Cryptocurrency is the new digital money. Though cryptocurrency business ideas have been around since the early days of Bitcoin, it is only recently that entrepreneurs and intellectuals have started minting money out of it.
According to research, the global cryptocurrency market size is expected to boost at a CAGR (compound annual growth rate) of 12.5% between 2024 and 2030. This clearly means that cryptocurrency is here to stay and we’ll be talking about Bitcoin, Ethereum, Lite-coin, Ripple, Dash currency, and other cryptocurrencies more in the future than today.
Since it is continuously growing and is going to stay for a long time, starting a cryptocurrency business is highly profitable. Whether you want to start with NFT, trade cryptocurrencies, or work on new blockchain applications, every business model is sure to boom by the day.
In this article, we’ll be discussing a few of these lifestyle business models and how you can encash them to live your dream life.
Strategies for Long-Term Success in Crypto Business Ideas
Before we discuss the actual business ideas, it is important to know about some strategies that can help you achieve heights in cryptocurrency businesses.
Specific Target Market
Just like any other lifestyle business, It is extremely important to know your specific target market. While it is quite possible to develop a business that meets the requirements of all crypto users, it isn’t realistic.
There are beginners or high school students that trade in crypto for just $50 to $100 and then there are big investors who don’t think twice before injecting millions into the market for cryptocurrencies.
Since crypto adoption rates are only going to touch the sky, there are unlimited prospects in the future when it comes to cryptocurrency businesses. So look for a specific niche that you want to address, within the much larger crypto market and hit it.
Set Realistic Expectations
Just like traditional markets, cryptocurrency markets too have swings – and much larger than you might expect. For example, Bitcoin was trading at around $20,000 in December 2017. It dipped to less than $4,000 just after a year in December 2018 before hitting $60,000 in the spring of 2021 and then dropping to $30,000 just a few months later.
So, as you can see, cryptocurrency markets are a bit riskier than other markets. And, you need to be prepared even for as much as a 50% plunge in the coin that you are holding. Hence, cryptocurrency trading isn’t for someone with short-term goals. Enter the market only if you are prepared to be a long-term player.
6 Best Cryptocurrency Business Ideas
Non-fungible tokens or NFTs are a kind of cryptocurrency that represent a unique digital artwork or asset. Unlike traditional tokens, NFTs cannot be exchanged or divided. By their definition, NFTs are digital assets that can easily be encashed in a world of crypto-business opportunities.
Several businesses (such as the NFT marketplace for memes) have already started using NFT technology to allow users to buy real-world assets against NFTs. There are several applications of NFTs that include –
- Buying/selling real-world assets
- Online gaming
- Digital payment gateway
- Managing digital assets
Crypto Payment Gateway
As more and more people adopt cryptocurrency, they are bound to make payments through this mode. On the other hand, businesses will have to accept payments through crypto because of its increased usage.
There comes the need for a payment gateway that can allow businesses to accept payments in cryptocurrencies and people to get real-world assets against their cryptocurrency. Such a business can make a profit through account setup fees and transactional fees.
A cryptocurrency exchange is a platform where people can buy and sell their cryptocurrencies. These businesses can flourish through transactional fees for deposits, withdrawals, transfers, and trades.
There are numerous different types of crypto exchanges possible and before starting out, you need to determine which one is the best for you. Examples of some of these cryptocurrency exchange platforms are –
- Centralized exchanges
- Decentralized exchanges
- Binary option exchanges
- White-label crypto exchanges
- Hybrid exchanges
Exchange of Goods against Cryptocurrencies
Hundreds of thousands of people worldwide are interested in buying and selling physical products as well as services against cryptocurrencies. However, there are not many e-commerce websites to meet their needs.
You can simply start an e-commerce website using an online exchange, such as Coinbase Commerce, that can easily integrate with your e-commerce website. Shopify and WooCommerce are two platforms that can provide you with e-commerce dropshipping solutions.
You just need to develop a business where products or services get shipped directly from the manufacturer to the customer and the exchange happens in cryptocurrencies.
With the increased growth of cryptocurrency, people would want to withdraw their crypto for cash. Even today, there are several Bitcoin ATMs that allow users to buy Bitcoin using their debit or credit cards.
Unlike traditional ATMs, these cryptocurrency ATMs are not connected to banks but directly to a crypto exchange platform. And their transactional fees can range anywhere between 5% and 25%. So, there’s a vast scope of revenue in such a model.
Crypto Freelance Writing
If it looks like too much to risk your money in buying or selling cryptocurrencies, crypto freelance writing is an indirect method of earning money through crypto. Since it’s here to stay for a long time, people would definitely need articles, references, ebooks, tutorials, and other documents to learn about crypto and start their journey.
So you can either choose to start your own blog and earn through ads and affiliate marketing or search for some existing online publications that print crypto-related articles and blogs and work for them.
Once you are equipped with a lot of knowledge in this area, you can also write ebooks, tutorials, and white papers.
Before you start your cryptocurrency business, it is important to note that this market has its own set of positives and negatives. Though you might not be able to touch your ROI in a short span of time, any cryptocurrency business is surely going to make good revenue in the long run.
There are several other business ideas that are not possible to mention in this small blog post. However, the basic idea is cryptocurrency has a lot of potential waiting to be tapped by good entrepreneurs.