In the changing world every day, we get to learn about a new technology coming into place. As these days most people are preferring digital cash for different types of payments one of the latest and upcoming modes of payment is CRYPTOCURRENCY.
Cryptocurrency is a digital asset designed to work as an intermediate of exchange that uses well-built cryptography to protect financial transactions, control the creation of additional units, and verify the transfer of assets.
Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking system. Nowadays due to the ongoing to the trend of Cryptocurrency many people think of starting a Cryptocurrency startup. So while starting a cryptocurrency startup you should keep some essential points in your mind are:-
- SET YOUR GOAL FOR YOUR STARTUP
While starting a cryptocurrency startup you need to check whether this idea is feasible or not and if people will invest in it or not. Studying the prevailing market conditions might be a good idea to check whether there is a demand for this type of startup or not. The main motive should be to identify the problem prevailing in the market and find a solution to that problem so that the startup becomes a success. You should also get a trademark done for your startup by hiring a good trademark lawyer. Money and profits are key points of a startup but you should also keep a check what the customers want so that the startup doesn’t get negative views from the public.
- FOCUS ON THE SOURCES OF FUNDING
Opting the right kind of startup for cryptocurrency is the primary objective. You have to keep the constant eye on the market and the changing trends as it is very important in cloud mining. So that you can make a good presentation to influence investors to invest in your business. Majority of investors are VENTURE CAPITALIST and now ANGEL INVESTORS are also showing interest in these startups. The major and important source of funding is the BOOTSTRAPPING which is used during the initial stages of the startup. However, companies need to keep some extra funds as a reserve in order to hire lawyers as these kinds of startups invite a lot of scrutinies.
- HIRING KEY PEOPLE TO MAKE THE STARTUP RUN FOR A LONG TERM
A startup can only run for a long time if you have got the right people in the company who can make the startup a success. Hire those people who can stand with u the initial staged and tricky times so that the startup doesn’t end soon. You should focus on the core team which will make the startup. These core teams consist of few members but those members should be dedicated to this startup and make their startup their baby. These people will be hard to find but nothing is impossible in this world. Many people are out there waiting for you to hire them.
- UNCLEAR REGULATIONS WORLDWIDE CONFUSES THE ALREADY UNSTABLE MARKET
Many countries are creating laws for cryptocurrency but still many countries exist who don’t take cryptocurrency as legal. Formal cryptocurrency companies are also constrained by some laws. Which makes entry of startups in this line a lot harder. You just need to make sure that you invest the right amount of money into your idea and make sure that your product is in huge demand. The world of cryptocurrency keeps on evolving so you need to be very creative up to date with the knowledge of everything and identify any means to optimize the tech as you see fit.
- MAKING IT USER-FRIENDLY AND SECURE
The cryptocurrency startup should be made fraud-proof in order to attract more customers and build their trust by keeping all the transactions in a public ledger. Cryptocurrency being decentralized no government or bank has control over it. You should make sure that no theft of identity takes place that is leaking of customers bank or personal details. There should be an instant settlement and most importantly your customer should feel that he is the real owner and no one else can interfere in it.
So before starting a startup in cryptocurrency, you should keep these 5 key driving factors in mind so that you get success and you don’t have to look back ever.