This article will cover 6 promising areas where cryptocurrency entrepreneurs can start a business and be profitable as soon as possible.
Cryptocurrency is a very fast-growing market that also has a very volatile nature. Bitcoin, the first Blockchain project ever created, is a good example of volatility where daily price swings of 15% aren’t an exception. Besides Bitcoin being volatile in USD price, the total cryptocurrency market is growing at full speed and lots of business opportunities arise.
Look at this, only in 2019, the total cryptocurrency market witnessed a growth of more than 100%. In fact, from the start of January until today(July 2019), an additional amount of 125 Billion! Dollar was added to the markets.
This massive flow of capital going into the cryptocurrency markets hasn’t been unnoticed by online entrepreneurs and business owners. As a matter of fact, these young but very fast-growing markets offer a lot of new business opportunities. In this article, I will explain to you the best bitcoin business ideas for 2019 and beyond. To summarize, these are the topics I’ll examine:
- Affiliate marketing
- Investment Business
- Lending Business
- Launching a Decentralized Application
- Cryptocurrency Mining Business
Business Opportunity 1: Affiliate Marketing
Bitcoin and cryptocurrencies have one thing in common and that lies in its decentralized nature. Because of this nature, no dominant party in the markets exists which has full control. If you are a start-up and want to join this market, no central authority will stop you from doing this. As a result, a lot of trading platforms, Blockchain projects or FinTech start-ups have entered the market.
To gain market share fast, all these start-ups have one thing in common which are referral programs. All participants in the market, whether you are a trader, investor or marketer can join these referral programs and earn a commission on it. It’s a win-win situation where start-ups have the opportunity to gain market share fast and market participants earn a passive income stream.
Affiliate Marketing: What does it actually mean?
To make things more clear I will give a short explanation of what affiliate marketing means:
Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.
So affiliate marketing is about selling products you don’t have to own yourself. The idea is that you find a subject that you love(bitcoin, crypto) and start creating valuable content about it. Starting a blog about Bitcoin is a good example of a cryptocurrency business opportunity.
Business Opportunity 2: E-commerce
Another interesting business idea comes with E-commerce. The business has gone through a revolution in the last few years. From Blockchain, and FinTech the world of international commerce is moving faster than ever. But, all of these emerging technologies focus on one powerful concept: E-commerce. Cryptocurrency and E-commerce are two online markets with a lot of similarities.
The business of the future is done from a mobile device or a computer. It happens at home and on the go. The shop is open 24 hours a day and customers are demanding more from their platforms than ever before. Also, the cryptocurrency markets are open 24 hours a day, on a global scale and accessible from any online device. Creative entrepreneurs can profit from this and combine the best out of both worlds. How to do this?
One perfect example of a profitable E-commerce business is Amazon. With the introduction of Shopify, it’s now very easy for entrepreneurs to start an online business. Both platforms offer an interesting opportunity if you are a player in the cryptocurrency markets.
On Shopify you can create your online store in minutes, they already have over 600,000 stores using their platforms. They connect you to merchants and everything you will need to get started, all the hard work is already done for you. One of the interesting facts is that they also offer payments in cryptocurrency. As a matter of fact, Amazon the big brother doesn’t allow this so there lives the opportunity!
|Good to know|
|If you are a merchant and already own a webshop or offline store then you can earn cryptocurrency very simple nowadays. A good opportunity would be to accept crypto payments by using Coinpayments as a payment gateway. Moreover, they are the cheapest in the market and only charge 0.05% per transaction!|
3. Investment Business with Cryptocurrency
In the traditional financial world starting a new investing business could be quite challenging. Besides, due to strict regulations and authorities, it could take a lot of time before your business can enter the markets. This doesn’t count for the cryptocurrency markets. As a matter of fact, it’s even possible to pay your employees with cryptocurrency. Of course, this young market has a lot of risks but there is also a lot of profits to gain.
Digital Currency Group
A good example of great investment business in crypto is DCG or Digital Currency Group. This company is founded by Barry Silbert and has invested big in the cryptocurrency markets. They started back in 2016 when the cryptocurrency markets were much smaller than nowadays. Since then, they invested more than a billion USD in several starting Blockchain and cryptocurrency projects.
