.
This means that you will need to hire a legal team specializing in licensing and compliance. These experts will ensure all internal policies are sound for your company’s lifespan and effectively manage your company through ongoing compliance.
Conclusion
If you’re looking to make money and want to take advantage of the popularity of cryptocurrencies, it’s certainly something that you should consider. Because the industry is so new and developing rapidly, it can be tough to see the road ahead; however, if you follow the ten steps mentioned above and remain determined in your vision, you’ll achieve success.