How To Start A Profitable Bitcoin Business: Are you interested in starting a Bitcoin business in Nigeria? If yes, then you have come to the right page. We will give you the full guides on how to start a profitable Bitcoin business. This article offers advice on how to launch a successful bitcoin business.
Moving forward, while some are unsure of its legality and are unsure of what to do, others are interested in what Bitcoin might offer them. Like Bitcoin, cryptocurrencies are popular and on the rise. Early Bitcoin investors and miners are resting on modest fortunes, and the idea is spreading.
While most would-be miners during the Gold Rush lost money, those who sold them picks, shovels, tents, and blue jeans made a tidy profit. According to renowned investor Peter Lynch.
One might compare the makers of picks and shovels to the owners and operators of crypto exchanges in the gold rush that is the cryptocurrency boom.
If you recognize the potential benefit of creating your own Bitcoin exchange company, this step-by-step tutorial will take you in the correct route.
This article’s goal is to look at how to launch a Bitcoin business and profit from it. But before we proceed to How To Start A Profitable Bitcoin Business, it is essential to read about what Bitcoin really means.
What Is Bitcoin?
Simple digital money, as opposed to paper-based currencies like the US dollar or the naira, Bitcoin is fully paperless. Some even refer to it as borderless money because it was designed to make moving money from one nation to another simpler.
How To Start A Profitable Bitcoin Business
Unlike traditional money (fiat), which is controlled by a single entity, organization, or government, bitcoin is instead controlled by its users worldwide.
To ensure that licensing requirements are met, seek legal counsel.
It’s crucial to acquire legal advice before putting your plan into action so you can comprehend the regulatory requirements of your new business.
In each country where the business intends to conduct business, the appropriate licensing must be secured.
As governments and regulations have not yet kept up with technology, cryptocurrency exchanges operate with little to no oversight in many locations. In contrast, in other locations, such as the US, Bitcoin operators are required to have a license from Monkey Transmitter and to abide by SEC and CFTC rules and regulations among others.
A good lawyer is a need. Exchanges that fall under the category of currency exchanges are frequently required to follow Know-Your-Customer (KYC) laws, which are becoming common in an effort to fight money laundering.
These regulations, for instance, have been in effect in the United States since 2002 as a result of the Patriot Act.
The laws differ between jurisdictions, so make sure to speak with a lawyer experienced in the field.
Obtain Investment For Venture
You should be aware of the anticipated expenditures before beginning your job.
A minimum of $135,000 is required to establish and launch a bitcoin exchange.
The price of technology, hosting, some initial legal counsel, government registration, and first advertising are all included in this.
Even if not all finances must be provided up front, it’s crucial to make sure the enterprise has access to enough money to give it a good runway.
Startups sometimes make the error of failing to prepare for the future, resulting in modest first raises that may cover development costs but deprive the business of the vital operating capital required until it achieves profitability.
Startups frequently commit the error of obtaining licenses from dishonest cryptocurrency exchange providers, who collect recurring fees without disclosing the costs and legal duties associated with establishing and operating an exchange.
Locate A Provider Of Technology Solutions
The turnkey custom cryptocurrency exchanges offered by Modulus are provided for a one-time license cost without any additional royalties or commissions.
Clients can host the exchange themselves, there are no recurring fees, and they receive entire source code, which is crucial for auditing because some authorities ask to see the source code.
Modulus has more than 20 years of experience creating stock exchanges, including the backend technology used by some of the biggest stock exchanges in the world. Modulus has always aimed to offer clients significant value.
Why white label software with sources? White label exchange software that includes the complete source code enables complete customizability similar to a custom-built exchange while dramatically reducing time to market and total cost.
Connect Other Exchanges To Yours To Increase Liquidity
Liquidity is the basis of any successful exchange. Prospective clients will view your new enterprise with mistrust if it lacks an order book and trading activity. We may connect your exchange to a network of current exchanges, improving its liquidity, to get around these problems without having to fake activity using dummy accounts within the new exchange. Keep in mind that your new exchange will have less trouble with liquidity the more exchanges there are in the network.
