4 Ideas For Starting A Blockchain Business

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Cryptocurrencies continue to gain traction and gain wider acceptance across all demographics. More importantly, Wall Street is constantly trying to expand its activities in the field of digital currencies and blockchain.

Goldman Sachs announced it would offer Bitcoin-backed loans, while Fidelity launched a physical Bitcoin ETF in Canada last December. The investment firm is also eager to launch a Bitcoin fund in the United States, but is awaiting legislative approval. The potential for starting a business in the blockchain space is virtually limitless. Digital currencies and the technology they run on have only been around for a little over 12 years, and the industry is still in its infancy.

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As the founder of an IRA cryptocurrency investment firm, I’ve seen firsthand what it’s like to be an entrepreneur in this exciting space. And I know you can do it too. You do not believe me ? Let’s take a look at four basic ideas for starting a business in the cryptocurrency world.

Related: 5 Ways Blockchain Technology Will Change The Way We Do Business

Crypto tax advice

You may already own a tax consulting firm or work as a tax consultant. In this case, you would be entering the cryptocurrency space to capture a new line of business. However, you can also start a crypto tax consultancy from scratch.

Buying and selling cryptocurrencies generates a reportable event for the IRS. Many traders and investors make hundreds or thousands of trades per month. Keeping track of the amount won or lost from each transaction and completing the necessary paperwork can be a real headache.

Automating the process would relieve the trader and prove extremely profitable. An example is BearTax, which links to almost any crypto exchange and generates a file containing all the necessary information. The document can then be sent to an accountant or it can be imported into tax filing software.

Create your own digital piece

Creating your own digital piece is easier than it looks. Many cryptocurrencies are, by nature, open source – and one of their greatest values ​​is decentralization. Digital coins are built and run on a network of nodes that produce the coins and record all transactions.

This technology, known as blockchain, is probably the most difficult piece of the puzzle. For this to work securely, you would need a lot of nodes. Each node is an independently functioning computer, and then you will need to create the algorithm that supports the blockchain.

Creating your own blockchain would allow you to define all the parameters of your digital coin. You can set the initial volume, the final total maximum volume and the difficulty of extracting the part, among others. However, you also have another option, which is to use the blockchain of an existing digital currency. You can use an out-of-the-box creation service such as Cryptolife. This allows you to focus on the parts themselves and their characteristics.

Related: How Blockchain and Cryptocurrency Can Revolutionize Businesses

Cryptocurrency exchange

Those looking for a large-scale project may want to consider starting a crypto exchange. Exchanges allow people to buy and sell digital coins, often hundreds of different coins. The exchange generates fees for each transaction, deposit, withdrawal and transfer.

Several types of exchanges already exist, so you will need to do some research to determine which option is best for you. Or, you can find a new solution and solve problems that have not yet been solved. Here are some examples of exchanges:

  • Decentralized exchanges

  • Centralized exchanges

  • Ad-based exchanges

  • White label exchanges

  • Order book exchanges

  • Hybrid exchanges

The essential tools you will need to make this project work are an exchange software provider and a payment processor. This type of startup is also capital intensive, so you may need to raise capital to get you through all the necessary steps to end up with a finished product to launch.

Related: How You Can Build a Career in Blockchain

Cryptocurrency e-commerce

Although cryptocurrencies are starting to gain traction with retailers, we are still a long way from mainstream acceptance of digital coins to buy whatever you want. Many crypto users want to use digital coins for their daily purchases.

You can start an e-commerce business that accepts cryptocurrencies and use dropshipping to avoid dealing with storage and delivery. You need to set up your e-commerce website or join the services of a company like Shopify.

Then you need an exchange to facilitate transactions. Coinbase Commerce already does this, making the process very easy for online merchants. Coinbase Commerce has already integrated Shopify, and you can also access dropshipping services through Shopify.

There are no merchant fees for accepting digital coin payments. However, you will be charged transaction fees for converting your cryptocurrency into fiat currency. Unless you are a crypto player, you may need to trade digital currency for fiat regularly to avoid the risk of going long on digital coins.

Decentralized finance is still in its infancy and there is still a long way to go for cryptocurrencies to gain widespread acceptance. But as with all pioneering moments, the fact that there is still a lot of uncharted ground provides greater opportunity. I took this opportunity five years ago, and I hope you feel inspired to get involved as the market matures.

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4 Ideas For Starting A Blockchain Business


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