Despite skeptical approach and criticism from regulators across the world as well as the nuisance of non-believers, the crypto industry has grown significantly over the last decade.
Investors and entrepreneurs flocked this market after the 2017 crypto bull-run which saw Bitcoin’s price surge to an all-time high (ATH) of over $20,000 USD. Since then, the market gained traction not only from Bitcoin’s perspective but also from profitable ideas within this space.
Today, the total cryptocurrency market capitalization stands at $380 billion with over 6,400 cryptocurrencies making up this volume. Bitcoin holds the largest crypto market cap of $223 billion out of the total market capitalization. This portfolio of digital assets is quite diverse and has evolved since Bitcoin’s inception.
With such incredible market stance, considering that it is still in its infancy stage, the cryptocurrency arena now presents a range of profitable business ventures one could begin with. Interestingly, most of these ideas require minimal capital to kickstart and can, therefore, be initiated by individuals, startups as well as large institutions.
Here are the five business ideas that anyone might consider so as to maximize the huge potential that crypto space offers.
1. Crypto Trading
Cryptocurrency trading or crypto trading is simply the exchange of cryptocurrencies. This business is just a replicate of the traditional trading in traditional bond and stock markets. However, the underlying assets are cryptocurrencies such as Bitcoin, Ethereum, and the like, where the market participants buy and sell them to make a profit from price movements.
Basically, crypto trading is buying low cryptocurrencies and selling them at a higher price. Prospective market entrants can start to trade cryptocurrencies through existing crypto exchanges like Binance, Bittrex, Poloniex. Like stock market trading, crypto traders rely on technical indicators or fundamental project aspects to make price predictions. This doesn’t mean, however, that crypto trading is automatically profitable. It still requires proper risk management, as well as thorough research as this type of venture, is as volatile as the crypto market itself.
2. Crypto Affiliate Programs
Affiliate programs are now finding a convenient operational ground within the cryptocurrency industry. These initiatives have been instrumental in the market acquisition and it comes as no surprise that crypto entities have also opted to incentivize their targets. As a participant, this is another area where you can capitalize on by starting a business.
Bitcoin and crypto affiliate programs offer a powerful way to monetize your crypto specific audience. Whether you run a popular blog, news website, YouTube channel, or Twitter account, crypto affiliate programs can bring in a recurring revenue stream that can be relied on for months and sometimes years to come. There are quite a handful of these programs out there and finding the best ones is an extremely time-consuming process. But once you found the perfect shot, it could be one of your profitable sources in the crypto space. Keep on digging and do your own due diligence.
3. Investing in ICO’s and STO’s
Initial Coin Offerings (ICO) and Security Token Offerings (STO) are the concepts of raising funds by crypto projects which also present an opportunity for investors to make a profit once the projects succeed. At the very basic, ICO’s and STO’s resemble Initial Public Offerings (IPO) that have long been used to raise funds in capital markets.
Business ventures and individuals can then be part of these initiatives by investing in the ICO’s or STO’s. In an ICO, one gets to own a token which they can liquidate at a later date or upon the project’s completion for a positive ROI. On the other hand, Security Tokens have been more regulated such that buyers/contributors can acquire debt or equity stakes based on the issued digital assets. Every potential participant is encouraged to conduct proper due diligence within this business scope as these types of ventures have their own share of disadvantages.
4. Crypto Mining
Cryptocurrency mining is quite more technical and resource-intensive as this requires mining machines, to begin with. Miners benefit from fees paid by network participants who rely on their effort for new coin generations. The venture involves dedicating one’s power and utilities like computer space and fast internet connections to facilitate cryptocurrency mining.
In order to mine and be profitable, stakeholders need to have a cutting edge against competitors. This leverage can be acquired through the use of better mining equipment like ASICs which provide a higher hashing power. However, the use of advanced machines may not guarantee a profitable business given China’s electricity capacity which automatically favors miners within its jurisdiction.
5. Crypto Consultancy
Cryptocurrency Consulting is undoubtedly a pillar in any industry looking to grow and present sustainable business cases. As we have said, the crypto market is still in its infancy stage, which gives an opportunity for specialization and client acquisition in matters that involve consulting.
Ideally, prospects can create a business whose main function is to guide crypto firms and crypto enthusiasts towards profitability. Such function could spread out to areas like education and training which is still lacking and yet to meet the interested demand.
With crypto regulation and tax issues on the rise, professions within these areas have also been accommodated to shape the future. Hence, the market now presents an opportunity for wider consultations that are compensated as well. A business idea focusing on feeding the crypto knowledge gap is likely to be profitable should it be run efficiently within the legal scope.