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The Process of starting a bitcoin business

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Bitcoin often referred to as the “new kind of currency” which is not physical in appearance but set up virtually. Bitcoin in the recent times has been the most impactful innovation a mankind is witnessing.

There are currently hundreds of cryptocurrency in the market and Bitcoin being the first one, encounters for most of the market capitalization in this industry. Bitcoin is a worldwide currency which is accepted by companies as a mode of transactions.

And it is said that people who have either mined it or invested in it since its inception are sitting on a fortune.

Bitcoin is said to be developed by an anonymous person or a group of people calling themselves as “Satoshi Nakamoto”. Bitcoin is an open-source software and is easily accessible by any users by just using an email address and internet connection.

How does a Bitcoin work?

Users on the internet transfer files or bitcoins to other users on a single network. Here there is no involvement of bank and making users from worldwide to trade with a single currency with considering the fiat currencies(dollars, rupees, euros etc)

And to make a bitcoin business work, you need a bitcoin exchange script as it helps in securing the transactions placed by your users.

How is Bitcoin valued?

Unlike the real money, bitcoins are completely decentralized making them operate without intermediaries like financial institutions and government.

Bitcoins value entirely relies on how many businesses accept it and as it used worldwide the fluctuations in its price are bound to happen.

 

Have a look at some of the benefits of a cryptocurrency payment option:

Quick transactions: Bitcoins is traded over the internet instantly which allows having quick buying and selling of currencies.

Internationally Accepted: Bitcoins are used around the world and many e-commerce sites have started to accept this mode of payment.

Tracking of transactions: for every transaction, you make with Bitcoin, the network tracks and logs it.

Also read, China Is Warming Up To Bitcoin Again

How to start a Bitcoin Business:

Legal Requirements

The first and essential thing is to seek legal documentation to get started a business like this. The appropriate license has to be attained in all the jurisdictions where the company is looking to operate. There are countries which have accepted this payment system and then there are some which have a complete ban on it.  Adhere to Know your Customer rules and regulations of the location, which help in prevention cases such as money laundering.

Technology Solution Provider

Search for a provider who can provide resources for custom exchanges, some solution providers charge a one-time license fee. A technology solution provider will let you host the exchange and receive source codes, these codes are important for auditing purposes.

Opt for a white label source code as it allows customization of custom-build exchange which saves time when putting for marketing.

Partner with Payment Processor

To make the payment process easier you have to partner with a company that satisfies the payment aspects of the business. Your business depends highly on the transaction rates you offer to your users in order to stay competitive in this industry.

There are processors which include hidden fees in their contract, so take necessary steps in understanding them before signing the contract. The processors you choose should comply with the set of practices that guarantee cyber security called PCI DSS.

Also read, Bitcoin Is The New Rock And Roll

 Start with Beta testing

Once you have your exchange built and set up a contract with the best payment processor. And you have done enough to protect your bitcoin business from the rise of cybercrime.

The time has come before going live to the users, try it out by testing it features via beta testing.

The Real Business- Marketing and PR Campaign

Once you are satisfied with the beta testing now it is the time to start promoting your company by performing and planning the marketing activities. Marketing is very much important as it helps in garnering audience and users into your platform.

Include marketing in your budget as most of the companies do not intend on doing that, try spending less time marketing on social media sites. The promotions on social sites not only grab the interests of users but also many competitors will try on enforcing the idea of your business.

Have a better idea or process on how to start a bitcoin business? Write to us in the comments section below.

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