6 Potential Cryptocurrency Startup Ideas for 2021
We are living in a digital world and new technologies are evolving across the globe everyday. After the tremendous growth of the first digital currency (bitcoin) most of the people started to talk about cryptocurrency. It made a huge boom in many digital markets.
Bitcoin is the most popular digital currency worldwide. Also, ethereum, ripple, litecoin, dash, EOS, and many other cryptocurrencies are available in the market now. So startups and entrepreneurs are starting various businesses based on cryptocurrency.
In this article, let us discuss the top 6 cryptocurrency business ideas for 2021 in detail.
1. Starting a Cryptocurrency Exchange:
First, you should know what is a cryptocurrency exchange platform. It is a website where users can buy and sell a wide range of cryptocurrencies in a easy and secure way. Already there are many popular crypto exchange platforms across the globe like Binance, Coinbase, Localbitcoins etc…
The owner of an exchange can charge fees for trading, withdrawing, depositing, and transferring the cryptocurrencies.
There are different kinds of exchanges available in market:
-Centralised exchange (eg. Coinbase)
-Decentralised exchange (eg. IDEX)
-Order book exchange (eg. Binance)
-Ads based exchange (eg. Localbitcoins)
Building your own crypto exchange platform is becoming the easiest cryptocurrency business in 2021. Because there are plenty of software providers who are providing ready to install exchange platforms. So without any programming or technical knowledge you can launch an exchange like this and treat it like any other business.
Few exchange software providers (ranked for pricing — higher first and lower last)
https://skalex.io
https://alphapoint.com
https://blockchainappfactory.com
https://coinsclone.com
You have to workout how you are going to launch and what are your exchange business margins and start to promote it like any other business.
One of the big benefit is, after you acquire let’s say 500 -1000 active users for your exchange website, you’ll enjoy passive income which other crypto startups cannot provide as they require active participation.
2. Cryptocurrency Crowdfunding (ICO, STO, IEO)
If you are a person looking to raise funds quickly. Then you can use the crowdfunding strategy. Investors who reach your website will give you funds for your white paper project but it should be valid. There are three types of crowdfunding strategies such as ICO, STO, and IEO.
ICO is the “Initial Coin Offering” and it is basically a website where many people will present their projects to raise funds.
STO is the “Security Token Offering”. It is the security token sale platform where only the tokens backed with the securities will takes place. So there will be no scammed tokens.
IEO is the “Initial Exchange Offering” and it is a module enabled in many exchange platforms. in this the projects will be verified by the separate team to avoid the fake projects.
So you can choose any one of these strategies to start your crowdfunding business. But my choice for starters, would be to start an exchange platform with IEO feature by using the softwares mentioned above to earn passive profits.
Most of the exchange software companies mentioned above will also provide ICO, STO and IEO Services.
3. Creating a Cryptocurrency Wallet:
Crypto wallet is used to store and securely receive the cryptocurrencies.
Few examples are www.blockchain.com or www.bitgo.com or www.bitcoin.com
Hot wallets and Cold wallets are two types of wallet storage used by consumers and also in major exchanges. The hot wallet is an online storage and the cold wallet is offline storage. Some of the crypto traders use cold wallets for secure transactions and some use hot wallet for its simplicity and instant availability. (Most of the traders will use both)
There are five types of crypto wallets in the marketplace
-Mobile wallet
-Desktop wallet
-Hardware wallet
-Paper wallet
-Web wallet
You can launch your cryptocurrency wallet service like www.blockchain.com but this is not preferable, because there are plenty of competition and taking into consideration the security risks when you scale it to 1000 or 2000 customers with very small profit margins.
Other alternate i would suggest is:
There are plenty of open source code projects available to explore. If you have programming knowledge you can develop crypto wallet for the people who need customised wallets and you can charge fees for developing. Also, you can charge fees for each successful crypto transactions.
4. Cryptocurrency Lending:
Cryptocurrency lending is a byproduct business born from crypto holding and trading.
If you are a crypto expert in the cryptocurrency communities and receiving a regular flow of cryptos from the various resources. Then you can lend your bitcoin or other cryptocurrencies to the users with fixed interest rate.
Cryptocurrency is used in many ways in the global market as a token, payment, investment, for exchange, and so on. It has wide use cases in the crypto industry, so there will be a need for cryptos. So you can lend cryptocurrencies to various users and you can earn more profits in a short period.
This is more like short term lending by credit card providers and your margin is the interest charged. This type of business is only possible for someone who either have lot of cryptocurrency holdings as investment or someone who is already in a business where the flow of crypto is in decent volume.
5.Cryptocurrency Escrow Business:
Starting a cryptocurrency escrow business is the oldest business idea in the crypto market.
It allows the users to exchange various cryptos and other digital products and services with the presence of an escrow admin. (Similar to www.escrow.com)
The escrow admin will act as a mediator for these transactions and take care of the crypto transactions and settlements.
Also, there will be a unique private key for each transaction, so there will not be the possibility for hacking and scam attacks.
You can start this type of business by launching a crypto-escrow enabled services website or mobile app.
6.Online Gambling Platform with Smart Contracts:
It is one of the trending business in the crypto industry. There are many online betting and gambling games in websites and mobile apps.
Gambling with the cryptocurrencies is more secured, fast, and trustable than traditional online gambling. Every transaction happening in the online gambling is recorded through the smart contract.
But this is a very new trend and you have to develop websites and mobile apps that are graphically intensive to make the user experience as good.
But if you into it and would like the idea there are plenty of online gambling and betting sites for you to explore and then jot down what are the games you are going to develop and also your business model.
You can enquire the exchange software companies mentioned in the above section, but i doubt they can develop it as their expertise seems Exchange, ICO and Wallet development.
In that case, you have to approach a good software developer or a company to develop this platform as it will take time to develop.
Final Thoughts:
These are few ideas out of lots of unique ideas emerging in this market space.
But you have a choose a startup idea keeping in mind, the technological feasibility and easy market adaptability without the need for spending a lot on marketing.
You should also research the market and competition before starting any type of business.
In my opinion, if you want a quick start in somewhat of a matured market, you can start your own cryptocurrency exchange business.
I hope this article will help you to start an extraordinary crypto business in 2021.
Good Luck!!!