So what’s the secret behind their success in the cryptocurrency investment business? First, it’s a strong belief in this new Bitcoin technology being able to succeed in the future. Secondly, find some good people or investors who are willing to take the risk by investing large amounts of money.
Business Opportunity 4: Lending Business
If you are a risk-taker who isn’t afraid to burn investment capital, the cryptocurrency lending business could be it. This business idea isn’t much different compared with traditional lending vehicles. In the first place, it’s about earning interest over your capital which isn’t new. Also, this kind of earning doesn’t require much time and there always seems to be enough demand for it.
But cryptocurrency is deflationary by nature and has a limited supply, how is it possible to earn interest over it? I think this is a very good question to consider. The way the cryptocurrency lending business works could be described as exchanging liquidity between the fiat currency markets and cryptocurrency markets. The way it works is locking your Bitcoin for a fixed period. During that time you aren’t able to sell your Bitcoin. As a result of locking your crypto, you can earn interest over it. Several platforms like Nexo are offering these lending services already.
To participate in this kind of programs it’s obligated to do undergo the KYC process. This KYC is needed to block the scammers away from this kind of platform.
Business Opportunity 5: Launching a Decentralized Application
Blockchain technology is considered to be revolutionary and has the potential to fully disrupt the way we are approaching the online web today. Moreover, one of the main properties of blockchain technology is its decentralized nature. Additionally, it was Ethereum that came with smart contracts which is a way to automate online tasks that are normally performed by a third party. Besides, Ethereum is the platform with the most popular DApps where the DeFi market shows big potential to grow in. A decentralized application has some key features:
- Decentralized – No central authority in control
- Open-source – Code is available to everyone
- Incentive – Crypto tokens are being used to reward users
- Protocol/ algorithm – Network participants like miners and nodes are being rewarded in crypto tokens
- Blockchain – Data is stored cryptographically in a blockchain
What is the process of creating a new Decentralized Application?
The first step is to find out what type of DApp you want to create and if it adds value compared to a ‘normal’ centralized application. Questions like, ‘What problems are being solved’ and ‘How much does it all cost’ should be made clear. The second step is to create a whitepaper that goes into full detail into development plans, but also what target you have for the project in 5 years. This whitepaper is the ‘holy bible’ of the project and should be available for investors to download.
The next thing you can do is launching an Initial Coin Offering(ICO). ICO’s are a great way to raise funds for the project. Normally, the whitepaper functions as the foundation for investors and also they will receive a certain amount of tokens for investing their funds. Finally, when the ICO funds are raised, you are able to start developing the decentralized application. If you are tech-savvy you can do this by yourself. Another option would be to hire some professional developers for it.
Business Opportunity 6: Mining Business
‘Good old fashioned’ crypto mining is still away in this industry to earn digital currency with it. Although the capital needed to invest has risen fast it still could be a profitable business opportunity. First, let’s find out what cryptocurrency mining is all about.
What is Bitcoin Mining
Bitcoin mining is the processing of transactions in the digital currency system, in which the records of current Bitcoin transactions, known as blocks, are added to the record of past transactions, known as the Blockchain.
A Bitcoin is defined by the digitally signed record of its transactions, starting with its creation. The block is an encrypted hash proof of work, created in a compute-intensive process. Miners use software that accesses their processing capacity to solve transaction-related algorithms. In return, they are awarded a certain number of Bitcoins per block. The blockchain prevents attempts to spend a Bitcoin more than once — otherwise, the digital currency could be counterfeited by copy and paste.
Nowadays, it’s also very easy to join online cloud-mining services. These online services allow you to hire hashing rate for a certain subscription monthly. How higher the hashing rate, the higher the possible reward will be. One of my favorite online services is genesis-mining. You can get a discount of 3% by using this action code(PJOqFD) when setting up a new miner.
The cryptocurrency markets witnessed a massive growth in the first half of 2019. Although the Bitcoin price in USD has been taken off steam recently, the inflow of new investment capital into the markets is expected to continue. As a result, entrepreneurs will come with new business opportunities that take the cryptocurrency markets to the next level.
Disclosure: This post contains affiliate links. This means I may make a small commission if you make a purchase. This doesn’t cost you any more but it does help me to continue publishing cool and actual content about Bitcoin & Crypto – Thank you for your support!
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