Here's a solid foundation to get you started if you're thinking about starting a cryptocurrency business. It will also assist in defining how to write a cryptocurrency pitch deck that gets your business idea funded. We'll start with a few common questions and their answers to make sure you start on the right foot. And we'll then give you the best 5 tips on starting a cryptocurrency business. Let's jump right into the basics of cryptocurrency companies.
In very basic terms, cryptocurrency can be thought of as virtual money. When we speak of what most like to call "crypto" for shorter, we're talking of a digital currency secured by cryptography. This last word gives this means of exchange its name.
A couple of examples of it are Bitcoin and Ether. You might have heard of these the most, but there are many others.
Cryptocurrency isn't issued by a bank or central authority. It's simply distributed across a network of computers, so it's immune to government control, let's say. You can still transfer it online or through a regular bank, however.
Cryptography is a way to secure transactions and control any new currency units. Basically, a blockchain is used as distributed ledger technology. Still, we won't get to a complicated explanation of how cryptography works at a technical level. This kind of encoding basically ensures the integrity of transactional data. And it makes it extremely difficult for cryptocurrency to be double-spent.
There are different ways to get a hold of cryptocurrency. The standard option is buying some through a credit card. Yet, miners can also get their hands on tokens by solving cryptographic puzzles. And some video games will exchange hours of play for cryptocurrency, as well, for example.
It's possible to create your own virtual coin to then build upon it, yes. However, you should know that crypto is a trending topic. Many people want to follow BitCoin's footsteps to make tons of money.
On how to start a cryptocurrency business, we'll start off by affirming that crypto sounds like a perfect solution to a profitable investment. That's especially the case in this ever-expanding digital era. However, we also need to warn you that opinions are split on the profitability of it. Take a serious look at the market before you rush into any decisions.
To answer this question, we'll move on to the best 5 tips on starting a cryptocurrency business:
1. Come up with your business plan
We're not suggesting you sit down and produce a 40-page document that describes your SWOT formally and in detail. We don't really stand behind business plans per se. Yet, just like any business, you need to consider your potential company's workings before you start one.
For example, start by researching all relevant and related costs and expenses. Do the same on your target market. You might already have this but think of your company name, too. As you do that, check if the options that attract you are available. Finally, and if you can, start thinking about possible business models.
These are just examples of what should be your standard food for thought on starting any business. You'll need to have these and many other aspects defined and studied as you hit diverse stages of your startup. But it's good practice to start thinking about all the operational elements to your business as an initial step. Our CEO's 12-minute video on how to start a business in 2020 can be of great help to you in this sense.
2. Put a winning team together
Valuable teams are critical to the success of any startup. Having a fabulous team behind a strong business idea can even get you funded when you have little else going. But a cryptocurrency business needs strong cybersecurity, also.
The above aspect should have you thinking of programmers, technology, and processing partners that don't kill you with fees. An exchange turnkey is a viable solution if you're bootstrapping your way to your company's starting stages. Yet, you might also choose to use a broker.
You'll need the best support you can get in terms of legal and marketing. And we'll expand on legal concerns next.
3. Get and keep legal advice
You'll basically be faced with the decision to start your cryptocurrency business from scratch or going with something more ready-made. In either case, you'll need to comply with all applicable laws and regulations. And those vary depending on your location. They also depend on where your customers and business partners are located when they exchange your currency. And there are licensing requirements to meet.
To navigate your legal duties, find the best legal advice you can get. Then keep excellent standing relations with these people.
4. Find funding
Almost every small business needs it. And your company might be no exception. On this note, bear in mind how we described costs on technology and encoding, hosting, legal counsel, registration, marketing, and more.
The bottom line is that starting a business, even a cryptocurrency one, isn't cheap. You need to set up and sustain that exchange when it comes to dealing with crypto, too. So spend considerable time figuring out exactly how to write a cryptocurrency pitch deck that gets your business idea funded. We'll expand on this below to help you raise venture capital.
5. Start marketing
Here's something that works a bit differently in cryptocurrency businesses than those of other kinds. When it comes to marketing in this niche, you'll need to target miners as much as merchants. These go on top of anyone already using your cryptocurrency, of course.
Create marketing strategies aimed at miners that get them to solve equations. And reward them for their efforts. Funnel merchants, also, for people to be able to spend your digital currencies with them.
Do marketing in a way that shows your uniqueness. And stress how it's entirely safe to use. You can win audiences over by assuring them many people will use your currency. For that, you need to work at capturing a sizable market.
Free social media advertisement might help at first. But consider setting funds aside or getting funding to cover marketing costs, at least until you have a solid mass of traders.
If it helps, transparency and quick and reliable support can help get customers and keep them coming back to use your currency.
Let's move on to cryptocurrency pitch decks. First, we need to recommend our cryptocurrency business template. We do that because we know we made it considering all the startup pitch deck must-haves, and tailored it to the specific scenario of cryptocurrency businesses. It should adequately accommodate your needs, whether you're planning on creating an exchange platform, mining, or building a wallet.
Using this template will align all you need to think about when pitching a cryptocurrency business, too. As such, you'll find a starting problem and solution slide along with one devoted to your product details. These are followed by another one on its core features.
Furthermore, there's room in it for all the areas we mentioned in our tips. The template makes it easy to include a business model description and a definition of your go-to-market strategy. Yet, it also incorporates your competitive landscape and an excellent presentation on your stellar team. Followed by your financials, it wraps up with an explicit mention of your fundraising goals.
Rely on this free cryptocurrency business template for PDF download or online use or refer to any other resource. Yet, we primarily recommend you spend time, effort, and resources into a compelling pitch deck that gets your cryptocurrency business funded. If you can afford it, however, we highly advise you to look into presentation design and consulting services. We, of course, also offer those right here at Slidebean. Check it out to find out more!