Conjoin Forces With A Payment Processor
All payment processors are not created equal. Among other things, fee structures will differ greatly amongst businesses. To compete with other exchanges, you must have the lowest transaction rate. Additionally, you should make sure you read the deal you’re signing because some processors include hidden costs in their agreements. Settlement time and adherence to PCI DSS, a set of best practices to protect cyber security, are two more distinctions amongst processors.
Be aware that while many state laws in the US do compel compliance, federal law does not. To protect your new business from online risks, make sure your payment processor is PCI-compliant. Another illustration of how critical it is to comprehend the nuances of industry regulation is provided here.
Put best security practices into action
With offline cold storage wallets, two-factor authentication, and encrypted databases, exchanges built with Modulus technology are among the most secure in the world.
Additionally, the Modulus technology doesn’t keep passwords (only hashes). They have written extensively about data breaches like Mt. Gox and Bithumb, which have become well-known within the industry.
The final word?
Since cryptocurrencies are now a prime target for hacking and fraud, exchanges are scrambling to set themselves apart on the basis of security.
Launch Using Beta Testing
Your exchange has been created. You have a contract in place with a company that handles payments.
Additionally, you have gone to great lengths to guarantee that your exchange complies with all laws and norms.
You have taken steps to protect your business against cybercrime.
It’s now time to launch your exchange and run a beta test of all of its features.
Launch your marketing and PR campaign.
Connect with crypto news outlets like Coindesk once your exchange is launched, for example.
To avoid having to scramble to find more funds after your initial raise, it’s crucial to carefully plan your marketing activities and their expenditures.
Until a critical mass of traders is established, exchanges frequently do not have a marketing budget and instead focus on free social media promotion.
Provide Customer Support With Care
Although providing excellent customer service is the final step in creating a successful cryptocurrency exchange, how well you perform in this area will define your success over the long run.
Consumer-facing personnel must pay close attention and satisfactorily address customer grievances and technical concerns.
Since cryptocurrencies never stop trading, you should establish a ticketing system like ZenDesk and staff it with trained and friendly people who are ready 24/7 to answer to customers.
Keep a legal team on hand to ensure ongoing compliance
We cannot emphasize enough how crucial it is to maintain legal compliance and abide by all existing and prospective laws and regulations, not only in the country where your exchange is headquartered but also in every other country where your exchange’s members or traders will live or conduct business.
In order to maintain your exchange lawful in all of the countries where you will conduct business, it is crucial to either hire a full-time in-house legal compliance team or outsource to renowned law firms. This is because cryptocurrency rules are fast shifting globally.
Questions To Ask Before Starting A Bitcoin Business
Bitcoin: Is it legal?
Although it is challenging to prevent people from utilizing bitcoin, it has been classified as illegal in some nations.
What Bitcoin Can Be Used For?
Using Bitcoin as an investment vehicle to diversify your assets and trading by profiting from price fluctuations, similar to FX trading, are two examples of what you may do with it in Nigeria. Additionally, faster and less expensive international money transfers are possible with Bitcoin.
Tips For Buying Bitcoin
It’s really simple to get started investing in bitcoin. In contrast to a few years ago, investing in Bitcoin is now simple thanks to sites like Binance.
With more than 13 million users worldwide, Binance is the biggest cryptocurrency exchange in the world.
Starting with just $5, you may invest in bitcoin and fill your account using a debit card or bank transfer.
Simply create an account, add Naira to your wallet, and then purchase bitcoin.
Conclusion on How To Start A Profitable Bitcoin Business
Bitcoin has established itself as a fantastic investment option today. The chance to launch a successful bitcoin business utilizing the methods described above is enormous given the rising demand for and circulation of bitcoins.
I’m confident that this content has given you one or more information on How To Start A Profitable Bitcoin Business.
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