The cryptocurrency market has grown exponentially within the past few years and has won over many investors and traders. While it is an unstable market, many investors have seen high levels of profits after being in the market for some time.
Experts predict that the growth will only grow in the coming years, with a projected worth of approximately $1.75 by 2027. If the successes in cryptocurrency have given you the idea to start a cryptocurrency business, here are the key steps to follow to ensure you have a successful crypto business.
Plan your business
Like any other business, planning your cryptocurrency business helps you mark out your business’ specifics and learn certain unknowns.
When planning your business, the first thing you need to determine is the costs involved and the recurring expenses. You need to ensure that you have money to start the business and run it for almost the next six months.
You also need to determine who your target market is to know how best to meet their needs and make it easy to access your business. Your target market can be any defined community that uses peer-to-peer currency.
Other important things you need to look into include how your cryptocurrency business will make money, how you can make the business more profitable, how much you will charge your customers, and the name of your business.
Form a legal entity
The business structures you can choose from include corporation, Limited Liability Company, partnership, and sole proprietorship.
If you make your business into a legal business entity like a limited liability company or corporation, that gives you limited liabilities, which means that you are independent of any losses the business might run into, and you are not held responsible if somebody sues the company.
You can form a limited liability company yourself, hire LLC services, or pay minimal state LLC costs.
Register for taxes
You must apply for an EIN to register for the different federal and state taxes before officially opening your business. Your business will be taxed depending on the business structure you choose to adopt.
Open a bank account and credit card for the business
Having credit and bank accounts for your business is key in protecting your personal assets. Mixing your business and personal accounts puts your assets at risk if somebody sues the business.
You should also learn how to build your business credit for more financing options, higher lines of credit, and better interest rates.
Set up business accounting
It would help to record the business’s expenses and income sources to help you keep track and understand its financial performance. It also helps in simplifying annual tax filings.
Obtain necessary permits and licenses
Operating your business without the required licenses and permits could result in fines or closure of your business. Visit the state and local websites to see all the permits you should acquire and start the process early to ensure it doesn’t delay your business launch.
Get insurance
Business insurance protects your business from different losses depending on the type of insurance you get. The most common types are general liability insurance and worker’s compensation insurance, then you can take others as your business grows.
Define the brand
Your brand shows what your business stands for and determines how customers view your business. Having a strong brand will give you a competitive advantage against competitors. For a stronger brand, ensure transparency, unique features, and good customer engagement.
Create a website and phone system
Websites are an effective way for new and repeat customers to learn about your brand and the services that you offer. It also assures customers that the business is legit. A phone system also makes it easier for clients to contact you and helps separate your personal and business lives.
As a cryptocurrency business owner, you must stay updated on the price changes in different cryptocurrencies, and https://www.okx.com/markets/prices is one of the best sites.
